Temporary staffing is a fact of life in many businesses. The company needs the help of these temporary employees, but managing the payroll for this group can be a challenge. Knowing what problems can occur and preparing for those issues can keep the business running smoothly and your temporary workers happy.
The Challenges of Temporary Staffing Payroll
A temporary staffing agency is taking on more and more clients. It is becoming more difficult each week to meet payroll, while waiting on clients to pay open invoices.
You run a business that requires highly skilled workers. You have a few people you call in when someone calls in sick or goes on vacation.
Your business is non-traditional. You use the services of a number of different kinds
…show more content…
You are legally obligated to pay your employees for the time they work. You don't want to pressure your clients to pay invoices early just to meet your payroll needs. Your vendors don't want to wait to get their own invoices paid. Factoring makes all three groups happy.
Factoring can give you flexibility. With available cash, you can weather the ups and downs in your business and your industry. You can take on temporary workers when you need them without scrambling to find the extra funds for payroll.
You don't have to dip into your personal funds. Many small business owners dip into their personal funds when cash comes up short in the business. With factoring, you won't have to do that any more.
It gives you more financial stability. Stress levels can go up when cash is short and tends to go down when cash is flowing freer. Factoring gives you access to a more stable flow of cash. This can put the business on a more stable financial foundation and keep stress levels down at the same time.
Is Your Business a Good Candidate for Factoring?
Factoring doesn't work for all businesses. There are certain requirements that factoring companies want to see before taking on a
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Call centers are typically business process outsourcing. They subcontract with various businesses; call centers are the hired party to perform services and create goods that are usually performed by in house by the company's own employees and staff. The business practice Outsourcing was introduced in the late 1980’s. I choose to do the Apple Tree Company video case because I relate to it a lot. I am licensed as an agent and insurance producer. I work for a company similar to Apple Tree. Teletech a business outsourcing company founded in 1982. My project is United Health Care. We have other projects like USSA. Pertaining to me, i take inbound calls from consumers 65 and over and help them find doctors, check medication, try to find a plan that
Traditionally, hospitals and health care systems have outsourced primarily support services such as housekeeping, laundry and food services, etc. They have contracted with large scale organizations to provide these services utilizing an economies of scale concept whereby contracting out these services allows for lower costs overall. More recently there has been a trend toward outsourcing the information technology services and indeed, healthcare delivery as well, such as dialysis anesthesia and Emergency Department staffing, hospitalists and diagnostic imaging (Punke, 2013)
Kim, J., & Park, S. (2010). Outsourcing strategy in two-stage call centers. Computers & Operations Research, 37(4), 790-805. doi:10.1016/j.cor.2009.06.020.
Since it’s the easiest form of business to start why not take full advantage. But there are advantages and disadvantages. In a sole proprietorship there is limited capital which means the owner would have trouble getting the supplies and materials needed for. But it would also seem harder to borrow money and loans from the bank. A loan from the bank seems like the ...
The use of contingent workers is on the rise. The U.S. Bureau of Labor Statistics defines contingent workers as anyone who "does not have an explicit or implicit contract for long-term employment" (Phillips & Gully, 2011 pg 51). This definition includes independent contractors, freelancers, consultants, and temporary workers who may or not work for an agency. In the past 50 years, temporary workers have been crucial to many businesses, and their role in business is growing. Companies must recognize potential problems and concerns brought about by employing temporary workers, and adjust their approach to staffing.
Taylor, P. and Bain, P. (2003) 'Call Centre Organizing in Adversity: From Excel to Vertex' in G. Gall (ed.)
Here is the breakdown for in segmenting one of our clients: Bothnia Events, It is an event management organisation in Finland and it’s headquarter office is in Vaasa Finland. It is a Medium sized company with turnover more than 400,000 euros per annum. We would segment Bothnia Events under value drivers. Our business application could enable them increase revenue significantly by eliminating the tedious and time consuming process of making countless phone calls, sending multiples written or printed invitations and making posters. An event management application from us would make them work more efficiently and faster. Thus increasing their turnaround time. We could also use a mobile application from use to assist them in announcements and coordinating programmes.
If you receive cash you are likely to save it and put it in the bank. Thus, what a business sacrifices by having to wait for the cash inflows is the interest lost on the sum that would have been saved.
Therefore, the company looses cash, which could aid further business operations. Increase numbers of creditors - countless businesses acquire credit to operate, however, too much credit can become a problem for a business, especially, if it also offers credit to customers. This is because you’re ability to pay your credit is dependent on whether your debtors pay you in due time. Therefore, in case they don’t, the business will surface cash flow problems. Over-financing – excessive borrowing to finance your business can result in higher interest rates and tougher repayment schedules and this can lead to cash flow challenges. Over-trading – when a business sells over and above its capability on credit, it results to loans or overdrafts to finance the transactions. If the customers do not pay on time, cash flow problem occurs. Over-investment – often times, a company may be tempted to utilise available cash for investment; purchase vehicles, machinery, premises, and other assets. Too much investment in assets and failure to budget for the future can cause a business to run out of cash and consequently, fail to finance
Consumers desire timely, resourceful help at their fingertips. Plus, the cost of call centers can be expensive and difficult to manage.
The management of cash is essential to the survival of any organization. Managing an organization’s financial operation requires knowledge of the economy and ways to maximize revenue. For any organization to operate on a daily basis adequate cash flow is required. Without cash management the organization will be unable to function because there is no cash readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle of the company’s operations going.
What if your business does not grow as fast or as well as you expected? Debt is an expense and you have to pay expenses on a regular schedule. This could put a damper on your company's ability to grow.... ... middle of paper ... ...
Managing an organization’s financial operation requires a good understanding of the economy and ways to maximize revenue. For an organization to operate on a daily basis, adequate cash flow is required. Poor cash management within an organization might make it hard for the organization to function because there may be shortage of cash in case of inconsistences in the market. In most companies, management is interested in the company 's cash inflows and outflows because these determines the availability of cash necessary to pay its financial obligations. Management also uses this information to determine problems with company’s liquidity, a project’s rate of return or value and the timeliness of cash flows into and out of projects (used as inputs
factoring and inventory financing. Factoring is when the lender collects the receivables of Dinner Bell Hotel directly from its borrowers. In this the borrowers of Dinner Bell will be instructed to pay the receivables to a specified address controlled by the lender.