Staffing Industry Competiton: Get Ahead with FactoringPosted by Factor Funding Co. on March 1, 2016
The demand for temporary and contingent workers continues to boom. And that trend does not appear to be slowing down anytime soon. Many new staffing agencies have emerged due to this growing demand. With so much competition, every agency has to work hard to win a client and work even harder to retain that client.
Factoring is one way you can differentiate your agency from the competition. It gives you the flexibility and stability to thrive in this high-demand industry.
Ways to Stand Out From Your Competition
How can you make your agency stand out from the many others in your marketplace?
- Focus on building long-lasting relationships. For your agency to grow and thrive, you need clients that will come back to you as their staffing needs change. You need to build personal relationships with clients and be able to meet their needs quickly.
- Hold regular meetings with your clients to review the performance of your agency and your employees. Getting feedback, and acting on it, helps build a good relationship with your clients while improving the services you provide.
- Handle some or all of orientation for your employee starting his or her first day at the client. This makes it possible to get your employee up to speed quickly for the job. It also takes some of the burden off your client.
- Offer training and certification opportunities for your agency's employees. While this will cost money in the short-term, it will pay off in the long run. You will get better fees from clients. You will also get clients coming back because they know the staff you place are well-trained and highly qualified.
- Host a client gathering three or four times a year to discuss managing contingent workforces. This is an opportunity for your clients to gain knowledge and make connections. It is also a place where you can showcase the type of talent you have on the payroll.
- Focus your advertising on your specific niche. This is especially effective in markets where niche employment needs are high. Getting your agency out in front is the way to keep the competition at bay.
Factoring and Staying Ahead of the Competition
Those are just a few ideas that you can use to make your agency stand out from the competition. However, you may be thinking "Where do I get the money to do all that?" The answer is accounts receivable funding.
Factoring allows you to free up cash that is already owed to your agency. You can use that cash as you see fit. You can host a quarterly gathering. You can set up a training course or pay for a certification course for some of your employees. You can set up an orientation program for new employees at your major client.
With factoring, you are not taking on additional debt, as you would be with a bank loan. The money in your accounts receivable is already owed to you by clients. It is money that would be paid to you in a few weeks anyway. Factoring allows you to get an inflow of cash when you need it, instead of waiting until your clients pay their invoices.
Selling your invoices to a factor will get you an infusion of cash in 48 hours or less. That money is yours to spend as you need. It offers you the flexibility necessary to hire new employees, buy a new advertising campaign, host gatherings, pay for training, and anything else you might need.
If your agency is trying to stand out from the competition, factoring is one way you can succeed. It provides you with the funding you need when you need it. And that gives you the flexibility and stability you need to outshine other agencies in your marketplace.