The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Click here to find out more think it is convenient and cost-effective to utilize a temporary staffing agency to fulfill unforeseen demand, fill short-term vacancies, and help with changing workloads because of restructuring or mergers. Additionally, employers are enticed by the thought of "test driving" new employees to reduce risk and ensure a good match for permanent positions.
Many employment seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers can get a foot in the door at prestigious companies, where a weak resume could have made it very difficult to be considered. Similarly, "drifters" (those who have a tendency to rapidly drift from job to job) may be suffering from an overly-long resume. Temporary staffing services can be ideal for drifters, because they have the opportunity to focus on short-term projects and move ahead minus the negative repercussions. Retirees and university students are also quite typical candidates. A retired nurse may find enjoyment and extra income from a temporary medical staffing firm. Some type of computer science major can gain valuable experience working with a technical agency.
Only a few personnel is required to handle recruiting and clientele. Even the largest international firms tend to function with small, mostly-independent branch offices serving specific regions. This modular structure 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. Because of these advantages, it will remain a fundamental element of the employment process through memories and bad.
Start 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 the people skills to utilize clientele and associates. It would not be impossible to start out a temporary staffing agency on a shoestring budget of several thousand dollars.
The biggest business expense is payroll. It's quite common for associates to be paid by the agency before 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 customers.
It really is difficult - however, not impossible - to obtain help from venture capitalists in covering section of the 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 exact level 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 plus 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 already have established reputations and brand recognition. This is actually a minor obstacle as a result of localized nature of the business enterprise. It is not essential to wage a national marketing war to get exposure for a new agency. A cheap 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 house office) should be built with the standard 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 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 associates to train their keyboarding and basic office software skills. These computers may also be used to test the abilities of applicants.
Income Potential:
Many vast amounts of dollars are spent on temporary staffing services each year. A small, 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 is the middleman between two distinct markets: clients and associates.
It is usually not a difficult matter to reach hundreds of applicants with simple help wanted advertisements. More focus is going to be placed on connecting with client companies and convincing them your services can 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, along with 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 beneficial to branch into niches such as for example temporary medical staffing, legal, financial, or technical fields. The focused nature of the agencies allows recruiters to build a pool of highly-educated, trained, and experienced associates who are able to supply the best service to clients within a particular industry.
A hospital executive would feel more comfortable contracting nurses from an agency 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 through a general-service temporary staffing agency.
Automate!
Much of the work of owning 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 very heavily automated (but working closely with an excellent accountant continues to be advised). With one of these tools set up, just two major tasks remain: finding clients and finding associates.
Use your own services!
Because the business grows, it'll become necessary to add staff to take care of the recruitment and marketing. That should never be difficult, since typically dozens or a huge selection of qualified candidates are already in contact with the agency!
Training, Skills or Experience Needed:
Recruiters are at an edge with a background in recruiting, business management, and marketing. A degree is not essential for starting the business, however the knowledge gained by way of a business management program is immensely helpful. People skills are important, and will be learned through experience and self study. Numerous books have been published, specifically addressing temporary staffing as a small business opportunity.