How to Start a Temporary Employment Agency

Written by peyton brookes
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How to Start a Temporary Employment Agency
Temporary agencies bring employers and workers together. (hand shake image by Peter Baxter from

Temporary employment agencies offer contract or temporary employment placement services. Working with established clients, the agency works to locate, assess and place qualified workers in client positions. Employers find this type of placement attractive when filling high-turnaround positions, temporary openings or unforeseen vacancies, for example. As a result, the agency receives a specific percentage or dollar amount of a placed employee's pay. To start a temporary employment agency, you should complete a solid business plan, develop a targeted market and execute a positive marketing campaign.

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  1. 1

    Complete a business plan. The business plan serves as a framework or foundation for the business. In addition, the plan is required if you plan to seek start-up capital from the Small Business Administration (SBA) or another financial institution. Include everything from the business name and identity to the type of client, industry, financial plan and market analysis. Additionally, include information about the industry of service—administrative, day labour or accounting, for example—employment-testing software, client base analysis and the recruitment plan. Several resources are available for creating a business plan (see Resources).

  2. 2

    Contact your local or state licensing board. Temporary agencies may be required to obtain licensing in your state. Contact your state’s board of licensing, comptroller or revenue to ask about licensing a temporary employment firm.

  3. 3

    Call the state business registration entity. Businesses are required to register with each state’s business registration division. Register the temporary agency as a corporation, limited liability company or partnership. Each business type has advantages and disadvantages (see Resources). Determine the type of registration that suits you and register with the appropriate agency. Request an application and other pertinent documentation if required. Complete the information and submit prior to opening the doors.

  4. 4

    Design relevant forms and applications. Temporary employment agencies hire employees and require strong human resource management skills. Organise your agency by downloading or creating the basic forms required to do business. Select application, testing, background check consent, equal opportunity employment and general authorisation templates (see Resources). Additionally, make sure you locate the required federal (Employee’s Withholding and Allowance Certificate W-4) and state tax forms.

  5. 5

    Develop a marketing plan. Marketing informs the public of a business service. Think about the type of industry that you would like to serve. For example, to start a temporary agency for administration, your marketing plan may include joining an administration association and networking, distributing literature and following up with association members.

  6. 6

    Develop a client base. Locate employers who may show interest in hiring from your company. Use the telephone book to call local companies directly. Search company websites for open positions and offer your recruitment services. Attend industry networking events, workshops and conferences to meet professionals in the industry.

  7. 7

    Recruit employees for placement. Advertise open positions and the skills of your workforce in the local newspaper, Yellow Pages and online job boards. Organise a career or job fair and invite members of the community. Visit social service programs, work with area religious organisations and visit the unemployment office to advertise your service.

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