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Case Study – Agency Solution

A tailored solution for a medical recruitment agency

Background
An agency specialising in the recruitment of medical professionals across Australia approached SDP as they were struggling to manage their 50 plus contractors and temporary workers they had on the books and balance their core business operations.

The problem
Despite having a good workforce base the agency was having difficulty translating this into profit and were starting to lose contractors and temps to competition. When investigated, it was discovered that the agency was struggling with cash flow issues and their back office systems were feeling the pressure of managing the contingent workforce. Summary of issues
- Too many aging receivables at about 30-35%
- Bad management of administration
- Lack of contractor care
- Late payment of superannuation
- Disputes arising from contracts, timesheets and payroll
- Late invoicing to clients
- Damaging relationships with clients and contractors

The SDP Solution
SDP investigated the issue to get to the root cause and to ensure that the most effective and efficient solution would be offered to the agency.

SDP offered a complete contractor management solution, including contractor payroll, streamlined contract facilitation for new clients and new projects, cash flow management and payroll finance service. With a fully managed invoicing and receivables function and online payroll solutions with their branding – all for one flat fee.

The Results
- Less than 5% of receivables went over the due date
- After one year of outsourcing to SDP the agency experienced savings of $33,000
- 35% increase in contingent workforce without changes to overhead costs
- Turned a negative cash-flow into positive cash-flow
- Prompt and timely payments to contractors
- Excellent feedback from contractors
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