The Number One Reason To Start A Temporary Help Agency
The Temporary Help Business Is Here To Stay!
The pandemic is the number one reason to start a temporary help agency because it has contributed to mass unemployment and evictions.
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A TEMPORARY HELP AGENCY SOLVES A PROBLEM
The high cost of maintaining a full-time employee contributes to the growth of the temporary help business.
Advancement in computer hardware and software enables companies to staff mean and lean, preferring to hire temps during peak seasons and lay off workers during slower times.
On any given day, over one million people work on temporary assignments.
Temporary Help Services is the largest category of gig employment and serves as a bellwether for broader growth trends. A study by TrueBlue and Emsi projects that Temporary Help Services employment will grow to more than 3.2 million jobs by 2025, an increase of nearly 254,000 jobs (8.5 percent) from 2019.BusinessWire.com
These numbers suggest that the temporary help business is here to stay.
It is one to watch with continued growth predicted.
Unlike the temp boom of the 70s, today’s temporary help has gone beyond strictly clerical help, with with 37% of placements involving professionals.
JOB MATCHMAKER TEMPORARY HELP AGENCY
A temporary help agency acts as a matchmaker between businesses seeking temporary help and individuals ho want a job.
The temporary agency pays the employee on a weekly basis at a set rate, and in turn bills the business/client a predetermined rate, usually 10% to 15% more than was paid to the employee.
START UP HURDLE OF A TEMPORARY HELP AGENCY
If there is a single hurdle that makes starting a temporary help agency difficult, it has to do with your ability to cover the payroll up front.
As a temp agency, the demand for cash flow presents you with a two-sided problem.
While you are expected to pay your workers on a weekly basis, you are also expected to extend your clients 30 to 60 days c redit.
So, while you’re waiting to get paid, you need to have enough cash to cover your own payroll.
For example, if you place ten workers at 40 hours each for the week, at a rate of $8 an hour,, it would require $3,200 cash for the week.
That’s $12,800 in four weeks!
To avoid this problem, it is advisable to hire your workers as independent contractors.
You can act as their agent, and collect your commission when they are paid.