Large agencies used to dominate the recruitment market. They were the ones with the resources to run complex operations efficiently, so all their manpower could be devoted to securing new clients and expanding their contractor database. But this isn’t the case anymore.
Now, technology is levelling the playing field, offering small and start-up recruitment agencies the chance to compete with the big guns. Back office software is no longer only affordable to huge corporations; it’s in the budget for SMEs too, helping more recruiters than ever to succeed in their business ventures.
They say time is money, and this couldn’t be truer of recruitment. The more time that agencies have to nurture client and contractor relationships, the more successful they will become.
Naturally, big recruitment agencies have more time on their hands to devote to business-building activities. This is for two main reasons:
Start-up recruiters and small agencies cannot afford the same size workforce, which means their approach tends to be ‘all hands to the pump’ to get things done. Staff aren’t just meeting with clients or shortlisting potential candidates; they are having to account manage alongside, handling all the admin and paperwork necessary to keep cash flowing in.
It will take time before these businesses can justify employing separate teams to manage internal operations like HR and accounting. However, there’s a lot that technology can do in the meantime to help them grow.
Perhaps the biggest recruitment leveller has been the rise of back office solutions, which take the admin burden away from agency personnel. Software like ETZ automates many of the tasks that staff have previously been performing manually – like formatting and checking timesheets, collating and sending invoices, processing expense claims, and chasing payments – so that technology takes care of operational requirements.
This type of tech has always been accessible to major national and international recruitment agencies with plenty of budget to spend, but now the cost of back office software has come down considerably – and start-up recruiters are seeing the benefits.
One reason that operational solutions are more affordable than ever to recruiters is the fact that they are cloud-based. No expensive hardware needs to be installed on the premises; all teams need to get started is a login, before they can manage all their admin requirements in a single solution. This makes it easier to enable remote working opportunities as well, so SMEs don’t need to rent office space in order to collaborate effectively.
Another reason that recruitment tech is coming down in cost is the ability to launch ‘off-the-shelf’ solutions. Large agencies tend to have a complex set up, which often requires bespoke technology. Software companies can learn the most effective way of working from these businesses, before applying best practice into a general platform that helps agencies of all sizes. This way, recruitment start-ups have access to the same standard of solution that more established firms are using – they’re just paying less for it.
As we’ve already mentioned, ETZ is pioneering enterprise-standard back office tech for recruitment start-ups with our Lite package. It offers an automated back office and is priced affordably for new recruitment businesses.
ETZ’s Lite Package is part of our commitment to helping recruiters of all sizes to run their admin and operations more effectively, so that they can focus on client services and new business opportunities.
To see how your new business can benefit from recruitment start-up software, book a free demo.