Inflation is already a headline story across the globe. The official inflation rates worldwide have been rising consistently over the last two months, causing huge concerns amongst the business community. Australia reported an official inflation rate of 5.1% for the March 2022 quarter. Similarly, inflation in Europe hit a record high at 8.1% in May 2022 and inflation in the US in April 2022 rose 8.3% from a year before. The alarming situation has led most businesses to rethink their strategy and find ways to combat the effects of inflation.
The volatile labor market, mass resignations, rampant talent shortage, and the turbulent economic environment have further worsened the situation for the recruitment industry. It is important for recruitment agencies and staffing firms to take adequate measures to protect their business in times of inflation. Here are three strategies to help your recruitment agency prepare against uncertainty, inflation, and recession.
3 Ways to Secure Your Staffing Business from Inflation and Recession
Knowledge and planning are crucial to withstand the impact of inflation. Despite their best efforts, recruitment and staffing companies find it more challenging to stay competitive, given the increasing costs and supply-side labor shortages. Outsourcing and automation will play a key role in protecting your recruitment agency’s business through this period of inflation and recession. Combat inflation in the following three ways and prepare your business against difficult times.
Outsourcing is one of the most effective ways to mitigate the adverse effects of inflation on your business. Outsourcing helps to save costs by reducing the need to hire additional staff and is the easiest way to automate the manual process to improve efficiency. RPO service providers offer a flat rate for their recruitment outsourcing services allowing staffing agencies to manage their overhead costs. It also helps your team to save time and focus on their core business initiative and strategies.
Quality recruitment outsourcing providers can implement strategies to increase the operational efficiencies of your staffing agencies and deliver scalable workforce solutions. Smarter resourcing strategies result in cost savings and mitigate the negative impact of inflation. The key roles recruitment and staffing agencies can outsource:
Administrative Tasks– Outsourcing administrative tasks or back-office functions is a cost-effective and reliable way to overcome talent shortages. Administrative processes can be completed digitally in a more streamlined manner with the help of outsourced services. Outsourcing back-office operations leaves key personnel focused on core business activities, and lets specialists manage your business’s administrative functions. It can be of great help if you consider expanding during inflationary times.
Payroll, Accounting & Finance – Referred to as the F&A process, the accounting, payroll and finance tasks require a lot of expertise and time. Your in-house team needs to stay updated with compliance regulations, be skilled and proficient in using the latest technology and dedicate a lot of time to performing regular tasks such as the payroll function. Payroll management platforms and accounting functions are now performed using cloud-based technology and can be easily outsourced to offshore experts. F&A process outsourcing will give your business the advantage of getting a highly qualified talent pool to work for you and deliver on time, saving your business money and resources during inflation.
Front Office Tasks– Recruitment outsourcing companies provide flexible, cost-effective solutions for recruitment agencies’ front-office functions. Compliance, CV sourcing, talent sourcing, out-of-hours support, and full cycle recruiting require agility, flexibility, and capability to gain rapid scalability. Offshore RPO can provide the support recruitment agencies need to safeguard their business against inflation in this turbulent business environment.
Businesses need to leverage technology to cut costs during the inflation period. Many recruitment agencies cannot automate their manual processes due to a lack of knowledge and expertise in recruiting technology. An outsourcing partner can help your business adopt full tech solutions to carry out business processes faster and more easily. Simple digital solutions can protect your business from inflation by reducing maintenance costs and improving employee productivity.
Robotic process automation (RPA), intelligent document processing, chatbots and other AI-based technological support drive higher productivity. Innovative business solutions in an inflation-hit market can help your company meet the challenges head-on and continue to deliver quality services in the long run.
Flexibility is the key to protecting your business during inflation. The business strategy needs to be shifted in times of inflation as the cost of doing business rises. Personnel services become more costly, overhead business costs rise, and demand fluctuates. A company that is flexible enough to adapt its business strategy to these changes and find feasible solutions can survive the difficult times. Businesses must be flexible and agile, staying open to new ways of doing things.
Inflationary Times: Secure your staffing business with QX Recruitment Outsourcing Services
QX Global Group is an offshore recruitment service provider to the biggest recruitment agencies in the US and the UK. QX Global Group’s Recruitment Division offers outsourced recruiting services to agencies, transforming their process through automation and helping them build scalable solutions. A dedicated team of talent acquisition experts at QX will be at your disposal to carry out your agency’s front-office, mid-office and back-office functions, bringing in increased process efficiency and profitability.
If you want to prepare your recruitment agency against inflation and sustain your staffing business during recession, get QX Global Group’s recruitment outsourcing services and automation assistance.