The temporary staffing industry continues to expand, with every year double-digit growth being commonplace. Companies find it convenient and cost-effective to work with a temporary staffing branch to fulfill unforeseen demand, fill short-term vacancies, and support with changing workloads due to restructuring or mergers. Additionally, employers are enticed by the idea of "test driving" new employees to minimize risk and ensure a good match for permanent positions.
Many a job seeker has reaped great rewards from temporary staffing. Skilled but yet-inexperienced workers are able to get a foot in the door at prestigious companies, where a weak resume would have made it very difficult to be considered. Similarly, "drifters" (those who tend to rapidly drift from job to job) may be plagued by an overly-long resume. Temporary staffing services can be ideal for drifters, as they have the opportunity to work on short-term projects and move on without the negative repercussions. Retirees and college students are also very tasteless candidates. A retired nurse may find enjoyment and extra wage from a temporary curative staffing firm. A computer science major can gain essential caress working with a technical agency.
Only a small amount of personnel is required to deal with recruiting and clientele. Even the largest international firms tend to function with small, mostly-independent branch offices serving exact regions. This modular structure means it is quite potential for a one-office temporary staffing branch to compete effectively with established firms.
Overall, the triple-benefit to clients, associates, and entrepreneurs has contributed to the amazing growth of the temporary staffing industry. Because of these advantages, it will remain an integral part of the employment process through good times and bad.
Start Up Costs and Financing Sources:
,000 to ,000
The startup and operating costs of a temporary staffing branch are much lower than many other businesses. The basic requirements are a small office with the typical supplies, a computer law with normal accounting software and database software for organizing contracts, and the people skills to work with clientele and associates. It would not be impossible to start a temporary staffing branch on a shoestring budget of a few thousand dollars.
The largest business cost is payroll. It is tasteless for associates to be paid by the branch before the branch is paid by the client. An inventory must be maintained with sufficient funds to cover payroll costs until bills are paid by the clients.
It is difficult - but not impossible - to get help from investment capitalists in covering part of the costs of setting up a temporary staffing agency. A well-researched, forward-looking business plan is essential.
Pricing Guidelines for Service:
Associates are paid by the hour, and the branch covers its costs by charging a prime to the amount billed to the client. The exact amount of the prime differs from case to case and can vary from 5% to 50% or more. Some associates are willing to work for less and some clients are willing to pay more, which when properly matched can consequent in very decent profits for the temporary staffing agency. The contract usually spells out a flat fee to be paid to the branch in the event that a client decides to permanently hire an associate.
Advertising and Marketing:
A competitive hurdle for small startups is that larger agencies already have established reputations and brand recognition. This is honestly a minor obstacle because of the localized nature of the business. It is not essential to wage a national marketing war to gain exposure for a new agency. An inexpensive and well-directed marketing campaign can quickly build a essential credit within the local operating region of the startup.
Essential Equipment:
An office (perhaps a home office) should be equipped with the acceptable office supplies and at least two telephone lines.
At least one computer law with accounting software and a database for holding track of projects is mandatory. A printer is used for printing invoices and job listings, and a high-speed Internet connection connects the branch with online job search sites.
Many temporary staffing services have computers with tutorial software available to help associates to train their keyboarding and basic office software skills. These computers are also used to test the skills of applicants.
Income Potential:
Many billions of dollars are spent on temporary staffing services each year. A small, single-office branch can earn profits in the tens of thousands of dollars. The large, international firms rake in millions every year.
Target Market:
A temporary staffing branch is the middleman in the middle of two safe bet markets: clients and associates.
It is usually not a difficult matter to reach hundreds of applicants with easy help wanted advertisements. More focus will probably be settled on connecting with client Companies and convincing them that your services will help their businesses.
Certain industries seem more receptive to temporary staffing. Financial institutions and other office-centric Companies are permanently seeking suited office retain staff. Factories frequently need labor for light industrial work, goods assembly, and shipping and receiving tasks. Hospitals and clinics use temporary curative staffing to hire transcriptionists, certified nursing professionals, and other retain staff. Increasingly, high-technology Companies hire computer programmers, database specialists, and systems engineers on a temporary basis through agencies specializing in technical placements.
Tips for Success:
Develop a niche!
In larger markets, providers of temporary staffing services have found it beneficial to branch into niches such as temporary curative staffing, legal, financial, or technical fields. The focused nature of these agencies allows recruiters to build a pool of highly-educated, trained, and experienced associates who are able to contribute the best assistance to clients within a particular industry.
A hospital menagerial would feel more comfortable contracting nurses from an branch dedicated to temporary curative staffing than from a one-stop-shop that also places welders, janitors, and filing clerks. This reliance also helps associates to command best wages than they might otherwise receive through a general-service temporary staffing agency.
Automate!
Much of the work of running a temporary staffing branch can be self-acting by computer software. Well-designed database software can ease the process of matching suited associates with acceptable job openings. Accounting operations can be very heavily self-acting (but working closely with a good accountant is still advised). With these tools in place, just two major tasks remain: looking clients and looking associates.
Use your own services!
As the business grows, it will become essential to add staff to deal with the recruitment and marketing. That should never be difficult, since typically dozens or hundreds of suited candidates are already in caress with the agency!
Training, Skills or caress Needed:
Recruiters are at an benefit with a background in human resources, business management, and marketing. A degree is not essential for starting the business, but the knowledge gained through a business management agenda is immensely helpful. people skills are important, and can be learned through caress and self study. Numerous books have been published, specifically addressing temporary staffing as a business opportunity.
No comments:
Post a Comment