Temporary Staffing Agency - Getting Started

The temporary staffing industry continues to expand, with yearly double-digit growth is on the agenda. Companies find it convenient and efficient to work with an employment agency to fulfill unforeseen demand, fill short term vacancies, and assist with changing workloads due to restructuring or mergers. In addition, employers are enticed by the idea of ​​"test driving" new employees to minimize risk and ensure a good match for permanent positions.

More than a job seeker has collected great rewards from temporary staff. Skilled workers but still inexperienced, are able to obtain a foot in the door to prestigious firms, where a weak resume would have made it very difficult to be taken into consideration. Similarly, "Drifters" (those who tend to move quickly from one job to another) may be plagued by a too long resume. Temporary employment services can be ideal for drifters, as they have the opportunity to work on short-term projects and move forward without any adverse effects. Retirees and college students are also very common candidates. A retired nurse may find enjoyment and extra income from a temporary staffing company doctor. A computer science major can gain valuable experience working with a technical agency.

Only a small number of staff required to handle recruiting and clientele. Even the largest international firms tend to operate mostly independent small branches that serve specific regions. This modular structure means that it is entirely possible for a one-office temporary staffing agency to compete effectively with established firms.

Overall, the triple-benefit to customers, partners, entrepreneurs and industry has contributed to the phenomenal growth of temporary staff. Because of these advantages, will remain an integral part of the process of working through good times and bad.

Start-up costs and funding sources:

$ 5,000 to $ 25,000

The costs of starting and operating a temporary employment agency are much lower than many other companies. The basic requirements are a small office with the typical supplies, a computer system with general accounting software and database software for organizing contracts and skills of people to work with customers and employees. It would not be impossible to start a temporary staffing on a shoestring budget of a few thousand dollars.

The largest business expense is payroll. It 's common for members that are charged to the agency before the agency is charged to the customer. An account must be maintained with sufficient funds to cover personnel costs until bills are paid by customers.

It 's difficult - but not impossible - to get help from venture capitalists to cover the cost of creating temporary staffing agency. A well-documented, forward-looking business plan is essential.

Guideline prices for the service:

Associates are paid by the hour, and the agency covers its costs by charging a premium for the amount billed to the customer. The exact amount of the prize varies from case to case and can vary from 5% to 50% or more. Some members are willing to work for less and some clients are willing to pay more, which if properly matched can result in very decent profits for the temporary staffing agency. The contract specifies generally a flat fee to be paid to the agency when a 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 trade. It is not necessary to conduct a national marketing war to gain exposure for a new agency. A marketing campaign inexpensive and well directed can quickly build a reputation within the region important to the local operation started.

Essential equipment:

An office (perhaps a home office) must be equipped with office supplies and at least two standard telephone lines.

At least one computer with accounting software and a database to keep track of 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 help members form their typing skills and basic office software. These computers are also used to test the ability of applicants.

Income potential:

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

Target market:

An agency is the intermediary between two distinct markets: clients and collaborators.

It is usually not a difficult matter to reach hundreds of candidates with the help of simple wanted advertising. More attention will probably be placed on connecting with client companies and convincing them that the services will help their business.

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

Tips for Success:

Develop a niche!

In larger markets, providers of temporary staffing services have found useful to branch into niches such as medical staffing, legal, financial or technical. The targeted nature of these agencies allows recruiters to build a pool of highly educated employees, trained and experienced, who are able to provide the best service to customers within a particular sector.

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

Automate!

Much of the work of running a temporary staffing can be automated by software. Well-designed database software can ease the process of matching qualified associates with appropriate job openings. Accounting operations can be highly 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, you will need to add staff to manage the recruitment and marketing. That should not be difficult, since typically dozens or hundreds of qualified candidates are already in contact with the agency!

Training, skills or experience required:

Recruiters are at an advantage with a background in human resources, business management and marketing. A degree is not essential to start the business, but the knowledge acquired through a business management program is immensely useful. People skills are important, and can be learned through experience and study. Numerous books have been published, with particular emphasis on temporary staff as a business opportunity....