The temporary staffing industry continues to grow, with annual double-digit growth being commonplace. Businesses discover that it's convenient and cost-effective to work with an temporary staffing agency to fulfill unforeseen demand, fill short term vacancies, and help with changing workloads due to restructuring or mergers. Also, companies are enticed by the concept of "test driving" new employees to minimize risk and guarantee an excellent fit for permanent positions.
Financing sources and startup cost
The initial investment is between $5000 and $25000.
It's hard - but not impossible - for covering a part of the expenses of establishing a temp staffing service to get assistance. A well-studied, forward-looking business plan is necessary.
The biggest business expense is payroll. It's normal for associates to be covered by the service before the customer pays the service. An account should be kept with adequate resources to cover payroll prices until the customers pay invoices.
Marketing and Advertising
A competitive hurdle for small startups is that bigger agencies already have built brand recognition and reputations. That is a minor challenge due to the localized nature of the company. It isn't required to wage a national advertising war to get publicity to get a brand new bureau. An affordable and well-directed marketing campaign can quickly develop a good standing within the area operating area of the startup.
Pricing Model for Services
Associates are paid by the hour, by charging a premium for the amount charged to the customer as well as the Bureau covers its costs. The precise quantity premium may change from 5 and differs from case to case. Some associates will willingly work for some customers, and less will gladly cover more, which when correctly fit can lead to quite adequate gains for the temporary staffing service. The contract spells a flat fee to be paid to the bureau in case a customer decides to hire an associate out.
A word of advice
In bigger markets, suppliers of temporary staffing services have found it helpful to branch into niches including legal, temporary medical staffing, fiscal, or technical disciplines. The dynamic nature of the bureaus enables recruiters to develop a pool of highly- knowledgeable and experienced associates that can give you the most useful service to customers inside a particular sector.
Supriya Nigam is a lead Content Writer & Digital Marketing Strategist at CareerBuilder India. Her passion for helping people in all aspects of digital marketing flows through in the expert HR Technology industry coverage she provides. Also, an avid Yoga practitioner.