Starting an Employment Agency Begins With Industry Experience

The market has been ripe for those interested in starting an employment agency for a while now, and the outlook only continues to improve.

In the three years since the end of the recession, the U.S. staffing industry has created more jobs than any other industry in America, according to the American Staffing Agency. Bureau of Labor Statistics figures show employment in the temporary help services industry increased by 45 percent during that time.

And more employment equals more profits. Temporary staffing revenue growth jumped to 15 percent in January, up from 11 percent in December, according to February’s Pulse Survey update by Staffing Industry Analysts.

However, to succeed in starting an employment agency, you need to know what you’re getting into before diving in headfirst. Too many people start a staffing business with little to no experience in the industry, but coming in with some knowledge of the industry — both as a temporary employee and as an administrator — can provide a tremendous advantage.


  • Temporary employee experience. Temporary employees understand the industry from a hands-on perspective. As an employment agency owner with experience as a temporary employee, you’ll be able to relate to your employees’ experiences and problems and advise them on what to expect on assignments, how to dress, safety precautions and what clients expect on the job.  


  • Administrator experience. Employment agency administrators understand what goes on behind the scenes of an employment agency, including the ins and outs of paying temporary employees, filing and paying company payroll taxes, invoicing customers and collecting and following up on delinquent accounts. As a former administrator starting an employment agency, you’ll understand what clients want and expect from your temporary employees and have the experience to work with them on all aspects of the account. You’ll also have experience with workers’ compensation, a key component of an employment agency’s operations and an area that many inexperienced employment agency owners flub. Administrators will also typically have experience in crucial operations such as background checks, noncompete agreements, software, fees and benefits.


  • Niche experience. When considering how to start an employment agency, you will find more success if you have experience in a specific staffing niche, such as light industrial, administrative, IT, construction, health care, legal or clerical. Concentrating your focus when starting an employment agency allows you to stay updated on current trends and stand out from the competition. Your experience in a particular industry will also give you an edge in knowing what is expected in a particular industry and how it uniquely operates.  


For information on TemPay and starting an employment agency, contact or (866) 683-6729.