What Does It Take to Become a Successful Staffing Company?


Staffing agencies are a great business to be involved in. These businesses are relatively easy to start, provide an above-average profit margin and place you in a position to help both your candidates and your clients. Staffing agencies focus on several different types of placements. These are temporary, contract and perm candidates. Temporary employees work for the staffing agency and are on loan to the client. Contract employees are on assignment and are not employed directly by anyone. They are paid by the hour but are not eligible for benefits. Perm employees are placed with the client and become the client's employee immediately.

Candidate Mix

A successful staffing agency must have a mix of candidates and clients. The candidate mix is especially important. This includes people with one to two years of experience through seasoned professionals operating within many levels of management. It is rare to recruit entry-level candidates because employers do not need assistance in finding them. Universities and colleges graduate tens of thousands of them every year. Having candidates at every level of the ladder will increase a company's placement figures.

Human Capital

Like all companies, staffing firms rely on human capital to penetrate markets, build the company’s reputation and generate revenue. Recruiters are critical to the success of your agency. They have to be versed in your practice specialty, industry and sales. Recruiting is about relationships, sales and negotiations. Recruiters are typically career changers and come from the industry for which they recruit. Since these positions are generally sales jobs, the recruiters are paid in a commission compensation structure. If they do not perform, your company is out very little. Try to hire experienced recruiting staff. Veteran recruiters are all fairly good. They have to be in order to become veteran recruiters.

Strategic Partnerships

Temporary and contract staffing can be very expensive. Payrolling the staff until your clients pay the bill can be expensive as well as risky. New agencies often cannot afford that level of risk or the expense of such a cash-intensive venture. There are companies that will act as the employer of record for your temporary and contract staff. The employer of record agency provides the insurance, benefits and payroll dollars until the client pays. They share in your agency's fees; however, your share of the fee is larger. This offsets the risk and cash requirements. One agency that provides this service is Innovative Employee Solutions (IES). They are an employee of record service.

Business Development

Business development is the primary function of any staffing agency. Without clients and job orders the agency is dead in the water. Gaining job orders is a sales-intensive job. It requires cold calling, direct business-to-business sales visits and constant networking. Building relationships with hiring managers, department heads and company executives is critical for this business to succeed. Some recruiters work the client side of the desk in addition to recruiting talented candidates. However, a well-focused team of business development managers can have a very positive effect on the number of available job orders.


Software is key to administrative management. Candidate tracking software is crucial for tracking all your agency's candidates, clients and job orders. Since a staffing agency deals in volume, the only way to keep track of every detail is with software. There are several software packages that make great agency-wide solutions. Sendouts Pro is one of the highest-rated software programs in the staffing industry. It focuses on all of the key areas that are involved in recruiting. It has a backup solution, resume integration capabilities, sourcing and match technology as well as several other key benefits.

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