Increasing Staffing Company Value

154020366In addition to the more commonly considered factors related to value (i.e., the financial conditions of the entity), rigorous internal controls play a role in adding to enterprise value. The application of such controls generally relate to two aspects of a company’s operations: (i) revenue and asset retention; and (ii) liabilities.

Successful control of assets by a company leads to increased value. Best practices related to the company’s employees and intellectual property can help stabilize asset value and even help increase it. A stable and well-managed workforce certainly adds value to the enterprise. Uniform and formal policies and training and effective compensation schemes help drive value of the company’s most valuable asset, its employee work force. Likewise, careful attention to the creation, registration and enforcement of intellectual property rights increases the value of these intangible assets. Further, having a standard client development procedure adds value as opposed to more random or ad hoc efforts. Finally, having written contracts with customers that contain important provisions that are aligned with the companies operational and growth plans add real value to the enterprise.

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Controlling liabilities can also add value. One way to reduce overall risk is to have standard onboarding policies and procedures. Such policies should also include a robust quality control component. A company can also increase its value through the use of a thorough risk management program. The use of standard risk management procedures that include appropriate job placement, training, assessment and reporting can reduce risk and add value for a staffing company.

MORE: Are you building sales, profits or company value?

Timothy Szuhaj

Timothy Szuhaj
Timothy J. Szuhaj is a member of Becker Meisel LLC’s Staffing Industry Group, which has an unparalleled commitment to the Staffing Industry. He may be reached at tszuhaj (at) beckermeisel (dot) com.

Timothy Szuhaj

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