How to Start a Staffing Agency: Guide For Startups

How to Start a Staffing Agency: Guide For Startups

With the ongoing recession, several workers lost their jobs, leading to competition, and a need for good staffing agencies. This article will explain everything about the staffing agency, its profit, and how to start one. It also lists some expert suggestions which can be helpful for a staffing agency individual.

Staffing agencies, also known as employment agencies, and organisations, assist qualified working professionals in hunting for a job. If you are an experienced recruiter, initiating a staffing agency can be one of the good ways to excel in your industry knowledge and help the resources to assist professionals who are looking forward to a greater position.

In this article, we have explained everything you need to know about a staffing agency, and the steps required to start one.

What is a staffing agency?

Staffing or an employment agency is an operating agency which assists in the job placements of qualified candidates who have certain qualifications. A staffing agency that specialises in the hiring process allows employers to save time with accurate job interviews. While several agencies provide feedback and assistance to individuals looking forward to a job, staffing agency professionals work for all kinds of jobs. The job had a variety of platforms from entry-level and executive-level positions. Additionally, they help in filling several positions including healthcare, manufacturing, IT, and Engineering.

Is Owning a Staffing Agency Profitable?

How to Start a Staffing Agency: Guide For Startups

In a staffing agency, the profit ranges from 3 to 10 per cent, depending on the client’s service requirements, the number of industry services, and local conditions. In a general analysis, the large-scale staffing agency can earn an average net profit margin of 5 per cent.

Meanwhile, the staffing agency in 2020 earned an estimated profit of $450 billion. In 2022, the staffing agency in 2022 has an estimated growth of more than $650 billion. Additionally, the major goals have three main factors which include a flat fee staffing, retainer, and the percentage of salary.

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How to Start a Staffing Agency?

For starting a staffing agency, you can consider the following steps,

Choose a Suitable Industry

Before venturing into the staffing industry, look out for niches you want to specialise in. For instance, an individual can look out for his expertise in the recruiting professionals field to choose the niche he wants to continue. While a staffing agency expert has the option to choose from an array of recruitment fields,

Do an Adequate Research

With detailed research, employment agencies can be initiated more effectively. In your research, you have to look for regulations and task requirements for the businesses in a field. For instance, a staffing agency expert who is venturing into the field can research the staffing requirements used for creating an agency.

In addition to it, you can also study your competition and discover what you can change in your industry. Research the fields which can make significant changes and prospects for making your services compete with the agency.

How to Start a Staffing Agency: Guide For Startups

Evaluate Your Budget

Following, you have to examine your budget on the money’s requirement for your day-to-day business executions. Meanwhile, it is necessary to note that a business operation cost should always be lower than the estimated profit. A forecasted cash flow and expenses plan is required to cover a business cost which is lower than your profits. Factors to consider when projecting your cash flow include,

Employee Salaries: 

An employee’s salary can be based on the compensation plan executed for your staff members.

Office Settings: 

An office location or space should be decided according to the team members, location, monthly rent, and supplies.

Client Payment: 

Before your client payment, it is required to pay your expenses which can help open your savings account.


In the industry, it is useful to invest in computers for your employees which allows them to train their staff and measure the client’s satisfaction.

Marketing Plan: 

Seize the amount you plan to spend and marketing and advertising to increase and manage your potential clients.

Develop Your Business Model

By creating a business model, you can identify a staffing agency you want to open and the services your agency is willing to provide. While there are several models for staffing agencies, consider opting for a fee payment model from a new employee salary in a retainer-based model

How to Start a Staffing Agency: Guide For Startups

Build a Marketing Strategy

For targeting new employees and potential clients, you should build a strategic marketing plan. By creating a user-friendly format, a marketing strategy can be built. Additionally, you can also develop a social media presence which can be helped by utilising paid advertisements.

Hire Useful Staff

After you plan to fund your marketing agency, you can hire qualified marketing recruiters. By developing connections with people who might be interested in joining your recruiting agency, you can hire a good quality of staff. For instance, a staff expert should hire staff according to their qualifications, expertise, and experience.

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Security Measures For Staffing Agency

With security measures, you will be able to protect your staff from external threats. A staff agency, when hired by a company, involves various confidential information which should be protected. Ways to protect your staffing agency are,

  1. Invest in Computer Software which can safeguard your client information.
  2. By employee login credentials for your agency, you can regularly update them
  3. Safe encryption for employees’ details protection

What Are the Suggestions For Starting a Staffing Agency?

A staffing or recruitment agency should be started after you are well-informed, experienced, and aware of the organisation’s functionality. Some of the useful suggestions provided by our experts are;

  • Communicate With the Industry Experts: A networking event or professional meet-up opportunities can be helpful for industry beginners.
  • List The Employee Skills: While recruiting candidates to fill positions, draft an employee list including creativity or ambition. It can also help you to locate qualified candidates.

Final Words

According to stats, a recruitment manager typically spends 30 to 40 days to hire a new worker, which suffers from organisation work. Hence, in such cases, hiring a staffing agency can be beneficial.

Meanwhile, if you are a skilled recruiter, and hold a senior management position, initiating your staffing agency can increase your earnings and visibility. For more information about the staffing agency, you can refer to the above-mentioned guide.

About the author


Olivia Anderson

Olivia Anderson is a dynamic business advisor who has attended Northumbria University and obtained a bachelor’s degree in business management. With more than two years of experience, she has shared her expertise as a business liaison, account manager, and recruitment consultant for esteemed organisations. Currently working for The Next Hint Media, Olivia brings a wealth of experience among an array of fields including business development, client relations, and strategic planning. Along with her proactive approach and sharp insights make her a valuable asset in The Next Hint’s business team, constantly involving innovation and growth within our team. With a keen eye for detailed opportunities and excellence, Olivia’s determination for her work consistently increases expectations in the ever evolving landscape of business consultancy.

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