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Outsourcing back office operations can be a game changer for recruitment agencies


Outsourcing back office operations can be a game changer for recruitment agencies

The back office function is a key component to any recruitment agency; the database management, candidate compliance, CV processing, managing timesheets and payroll processing, they are all essential. But while managing the back office operation is a necessity to maintain a profitable business and keep it working successfully, it should not tie up the employees of a recruitment agency so much so that they cannot focus on the core business activities.

According to the research conducted by Hitachi Capital Invoice Finance, 63% of business owners and managing directors from the recruitment industry think that the back office and admin job is one of the most time-consuming tasks, and they find it difficult to balance their time to focus on core competencies of a business. As per the report, those agencies that outsource such requirements and focus on the core business are likely to be more successful.

The potential growth of recruitment firms is being hampered by a lack of investment in back office functions”, said John Atkinson, head of commercial business at Hitachi Capital Invoice Finance.

A lack of proper back-office systems and processes coupled with insufficient staff will restrict the growth of a recruitment agency. Outsourcing the back office operations to an organisation that has the skills and expertise to manage all those non-core but essential activities, and also allows recruitment agencies to re-focus on growing their business can be a game changer and mean the difference between profitable success and failure.

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