How to Start an Employment Service Staffing Agency
According to the American Staffing Association, the staffing industry has historically grown faster than the overall economy. The low start-up costs associated with forming an employment service staffing agency make it an ideal choice for aspiring entrepreneurs. Employment service staffing agencies can benefit in good economic times when companies need to quickly ramp up personnel, and they can also thrive in depressed economic times when companies seek to save money by replacing full-time employees with temporary workers.
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Instructions
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Instructions
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1
Form a business entity such as a corporation or an LLC. Obtain an employer identification number (EIN ) from the IRS. Follow all registration requirements in your locality governing the operation of an employment services staffing agency. Procure all applicable licenses required to running a staffing business.
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Research prevailing wage rates in your area. Formulate the pay scale you will use to compensate your agency's workers. Investigate rates currently charged to customers by existing competition within your market. Institute a competitive pricing structure, keeping in mind that as a new company you cannot command a premium for your initial services.
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Create a regimen for recruiting your workers. Utilize online as well as traditional media options to facilitate hiring qualified personnel. Write an employee handbook including all of your agency's policies and procedures. Draft contract language to use in your customer retention agreements. Define clearly the services your agency will provide to its clients, as well as associated billing schedules.
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Devise management procedures detailing how you will allocate assignments among your staff. Implement policies and procedures to ensure appropriate appearance, punctuality and efficiency among your personnel. Program or purchase software that facilitates management of an employment service staffing agency.
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Market your agency online along with trade journals, newspapers and other media available in your area. Create a company website and blog. Tap into business-oriented social networking websites in order to increase your universe of contacts. Attend local trade shows and other venues where you might find potential customers.
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Tips & Warnings
Market to businesses of all types. According to the U.S. Department of Labor, 9 out of 10 businesses use the services of staffing agencies at one time or another. Constantly seek customer feedback regarding the quality of the workers you provide.
Seek qualified counsel should you not have experience writing legal contracts. Keep detailed accounting of all transactions, and follow all applicable tax laws and reporting requirements.
