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Temporary Staffing Agency : Launch

Categories : Health

The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Companies believe it is convenient and cost-effective to work with 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 idea 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 weak resume would have caused it to be very hard to be considered. Similarly, “drifters” (those who often rapidly drift from job to job) might be plagued by an overly-long resume. Temporary staffing services can be well suited for drifters, while they are able to work on short-term projects and move on minus the 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 employment agency. Some type of computer science major can gain valuable experience working with a specialized agency.

Merely a small number of personnel is needed to 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 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. Because of these advantages, it’ll remain an intrinsic 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 great many other businesses. The essential requirements are a small office with the typical supplies, a computer system with general accounting software and database software for organizing contracts, and the folks skills to work well 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 greatest business expense is payroll. It’s common for associates to be paid by the agency ahead of the agency is paid by the client. An account must certanly be maintained with sufficient funds to cover payroll costs until bills are paid by the clients.

It’s 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 reduced to the amount billed to the client. The precise amount of the premium differs from case to case and can differ from 5% to 50% or more. Some associates are willing to benefit less and some clients are willing to pay for more, which when properly matched may 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 event that a client decides to permanently hire an associate.

Advertising and Marketing:

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

Essential Equipment:

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

One or more computer system with accounting software and a database for monitoring projects is mandatory. A printer is useful 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 coach their keyboarding and basic office software skills. These computers may also be used to test the skills of applicants.

Income Potential:

Many billions of dollars are allocated to 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 may be the middleman between two distinct markets: clients and associates.

It’s usually not an arduous matter to achieve countless applicants with simple help wanted advertisements. More focus is going to be added to connecting with client companies and convincing them that the 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 devoted to technical placements.

Methods for Success:

Develop a niche!

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

A hospital executive would feel convenient contracting nurses from an agency specialized in 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 may otherwise receive via a general-service temporary staffing agency.


Much of the job of running a temporary staffing agency can 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 quite heavily automated (but working closely with a great accountant remains advised). With these tools set up, just two major tasks remain: finding clients and finding associates.

Use your own personal services!

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

Training, Skills or Experience Needed:

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

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