Triple Compound Profitability for Staffing Companies

We all know the bad news. The current economy is less than ideal and the job market and unemployment numbers are indeed ugly. Business owners and leaders of companies large and small are scrutinizing expenses and making significant cutbacks.

The good news about the current economy is the opportunity for staffing companies to begin laying the groundwork for future success. The precise level of success achieved will be determined by how wisely staffing companies invest resources available today. By following the principle of Triple Compound Profitability, a staffing company will be in position to lead the rebound in their market.

Increasing sales should be a priority for all profit-seeking businesses but it must never be the sole priority for staffing firms. Temporary staffing is a unique industry whereby increasing sales as a revenue generating activity becomes worthless when front-end profits are wiped away due to ineffective loss control on the back-end.

The path to prosperity requires that companies pay close attention to specific key performance indicators (KPI’s) within the three major activities of daily business: 1) Sales 2) Operational Expenses including workers comp costs due to frequency and severity 3) Financial cost of workers comp insurance premium. The concept of Triple Compound Profitability establishes that the focus on these three factors enables a staffing company to not only earn more, but to retain substantially more of those dollars earned. 

One of the most effective paths of cost containment that many staffing companies have taken in order to achieve top level operational sophistication is by becoming WRC certified. The designation affects the first KPI of triple compound profitability by providing the firm a distinct, differentiating value proposition. WRC is the differentiator that many companies are using to direct conversations with prospects away from bill rates and over to the important topics of worker safety and the mutual benefits of having well-screened and trained employees work in an optimum environment.

By achieving WRC certification, a firm undergoes an assessment and receives recommendations for improvement of their risk management procedures. By implementing these recommendations, firms affect the second KPI of Triple Compound Profitability through an immediate drop in both the frequency and severity of their workers comp claims.

Companies who have earned WRC certification can impact the third KPI of Triple Compound Profitability by accessing A-rated workers compensation insurance programs that recognize the WRC designation. The combined effect of lower claims frequency and costs with improved risk management programs allows insurance carriers to provide workers comp insurance at a lower premium.

The principle of Triple Compound Profitability is simple: 1) Increase sales opportunities with unique marketplace differentiation which is both provable and difficult to attain. 2) Control and lower the cost of daily business activities, unnecessary overhead and workers compensation claims. 3) Reduce costly workers compensation insurance premiums.

Becoming WRC certified can put your firm on the path to Triple Compound Profitability. Contact RCS today at 800.807.7475 or visit www.staffingWRCs.com for more information and to learn how your firm can triple its profitability now.