One of the best ways to drive profits for your staffing firm is by working with Madison Resources. We provide the tools and support you need to know your market, manage costs, and improve focus. Combined with the following strategies, our payroll funding, technology, back-office support, and business intelligence let you maximize your profitability.
Discover four effective strategies to drive profits for your staffing firm.
1. Keep Your Customers Happy
Know your business and customers so well that you anticipate their needs before they do. For instance, understand each customer’s cycles, including when they should and should not be busy. Similarly, study the market to uncover trends and potential demands. Use this information to present candidates with a specialized skill set before your customers ask for them. Have other qualified talent ready to place as well. Also, when you anticipate a problem coming up, call your customer to talk about it. Work together to find a solution. Additionally, standardize your systems to increase efficiency. Find out what works and build a process around it.
2. Manage Costs
Keep your expenses as low as possible. For instance, know what the market will bear so you pay employees and charge customers enough to maintain reasonable margins. By understanding your staffing firm’s worth, you can charge for the value you deliver. Also, study every line of your profit and loss report each month to see where you lose margin. Be sure you pay attention to small costs that can be reduced or eliminated. Additionally, closely watch your worker’s compensation claims. Be sure to investigate every incident and commit to improving safety. Plus, focus on customer relationships. Customer acquisition costs are high, so maximize your relationships for long-term success.
3. Understand Your Market
Learn all you can about your market so you can better serve them. For instance, adjust your service delivery methodology based on the sector. After all, each needs an individual approach to incentivizing and staffing. To illustrate, if you provide light industrial staffing, focus on training and safety to lower downtime and workers’ compensation claims. Or, if you serve the IT industry, the value you provide by filling the skills gap needs to be reflected in your pricing. Also, know who your competitors are. The pricing you can achieve dramatically varies if your customers also use other staffing firms.
4. Improve Focus
Focus on improving your core skills and leave the rest to the experts. For instance, prioritize what you are good at and which skill sets your staffing firm focuses on. Also, use your strengths to focus on your customers’ hot buttons and resolve their pain points. Additionally, outsource your back-office tasks so you can devote more time to revenue drivers.