On the back office side of staffing, there will always be a hunt for inefficiencies or cost-reduction. In some cases, that might even lead decision-makers to outsource to payroll service providers in the hopes of adopting the most cost-effective option. However, when staffing software is equipped with back office features that lower the cost associated with AR/AP, payroll, and other financial duties, it’s worth comparing the advantage. In many cases, the back office staffing software provides features that payroll service providers can’t beat. 

1.) Time Capture Integrated with Front Office

Speed is central to effective staffing operations. That is especially the case when you are working with contractors waiting for their pay. With some payroll service providers, you will need to use their proprietary software or a customized version of one of the big payroll programs for any time capture. That means that someone on your team will need to import new hires, upload them into the payroll provider’s database, and verify that the addition was a success. Adding an additional workload just isn’t necessary.

With back office payroll software, an entire step is removed from the process. The time capture feature is linked directly to the front office portion of the software. As a candidate is being added to the recruitment CRM, that person is instantly available to the back office side. Fewer steps mean that there are fewer opportunities for a glitch to occur. Moreover, it means that there will be fewer flustered calls trying to sort out why a contractor has not been added to the payroll service’s system. Keeping everything internal keeps headaches to a minimum.

2.) Invoicing Options are Tailored to Staffing

Very few industries can claim the hodge-podge assortment of invoices that staffing firms regularly issue. Differences between direct hire and contractors, differences between multiple industry lines, and differences between multiple branches require a bespoke touch. Most payroll service providers are not geared toward the staffing industry, so their invoice options lack the spectrum.

Back office payroll software is designed with staffing software customization in mind. Multiple invoice formats tailored to the staffing industry come standard with top of the line platforms and in some cases, there is even the potential to customize those invoice forms further. Regardless, the variety of staffing invoice formats means there is less upfront negotiation and there is little learning curve for the back office software to adjust to you.

3.) Unrivaled Sales Analysis Reporting

Executives and branch managers need thorough reporting to be available at the click of a button. When they go through a payroll service provider, there may be some level of passable reporting, but odds are low that there is up-to-the-minute integration with the actions the AR/AP, sales, and recruiting teams are taking.

Of course, managers will be able to check last month’s margin and billing figures at the beginning of a new month, but they tend to have a harder time trying to access those reports in real-time as they try to push their team to achieve certain goals.

Because the financial and recruiting side are so completely integrated, total sales analysis is much easier to conduct on back office staffing software. Gross margin reporting, client billing, commission reporting, and even revenue forecasting is generated from internal data. There is minimal lag time between the instant a new deal is closed or an invoice is paid and the moment a decision-maker can access that information. The comprehensiveness of the staffing software platform itself makes the whole process a breeze.

Finding the Right Back Office Staffing Software

Knowing the potential of complete staffing software (with strong back office and front office features) is only the starting point. The variety of staffing software out there makes the decision-making process less than straightforward. Testing the software first-hand helps to separate top-tier solutions from the payroll software that is only a grade above payroll service providers.