9 Things to Consider When Starting a New Staffing Firm | RecruitBPM

9 Things to Consider When Starting a New Staffing Firm

 

You have been in the human resources industry for a long time and believe that now is the time for you to start your own staffing firm. It may appear as a very simple and easy process without the need of buying new inventory and requiring only a few employees, particularly if you are aiming to start it from home. Still, starting a new staffing firm goes through many steps before you take on the first candidate or a job order from your clients.

Here are some of the important things to take into consideration before you set up your own staffing agency:

  • Identify your Market: Most of the people, who set up a staffing firm, belongs to the same field. Some of them might have experience of working with HR managers, recruiters or sales professional. While others may have owned a staffing agency and after selling the previous they are interested in opening a new one. No matter what the background is, defining your specialty in staffing can be a key to your success for the start-up.
  • Identify your Strengths: Every individual has some strong industry points whether they are in marketing, sales, business development, finance or operations. All of it depends on the role they were given in their previous jobs. When starting a new staffing firm you will prefer to go for the roles that are your strengths and leave the rest of the jobs to other professionals who are best to handle them. For example, if you have expertise in business development, you will assign other day-to-day tasks to a professional whose expertise is in operations management.
  • Identify your Weaknesses: Identifying your weaknesses is as important as identifying your strengths, it can involve your specialty. Such as, if you come with a healthcare industry background, you would want to focus on the clients related to that industry rather than going for clients in IT or accounting industry.
  • Get a Legal Counsel: When starting a new staffing firm, a large part of the investment is spent on getting legal advice to make certain the paperwork for both clients and candidates is carefully drafted out. Therefore, it is necessary that you look for such a legal counsel who has a great understanding of staffing industry and provincial legislation related to it.
  • Make Payroll Financing secured: A majority of the start-up staffing agencies ignore to realize their responsibility to pay the temporary employees from their own pockets when the clients make delays in payment i.e. 45-60 days past the invoice date. Hence, the best practice being a start-up is to have a secured payroll financing. Because the start-ups are dependent on a healthy cash flow to survive in the market.
  • Get Insurance: Many of the clients need evidence to make sure that you have acquired a valid amount of insurance to pay them, just in case if any temporary employee causes damages when working with them on-site. Hence, getting an affordable insurance amount to meet your clients’ requirements can be expensive yet very crucial. Make sure that you can get into contact with an insurance company that has a great understanding regarding staffing and can cover your needs in any situation.
  • Marketing your Business: When you are successful in setting up your staffing firm, it is time for you to initiate a marketing plan to promote your services to the potential clients. Some of the start-ups may already have targeted companies in their focus, due to their previous business relations. However, when you start to market your services it is best to employ all marketing techniques including warm calls, referrals and cold calling etc. Social networking through LinkedIn, Facebook, Twitter, Google+ and other social media networks, is also a great marketing strategy to use.
  • Search Candidates/Employees using Technology: In the past days, staffing agencies had to search for candidates through calls to the companies or by the means of running an advertisement in the paper. But this scenario has changed since the arrival of new technologies including internet, social media networks and job boards etc. Now recruiters can run a search on social networking sites (Facebook, LinkedIn) as well as different job boards (Indeed, Monster, CareerBuilder, etc.) to find a large pool of candidates.
  • Turn yourself into an Expert: Most of the clients prefer to deal with the personnel they are comfortable with, whom they see as experts in the field and who give importance to client-relationship. Therefore, it is necessary for you to spend your time on industry researching to know your area of expertise and the customers you are going to target. Know your clients and be familiar with their business history and culture. Your knowledge will add to your importance as an expert in your field and will attract more clients.

If you have employed all the above considerations, you are all good to start your very own new staffing firm.

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