When should you outsource your back office?

What is Back Office?

‘Back Office’ is a phrase regularly used in the world of business. What does it mean and how does it impact you as a recruitment agency?

  • Traditionally, ‘Back Office’ referred to non-public facing administrative roles performed in the back section of office spaces. Front-office staff carried out public/client-facing roles.

  • Nowadays, ‘Back Office’ typically refers to the non public-facing jobs on which a business operates.

Back office tasks are essential to any agency. They are the everyday processes that ensure the smooth running of the agency and do not directly generate income but which are essential.

These tasks are especially crucial in industries with significant people and compliance management processes and/or a high number of transactions to process - so where you will be accepting and fulfilling orders, processing contract documents, invoicing and making payroll on a weekly basis. The temporary recruitment sector is typical of this.

 

Outsourcing your back office to the right third party will:

  • Maximise your earnings from day one, freeing up time and money for reinvestment and sales work.

  • Ensure that all back office tasks are completed in an efficient manner, reflecting the professionalism of your agency.

  • Ensure that you offer a high and consistent level of customer service to your clients and candidates, helping to build your reputation. 

  • Ensure that complex tasks connected to payroll, credit control and compliance will be handled by experts.

  • Streamline your administrative tasks while keeping you compliant.

  • Reduce the risk of human error as you will not be reliant upon the skills of one person or a small team.

  • Eliminate the need to invest time and money in recruiting and training staff to fulfill varied administrative roles.

  • Give you access to detailed reporting. 

  • Provide the reassurance that your administrative tasks are handled securely with advanced technology and software. The responsibility of maintaining the most up-to-date software for your administrative tasks rests with your provider who should invest in upgrading their software to provide the most efficient and secure services.

  • Future proof your business growth. 

 

When to outsource...

You can outsource your back office at any time. Doing so from the outset has the benefit of ensuring you have efficient processes in place from the start, giving your agency a greater chance of success with a highly professional and competitive edge.

The best back office providers will have pricing models and contract terms that grow with you - no big upfront costs (if any!) to set it up and a transaction based ‘pay as you go’ solution.

If you haven’t outsourced from the outset, do not panic, you can at any point. There are multiple reasons why a business makes the move to outsourcing, such as if you:

  • Are struggling to find staff with the requisite skills to fulfill varied back office tasks and do not wish to spend time and money on training.

  • Do not have the requisite office space to comfortably accommodate back office staff and the necessary equipment needed for them.

  • Feel too much of your time and energy is going into managing back office responsibilities instead of acquiring new contracts and sales.

  • Experience a period of sudden growth that you and your staff cannot manage efficiently.

  • Are making mistakes with your back office tasks. Mistakes associated with compliance and payroll can be especially costly both in terms of money and reputation.

A provider specialising in the recruitment sector will have excellent knowledge of the industry and its complexities, such as issues associated with credit control and compliance. The best specialist partners provide Back Office services with software that includes::
  • Candidate bookings
  • Customisable electronic timesheets
  • Invoice production and despatch
  • Eligibility checks 
  • Management reporting
  • Payroll Processing and Export
  • AWR Tracking and Reporting to manage Compliance
  • Credit Control
 

 

To find out more about outsourcing your back office support services...

Download our Back Office eBook