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How to Start a Staffing Agency

By Timerack

November 9, 2022

With individuals leaving their jobs in droves, staffing agencies have grown in demand over the last several years. Starting a staffing agency yourself is a lot of work, but it is possible. These tips will keep you grounded while you work on your dreams.

Why Start a Staffing Agency?

Creating your own staffing agency is a huge accomplishment. People pursue this path for a variety of reasons. Some are entrepreneurs who see a need in the market and want to fill it. Others have a passion for making connections and bringing the right people together to accomplish a job. Regardless of your reasoning, running a staffing agency can offer satisfaction when you see the good you’re doing.

There are a myriad of staffing agencies in the United States and around the world. Many are specialized, connecting employees in certain industries to employers in need. Others fill a more general space in the market, helping job seekers of all kinds search for their next place of work. Common niches for staffing agencies include most service industries, like restaurants, hospitality, healthcare, and housekeeping. 

If you’re considering starting a staffing agency that fills a particular niche in the market, make sure to do your research beforehand. Know what positions are in highest demand for the locations you will serve. Be prepared to nurture relationships with business owners. Learn the ins and outs of the industries you’ll specialize in. And as the market changes, know that flexibility is key.

Know Your Costs

Starting a business requires money long before you see a profit. When you’re starting a staffing agency, consider your business model and how it will affect the costs of your new venture. For example, if you decide your agency will operate completely in person, you’ll want to rent an office space and set aside money for office supplies. Be prepared to hire employees who will help you get your business venture off the ground. Don’t forget legal costs or the expense of putting together a professional website. Additionally, marketing and advertising will help you find new prospects.

No matter the investment, you want to ensure you’re spending money on things that will last and prove to be good financial decisions. 

Use Good Software

One of the costs you should take seriously is your software. If you use unreliable programming, you’ll discover quickly how much it affects the day-to-day of your business. Consider the HR software that helps keep you organized. As employees clock in and out, fill out paperwork, and handle sensitive information, it’s essential for your software to not only keep up with the workflow but to avoid mishaps whenever possible. 

At Timerack, our software consistently goes above and beyond to help business owners and employees stay on track. You can use Timerack to track time and attendance for employees, centralize your human resources department, automate payroll calculations, and even screen for COVID-19 symptoms before workers arrive at your business location. In the end, one software program saves you endless hours of administrative work and the stress of payroll errors while also improving employee engagement. 

Check carefully to see how other software programs can help reduce the amount of work you and your employees do daily. This can help lower costs and eliminate excess work.

Form Relationships with Vendors

Perhaps most importantly, as the owner of a new business, you’ll want to ensure you have vendors you trust. Consider the time, money, and effort you’ve put into starting your staffing agency. Any vendors you work with—especially those that help your business run smoothly—will need to be highly trustworthy and offer only the best customer service. 

Timerack is another great example of this. With core values in place to ensure best experiences for all clients, you’ll never be disappointed in the Timerack software or in working with your liaison to optimize your usage of Timerack. Consider your relationships with the other vendors you trust. Do you feel you have a good relationship with them? Ask yourself how the relationship could be improved. If needed, research other vendors to ensure you’re getting the best value for your company.

Starting a staffing agency takes a lot of work, but as you work hard and follow these simple steps, you’ll start to see progress. Where will you start your journey? 

Interested in trying Timerack for your new business? Get a free demo and see how your new agency can simplify all its processes.



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