What is a Staffing Agency?

If you’re confused about what a Staffing Agency is, how they work, and if it’s is something YOU would want to do — you’ve come to the right place!

This break down is going to explain everything.

A Staffing Agency is a business that solely focuses on Talent Acquisition and Recruitment. Companies outsource to Staffing Agencies when their current resources are unable to recruit effectively on their own.

Staffing agencies spend all day, everyday doing one thing: tracking down top talent for companies that are willing to pay top dollar for them.

Why do companies need Staffing Agencies?

That’s a great question and it can come down to several different reasons.

• The HR Department is understaffed.
• That particular position is a top priority and is super urgent.
• HR is overwhelmed by other responsibilities and simply don’t have the time.
• HR can’t find the right person on their own.
• They don’t even have an HR Department.
• All of the above.

The list above highlights some of the issues that shouldn’t really exist, but they do. We all expect these large companies to have it all together. They post a job, have thousands of candidates apply and then select the “perfect” one. Because that sounds so simple right?

Wrong.

Recruiting can either take 1–2 weeks or 6+ months depending on the Recruiter that’s working on the role. The majority of businesses use popular job boards like Indeed, Monster, CareerBuilder, etc. That’s called Passive Recruiting or what I like to call, casting a wide net. What I’m talking about is called, Proactive Recruiting.

What is Proactive Recruiting?

Proactive Recruiting: Taking a proactive approach to sourcing candidates

Proactive Recruiting is when a someone takes a more aggressive approach to finding top candidates. So, instead of just posting to a job board, crossing your fingers and hoping for the best (like most companies do) — you’re going to be actively searching for candidates on resources like LinkedIn and other (confidential) services that I’ll get in to with you later.

Do I need experience?

Not really. All you need is a computer, a phone and some common sense.

In other words, if you’re not comfortable on the phone, then Recruiting is not for you.

Anyone can be a Recruiter. You just need to be given the correct information from your client beforehand and be able to have a normal conversation.

Every company that has an HR Department will have a job description already written out for you 99% of the time. From that point onward, all you have to really do is treat it as a checklist of skill requirements and work your way down.

How do Staffing Agencies make money?

Placement fees are typically 20% of the first years earnings

Staffing Agencies work on what is called a “placement fee.” Placement fees can vary depending on what you agree upon with your client. Typically, a placement fee is around 20% of the first year’s earnings of the candidate that you placed. That placement fee is in no way shape or form removed or taken out of the candidate’s salary.

For instance:
Company X hires your candidate and is going to pay them $100,000/year.
On the first day they arrive to work you’re going to send Company X an invoice for $20,000.

You read that right. The difference between you and other staffing agencies is that you don’t have anywhere near the same amount of overhead costs. Staffing agencies have to worry about paying their employees, renting office space and a whole lot more.

If you make a placement, you will keep 100% of the placement fee.

What would that do for your life?

How do I get clients?

The truth is, staffing agencies recruit for themselves too. What they cherish most are ‘good’ sales people.

As someone who has more than once generated over $100,000 in placement fees in a single quarter, I can teach you the exact tactics that Account Managers in the industry use to hunt down new business. Sales tactics, lead generation, trips and tricks that are proven for results are taught. Most importantly, you will learn how to leverage your own personal network.

Just think about every person you know that has a full-time job. There’s a strong possibility that their company already works with a staffing agency. 6-Figure Staffing will teach you how to bring those companies on board as your first clients.