10 Things to Know When Starting Temp Agencies Toronto

Starting a business is exciting. It gives you the freedom to control how it runs, target clients, and set profits. Like other businesses, starting a temp agency requires attention to detail. To run successful temp agencies Toronto, you should have a clear strategy of how you are going to run it.

The aim of having a clear roadmap is to minimize the chance of business failure. It helps you enjoy doing business. According to Team Global M.S.M, here is what you should know before starting your temp agencies Toronto:

1. Cash Flow Management

If you are starting a general employment agency, you should know they have high volumes and low margins. Some clients can take up to 3 months before settling their bills.

However, because work involved is voluminous, you need a team of agents to help you in the business. They cannot work for free. So, to make sure they are paid on time even before your clients clear, have a financial backup plan for such times.

2. Payroll Administration

As the owner of an employment agency, you have to be careful about the accuracy of your payroll. Ensure hours worked, overtime, holidays, and vacations are properly accounted for. It helps you avoid breaking labor laws as stipulated by different provinces.

If there is an error in your payroll system, do not overlook it. Look at its source and deal with it to avoid future complications.

3. Employment Standards

The law has a minimum requirement for staff employment. To avoid having legal pitfalls, ensure you go through the requirements carefully. Yes, there are those rules everyone knows about because other people keep talking and discussing them.

But, when you are an owner, you should read between the lines. You cannot afford to miss even the slightest details if you want to succeed in this business.

4. Get the Right Clients

The type of clients you will get for your agency will determine your success rate. In fact, clients define your business. Aim for long-term and responsive clients.

If you go for clients who are troublesome even at the negotiation level, then you are in for bad business. But, if you get respectful clients, your business will flourish.

5. An Applicant Tracking System

As your business grows, many clients keep coming looking for your services. For you to keep delivering on time, you need to invest in a spectacular applicant tracking system. It helps you keep track of those you have filled the positions, no shows, proper invoicing, and other crucial operations.

6. Consider Changes in Health and Safety Regulations

Ensure you adhere to changes in health and safety regulations. The ministry of labor takes violations of such regulations seriously and can cost your business. Penalties are hefty, and to avoid them, ensure employees are adequately covered within the updated rules.

7. Workers Compensation

Your workers can have claims you need to go through, which can be tedious and time-consuming. Sometimes, you feel tempted to overlook them when your clients are on your neck. To avoid trouble with the law, set some time to go through the claims and settle them as soon as you can.

8. Insurance Coverage

Every staffing agency must have insurance. However, big temp agencies Toronto have a competitive advantage because they have many covers from bulk buying. As a startup, you should not struggle with expensive insurance. Find an affordable provider and run your business from what you can afford.

9. Invisible Costs

There are different costs incurred when running temp agencies Toronto. As a startup, you should be able to prioritize and account for expenses. Look at monthly and major expenses and how much they cost you.

Other than significant expenses, you should have emergency funds for use in miscellaneous costs.

10. Specialized Staffing

As you grow your business, you will need a robust team to help you with the work. Some clients will request to have specialized staff for their positions. You should keep in mind that these are some of the most challenging tasks.

To get it right, make it right from the first step. Ensure the potential candidates have the proper certifications and experience. You should not stop at certification presentations. Have a team member specializing in the field interview the candidate to assess whether the information provided matches a candidate’s knowledge.