How to Open a Temporary Employment Agency

With the right skills, you can open a temporary employment agency.

For any entrepreneur, selecting a business that requires strong sales skills can lead to wasted time and money. Temporary staffing agencies, for instance, require solid sales experience, and you must feel comfortable pitching your services to employers-clients who might need your services. You must also have the expertise to interview applicants. If your skills match these core skill requirements, you could enjoy a long, prosperous tempoary staffing business.

Instructions

1. Write a business plan that identifies your industry, the potential market in your region, the number of people you will need to help run the business, and the marketing plan that will help you tell the business community about your new agency. Make sure the industry you select matches your education and experience, so you can successfully pitch your services to potential employers and recruit, interview, and identify applicants that meet your employer-client's needs.

2. Develop a sales plan by calculating the sales volume your company requires to stay in business. Compare the sales volume to the existing market. Determine the average dollar amount each client represents, and make sure the existing market can sustain the required sales volume.

3. Select an office location central to the city you'll serve. Your office does not need high visibility, but it should allow you to travel quickly to client locations to close sales.

4. Consult an employment lawyer to prepare employer-client contracts that state the fee you charge, the services you will provide and any indemnity clauses that protect you from liability. Prepare your applicant contracts, stating the salary you will pay each job applicant and whether the position is temporary or permanent.

5. Hire a sales force to identify employer-clients with open positions and close the sale by finalizing all necessary contracts. Contact potential employer-clients' HR departments, and let them know you can fulfill their companies' hiring needs by providing pre-screened employees from your applicant base.

6. Build a database of resumes for your actual and upcoming jobs. Place classified ads that will attract experienced workers in your industry. Advertising actual jobs helps fill position openings immediately, but advertising upcoming jobs that might not yet exist helps you build a database of qualified applicants, so that you can immediately meet employer-client needs.

7. Hire a background checking firm so you can verify applicants' credit and criminal backgrounds.

8. Obtain skill-testing software that will help you certify the actual knowledge your applicants have in a specific industry. For instance, if you hire for the information technology industry, you might need a skills-test program that evaluates applicants' knowledge of programming, spreadsheet software, word processing software or general computer use.

9. Network with existing industry groups, such as your local chamber of commerce or local business network chapter.

Tips & Warnings

• Consider purchasing a franchised staffing agency that can bring name recognition, training, and marketing programs to your business.

• Although it might seem counter intuitive, you must attract employer-clients, even if your applicant pool is empty, while also recruiting applicants, even if you have no jobs. You must let the employer-clients know that you always get new applicants, and you must let the applicants know that you always receive notices of new positions.

• Franchised staffing agencies often carry start-p licensing fees of $5,000 to $15,000 and monthly recurring licensing fees of 5 to 10 percent of your income.

References

• Tempay: Starting a Temp Agency
• Internet Based Moms: Start an Employment Agency
• Entrepreneur: How to Start a Staffing Agency

Resources

• Evaluate Different Employment Agency Franchises