Temporary Staffing Agency — You can start

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

Many employment seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers can get a base 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) might be plagued by an overly-long resume. Temporary staffing services could be suitable for drifters, because they have the opportunity to work with short-term projects and proceed without the negative repercussions permanent staffing. Retirees and college students are also 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 dealing with a specialized agency.

Just a small number of personnel must handle recruiting and clientele. Even the biggest international firms tend to work with small, mostly-independent branch offices serving specific regions. This modular structure means it is 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 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 lower than a number of other businesses. The fundamental requirements certainly 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 work with clientele and associates. It would not be impossible to start 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 prior to the agency is paid by the client. An account must be maintained with sufficient funds to cover payroll costs until bills are paid by the clients.

It is difficult – but not impossible – to obtain help from venture capitalists in covering the main costs of establishing 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 reduced to the total amount billed to the client. The precise amount of the premium differs from case to case and may vary from 5% to 50% or more. Some associates are prepared to work for 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 truly 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 brand new agency. An inexpensive and well-directed marketing campaign can quickly build an invaluable reputation within the neighborhood operating region of the startup.

Essential Equipment:

An office (perhaps a property office) should be designed with the typical 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 Web 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 are also 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 tens of 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 is usually not an arduous matter to attain countless applicants with simple help wanted advertisements. More focus is going to be added to 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.

Tips for Success:

Develop a distinct segment!

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

A hospital executive would feel 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.


Much of the job of managing a temporary staffing agency could 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 very heavily automated (but working closely with a great accountant continues to be advised). With 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 countless qualified candidates already are in touch with the agency!

Training, Skills or Experience Needed:

Recruiters are at a bonus with a background in human resources, business management, and marketing. A diploma isn’t essential for starting the business enterprise, but the information gained by way of 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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