The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Top qualities of a reliable staffing agency 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 an excellent match for permanent positions. Many a job seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers are able to get a foot in the door at prestigious companies, where a weak resume could have made it very hard to be considered. Similarly, drifters (those that tend to rapidly drift from job to job) may be plagued by an overly-long resume. Temporary staffing services can be ideal for drifters, as they have the opportunity to focus on short-term projects and move ahead minus the negative repercussions. Retirees and university students are also very common candidates. A retired nurse could 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 small number of personnel must 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 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 these advantages, it will remain an integral part of the 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 lower than a great many other businesses. The basic requirements certainly are a small office with the typical supplies, a 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 a temporary staffing agency on a shoestring budget of a few thousand dollars. The biggest business expense is payroll. It is common for associates to be paid by the agency before the agency is paid by your 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 portion of the costs of establishing a temporary staffing agency. A well-researched, forward-looking business plan is vital. 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 amount of the premium differs from case to case and may change from 5% to 50% or more. Some associates are prepared to work for less and some clients are willing to pay more, which when properly matched can lead to very decent profits for the temporary staffing agency. The contract usually spells out a flat fee to be paid to the agency in the event that a client decides to permanently hire a co-employee. 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. It is not necessary to wage a national marketing war to gain exposure for a new agency. An 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 house office) should be equipped with the standard office supplies and at least two telephone lines. At least one computer system with accounting software and a database for monitoring projects is mandatory. A printer is used 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 open to help associates to teach their keyboarding and basic office software skills. These computers are also used to test the abilities of applicants. Income Potential: Many billions of dollars are spent on temporary staffing services each year. A little, 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 may be the middleman between two distinct markets: clients and associates. It is usually not a difficult matter to reach a huge selection of applicants with simple help wanted advertisements. More focus will probably be positioned on connecting with client companies and convincing them that 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 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 focusing on 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 the agencies allows recruiters to create a pool of highly-educated, trained, and experienced associates who are able to supply the best service to clients inside a particular industry. A hospital executive would feel more comfortable contracting nurses from a company focused on temporary medical staffing than from a 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 through a general-service temporary staffing agency. Automate! Much of the task of owning a temporary staffing agency could be automated by computer software. Well-designed database software can ease the procedure of matching qualified associates with appropriate job openings. Accounting operations can be extremely heavily automated (but working closely with a good 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 will 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 qualification is not needed for starting the business, however the knowledge gained through 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 business opportunity.
Top qualities of a reliable staffing agency
