Temporary Staffing Agency - How to Start

The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Companies find it convenient and cost-effective to utilize a temporary staffing agency to fulfill unforeseen demand, fill short-term vacancies, and assist with changing workloads because of restructuring or mergers. Additionally, employers are enticed by the idea of "test driving" new employees to minimize risk and ensure a good 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 entranceway at prestigious companies, w here  a weak resume could have made it very hard to be considered. Similarly, "drifters" (those that have a tendency to rapidly drift from job to job) may be suffering from an overly-long resume. Temporary staffing services could be ideal for drifters, as they get the chance to focus on short-term projects and move on minus the negative repercussions. Retirees and university students are also quite typical candidates. A retired nurse may find enjoyment and extra income from the temporary medical staffing firm. A computer science major can gain valuable experience working with a technical agency.

Only a small number of personnel must handle recruiting and clientele. Even the largest international firms have a tendency to function with small, mostly-independent branch offices serving specific regions.  Find out more  means it really is quite easy 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. Due to these advantages, it'll remain a fundamental element of the employment process through good times and bad.

SET UP Costs and Financing Sources:

$5,000 to $25,000

The startup and operating costs of a temporary staffing agency are lower than many other businesses. The basic requirements certainly are a small office with the normal supplies, some type of computer system with general accounting software and database software for organizing contracts, and individuals skills to utilize clientele and associates. It could not be impossible to start out a temporary staffing agency on a shoestring budget of a few thousand dollars.

The biggest business expense is payroll. It's quite common for associates to be paid by the agency prior to the agency is paid by your client. An account should be maintained with sufficient funds to cover payroll costs until bills are paid by the customers.

It really is difficult - however, not impossible - to obtain help from venture capitalists in covering area of the 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 amount billed to the client. The exact amount of the premium differs from case to case and will vary from 5% to 50% or even more. Some associates are prepared to work for less and some clients are prepared to pay more, which when properly matched can lead to very decent profits for the temporary staffing agency. The contract usually spells out a set fee to be paid to the agency when a client decides to permanently hire an associate.

Marketing and advertising:

A competitive hurdle for small startups is that larger agencies curently have established reputations and brand recognition. This is really a minor obstacle as a result of localized nature of the business enterprise. It is not necessary to wage a national marketing war to get exposure for a new agency. An inexpensive and well-directed advertising campaign can quickly create a valuable reputation within the local operating region of the startup.

Essential Equipment:

An office (perhaps a house office) should be equipped with the typical office supplies and at least two telephone lines.

At least one computer system with accounting software and a database for keeping track of projects is mandatory. A printer can be 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 help associates to teach their keyboarding and basic office software skills. These computers are also used to test the skills of applicants.

Income Potential:

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

Target Market:

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

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

Certain industries seem more receptive to temporary staffing. Finance institutions along with 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 employ 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.

Tips for Success:

Develop a niche!

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

A hospital executive would feel convenient contracting nurses from a company dedicated to 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 might otherwise receive by way of a general-service temporary staffing agency.

Automate!

Much of the work of running a temporary staffing agency could be automated by software applications. Well-designed database software can ease the process of matching qualified associates with appropriate job openings. Accounting operations can be extremely heavily automated (but working closely with a good accountant is still advised). With these tools in place, just two major tasks remain: finding clients and finding associates.

Use your own services!

As the business grows, it'll become necessary to add staff to handle the recruitment and marketing. Which should never be difficult, since typically dozens or hundreds of qualified candidates are already in contact with the agency!

Training, Skills or Experience Needed:

Recruiters are at an advantage with a background in human resources, business management, and marketing.  Dedicated freelancers  is not needed for starting the business, but the knowledge 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.