Releasing the potential for growth
Technology has proved transformative to the recruitment industry, with its benefits most strongly felt by recruiters managing high volumes of temporary and contract workers.
Technology allows agencies to work faster, more efficiently, and with greater precision. Previously, the focus of recruitment technology – ‘RecTech’ – was on streamlining operations; however, now it’s also about providing better experiences for both clients and candidates.
The right technologies increase efficiency and improve market traction, driving profitability. For agencies with ambitions for growth, the case for technology is truly compelling.
Sticking with legacy processes?
There are drawbacks to using outdated systems and manual processes to manage agency-supplied workers. Back office agency operations revolve around managing a large number of short-term assignments and contracts across various projects for multiple clients.
Key processes include timely and accurate invoicing and payments, as well as maintaining compliance with tax regulations and employment regulations, often a significant burden.
At scale, this often means back office operations are labour intensive, and ensuring that all the tasks are completed by deadlines may be a bit of a race, especially where workers are paid weekly.
Adhering to time-consuming manual methods enshrines inefficiency, slowing down the tempo, inviting errors and inaccuracy, creating unnecessary costs. Ultimately, this undermines profitability and the potential for growth.
Understanding how technology helps
Using RecTech solutions that are purpose-built to tackle recruitment back office tasks helps agencies specialising in temp and contract staffing to meet their challenges.
- Automated timesheet management – Using a technology solution for timesheet management for tracking hours worked ensures accuracy and correct billing to clients and timely payments to workers. Automation technology simplifies the process, while reducing errors and administrative workload.
- Streamlined invoicing processes – Efficient invoicing is crucial for cash flow and financial health. Timesheet data is used to generate and issue invoices. Automated invoicing systems help avoid manual errors, ensure timely billing, and allow for easy tracking of payments.
- Efficient payroll solutions – Making timely payments is a pivotal element in building trust and retaining workers. Automated payroll systems help manage complex payment structures, taxes, and benefits efficiently, while minimising errors.
- Compliance and reporting tools – Demonstrating compliance with employment law, tax regulations, and industry-specific standards is a necessity. Automated compliance reporting tools track, store, and audit the necessary documents and data, helping agencies avoid costly penalties and legal issues.
Integrating complementary RecTech
There is also an array of RecTech that is used to manage search and selection and for ongoing candidate management. This includes online platforms and tools for:
- Applicant tracking systems (ATS)
- Customer Relationship Management (CRM)
- Talent Relationship Management (TRM)
- Video interviewing
- Skills assessment and testing
- Onboarding
Where it is appropriate, integrating recruitment search and selection digital tools with back-office software lets agencies create a unified platform – a ‘RecTech stack’ where front-end recruitment seamlessly connects with back-end operations.
This provides the means to enhance every facet of operations, from sourcing, selection and hiring, right through to providing better experiences for both clients and candidates.
Getting started with leveraging RecTech for growth
Technology adoption is very much a strategic move, and as such, it should be undertaken as part of the overall plan for a recruitment business. Here are some practical steps for a recruitment agency to get started with choosing the right RecTech solutions to scale and leverage technology for growth:
- Assess your needs and challenges
- Define business goals
- Identify processes for automation
- Involve key stakeholders
- Research and engage with RecTech solution providers
Find out more in the blog ‘4 Considerations for Making New Technology Decisions in your Recruitment Agency’.
Maximising the benefit of technology investment
With such a large strategic dimension attached to technology investment, making buying decisions based on lowest cost is unwise. Two clear threads that emerge from any cost/benefit analysis are:
- Return on investment – The true value – return on investment (ROI) – is only determined over time. Consequently, it is essential to consider the expected long term benefits, to truly understand the value returned.
- Quality management – Maximising the benefit requires continual improvement and adaptation. Tracking key performance indicators (KPIs) and making continual adjustments helps ensure technology is delivering measurable business results and optimising recruitment processes.
Leverage the growth of your agency with ETZ
There will always be an emphasis on visionary leadership, skilled people management and great deal-making; however, it is more than likely that the recruitment businesses that truly excel will be those that are the most progressive and innovative in leveraging technology to drive business growth.
ETZ’s leading recruitment back office software solution streamlines the back office processing of your recruitment agency. Our complementary solutions to our leading timesheet and invoicing solution, are ETZ Comply for onboarding and document management, and Caspian for business intelligence. These give agencies further capability to streamline and uncover opportunities.
To find out more call us on 0800 311 2266 or book a demo.
