The Complete Guide to Starting Your Own Staffing Agency

A staffing agency works like a middle organization that works to connect the employers and workers. It works to find new employees for different companies. If any business needs labor, managers, or any kind of staff then a staffing agency can help by providing this staff.

Finding qualified and eligible persons remains challenging for the companies. So, in this way, they take help of staffing agency.

You must have to keep in mind that you have to review the applications, organize the tests, interview the candidates and negotiate their salaries. You will have to stay connected with the businesses and private sectors to update the community about new jobs.

If you are going to start any kind of staffing agency like an IT staffing agency, sector-specific agency, or a business employment agency then you must have to know about some services and responsibilities of this type of service providing agency.

In order to grow your staffing agency and earn better from this business, you must have to utilize your time and have to be very alert. Because you have to lease employees to companies that need the new staff.

You can make good profits by paying the employees less than you get from your clients. The clients are different small companies that contact you when they have any staffing requirements.

The companies always like to stay connected with staffing agencies because they are always able to provide quick staff for short and long projects. Employees also like the staffing agencies because they provide them new opportunities and a flexible environment of working.

Things To Remember When Starting Your Own Staffing Agency:

Everybody knows that if you have good knowledge about a field then you will be more confident to do its tasks than that of a person without a good knowledge about this field.

So, in this article, I am going to discuss the 9 most important steps to grow your staffing agency successfully. Because these steps can help you a lot by providing you enough knowledge about the initial steps to be taken for making your business successful.

Every business may have 4 cycles like expansion, peak, contraction, and trough but your business is of a staffing agency. A staffing agency remains almost always in peak and prosperity cycles because employees always need jobs for what the employers are looking for.

You must have to be a responsible and good-mannered person to have better relationships with your clients and community to run this kind of business as well.

In this way, here are 9 major steps for you to follow to run your business successfully so, just take a read of these key points to remember before starting your own staffing agency.


In order to make your staffing agency successful, you must have to evaluate your skills. You must be able to find new employees, clients, match the clients and employees and moreover, you also have to manage your own staff for this business.

Yes, these skills are important to run and grow your staffing agency but, if you don’t own these skills then no good words.

So, test your skills and if you don’t have one, then try to start partnering with this kind of agency to gain a good experience and increase your skills to be successful in your business.

Encourage The Fair Industry:

It is a major key to run a successful business that you should encourage the right industry. Take surveys to find out the market’s needs and ensure that your company is fulfilling its requirements.

There are 3 general segments of a staffing agency that are industrial, clerical, and professional or technical. Try to focus on the supply cycles of the industry that you have selected. It is not difficult to start from small industry and grow from there.

Set The Initial Costs:

The initial costs are of two types: Establishment & Operational.

The establishment includes required setup expenses, Computers & accessories, Software (accounting, payroll, HR, testing, and training), Office, and Insurance.

While the operational costs include the money that you spend to find the employees, clients and to spend for your starting months of services and to continue it.

Learn About The Cash Flows:

It is one of the most important things to understand the cash flows. For running a staffing agency successfully, you have to understand the cash flows.

So, you should pay your employees every week or maximum after every two weeks. But your clients should also be honest and responsible for paying you timely.

How To Find The Employees:

It is not very easy to find new employees. You must need a good and talented staff to browse and search on community-based apps. Your company’s staff should be responsible for reviewing applications and interviewing the candidates properly every day.

How To Find The Clients:

It is very competing to find out the clients. You have to mention and explain the benefits you are providing for clients. You have to explain and advertise the details of your company to attract clients to work with you.

You can find new clients using the places like Trade publications, the Internet and Newspapers, Networking, cold calling, and other community-based apps.

Use Payroll Service:

A payroll service can assist you a lot and can decrease your many headaches. As your staffing agency has to lot of stuff so it would be difficult to work without a payroll service.

It can save you from attending too many calls of tax and other service providers. There are many payroll services that are providing low-priced offers. I would like to suggest get a payroll service before your first employee.


If you are going to start an IT staffing agency or an industrial staffing agency then you should get proper insurance. You should consult a well-renowned insurance agent of the industry.

Here are some of the best insurance companies that are CGL, EPLI, property coverage, and professional liability insurance.

Factoring Payroll Financing:

It is difficult for success to understand the cash flows of an IT staffing agency. Understanding the cash flows of your staffing agency is very strained and time-consuming even when you are at the initial or growing stage.

So, a factoring payroll financing service can be a good choice to save you from a lot of problems and headaches. It can advance the funds for meeting the payroll expenses, growing your business, and avoiding cash crunches as well.


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