Temporary Staffing Agency — Steps to make

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 due to restructuring or mergers. Additionally, employers are enticed by the notion of “test driving” new employees to minimize risk and ensure a good match for permanent positions.

Many employment seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers have the ability to get a base in the entranceway at prestigious companies, where a poor resume could have caused it to be extremely tough to be considered. Similarly, “drifters” (those who tend to rapidly drift from job to job) may be plagued by an overly-long resume. Temporary staffing services can be well suited for drifters, because they are able to work on short-term projects and move ahead with no negative repercussions staffing agency. Retirees and college students will also be very common candidates. A retired nurse will find enjoyment and extra income from the temporary medical staffing firm. A computer science major can gain valuable experience working together with a complex agency.

Only a small number of personnel must handle recruiting and clientele. Even the biggest international firms tend to operate with small, mostly-independent branch offices serving specific regions. This modular structure means it is 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 the advantages, it will remain an intrinsic area 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 conventional supplies, a pc system with general accounting software and database software for organizing contracts, and the people skills to work with clientele and associates. It would not be impossible to begin a temporary staffing agency on a shoestring budget of a few thousand dollars.

The largest business expense is payroll. It’s common for associates to be paid by the agency prior to 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’s difficult – but not impossible – to have help from venture capitalists in covering area 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 a premium to the amount billed to the client. The actual level of the premium differs from case to case and can vary from 5% to 50% or more. Some associates are ready to benefit less and some clients are willing to cover more, which when properly matched can result in very decent profits for the temporary staffing agency. The contract usually spells out a flat fee to be paid to the agency in case that a client decides to permanently hire an associate.

Advertising and Marketing:

A competitive hurdle for small startups is that larger agencies curently have established reputations and brand recognition. This is actually a minor obstacle because of the localized nature of the business. It’s not required to wage a national marketing war to gain exposure for a brand new agency. A cheap and well-directed marketing campaign can quickly build an invaluable reputation within the area operating region of the startup.

Essential Equipment:

An office (perhaps a house office) must certanly be equipped with the conventional office supplies and at the very least two telephone lines.

At least one computer system with accounting software and a database for keeping track of projects is mandatory. A printer is employed 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 will also be used to check the skills of applicants.

Income Potential:

Many billions of dollars are used on 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 could be the middleman between two distinct markets: clients and associates.

It’s usually not a difficult matter to reach hundreds of applicants with simple help wanted advertisements. More focus will probably be placed on connecting with client companies and convincing them 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.

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 temporary medical staffing, legal, financial, or technical fields. The focused nature of the agencies allows recruiters to construct a pool 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 much more comfortable 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 by way of a general-service temporary staffing agency.


A lot of the job of managing a temporary staffing agency can 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 quite heavily automated (but working closely with a good accountant remains advised). With one of these tools in position, just two major tasks remain: finding clients and finding associates.

Use your own services!

As the business enterprise grows, it will end up necessary to add staff to deal with the recruitment and marketing. That will never be difficult, since typically dozens or hundreds of qualified candidates are actually touching the agency!

Training, Skills or Experience Needed:

Recruiters are at a plus with a background in human resources, business management, and marketing. A diploma is not needed for starting the business enterprise, but the data gained by way of a business management program is immensely helpful. People skills are important, and can be learned through experience and self study. Numerous books have been published, specifically addressing temporary staffing as a business opportunity.

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