- Leverage your current client relationships. Determine what other high value/ high margin positions you can supply to each client. Even with clients where you are their 2nd or 3rd choice, you can still distinguish yourself by being able to recruit for positions that other companies can/ will not do.
- Look at how your staff is compensated. Are they paid to only take orders from the current clients, or to keep their eyes open for new clients? Do you have Sales Contests for new clients? Do you regularly ask your staff for ideas to improve your companies sales and profits?
- The industry avg is between 15-19% GP on most light industrial positions (20-25% on 8810’s) . If you are not earning this, then something is wrong with your business model. Sometimes it is simply a matter of raising prices a dime per month over 3-4 months– after explaining to the client how your costs have gone up. I can supply you with your specific State’s Work comp/SUI research to substantiate this fact.
- Can some clients pay you COD so you save on financing costs and in exchange you give them a slight price break?
- Have your staff tele market the staffing firms that are listed on your temp applications as previous employers of your temp applicants? This is a good source for new sales leads of companies that are using temps. Also do you have a referral program for your temps? They can be your best sales people if they are compensated to do so!
- Start your NEW temps out at a wage that is .10-.25 less than what they will get if they stick to the job after 2-3 weeks (or work with you on different jobs for that period of time.) These savings will improve your GP and probably get better performance out of your temps. I find many staffing coordinators are not mindful of this management tool, and do not incorporate incentive raises into the temp pay structure.
Always feel free to contact me about your workers compensation concerns AND staffing sales and marketing issues at david@StaffingCompSolutions.com. I am always glad to help you improve your profits. Also visit us at www.StaffingCompSolutions.com.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member