Start a Temp Agency
Starting a temp agency can require a lot of hard work. A temp agency may be able to make you successful as well as help the unemployed find jobs. There is a potential market for temp agencies in any economy, as they can help numerous types of people land jobs. Keep reading to learn how to start a temp agency of your own.
Steps
- Write up a business plan. Your business plan will help you gather your thoughts and ideas together and will help you determine whether or not there is a market in your area for a temp employment agency. This plan will help you know what you need to get started and will help you secure the necessary capital to start your business.
- File all necessary paperwork at the local, state, and federal level that are required to establish your business. This will vary based on where you live and operate your business. There will also be different requirements based upon the business structure you intend to use.
- Secure business insurance to protect yourself against liability claims from your clients and employees. You will be liable if an employee gets hurt on the job, makes a mistake, or does not do his or her job as expected. The insurance will protect the business to ensure it can remain open if a claim is made against you.
- Contact various companies that post help-wanted ads. Ask if they want to sign up to employ workers from your staffing agency. Look through help-wanted ads, since you need a variety of job openings in a wide range of fields at different shifts. This allows you to offer more to potential clients. You will be paid by your client for every hour that your employee works. Determine your profit by setting your hourly rate for the employees filling the positions.
- Advertise with various methods, which may include online ads, business cards, leaflets, word of mouth, and newspapers. Do this to get people interested in applying to work with your company and to get more employers wanting to list job openings with you.
- Take applications from potential workers. Be prepared to run background checks and drug tests as necessary based upon what the employer requires. You could be held liable if the employee you send to the company is engaging in illegal behavior.
- Match workers to job openings. Be prepared to let workers go if they do not do their jobs correctly. If the company is not happy with one of your employees, you may need to handle employment issues.
- Pay your employees according to agreed-upon pay structure. The amount you pay them will largely be based upon what job they are doing and how much you are getting paid by the employer. For best results, keep the pay as comparable as possible to what they would receive working directly for the company.
Tips
- Start slow. Try working with 1 employer who knows exactly how many temp workers they will need and for how long. This way you are not taking on too much at once and can meet the demands of your clients.
Things You'll Need
- Computer
- Job-wanted ads
- Telephone
- Business insurance
- Employment applications
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