How to Start aTemporary Employment Agency
With unemployment levels still at historic highs, the need for temporary jobs is on the rise. Thus, starting a temporary employment agency can be a busy and profitable venture.
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Things You'll Need
- Information database for temporary jobs
- Office space (optional)
- Strong network
- License and registration number from the local government authority
- Website for getting registered with temporary job provider companies
- Telephone line, with at least two instruments for call making and attending respectively
- Office supplies
- Accounting software (optional)
- Business bank account
- Sufficient start up funds for computers, websites and internet
Instructions
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Draft a well-researched business plan to understand the aims and targets of the new business. This is very necessary if you plan to raise capital through a bank loan or venture capitalist. This plan will include agency objectives and targets, its market study, including competitor information, and how it can gain competitive advantage over them. Include the services that the agency can handle,, including recruitment, skill evaluation, pre-interview interviewing, background check,and first screening. The company's projected financials, operating strategy, and marketing strategy should be discussed.
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Register the agency with the business registration department in the locality. Select the business structure and accordingly complete all formalities. Hire an attorney to help you with the legalities. The attorney will be able to help you identify all the legal obligations of a temporary recruitment agency. Get familiar with the rules and regulations of the state. In addition, become familiar with employment law, as it is important to understand the rights of the people who you place in jobs. You and your staff need to understand employee rights, wages, pay deductions, working hours and other employment considerations.
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Decide whether you would like to rent or buy office space or work from home. Many temporary recruitment agents work from home. If selecting the former option, look for a location for the office. This location does not necessarily have to be in the prime areas, as most work is generally carried out by phone or the Internet. You will be required to search for jobs and match candidates. Being in a central or prime location would make it easy for the candidate to come for their screening interviews.
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Select a computer(s) and choose an Internet plan as an Internet connection is necessary to access the information available on the net and to contact the respective companies. Consider automating through a computer software and database software that eases the process of matching jobs with appropriate qualified associates. This will reduce your work to a large extent. The importance of a database software is a key consideration since you will be expected to work with lots of employee and job data.
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Remember the biggest issue with a temporary recruitment agency is the payroll issue. This is because it is a common practice to pay the associate before the agency is paid by the client. Thus, it is important to hire the services of an accountant, who would maintain the accounts and keep track of all payrolls and bills.
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Enable a status of understanding between the agency and the temporary job providers. Make sure that the details of the jobs offered are completely collected before opening up the information on the website.
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Establish the pricing guidelines. In most temporary jobs, the associate is paid by the hour. Thus, the agency would be required to charge a premium on the billed amount to the client. This premium amount can vary as per the individual contract. In most case, the contracts specify a flat fee to cover all expenses and fee if a client decided to hire the associate.
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Advertise the agency through all kinds of media services and by optimizing the website with specific keywords for online searches. Many small or budding temporary recruitment agencies face competition with the larger agencies. This is because the larger agencies have already created a strong brand name and have acquired recognition and reputation. This does not mean that you must compete with them through a marketing war, but instead opt for a well-planned and well-budgeted marketing plan that takes competing with the larger agencies in mind.
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Collect both the information of job providers and seekers separately and manage them cautiously. Provide the most suitable temporary job for the candidates if they fit the requirements only. Conduct tests if necessary for screening candidates before sending them to the client.
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Decide whether you want a general temporary recruitment agency or want to develop a niche in a particular industry. For example, perhaps you want to specialize in only medical or management or legal jobs. The choice is yours and would be dependent on your knowledge, interest, and networking in the industry. By focusing on a specific industry, you will be more experienced in the area leading to building a network of well-educated, well-experienced, and well-trained applicants.
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Tips & Warnings
Remember associate turnover and client turnover will be high in the temporary recruitment agency. This will also mean you would potentially be placing same associates every now and then as well have new ones. This is because temporary jobs do not last very long and chances are the associate would be looking for a new job. This can get extremely difficult and confusing. Thus, you would have to maintain a proper database and accounts.
References
Resources
- Photo Credit job image by Andrey Kiselev from Fotolia.com
