5 Common Denominators of Great Companies

Does Your Staffing Agency Check the Boxes?

By Sheri Tischer, VP of Business Development – Staffing, from Scale Funding

After fifteen years in the staffing industry and now five years partnering with staffing owners through Scale Funding, I’ve had the privilege of seeing both sides of the table. I’ve witnessed what works and what doesn’t. Over time, I’ve found that great companies, regardless of industry, tend to share five common denominators. The best part? Each of these applies directly to staffing agencies.

Watch my Knowledge Hub recording at the 2024 Staffing World as I dive into this topic.

Here’s how you can assess your own agency against the traits of truly great companies.

1. Attention to Detail – It’s the Little Things That Set You Apart

When we think of businesses known for meticulous attention to detail, Disney is a standout and there are many examples: At Magic Kingdom, the park is designed so guests walk slightly uphill when entering, and downhill when leaving. After a long day, that small detail in design creates a better experience for their guests. Disney is also known for the cleanliness of their parks. Trash cans are strategically placed every 30 feet because they know people won’t hold onto trash much longer than that.

Now let’s talk staffing.  Where can your attention to detail make a measurable difference in your offices or processes? One immediate opportunity is the candidate experience, specifically the application process.

Have you personally walked through your application process recently? Do you know how long it takes or where the hurdles are? Where do you have candidate drop-off?

According to the American Staffing Association:

• 39% of candidates abandon job applications that take too long.
• 78% expect to finish the process in under 30 minutes.

Action Steps:
Audit your own application process to determine how you can improve your candidate experience.
Gather your team and brainstorm where attention to detail can help you in other areas of the business.  

2. Great Employees – It Starts from the Inside

Great companies are built on great people. It’s not just about skills, it’s about accountability, empowerment, and culture. Here’s how high-performing agencies ensure their team is consistently excellent:

• Standardized Hiring: Define your ideal internal candidate. Create consistent hiring criteria and interview guides by role.
• Standard Operating Procedures: Written processes create clarity and reduce chaos. Train your team, then hold them accountable.
• Empowerment: Communicate clearly, train thoroughly, and then trust your team to act.
• Bench Strength: Cross-train your team for coverage across departments and develop your future leaders.
• Culture That Works: There’s no one-size-fits-all culture, but great companies share these common traits:
  • They nurture their people.
  • They prioritize transparency.
  • They build community.

Ask Yourself: Would you enthusiastically rehire every member of your internal team?

3. Great Training – Beyond the Basics

Top-performing companies go beyond product knowledge. They create a culture of continuous learning, and they invest in training that builds well-rounded, adaptable employees.

What do companies with the best training programs have in common?

• More than Job-Specific Training: For example, Marriott has been recognized for offering courses on health & wellness, and work-life balance.  Courses on time management, critical thinking, decision making, and adaptability are also highly requested topics.
• Upskilling: Global staffing agency, Randstad, offers a digital academy and leadership training to help employees grow.
• Reskilling: Texas Instruments’ year-long rotation program helps employees explore new roles across departments.

In Staffing: Consider how you’re developing recruiters and salespeople as well as your operations team. Are they growing with the industry? Are they getting the skills they need to stay competitive?

Challenge:
What would it look like if your training was a reason people chose to work at your agency?
Ask your team what training topics would be valuable to them and find a way to deliver that content.

4. Continuous Innovation – Don’t be the next Blockbuster

We all know the cautionary tale: Blockbuster ignored the warning signs. In 2008, their CEO dismissed Netflix and Redbox as non-threats. Two years later, Blockbuster filed for bankruptcy.

Countless other organizations have made similar mistakes. 

In staffing, staying competitive means evolving with your clients’ needs.

Innovation in Action:

• Customer-Centric Solutions: Listen to your customers’ needs.  A small independent staffing firm owner did just that and created a forklift certification program; an investment that set them apart and paid for itself after a few placements. 
• Fail Fast: If something isn’t working, move on quickly. It’s important to know when to let go.  
• Employee-Driven Ideas: Don’t rely only on leadership for innovation. Your front-line team often has the best ideas. Create channels where their insights can be heard.

Pro Tip: Innovation doesn’t have to be big. It just must be constant.

5. Financial Strength – Growth Depends on Cash Flow

Let’s talk money. You can have solid revenue and strong margins, but without cash flow, growth stalls.  Worse yet, your business could be in real trouble.

Staffing agencies are especially vulnerable. You pay your contractors weekly, but often don’t get paid by clients for 30, 60, or even 90 days.

Avoid the Pitfalls:

• Negotiate Payment Terms: Don’t just focus on markup; payment terms matter.  If your agreements currently offer net 30, consider changing to net 21.  A few days can make a huge impact to your cash flow.
• Build Relationships with AP: Meet with your clients’ AP departments upfront. Understanding their invoicing requirements and approval processes can reduce the time it takes to pay an invoice.
• Work Your Aging Weekly: Staying on top of collections is not optional; it’s essential.  Set aside time on your calendar weekly to run an aging report and to reach out to clients. 
• Understand Funding Options: Whether you have a bank line of credit, are using an EOR for payroll funding, or possibly even self-funding, knowing all your financing options gives you flexibility and stability.  Considering a solution such as invoice factoring can be a smart option for staffing agency owners.  It leverages your receivables (client by client) for the cash to run your business, and it’s not a loan or debt on the business.  Understand your options and establish relationships before you need them.

Bottom Line: Cash flow is the fuel for your agency’s engine. Make sure you’re not running on empty.

In closing, these five traits: Attention to Detail, Great Employees, Great Training, Innovation, and Financial Strength, aren’t buzzwords. They’re the backbone of the most successful companies in the world. And every single one applies to staffing.

Ask yourself honestly: Does your agency check all five boxes?

If not, don’t worry.  Now you know where to start.

Scale Your Staffing Agency with Payroll Funding Solutions

Cash flow is critical for staffing agencies. Customer payment terms of 15 to 90 days are demanding of agency owners. Since 1994, Scale Funding has provided payroll funding for staffing agencies across the nation. Our custom payroll factoring solutions provide you with the funds you need when you need them. We remove the stress of waiting for customer payments, allowing you to focus on recruiting the best talent and building a stronger, lucrative staffing agency.

Benefits of Payroll Factoring with Scale Funding

Payroll factoring with Scale Funding is much more than steady cash flow. Scale Funding offers many value-added services for the benefit of staffing agency clients.

• Customized Financing Solutions to Your Needs
• Funding that Grows as Your Agency Grows
• No Long-Term Contracts
• Dedicated Relationship Managers
• Professional A/R Management
• Credit Analysis Services
• Comprehensive Reporting
• Over 25 Years of Experience