Our recruitment agency franchise is coming off a record-busting year, and we’re even more excited for 2019
Remedy is on track to reach an all-time high of $500 million in revenue this year, and our award-winning recruitment agency franchise already has plans to top itself in 2019. To find out how, read our interview below with Steve Mills, President of the Franchise Division of EmployBridge, our parent company.
What has made 2018 such an incredible year for the Remedy Intelligent Staffing franchise?
If you look at our business, we have 39 individual franchisees who operate about 130 offices. As of the end of October, 15 of those 39 franchises are showing double-digit revenue growth, so they’ve had a very good year. We are on track as a franchise division to achieve $500 million dollars — that’s half a billion in revenue — for the first time ever.
Wow! To what do you attribute that growth?
That growth has come through two key metrics. The metric we look at the most is something we call AOA, associates on assignment: How many people did we put out to work this week? Our AOA growth has been consistently running at 5% over last year. As a base metric, that’s strong growth. You couple that with the fact that we’ve driven pay increases for our workforce in the last two years of almost 10%.
So we’re putting more people out to work and they’re getting paid more, which improves our gross margins. And then, if you look across our entire client base this year, we’ve billed 5.5% more clients this year than last year. That’s why we’ve had such a strong year.
How is the business performing in the context of the overall economy?
For the first time in over a generation, there are more open jobs than there are people available to fill them. So we’re benefiting from a very strong economy, but also from long-term demographic change. That’s why we think this is a business for the long term. More people are retiring and leaving the workforce, and it is hard for employers to find people to fill jobs. Overall, this is a very strong economy for our services.
What are your top-performing franchisees doing to make the most of this economic climate?
First and foremost, they are making use of technology for recruiting. Right now our biggest challenge is recruiting, and over the past two years we’ve invested in a market-leading mobile app. We’re biased, but we believe it’s the best in the industry. And in fact, we’ve just won the Genius Award from the American Staffing Association for our technology development.
Remedy has spent millions developing the app over the last two years. How does it help franchise owners?
It’s helping us communicate more effectively with associates. It’s also speeding up the recruiting and onboarding process. But ultimately, the most successful franchises are the ones that are active in their business. The ones that know their clients, the ones that work with their teams. I always believe the verb “to lead” is an active one. And this is a business where you lead from the front.
Are there any major initiatives for 2019?
One of our biggest initiatives we started this year is rolling over into next year, is something we’re calling the Better WorkLife Academy. We believe it’s part of our responsibility to help our workforce learn and grow. Another award we’ve just received from the American Staffing Association is the Elevate Award. It recognizes our Better WorkLife Academy.
What else would you want to say to someone who is considering investing in a Remedy franchise in 2019?
This is a professional services white collar franchise. For the size of business that we can grow, we’re a relatively low cost investment. Please refer to the FDD.
We are a transparent, confident franchisor. If you look at our FDD, we’ve changed the way we write our Item 19. Many franchisors take averages, they look at arithmetical mean, they look at top quartiles. We thought, “You know what? We’ve got a great story to tell here.” We actually publish, for every franchisee, their revenue, their gross margin and the market they’re in by population size. So any prospective franchisee can look and get a real-time update on what every single franchisee is doing in our business. That’s a mark of our confidence.
To find out more about what Remedy Intelligent Staffing franchise has to offer, please explore our research pages. You can also download our free franchise information ebook or fill out the form on this page to start a conversation.