How to Explain Outsourcing Your Back Office to Clients

Outsourcing (also sometimes referred to as “contracting out”) is a business practice used by all companies to reduce costs or improve efficiency by shifting tasks, operations, jobs or processes to an external contracted third party for a significant period of time. The functions that are contracted out can be performed by the third party either onsite or offsite of the business.

Outsourcing can free up cash, personnel, facilities and time resources for a staffing firm. It can result in cost savings from lower labor costs, taxes, energy costs and reductions in the cost of services. In addition to cost savings, a staffing firm may also employ an outsourcing strategy in order to focus on its core business competencies. This allows the company to devote more resources to client development and candidate sourcing, which can improve efficiency and increase its competitiveness. A company may also choose to outsource in order to avoid government regulations or mandates, such as environmental regulations or safety regulations and requirements.

The ‘non-core’ functions of recruiting and staffing services, which includes back office services, should be outsourced to a back office organization for whom that function is their core business competency, further benefiting the business through the improved management of those functions. The right back office partner will handle your full back office requirements from A to Z including employer of record, payroll services, funding, onboarding, benefits, reporting, etc. Your back office partner will remove the financial risk, liability and headache of running full back office services. This solution should be delivered under your company branding by a trusted back office provider with decades in the industry.

Recruiting and staffing firms are hired to find the best candidates for client companies and to do so in the shortest amount of time possible with little to no headache on the part of the client. This is why they pay fees ranging from 20% to 30% of the first year’s compensation. But do to the high demand and complex nature of contract staffing, it’s important that recruiting and staffing firms have a reliable go to partner to handle your back office solution for your clients under your companies brand.

Do not be concerned about how you will explain your back-office partner to your client companies. Like you, they utilize outsourcing in their own business to run more efficiently therefore this concept will never fall on deaf ears. Simply explain to your company client that your staffing firm utilizes a back office partner who’s core competency is devoted to running back offices services for your firm and who is exclusive to the recruiting and staffing industry. Let them know that you will remain their main point of contact for all their recruiting and staffing needs.

The right back office partner will work seamlessly with your recruiting and staffing business utilizing a recruiter centric approach that will allow you to maintain full control and identity in the eyes of your company clients.

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