Why finding the right growth partner is so important…
The year 2022 was a significant moment in the UK recruitment industry. Despite a tumultuous socioeconomic and political environment, the sector again displayed its resilience, with another year of robust activity. Acute skill shortages and candidate scarcity fueled significant recruiting demand. The UK recruitment market has demonstrated resilience throughout the economic cycle, which will help the sector’s prospects in the next year. Recruitment has become a success story; like most success stories, its achievements result from collaborations. Let’s look at why finding the right growth partner is so important.
As a business, we have been in the fortunate position to work with some of the most promising and fastest-growing recruitment businesses in the country. Binding each of these businesses together is their ability to recognise that their strengths lie in working on the business rather than in it.
In other words, they don’t attempt to be a Jack-of-all-Trades by taking on the responsibility of every day-to-day tasks. Indeed, they value their time as a precious commodity and would rather focus on it by playing to their core strengths – selling and growing their businesses.
So rather than spend their days managing payroll, raising and chasing invoices, ensuring they remain compliant, juggling cash flow and all other essential yet time-consuming activities, they delegate responsibility to specialist recruitment finance and back-office providers such as Simplicity.
But doing so isn’t just a matter of saving time and spending more chasing new business. It is also about protecting your business and ensuring you can manage larger contracts as they come in.
Perhaps the greatest concern that all recruitment business owners face is knowing they have the cash flow to hand to pay their workers (and their own staff) on time, every time. Unfortunately, missing payments is not an option, and as your business grows, the risk of this happening can increase.
For instance, suppose you win a contract to supply 1, 10, 20, or as many as 200 or more temporary workers starting next week. You would be right to get excited by what this means regarding your growth plans. However, if there is no guarantee of the funds being available each week to ensure everyone gets paid, the implications this could have on your business are not worth considering.
Our experience has shown that a client’s average time to pay their invoice is 60 to 70 days. So if you need to supply staff tomorrow or next week, do you have enough in reserve to cover your costs? What impact would a delay in funds clearing your account have on the speed by which your agency can grow?
That’s where Simplicity’s recruitment finance solution comes into play. Rather than waiting 60 or more days to receive payment from your clients, we provide you with access to your margin every Friday.
At a time when recruiters have never had it so good, and the prospects for the industry are so bright, the collaboration between an agency and a key growth partner like Simplicity is the obvious solution for those businesses with their sights firmly fixed on growth.
Growth will still happen even without these partnerships, but the speed at which it takes place will be slower and primarily out of your control. Wouldn’t you prefer to grow at the right pace for you?
Simplicity is here to help
For more information on how Simplicity can help you grow your recruitment business, get in contact today; call 01594 888518 or email firstname.lastname@example.org to speak to one of our experts today.
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Editors note: This post was originally published on 1st May 2018 and has been completely revamped and updated for accuracy and comprehensiveness.
Read our latest blog on how to reduce debtor days and focus on agency growth now.