General Staffing & Temp Agency
Place temporary and permanent workers across various industries and positions
Overview
Staffing agencies generate $500,000-$5,000,000+ annually with 20-35% gross margins.
In 2025, businesses need flexible staffing solutions.
Revenue from temp worker markup (typically 40-60% over worker pay rate), direct hire placement fees (15-25% of first-year salary), temp-to-perm conversion fees, payroll processing fees, and background check services.
Successful agencies recruit continuously, maintain candidate pipelines, build client relationships with hiring managers, match workers to positions effectively, handle payroll and compliance, and achieve low worker attrition.
Businesses needing flexible staffing as clients.
Marketing through business development and cold outreach, industry associations, staffing referrals, online presence and job boards, and client retention.
Required Skills
- Recruiting & Sourcing
- Sales & Business Development
- Client Relationship Management
- Payroll & Compliance
- Candidate Screening
- Workforce Management
Pros and Cons
Pros
- Recurring revenue from temp placements
- Scale by adding more clients and workers
- Growing demand for flexible staffing
- Multiple revenue streams (temp, perm, services)
- Build valuable client and candidate networks
Cons
- Significant working capital required for payroll
- Thin margins on temp placements (20-35%)
- Liability and workers' compensation insurance
- Highly competitive staffing market
- Worker and client retention challenges
How to Get Started
- Obtain staffing agency licenses and insurance
- Secure working capital for payroll funding
- Build initial candidate pipeline through recruiting
- Develop client relationships and staffing needs
- Match workers to client positions
- Handle payroll, taxes, and compliance
- Scale by growing clients and candidate pool
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