Temporary Staffing Agency – Where do you start

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

Many a job seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers can get a foot in the doorway at prestigious companies, where a poor resume might have caused it to be very difficult to be considered. Similarly, “drifters” (those who have a tendency to rapidly drift from job to job) may be plagued by an overly-long resume. Temporary staffing services could be well suited for drifters, as they get the chance to work with short-term projects and move on with no negative repercussions. Retirees and college students may also be very common candidates. A retired nurse will find enjoyment and extra income from the temporary medical staffing firm recruitment agencies near me. A pc science major can gain valuable experience dealing with a specialized agency.

Only a small number of personnel is required to handle recruiting and clientele. Even the greatest international firms tend to work 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 those advantages, it will remain a built-in 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 normal supplies, a computer system with general accounting software and database software for organizing contracts, and individuals skills to utilize clientele and associates. It would not be impossible to start a temporary staffing agency on a shoestring budget of several 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 – however, not impossible – to have help from venture capitalists in covering the main costs of setting up 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 a premium to the quantity billed to the client. The exact number of the premium differs from case to case and may differ from 5% to 50% or more. Some associates are ready to work for less and some clients are willing to pay more, which when properly matched can result in very decent profits for the temporary staffing agency. The contract usually spells out an appartment fee to be paid to the agency in the case that the client decides to permanently hire an associate.

Advertising and Marketing:

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

Essential Equipment:

A company (perhaps a home office) must certanly be built with the conventional office supplies and at the least two telephone lines.

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

Many temporary staffing services have computers with tutorial software available to greatly help associates to train their keyboarding and basic office software skills. These computers may also be used to check the skills of applicants.

Income Potential:

Many billions of dollars are spent on temporary staffing services each year. A tiny, single-office agency can earn profits in the countless amounts 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 a hard matter to attain countless applicants with simple help wanted advertisements. More focus will likely be added to connecting with client companies and convincing them that your services may 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 focusing on technical placements.

Techniques for Success:

Develop a niche!

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

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


A lot of the job of owning a temporary staffing agency could be automated by computer software. Well-designed database software can ease the process of matching qualified associates with appropriate job openings. Accounting operations can be very heavily automated (but working closely with an excellent accountant continues to be advised). With your tools set up, just two major tasks remain: finding clients and finding associates.

Use your own services!

As the company grows, it will become necessary to incorporate staff to take care of the recruitment and marketing. That will never be difficult, since typically dozens or countless qualified candidates are already in contact with the agency!

Training, Skills or Experience Needed:

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

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