Temporary Staffing Agency : How to begin

The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Companies believe it is convenient and cost-effective to work with a temporary staffing agency to fulfill unforeseen demand, fill short-term vacancies, and help with changing workloads because of restructuring or mergers. Additionally, employers are enticed by the notion 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 weak resume would have caused it to be very difficult to be considered. Similarly, “drifters” (those who tend to rapidly drift from job to job) might be plagued by an overly-long resume. Temporary staffing services may be well suited for drifters, because they have the opportunity to focus on short-term projects and move ahead without the negative repercussions employment agency. Retirees and college students will also be very common candidates. A retired nurse will find enjoyment and extra income from a temporary medical staffing firm. A pc science major can gain valuable experience dealing with a technical agency.

Only a small number of personnel is required to handle recruiting and clientele. Even the biggest international firms tend to function with small, mostly-independent branch offices serving specific regions. This modular structure means it’s quite possible 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 the advantages, it will remain an integral part of the 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 lower than many other businesses. The fundamental requirements certainly 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 work with clientele and associates. It wouldn’t be impossible to take up 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 before the agency is paid by the client. An account should be maintained with sufficient funds to cover payroll costs until bills are paid by the clients.

It is difficult – although not impossible – to obtain help from venture capitalists in covering part of the 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 total amount billed to the client. The actual quantity of the premium differs from case to case and may differ from 5% to 50% or more. Some associates are ready to benefit less and some clients are willing to pay more, which when properly matched may result in very decent profits for the temporary staffing agency. The contract usually spells out a set 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 truly a minor obstacle due to the localized nature of the business. It is not essential to wage a national marketing war to gain exposure for a new agency. An inexpensive and well-directed marketing campaign can quickly build a valuable reputation within the neighborhood operating region of the startup.

Essential Equipment:

A company (perhaps a house office) must be designed with the standard office supplies and at least two telephone lines.

One or more computer system with accounting software and a database for keeping track of projects is mandatory. A printer is useful for printing invoices and job listings, and a high-speed Net connection connects the agency with online job search sites.

Many temporary staffing services have computers with tutorial software available to simply help associates to teach their keyboarding and basic office software skills. These computers will also be used to test the skills of applicants.

Income Potential:

Many billions of dollars are allocated to temporary staffing services each year. A tiny, 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 is the middleman between two distinct markets: clients and associates.

It is usually not an arduous matter to attain hundreds of applicants with simple help wanted advertisements. More focus is going to be positioned on connecting with client companies and convincing them that 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 devoted to technical placements.

Strategies for Success:

Develop a distinct segment!

In larger markets, providers of temporary staffing services have found it helpful to branch into niches such as temporary medical staffing, legal, financial, or technical fields. The focused nature of the agencies allows recruiters to build a swimming of highly-educated, trained, and experienced associates who have the ability to provide the very best service to clients inside 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 job of managing a temporary staffing agency may 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 extremely heavily automated (but working closely with a great accountant continues to be advised). With your tools in position, just two major tasks remain: finding clients and finding associates.

Use your personal services!

As the business grows, it can be necessary to incorporate staff to handle the recruitment and marketing. That will never be difficult, since typically dozens or hundreds of qualified candidates are already in touch with the agency!

Training, Skills or Experience Needed:

Recruiters are in a bonus with a background in human resources, business management, and marketing. A qualification is not required for starting the business, but the information gained through a business management program is immensely helpful. People skills are essential, and may be learned through experience and self study. Numerous books have now been published, specifically addressing temporary staffing as a company opportunity.

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