Temporary Staffing Agency — Steps to start

No Comments Health

The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Companies find it convenient and cost-effective to make use of a temporary staffing agency to fulfill unforeseen demand, fill short-term vacancies, and help with changing workloads as a result of restructuring or mergers. Additionally, employers are enticed by the idea of “test driving” new employees to minimize risk and ensure a great match for permanent positions.

Many a job seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers have the ability to get a base in the door at prestigious companies, where a poor resume might have made it extremely tough to be considered. Similarly, “drifters” (those who often rapidly drift from job to job) might be plagued by an overly-long resume. Temporary staffing services could be suitable for drifters, while they get the chance to work with short-term projects and move on without the negative repercussions. Retirees and college students are also very common candidates permanent staffing. A retired nurse may find enjoyment and extra income from a temporary medical staffing firm. Some type of computer science major can gain valuable experience working with a technical agency.

Just a small number of personnel is required to handle recruiting and clientele. Even the largest international firms tend to operate with small, mostly-independent branch offices serving specific regions. This modular structure means it’s quite feasible for a one-office temporary staffing agency to compete effectively with established firms.

Overall, the triple-benefit to clients, associates, and entrepreneurs has contributed to the phenomenal growth of the temporary staffing industry. Because of these advantages, it will remain an important the main employment process through good times and bad.

Start Up Costs and Financing Sources:

$5,000 to $25,000

The startup and operating costs of a temporary staffing agency are much less than a number of other businesses. The basic requirements really are a small office with the typical supplies, some type of computer system with general accounting software and database software for organizing contracts, and the folks skills to utilize clientele and associates. It would not be impossible to start a temporary staffing agency on a shoestring budget of a few thousand dollars.

The largest business expense is payroll. It is common for associates to be paid by the agency prior to the agency is paid by the client. An account must certanly be maintained with sufficient funds to cover payroll costs until bills are paid by the clients.

It is difficult – however not impossible – to get help from venture capitalists in covering the main costs of creating a temporary staffing agency. A well-researched, forward-looking business plan is essential.

Pricing Guidelines for Service:

Associates are paid by the hour, and the agency covers its costs by charging reasonably limited to the quantity billed to the client. The exact amount of the premium differs from case to case and may differ from 5% to 50% or more. Some associates are willing to benefit less and some clients are willing to pay for more, which when properly matched can lead to very decent profits for the temporary staffing agency. The contract usually spells out a flat fee to be paid to the agency in case a client decides to permanently hire an associate.

Advertising and Marketing:

A competitive hurdle for small startups is that larger agencies have established reputations and brand recognition. This is really a minor obstacle due to the localized nature of the business. It is not required to wage a national marketing war to get exposure for a brand new agency. A relatively inexpensive and well-directed marketing campaign can quickly build a valuable reputation within the area operating region of the startup.

Essential Equipment:

A company (perhaps a house office) ought to be equipped with the typical office supplies and at least two telephone lines.

A minumum of one computer system with accounting software and a database for monitoring projects is mandatory. A printer is used for printing invoices and job listings, and a high-speed Internet connection connects the agency with online job search sites.

Many temporary staffing services have computers with tutorial software available to simply help associates to train their keyboarding and basic office software skills. These computers are also used to try the skills of applicants.

Income Potential:

Many billions of dollars are spent on temporary staffing services each year. A small, single-office agency can earn profits in the thousands of dollars. The large, international firms rake in millions every year.

Target Market:

A temporary staffing agency may be the middleman between two distinct markets: clients and associates.

It is usually not an arduous matter to achieve a huge selection of applicants with simple help wanted advertisements. More focus will likely be placed on connecting with client companies and convincing them your services will help their businesses.

Certain industries seem more receptive to temporary staffing. Financial institutions and other office-centric companies are constantly seeking qualified office support staff. Factories frequently need labor for light industrial work, product assembly, and shipping and receiving tasks. Hospitals and clinics use temporary medical staffing to hire transcriptionists, certified nursing professionals, and other support staff. Increasingly, high-technology companies hire computer programmers, database specialists, and systems engineers on a temporary basis through agencies specializing in technical placements.

Strategies for Success:

Develop a distinct segment!

In larger markets, providers of temporary staffing services have found it useful to branch into niches such as for instance temporary medical staffing, legal, financial, or technical fields. The focused nature of these agencies allows recruiters to create a swimming of highly-educated, trained, and experienced associates who have the ability to provide the best service to clients within a particular industry.

A hospital executive would feel convenient contracting nurses from an agency dedicated to temporary medical staffing than from a one-stop-shop that also places welders, janitors, and filing clerks. This confidence also helps associates to command better wages than they might otherwise receive through a general-service temporary staffing agency.


Much of the work of managing a temporary staffing agency could be automated by computer software. Well-designed database software can ease the method of matching qualified associates with appropriate job openings. Accounting operations can be very heavily automated (but working closely with a great accountant continues to be advised). With one of these tools in position, just two major tasks remain: finding clients and finding associates.

Use your own personal services!

As the business enterprise grows, it can be necessary to add staff to take care of the recruitment and marketing. That will never be difficult, since typically dozens or a huge selection of qualified candidates are actually in contact with the agency!

Training, Skills or Experience Needed:

Recruiters are at an edge with a background in human resources, business management, and marketing. A degree isn’t required for starting the business enterprise, but the information gained through a business management program is immensely helpful. People skills are important, and could be learned through experience and self study. Numerous books have now been published, specifically addressing temporary staffing as a company opportunity.

Leave a Reply

Your email address will not be published. Required fields are marked *