It takes a few different approaches to find what works best for you in the recruiting world. Sometimes, that means supporting an organization or other times, you might want to work for a staffing agency. But if that entrepreneurial call has a hold of you, you might consider starting your own staffing agency.
How to Build a Staffing Agency
If you have a background in recruiting or staffing, and want to start an agency of your own, here are a few steps to hit along the way to building your business.
1. Choose the right industry or field
Whether you come from cleared recruiting or not, the industry your staffing agency specializes in should be considered. If you are looking to provide staffing services for the national security sector, you should think about your own experience and if it will be the best fit for you – and where you lack experience, how your business partners could fill the gaps. From there, you need to decide what types of defense contractors your company will target for potential clients, or where your candidate numbers in your network are already high. For example, if you have years of experience in recruiting intelligence or counterintelligence professionals, it might be easier to build an agency that offers job placement for candidates that are seeking intelligence analysis positions, as opposed to an industry that is outside your comfort zone or your current candidate pool / network.
2. Take lots of time to research
Researching your intended industry, competitors, tax requirements, and potential clients lets you gauge the most cost-effective way to start a staffing agency, and really any business. Consider the government regulations for contractors to work with staffing agencies vs. adding you on as a subcontractor. And check out the tax requirements that may be required for new business in your area. Do you need special licensing if you plan to staff certain federal contracts?
Along with standards on starting a business legally, you should be researching what organizations are already out there to see if you can set yourself apart from the competition. Decide how you will market your agency as an important resource for leads within the national security sector. Also, researching what the past and projected staffing trends are for national security, which will allow you to build an agency that fits cleared candidate needs and benefit your employers.
3. What goes into your budget?
It takes money to make money, and a lot goes into a business’s day-to-day operations. A general rule is ensuring that your costs are lower than profits. What goes into a budget when crafting a cash flow? Here are just a few factors:
- Employee salaries
- Office space vs. remote staffers
- Client and employee payment schedules
- Technology to complete your recruiting tasks
- Insurance like worker’s compensation or general liability insurance
- Marketing and advertising
4. Create your business model
There are various business models for organizations like staffing agencies. For a contingency model-based company, customers pay a percentage of a new employee’s salary after being hired for a certain amount of time. If you are looking for more consistency, a retainer-based model operates where customers pay a fee based on a prior agreement with you.
For your own agency recruiters helping you to reach your business goals, you need to decide if you are looking to take them on as W2 employees, or if it makes sense to pay them as 1099 contractors – this may be more cost efficient if you do not want to offer medical benefits to employees or if there times of the year where business is slow.
5. Market yourself to candidates, recruiters, and clients
This is the fun part – create a distinctive name and slogan for your staffing agency and enlist outside marketing consultants if you are not as creative. Develop a strategic marketing plan for your company on targeting new hires, what recruiters you want working for you, and for lead generation purposes. Design a website that showcases your company mission, the field you work in, and what you charge for various staffing services. Most importantly, make it clear for potential new hires and clients on how they can get in touch, ask a question, submit a resume, etc. Bonus points for staffing agency’s that have a social media presence and create humorous or helpful content.
6. Hire your staffers
After listing all your short- and long-term goals as a staffing agency, how many recruiters do you need to reach those goals? Obtain the correct business licenses, then get the ball rolling on hiring your staffers. If you came from recruiting yourself, you know how to sell an organization, and this may be the easiest part.
If you are offering remote work to your employees or 1099s, be sure to ask if they have the right resources to get the job done.
7. Build your client base
After determining who you need on your team, you and your partners should devise a plan for acquiring business from defense contractors that will make your staffing agency succeed.
To attract clients, look at their websites, engage with their social media, and again, do more research to learn about what cleared contracts they have and how many positions they are recruiting for.
Next, you will reach out, probably multiple times, to start the conversation. Listen effectively once you do reach people and communicate how your staffing agency can help fill their open billets.
8. Security and protecting your business
Security measures are the name of the game in today’s business environment and will protect your staffing agency from internal or external risks. Since staffing agencies are working with a lot of PII and cleared candidates if you are starting one in national security, your company should be practicing measures to protect your candidates and customers:
- Make sure your ATS is up to snuff, specify recruiter login credentials, and update them regularly.
- Invest in CRM software that can protect any confidential client information.
- Look into encryption to protect any cleared candidate information obtained in the application process.
- Separate your business and personal assets.
- Think about filing for trademarks or copyrights.
9. Rinse and repeat
Once you’ve built your client list it’s time to rinse and repeat to build your empire. Allow your recruiters to own their positions and process, and if you hit roadblocks, take a step back and see if you need to pivot. For example, you may find that once you build that list of defense contractors that utilize your staffing services, maybe you need to hire a couple of account managers to manage the relationship – or perhaps hire more recruiters if they have dual roles in both staffing and sales.
Celebrate your win(s)
Starting your own business can be rewarding after supporting contractors in this industry for years – but it will still take some elbow grease that recruiters are no strangers to, so every win you get along the way, be sure to celebrate it!
THEÂ CLEARED RECRUITINGÂ CHRONICLES: YOUR WEEKLY DoD RECRUITING TIPS TO OUT COMPETE THE NEXT NATIONAL SECURITY STAFFER.
