Are You Ready for Growth?

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1 COATS Staffing Software Are You Ready for Growth? Being able to handle growth isn t an accident; it s the result of a step-by-step plan that puts your business in the best possible position to deal with any change in the economy. COATS Staffing Software 1/12

2 How Are Your Firm s Finances? Begin with a check of your financial situation, including your balance sheet, income statement and cash flow statement. Don t just look at the most recent year s statements, either; look through the past several years to see if you notice any trends or anomalies. Step 1: Start with the basics Make sure your business is on solid ground in every facet of its operations, and set up practices and systems to keep it there. Reviewing these statements may seem like a huge time commitment, but it s time well invested in your business. Analyze this information with your accounting staff to find potential problems now, before the pressures of growth turn potential problems into real problems and existing problems into monsters. Keep an extra close eye on the SUTA and FUTA expenses, as these are growing rapidly for most firms. The Management Business Advisor built into COATS Staffing Software can give you even more insight into your business s finances, and presents the data in visual format, which can make it easy to spot patterns or disruptions. COATS Staffing Software 2/12

3 How s Your Technology? Before a growth spurt hits, it s a good idea to check your IT systems and make any needed improvements. Have you been getting by with a server that s not really meeting your needs? Consider upgrading it. Of course, IT goes beyond mere desktop computers. It includes printers, scanners, routers, bandwidth, security and antivirus precautions. Depending on your staffers needs, it might also include laptops and even mobile devices. Also make sure you re using the most recent versions of your staffing software and that you fully understand all the capabilities offered. COATS users can check our customers-only site to download the most recent version of the software and all document ation. Step 1: Start with the basics Make sure your business is on solid ground in every facet of its operations, and set up practices and systems to keep it there. So long, SQL Server 2000: As of April 2013, Microsoft stopped supporting SQL Server Therefore, COATSsql is no longer able to support SQL Server 2000 as a minimum hardware requirement. Contact COATS technical support at with any questions. COATS Staffing Software 3/12

4 How s Your Internal Communication? Now is also a good time to work on strengthening your communication with your employees. This is especially important if your financial analysis revealed any gaps between your perception of how your business is functioning and the way it s actually running. Make an effort to ensure that everyone in your business knows what s expected of them in their job duties. An up-to-date employee manual can make communicating those expectations much easier. And don t forget to communicate when a job has been well done; constructive feedback lets people know what to keep on doing. Keeping feedback constructive is crucial not only to help employees do their best work but Step 1: Start with the basics Make sure your business is on solid ground in every facet of its operations, and set up practices and systems to keep it there. to retaining them as well. Another aspect of economic growth is top talent moving elsewhere. A 2012 CareerBuilder survey of 1,078 workers revealed that a 74 percent of them were actively looking for a new job or open to new opportunities. COATS Staffing Software 4/12

5 Are Employees Engaged? If you haven t examined your management practices to make sure they include employee engagement and motivation, now s a very good time to do so. Let your employees know you appreciate their skills, their efforts and their loyalty, and listen to their ideas and their feedback to you as a manager. Step 1: Start with the basics Make sure your business is on solid ground in every facet of its operations, and set up practices and systems to keep it there. As discussed earlier, communicating to your employees is vital for any business. However, it s just as vital to listen to them when they communicate to you. Many of your employees might have suggestions for how to streamline your business operations. Consider these ideas and implement the ones that make sense. As growth places increased demands on your offices, the more streamlined your business is, the more responsive and flexible it can be. Employee engagement principles: Let your employees know they re valued, that you trust them to make solid decisions and that you re listening to them when they come to you with issues or questions. Salary-wise, keep compensation in line with the local labor market, and check to see if it needs adjusting at least once a year. COATS Staffing Software 5/12

6 Federal Unemployment Taxes (FUTA) While FUTA rates aren t as dire as they were a year or two ago, some states still have cause for concern. By the end of 2013, 17 states owed outstanding unemployment insurance debt to the federal government. (This is down from a high of 29 states at the end of 2010.) For the 33 states that don t have these debts, the current FUTA rate is.6% of an employee s first $7,000. Obviously, staffing companies are likely to have many associates who make $7,000 or less a year, meaning that we essentially pay.6% on all that associate s income. Multiplied over many associates, this can create a notable dent in profits. For those 17 states with unemployment debt, the.6% rate has been increased by.3% a year for each year their debt Step 2: Brace for uncertainty Economic and legislative changes can can affect staffing firms more than other businesses. Be prepared for sudden change. has been outstanding. As of the end of 2013, Arkansas, California, Connecticut, Georgia, Kentucky, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Rhode Island and Wisconsin have a rate of.9%, meaning they pay $63 per employee instead of $42. Indiana and South Carolina have a 1.2% rate, meaning they pay double the national rate. If you re in one of these states, stay on top of FUTA issues and remember to budget for those rates! COATS Staffing Software 6/12

