Take Advice, Take Control

Economic conditions remain challenging and many businesses built up significant debt in order to trade through the turbulence of the last few years. It is, therefore, unsurprising that the rate of business failure is rising, particularly amongst recruiters. Hallmarks of the industry, including tight margins and limited assets, often means that emergency borrowing is proving difficult to pay down and can feel like a significant burden.

It is natural for company directors to try and stay the course and seek to work through financial difficulties. However, this can lead a business down a narrow path and potentially towards a worst case scenario.

The key to finding the optimal solution, in any challenging situation, is to seek advice early and discuss the options available. A high quality restructuring professional will be happy to provide a director or board with free advice around potential solutions to financial pressure. This may include: refinancing or restructuring of debt, identification of loss making business elements to be closed and/or operational reorganisation. They will also be able to set out options, should the business need to be formally restructured through an insolvency process and discuss critical timings. This will ensure that stakeholders (including employees and customers) are best protected.

Advice can also be given around a directors duties and how to avoid a possible business failure resulting in personal claims against a director.

Timing is key. Taking early advice allows directors to take control of a challenging situations and identify an optimal route forward; protecting all involved, including themselves.

About RSM UK

We offer specialist services to recruitment businesses of all sizes. We have built up an understanding of their particular needs over many years working with the sector. We appreciate that companies operating in the recruitment market need advisers to fully understand the sector. Through their specialist commercial knowledge, our recruitment sector team can deliver real value to enable our clients’ businesses to thrive.
Learn more here: www.rsmuk.com

The Hidden Costs of Technology in Recruitment: Why CFOs and Finance Directors Need to Prioritize Contract Management

In today's world, technology has become an integral part of every business, and recruitment businesses are no exception. The use of technology can help streamline processes, improve efficiency, and enhance the overall customer experience. However, it's important to acknowledge that with the adoption of technology comes hidden costs that can quickly add up if left unaddressed.

As CFOs and Finance Directors of recruitment businesses, it's your responsibility to ensure that all costs associated with technology are accounted for and budgeted appropriately. This requires a deep understanding of the various systems and software used across the business, as well as a comprehensive contract management process.

One of the most significant hidden costs associated with technology in recruitment is the cost of unused or underutilized software licenses. With the rapid pace of technological advancement, it's easy to fall into the trap of continuously adding new software and tools without properly evaluating their impact and utilization within the business. In many cases, businesses end up paying for licenses that are never or rarely used, resulting in unnecessary expenses.

Another hidden cost is the cost of renewing software licenses and subscriptions without proper negotiation. Many software providers rely on automatic renewal clauses, which can result in businesses paying inflated prices without proper negotiation. This can be avoided by having a well-organized contract register that tracks all relevant contract details and renewal dates.

Furthermore, it's important to acknowledge the cost of integrating different systems and software across the business. While integration can improve efficiency and streamline processes, it can also be a complex and costly process. Integration requires careful planning, testing, and implementation, and it's important to evaluate the benefits against the cost before proceeding.

“Most recruitment businesses are spending on average 10% to 30% more than they need to on technology-related services.”  Brad Dowden, Founder - Intercor

The importance of having a contract register cannot be overstated. A contract register is a centralized repository that contains all the relevant details of contracts and agreements, including renewal dates, pricing, and terms and conditions. This allows businesses to gain visibility over their technology landscape and track all associated costs. By having a contract register, CFOs and Finance Directors can make informed decisions when negotiating renewals or evaluating the cost-benefit of new technology.

To help you gain visibility over your technology landscape, we've created a free contract register template that you can download and use for your business. The template includes all the relevant fields and is the first step to unlocking savings and value for your business. By using this template, you can ensure that all contracts and agreements are properly managed and tracked, and hidden costs are minimized.

In conclusion, technology is an essential part of every recruitment business, but it's important to acknowledge the hidden costs associated with it. By prioritizing contract management and utilizing a contract register, CFOs and Finance Directors can gain visibility over their technology landscape and ensure that all costs are accounted for and budgeted appropriately.

About Intercor

We help recruitment businesses to leverage technology in order to increase profits and valuations, scale efficiently and optimise costs.  Learn more at www.intercor.co.uk