If there’s one thing the pandemic has taught us, it’s the fact that there’s a lot you can do from home! With workers across the board being retrenched, having to take a drastic salary cut, or leaving their jobs for better opportunities, the Great Resignation is currently ruling the employment markets. This presents great opportunities for anyone who wants to get into the staffing sector. Whether you want to start an agency from home or find a qualified staffing company, it’s important to get the basics right from the word Go.
Is Staffing The Same As Recruitment?
Staffing is the process of placing the right person in the right job, while recruitment seeks potential candidates who are then encouraged to apply for vacancies. With staffing, the company’s workforce is developed at all employment levels. Recruitment can be seen as a component of staffing, and its scope is usually limited and has a wider, short-term reach.
With staffing, the management’s focus is to hire and maintain a capable and committed employee, no matter their place in the corporate hierarchy. This human resource has to remain productive, satisfied, and constantly evolving and growing as long as they are part of the organization.
This helps the organization achieve its objectives and fulfill its vision in the most timely, economical, and efficient way.
Staffing involves:
- Analysis of the job
- Analyzing the needs of the worker/workforce
- Selection and placement
- Induction or orientation
- Training
- Appraisal of performance
- Compensation
- Growth and relocation
Thus staffing offers a 360-degree process that provides an end-to-end solution to a company’s human resource requirements.
Staffing Agency: Facts and Figures
- In 2020, the US recruitment/staffing sector was estimated to be at upwards of $480 million
- One report informs that there are more than 40,000 staffing agencies in the US, generating around $150 billion annually.
- Experts predict that it will cross $550 million by 2028
- Growth is driven by advances in data analytics, machine learning, AI, and the Internet of Things, among other factors.
- HRM professionals have incorporated innovative solutions that blend technology and regular HR operations where digital solutions are replacing manual operations
- Branding plays a major role today, and talent acquisition teams must create unique company communications and brands to attract potential applicants
Starting A Home Based Staffing Agency
When you decide to start a staffing agency, it’s probably because you have expertise and experience in this area. Maintain a keen eye for fluctuations and trends in the job market. Keeping the pandemic realities in mind, stay flexible and willing to explore new sectors.
Identify Key Segments: Staffing requires identifying and deploying certain key segments. They include professional and managerial, healthcare, IT, engineering, scientific, etc. It’s important to focus on the important key segments such as clerical, administrative, finance, etc. Once you get these aspects down firmly, you can either specialize in one area or function as a generalist. Use your connections and expertise to source both people and jobs.
Licenses and Permissions: You need to check with your local authorities about starting a home-based business. Those who live in a condo or apartment building need to confirm that their contract allows them to start a business from home. You will also have to pay taxes such as sales tax. Business permits, workers compensation, and bonding may be required based on the type of staffing work. State and local government regulations differ widely across different regions. You may have to register your business with the Department of Labor and decide whether to call yourself an employment agency or placement agency. This can make a difference to the permits and licenses needed and the taxes to be paid.
Costs: Prepare a broad budget that analyzes the potential cost factors. Work with financial experts to get the numbers right so that you keep costs low and profits high. You must get your start-up costs right, right off the bat. These would include wages and labor, which are very important in this industry because of the essential need for face-to-face interaction. You can outsource this to trusted partners or even competent family members when you’re starting as a new, small business. Other costs may include the cost of equipment, technology, website development, supplies, advertising and marketing, insurance, travel and accommodation, wages, utilities, rentals, and entertainment costs. Consult a professionally qualified accountant and a corporate lawyer to help you to draft contracts. This is a cost that you have to build into your budget.
Funding and Capital: It’s important to have a substantial buffer fund that protects you against delayed payments, unexpected expenses, etc. Ensure that you have enough capital to cover the budgeted and non-budgeted financial outflows. Open a business bank account immediately. This is crucial as it protects your personal assets in case of litigation. This also makes tax filing easier.
Invest In Software: If you remain a dinosaur in the digital world, you certainly won’t survive. Avoid falling into the trap of looking for cheap solutions such as free mail, WhatsApp, etc. Invest in good quality, tried and tested, reputed software right in the beginning. Many newbie staffing agencies cut corners with pen and paper solutions, Excel sheets, texting, phone calls, free email, personal visits, etc. This could lead to endless confusion and stress as there’s no way you can maintain this level of working as your agency grows. Try to find reliable, cost-effective apps that can give you an all-in-one solution tailored to align with your own specific needs.
Invest in People: People are your bread and butter. And jam. Build your talent pool step by step. Increase your own competence through networking, attending seminars, doing short-term courses, meeting experts in the field. Pay your staff well and stay connected with their needs. Look for certain key skills in potential candidates you interview, and don’t focus only on academic qualifications. Identify people who are professional, well-groomed, speak clearly, and are calm. Their problem-solving skills, emotional intelligence, ambition, flexibility, adaptability, positive attitude, creativity, and dependability are equally essential.
Understand The Market: and keep your competition clearly within your sights. Ensure that you provide the market with a clear differentiator and USP that sets you apart from the thousands of other staffing agencies. This means that you can build a brand that will become a sturdy and reliable name to contend with.
