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Challenges Faced by Enterprise and Large Staffing Firms

Senior leaders of staffing firms in the US and Canada know how fiercely competitive the market is, with new entrants regularly challenging established firms. This makes continued growth crucial but that can be challenging with the slim profit margins in the industry.

While your focus should primarily be on client acquisition and placement, often other burdens take up your time, dividing your focus and spreading limited resources thin. We know that one of these hurdles is the back office burden large staffing firms face, particularly within contract staffing.


High Operational Costs

High Operational Costs

Back-office operations are expensive, often costing over 2% of a firm's annual recurring revenue. Staffing industry analysts indicate that these costs can be a significant challenge to business growth, especially for large staffing firms. Hiring, training, and maintaining a competent back-office team is often a large drain on resources.

Compliance Issues

Compliance Issues

Ensuring compliance is a time-consuming process. It not only requires a lot of attention from the executive team but also poses a significant risk. Non-compliance or mishandling of back-office operations can result in credit risk and compliance issues, which can potentially sink a business.

Attrition Risks

Attrition Risks

When you only have a few people handling your back office, one person leaving can cause major stress. Just think of what happens if payroll isn’t on time or accurate, or if your invoices are properly invoiced?  This risk factor of internal turnover adds to the administrative burden of large staffing firms as they struggle to maintain a consistent, well-trained back-office program.

Competitive Market

Competitive Market

The rapid emergence of new competitors, coupled with the need to stay ahead of the curve, increases the pressure on these firms to streamline their operations and reduce costs.

Agile Turnkey: A Solution for Large Staffing Firms

We created Agile Turnkey to overcome these challenges, with an industry specific, tech-enabled business process outsourcing solution. We take on your back office burdens while you retain ownership over the employee by remaining the Employer of Record. 

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Outsourced Back-Office Benefits

Improved Compliance

By handling all back-office operations on behalf of your business, Agile Turnkey also helps improve compliance. Our expert back office team ensures that all operations are in line with regulations, minimizing the risk of costly non-compliance penalties and reputational damage.

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Reduced Time and Attention on Back-Office Operations

By taking over your back-office operations, you and the rest of the executive team can focus more on finding clients, making placements, and growing your business. This means that resource isn’t being taken away from improving growth rates for the firm by wasting time on non-core activities.

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Increase in EBITDA

Agile Turnkey can help increase a company's EBITDA by up to 15% by significantly reducing the Selling, General, and Administrative (SG&A) spend.  In addition to direct cost savings, a staffing firm using turnkey is also freed up to focus their efforts on what matters—finding clients and making placements.  The financial impact of SG&A cost reduction plus improved focus on revenue growth can have yield significant improvement on net profit and resulting business value. 

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Scalability and Industry Expertise

The Turnkey model is particularly beneficial for growing firms, providing a scalable solution that minimizes operational complexities. Agile Turnkey has been specifically designed for large and enterprise staffing firms, using a deep understanding of the staffing industry. It is a unique solution that addresses the specific needs and challenges of these firms, making it a versatile and efficient solution. If you imagine running a staffing firm where you don’t need to concern yourself with back office details or obstacles (like onboarding, timesheets, cash flow, payroll, reconciliations, reporting, and compliance) and you can focus all your energies on driving revenue—then you’re envisioning a staffing business supported by Agile Turnkey™.   

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Transition to Agile Turnkey

Agile Turnkey is a uniquely tailored strategic Business Process Outsourcing (BPO) solution, designed specifically to improve the operational efficiency and financial performance of enterprise and large staffing firms.

As well as providing significant savings, the Agile Turnkey model offers the flexibility to transition seamlessly from pre-existing EOR arrangements and eliminates the need for maintaining costly in-house back-office teams.

Learn more about how Agile Turnkey can enhance your staffing firm’s profitability and business value.

This cost-effective solution can integrate seamlessly into your existing business structure with ease. 

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A More Profitable Future is Just a Call Away

This cost-effective solution can integrate seamlessly into your existing business structure with ease. To discuss how simple this process is, contact us today.