{"id":17693,"date":"2019-08-20T11:38:48","date_gmt":"2019-08-20T01:38:48","guid":{"rendered":"https:\/\/www.bullhorn.com\/au\/?p=17693"},"modified":"2019-08-20T13:46:10","modified_gmt":"2019-08-20T03:46:10","slug":"how-to-improve-your-margins","status":"publish","type":"post","link":"https:\/\/www.bullhorn.com\/au\/blog\/how-to-improve-your-margins\/","title":{"rendered":"How to: Improve Your Margins"},"content":{"rendered":"

Death and taxes may be inevitable, but low margins don\u2019t have to be. In fact, there are many methods you can take to improve your bottom line. The catch? It usually isn\u2019t easy. But it\u2019s worth it. <\/span><\/p>\n

If you want to increase your margins you\u2019ll likely need to charge more (up your bill rate) or do more (grow your business or increase your volume of placements). But there are countless ways to approach either method. Here are some top ways to improve your margins.<\/span><\/p>\n

Charge More<\/b><\/span><\/h2>\n

Are you charging enough? Study up on the industry numbers<\/b><\/span><\/h3>\n

Recruitment is a competitive industry, which can make it hard to charge what you deserve. In fact, recruitment agencies say <\/span>pricing pressure from competitors <\/span><\/a>is one of the biggest operational challenges they face, second only to embracing digital transformation.<\/span><\/p>\n

But has the competition driven your price too low? Look to the data. Industry stalwarts like <\/span>Staffing Industry Analysts (SIA)<\/span><\/a> report regularly on margin and bill rate trends. A <\/span>recent report<\/span><\/a> found that both margins and bill rates are on the rise for many recruitment agencies. <\/span><\/p>\n

Justified or not, any price hike can result in lost customers, so it\u2019s important to balance the risk when considering any significant increase in your bill rate. <\/span><\/p>\n

 <\/p>\n

Evaluate your current clients<\/b><\/h3>\n

Are you in any one-sided relationships with your current client base? High revenue, low margin clients don\u2019t just eat at your bottom line, they eat at the precious time your agency has to focus on new and existing clients. <\/span><\/p>\n

Use your <\/span>ATS\/CRM to run a report <\/span><\/a>on your most (and least) reliable and valuable clients. Which clients are always late with their invoices? Which have the worst gross margin\/gross profit? This can be a great way to identify clients that are hurting you more than they\u2019re helping you.<\/span><\/p>\n

 <\/p>\n

Up your service<\/b><\/h3>\n

Want to be more profitable with your existing clients? Bring more to the table. You can accomplish this by investing in improvements to your agencies performance, or you can do it by offering services your competitors aren\u2019t.<\/span><\/p>\n

One huge opportunity: <\/span>reskilling<\/span><\/a>\u2014the process of helping workers transform skills that are outdated to be ready for the modern world. The talent shortage represents a huge obstacle for employers, especially those in tech. By investing in the reskilling of your candidates, you can literally create new qualified candidates for your clients. Major players in the industry are already seizing this opportunity\u2014Adecco invested heavily to <\/span>acquire the education organization General Assembly<\/span><\/a>.<\/span><\/p>\n

\r\n
\r\n The recruitment industry loses half a billion dollars in annual turnover. Imagine if we took employees from lower-wage jobs and reskilled those people. This could be a trillion dollar industry with a very different profile. This isn\u2019t a crisis, this is a huge opportunity for all of us.<\/span>\r\n <\/div>\r\nArt Papas<\/span> CEO, Bullhorn<\/span>\r\n<\/div>\n

 <\/p>\n

Do More<\/b><\/span><\/h2>\n

Automate everything<\/b><\/span><\/h3>\n

Time is money for your agency, and there\u2019s no better way to save time than through automation. \u00a0The more manual processes you eliminate, the more time your recruiters and salespeople have to spend on clients and candidates.<\/span><\/p>\n

There are so many areas of your business ripe for <\/span>automation<\/span><\/a>\u2014data-entry, onboarding, background checks, and more\u2014and every hour saved can yield $130 in gross profit. <\/span><\/p>\n

l<\/p>\n

Pursue VMS business (and automate it)<\/b><\/h3>\n

Your eyes don\u2019t deceive you. We really are recommending VMS as a way to <\/span>improve <\/span><\/i>your margins. Yes, <\/span>low margins<\/span><\/a> are a classic complaint about VMS business, but the idea that you can\u2019t be profitable with VMS <\/span>is a myth<\/span>.\u00a0<\/span><\/p>\n

If you want to increase your margins by growing your business, VMS offers an incredible opportunity to expand. And if you can be efficient with VMS business, you will likely turn a profit. Sixty-percent of recruitment agencies submit candidates manually into their VMS. If you automate the process, your agency will be in a great position to improve your revenue and your margins. <\/span><\/p>\n

\n

We\u2019re answering your most common recruitment questions! Want to learn how you can win more job orders? <\/span>Check out these tips<\/span><\/a>.<\/span><\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Want to improve your staffing firm’s margins? There’s more than one path available. Here are 5 ways to improve your bottom line.<\/p>\n","protected":false},"author":297,"featured_media":17694,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[555,556],"tags":[],"class_list":["post-17693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-trends-and-insights","category-tips-tricks-and-how-tos"],"acf":[],"yoast_head":"\nHow to: Improve Your Margins | Bullhorn AU<\/title>\n<meta name=\"description\" content=\"Want to improve your recruitment agencies margins? There's more than one path available. 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He is an avid fan of the University of South Carolina sports, where he earned his Bachelor of Science in Business Administration in Marketing and Real Estate.","url":"https:\/\/www.bullhorn.com\/au\/blog\/author\/patrickreynolds\/"}]}},"grav_blocks":null,"card_markup":"<a class=\"card-resource\" href=\"https:\/\/www.bullhorn.com\/au\/blog\/how-to-improve-your-margins\/\">\n\t\t\t<div aria-hidden=\"true\" class=\"card-resource__image-container\">\n\t\t\t<img class=\"card-resource__image\" alt=\"Job Orders\" title=\"2\" src=\"https:\/\/www.bullhorn.com\/au\/wp-content\/uploads\/sites\/3\/2019\/08\/2-1.png\" \/>\t\t<\/div>\n\t\t\t<div class=\"card-resource__content\">\n\t\t\t\t\t<span class=\"card-resource__category\">Industry Trends & Insights<\/span>\n\t\t\t\t\t<h5 class=\"card-resource__title\">How to: Improve Your Margins<\/h5>\n\t\t\t<\/div>\n<\/a>\n","_links":{"self":[{"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/posts\/17693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/users\/297"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/comments?post=17693"}],"version-history":[{"count":0,"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/posts\/17693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/media\/17694"}],"wp:attachment":[{"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/media?parent=17693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/categories?post=17693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bullhorn.com\/au\/wp-json\/wp\/v2\/tags?post=17693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}