7 Health Insurance: The Big Unknown As states continue to respond to the Affordable Care Act, many people grow more anxious concerning their coverage. Employers are unsure what changes may occur in health-plan availability and pricing, while employees are unsure what options they ll have. Step 2: Brace for uncertainty Economic and legislative changes can can affect staffing firms more than other businesses. Be prepared for sudden change. Since October 2013, health insurance across the nation has changed tremendously, and costs are almost certain to rise. Plan gradual increases into your health coverage budget for your employees and remain aware of the constant possibility of changes to the law s requirements or deadlines. Until the end of 2014, we recommend the coverage offered by Essential StaffCARE for temporary employees. As one of our Integrated Partners, Essential StaffCARE has an understanding of the unique concerns of the staffing industry. There is one silver lining to the Affordable Care Act: If your clients are hovering near the level of 50 full-time equivalent employees that trigger health coverage requirements, your staffing firm can save them from tipping over by handling their new hires. Let your clients know this is part of the value you provide! COATS Staffing Software 7/12

8 Marketing: Become a Local Expert You know recruiting, interviewing, hiring, employment trends and job-hunting. Many audiences in your area would love to learn about these newsworthy topics. Offer to speak at local business expos, job fairs, meetings of professional societies and other relevant events. Step 3: Market Yourself When businesses are ready to use your services, be sure your name is at the forefront of their minds. Stay up-to-date on business and employment news, both nationwide and in your region. To get the most information in a short time, sign up for updates from regional and national news organizations via . Staying current on staffing news can be accomplished by taking a little time each week to read staffing magazines, blogs and sites. Being active in professional organizations can also keep you on the cutting edge of our field. Don t forget to offer your expertise to the local media. Use your networking contacts to find out who handles business news at local media outlets. Reach out to them and let them know you re available if they need an expert opinion on employment issues. Just remember: journalism is almost as deadline-oriented as staffing, so you might be called upon for a quote at a moment s notice. COATS Staffing Software 8/12

9 Marketing: Make Use of Social Media Not only is social media low-tono-cost, it adds an interactive element that s been missing from traditional marketing. You don t have to jump onto every social site or spend every minute blogging to have an impact that can result in more sales. Some social media services are more geared to casual interaction; Facebook is a prime example. These services might be a good environment in which to engage potential candidates. More professional services such as LinkedIn and Google+ can offer you a chance to network online and learn about your prospects and their businesses. If you re not sure what social media strategy would work best for your business, consider taking a seminar or webinar to Step 3: Market Yourself When businesses are ready to use your services, be sure your name is at the forefront of their minds. learn the basics of each type of service. You might also consider consulting with a social media expert; if possible, try to choose one with experience in HR or staffing. COATS recommends our Integrated Partner Haley Marketing; they can create a strategy combining integrated job listings, social media and even content marketing such as blogging. COATS Staffing Software 9/12

10 Marketing: Sell to Value, Not to Margin In a tough economy, the tendency for staffing to be seen as a commodity made it difficult to sell clients on anything other than a low price. Unfortunately, that race to the bottom makes it harder for staffing as an industry to rebound to pre-recession levels of pricing. Our industry is long past due in changing the selling proposition. We must sell value. To get out of the downward spiral of pricing, stop using your margin as a selling point. Instead, focus on the value of the candidates you are providing and the value those candidates can provide to your clients. All our candidates bring different skill sets to the table and are separated by experience or certification. Let your clients know about the worth of the candidates you recommend. Don t under-value or under-sell your business and the importance and worth of the work it does. Veterans of the staffing industry have seen this all before, yet the basics remain a fundamental of solid firms. Sure, there have been changes in marketing, unemployment, recruiting and margins, and we must adjust our business models to remain competitive. But we must always remember our core product: people. They will always be the key to our success, no matter what turns the economy takes. COATS Staffing Software 10/12

11 Preparing for Growth, Step by Step Step 1: Start with the basics Step 2: Brace for uncertainty Step 3: Market yourself Make sure your business is on solid ground in every facet of its operations, and set up practices and systems to keep it there. Check your finances Make sure your technology is up-to-date Build or strengthen employee communications and motivation Economic and legislative changes can can affect staffing firms more than other businesses. Be prepared for sudden change. Know your state s FUTA tax rate and budget for it Stay on top of health insurance developments and build a reserve for handling new taxes When businesses are ready to use your services, be sure your name is at the forefront of their minds. Become known as the expert on hiring and recruiting in your area Use social media to reach out to candidates and clients Sell to value, not margin COATS Staffing Software 11/12

12 To learn more about all of the powerful features and options in COATS Staffing Software, including how it can handle the demands of your growing business, call us at or coatssql.com COATS Staffing Software 12/12