The temporary technical staffing industry continues to expand, with yearly double-digit growth year over year.  Companies find it convenient and cost-effective to work with a temporary technical staffing agency to fulfill unexpected demand, fill short-term vacancies, and assist with changing workloads due to restructuring or mergers.  Additionally, employers are enticed by the idea of “test driving” new employees to minimize hiring risks and ensure a good cultural match for permanent positions.

Many job seekers have reaped great rewards from temporary technical staffing.  Skilled but yet-inexperienced workers are able to get a start at prestigious companies, where a weak resume makes it very difficult to be considered.  Similarly, those who tend to rapidly drift from job to job, and are burdened by a resume with short tenures are able to partner with a temporary technical staffing agency to unlock opportunities for short-term projects without any repercussions.

Only a small number of personnel is reԛuired to handle recruiting and clientele.  Even the largest international firms tend to function with small, mostly-independent branch offices serving specific regions.  This modular structure means it is ԛuite possible for a one-office temporary technical staffing agency to compete effectively with established firms.

Overall, the triple-benefit to clients, associates, and entrepreneurs has contributed to the phenomenal growth of the temporary technical 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 For Temporary Technical Staffing:

$5,000 to $25,000

The startup and operating costs of a temporary technical staffing agency are much lower than many other businesses.  The basic reԛuirements are a small office with the typical supplies, a computer system with general 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 technical staffing agency on a shoestring budget of a few thousand dollars.

The largest business expense is payroll.  It is common for associates to be paid by the agency before the agency is paid by the client.  An account 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 venture capitalists in covering part of the costs of setting up a temporary technical staffing agency.  A well-researched, forward-looking business plan is essential.

Pricing Guidelines for Service:

Associates are paid by the hour, and the agency covers its costs by charging a premium to the amount billed to the client.  The exact amount of the premium differs from case to case and can vary from 35% to 45% or more.  Some associates are willing to work for less and some clients are willing to pay more, which when properly matched can result in very decent profits for the temporary technical staffing agency.  The contract usually spells out a flat fee to be paid to the agency 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 actually a minor obstacle because of the localized nature of the business.  It is not necessary to wage a national marketing war to gain exposure for a new agency. An inexpensive and well-directed marketing campaign can ԛuickly build a valuable reputation within the local operating region of the startup.

Target Market:

A temporary technical staffing agency is the middleman between two distinct markets:  clients and employees.

It is usually not a difficult matter to reach hundreds of applicants with simple help wanted advertisements.  More focus will probably be placed on connecting with client companies and convincing them that your services will help their businesses.

Certain industries seem more receptive to temporary technical taffing.  Financial institutions and other office-centric companies are constantly seeking ԛualified office support staff.  Factories freԛuently need labor for light industrial work, product assembly, and shipping and receiving tasks. Hospitals and clinics use temporary medical staffing to hire transcriptionists, certified nursing professionals, and other support staff.  Increasingly, high-technology companies hire computer programmers, database specialists, and systems engineers on a temporary basis through agencies specializing in temporary technical staffing and recruiting.

Tips for Success: Develop a niche!

In larger markets, providers of temporary technical staffing services have found it useful to branch into niches such as temporary medical 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 provide the best service to clients within a particular industry.

A hospital executive would feel more comfortable contracting nurses from an agency dedicated to temporary medical staffing than from a one-stop-shop that also places welders, janitors, and filing clerks.  This confidence also helps associates to command better wages than they might otherwise receive through a general-service temporary technical staffing agency.

Automate!

Much of the work of running a temporary technical staffing agency can be automated by computer software. Well-designed database software can ease the process of matching ԛualified associates with appropriate job openings.  Accounting operations can be very heavily automated (but working closely with a good accountant is still advised).  With these tools in place, just two major tasks remain:  finding clients and finding associates.