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How to Start a Staffing Company

How to Start a Staffing Company

For anyone who has had a career in the human resources field, learning how to start a staffing company is a great way to transition from being an employee to being the boss. Finding the right people for various jobs would be your primary responsibility running a staffing company.

In order to narrow down applicants with the best qualifications for your clients, you will interview each job applicant, check their references, perform background checks and attempt to match them with jobs that are well suited to their skills and background.  Additionally, many staffing companies administer various tests to applicants to determine their skill level in specific areas, like keyboarding, general math and grammar and various software applications. Applicants are also coached on interviewing, appearance, resume writing and application completion, anything that will help them surpass the competition for the job.

What You’ll Need to Succeed

As you learn how to start a staffing company, one of your considerations will be where to locate your business. As you will have clients and applicants visiting your office, it should be in a good location that is easy to find. You don’t have to be in a fancy office suite, but having a clean, professional atmosphere, with a waiting area and quiet, private interviewing and testing areas.

You will need a reliable computer with software to help you run your business, and you might need multiple computers for applicants to use to take tests. Also make sure you have enough room for people to wait and for clipboards for candidates to fill out necessary applications and paperwork.

While there is no specific training or certification necessary to start a staffing company, you will need to have human relations knowledge, above average business and people skills. Foremost you are going to have to have sales skills. You need to “sell” your service to potential employers to let you find their next employee(s). You have to “sell” your candidates to the company and to your staffing service. It is also important to make connections in the local business community to find where the jobs are. Who is your competition? How do they charge for their services and do they specialize in only certain types of employment? If your contacts, past employment are mainly in one type of industry, specializing the right employees for that industry may be a great start for your staffing company and an easier “sell”. Temporary employment has also grown in popularity with employers who want to save on payroll costs, don’t have a human relations person on staff.

Look at the want ads in the paper and online. Notice companies who always have an ad for the same type of job. High turnover could mean that they are having problems finding candidates with the right fit meaning an opportunity for your staffing company.

Brush up on local and federal employment laws as well. Many agencies have been sued by employees or fined by the government for violating employment laws. These include discrimination and sexual harassment laws, and in many states, wrongful termination suits are allowed as well. Hiring an attorney to guide you in the beginning while expensive, may very well save you a lot of money in the long run.

You will of course need a business license to start a staffing company and  a good business insurance policy as well.  A qualified insurance agent should be able to evaluate your business plans and advise you on the kind of coverage you should have.

Marketing Your Staffing Company

Success when learning how to start a staffing company will depend a lot on your ability to connect with the right people. The contacts you have even before you start. Your list of prior colleagues and business contacts will be invaluable to your staffing company. Of course you cannot just rely on existing relationships. You will need to get out and network within your community extensively. Work with local city governments that know when companies are building or expanding in the area. Join networking groups and let people know that you place people in jobs. Offer your services to companies to screen applicants for ramp ups in hiring like at the holidays or busy season. Employers may not have the time or knowledge to interview many applicants by a certain deadline. You can present only the best to a company saving them time and problems from hiring the wrong person. Remember, it might not be the person you’re talking with that can use your service, but he or she might know someone who can.

The other side of your marketing is getting qualified employees. That is not difficult in this economy. Use free or inexpensive services, like Craigslist, and place wanted ads in your local paper, college newsletters or websites. If you have a job, there should be plenty of candidates to choose from.

Learning how to start a staffing company is not just a job. It’s a career for you and the start of careers for your applicants.