Your margins measure your staffing firm’s profitability. Because you need money to maintain operations, monitoring your margins is important. This shows the health of your business and whether it can grow. For this reason, you need to create the best margins possible to make the most money and expand your business.
Here are three ways to increase your staffing firm’s margins in any economy.
Reduce Duplicate Expenditures
Get duplicate expenditures as close to zero as possible. Be sure your master vendor file remains updated at all times. Rotate among your staff members the task of regularly looking for spelling errors, missing information, and repeat entries. Make sure everyone managing the file follows the same formatting guidelines and rules. Remind employees not to submit the same check request twice. Discuss the importance of waiting to receive the orders and expenses they need and the consequences of submitting a second check request. Have one method for invoice submissions and one method for payments for each vendor. Work with your head of Purchasing to be sure details of invoice and payment delivery are included in vendor contract terms to maintain uniformity. When going through a software upgrade, process change, merger, acquisition, or other transition, ensure vendor information gets recorded once and invoices get paid once.
Reengage Past Customers and Candidates
Go through your applicant tracking system (ATS) and customer relationship management (CRM) system to reconnect with past customers and candidates. Be sure to make multiple points of contact with decision makers in each company. In case one decisionmaker leaves, you still have existing relationships within the organization. Learn all you can about upcoming rounds of hiring and firing, mergers or acquisitions, installed technologies, and other areas that may require additional staffing. Find out what each company’s pain points are and how you can resolve them. Reengage with candidates who turned down an opportunity with your staffing firm or weren’t the right fit at the time. Contact contractors who were placed with your firm but you haven’t heard from lately. Reach out to previous top performers who filled in-demand roles and delivered exceptional results. Take advantage of cutting-edge ATS and CRM technology from Madison Resources to make the most of managing your customer and candidate relationships.
Align your Budget with Strategic Funding
Match your staffing firm’s goals and budget with a funding partner to execute your strategic plan. Set your goals and objectives. Determine how much capital you have to work with and how much you need. Allocate the appropriate amount to production, marketing, and operations. Talk with Madison Resources about obtaining additional funds through payroll funding.
Build Better Margins with Madison Resources
Build better margins by partnering with Madison Resources. Our payroll funding, back-office services, technology, and business intelligence let you increase revenue and grow your staffing firm. Get started with us today.