The Staffing Edge Blog

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A Quick Overview of Workplace Protections in Quebec

Posted by Ray Gonder

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Jan 30, 2019 9:00:00 AM

A_Quick_Overview_of_Workplace_Protections_in_QuebecQuebec is perhaps the most unique province in Canada, particularly when it comes to its legal framework. While most of Canada’s legal system is based on British common law, Quebec has always followed the French tradition of civil law.

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Such cultural differences are also reflected in Quebec’s different developmental history. The French language and traditions continue to be important today. Until the mid-1960s, the Church wielded a lot of power. Since then, Quebecois people have turned more and more to the state to protect their rights and liberties.

For this reason, Quebec tends to be even more involved with workplace protections. For staffing agencies hoping to operate in the province, Quebec may be both familiar and new at the same time.

This quick guide will help you understand some of the workplace protections in La Belle Province.


The Legal Framework

Most workplace protections are laid out in The Act respecting labour standards, which was passed in the Quebec National Assembly. In recent years, the provincial government has proposed amendments to the Act, so it’s always a good idea to ensure you’re up to date with the latest requirements.

The Act outlines rules on minimum wage, the length of the workweek, and how many breaks a worker is entitled to take.

It also offers provisions about time off, including vacation time, public holidays, sick days, and other absences.

Other parts of the Act describe how employers must deliver notice of terminations or layoffs. The Act also contains a description of the rights of workers who have been terminated.

This law creates minimum standards that all employers must meet or exceed.


Enforcing the Minimum Standards

A law without enforcement is not usually very effective. That’s why the Commission des normes, de l’equite, de la sante et de la securite du travail, or CNESST, exists. This body is in charge of applying the provisions of the Act.

As the name implies, CNESST oversees labour standards, pay equity, and workplace health and safety.

Employees can submit complaints about employers to CNESST. In some cases, CNESST will issue compensation. It may also act as a mediator between employers and employees.

If CNESST has to pay an employee, it reserves the right to sue the employer to recover the funds.


Who the Act Applies To

The Act respecting labour standards covers most workers in Quebec. There are a few notable exceptions.

It does not apply to federal employees. These workers are governed by federal labour standards instead. In all of Canada, only a small percent of the workforce is federal, with the remaining workers falling under provincial jurisdiction.

The self-employed are also exempt from the provisions of the Act.

Senior management and construction workers are also exempt from some of the Act’s rules. They do have access to protection for leaves, but their workweeks don’t need to conform to the Act.

Other exemptions include students who are working in student placement programs, co-ops, or internships, athletes required to attend school, and people providing homecare for others.

There are also differences among employees in different categories. For example, employees working in a sawmill have a longer standard workweek. This means they don’t need to be paid overtime until they’ve worked more hours than in other industries.


What about Staffing Agencies?

The Act respecting labour standards applies to employees wherever they do their work. It will also apply to you if you have any business operations in Quebec.

Staffing agency owners need to register with CNESST. This measure is designed to weed out “bad apple” staffing agencies. It gives CNESST the power to audit agencies that don’t comply and to penalize employers who work with those agencies.

If you plan to operate in Quebec, make a point of familiarizing yourself with the Act respecting labour standards. It will help you understand your responsibilities as a recruiter in Quebec.


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Topics: Compliance and Legislation

How to Sell Your Staffing Agency

Posted by Anna Mastrandrea

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Jan 28, 2019 9:00:00 AM

How_to_Sell_Your_Staffing_AgencyYou’ve spent years building up your staffing agency. Year after year, you’ve been building the value of your agency.

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Now you’re planning to retire or you’re ready to make your next foray in business. Maybe this was always part of the plan, or perhaps the move has been prompted by changing life circumstances. Maybe it just seems like a good time to get out and try your hand at something new.

So how do you cash in on the business you’ve built? Selling your agency might sound like a difficult task, but it’s easier than you think.


Calculate Your Staffing Agency’s Value

The first thing to do if you’re planning to sell your staffing firm is to value the business. This is similar to any other business, so you shouldn’t have too much trouble finding a formula or someone to assist you with the valuation.

You’ll need to know the business’s gross and net revenue, as well as the value of assets, such as your website or your office building if you own it. You’ll also need to factor in liabilities and debts, as well as overheads.

Next, you might want to factor in the growth of the business as well, especially in an industry like staffing. The industry has been growing steadily over the past few years, so there’s the promise of increasing returns for any potential buyer.

It is better to have a third party evaluate your business before a sale. This can help you hit the market with a realistic price attached. It also helps to be able to back up your numbers from a neutral third party. Buyers may otherwise feel your numbers are inflated or try to offer you a low price compared to your agency’s value.


Start the Search for a Buyer

When you’re planning to sell your business, you want to be sure you’ve found the right buyer. This isn’t always the person or group that will pay top dollar.

Look for buyers who have staffing industry knowledge, as well as those who are interested in keeping the business running. Buyers without knowledge might not be good for the business. Other buyers may have plans to maximize their value and then cash out, leaving the business in shambles.

If there are several interested buyers, you can usually command a higher price. You can also ask for incentive-based increases. Since the buying process can take time, this structured agreement locks the buyer into a higher price if you hit certain performance goals during the process.


Check the Legal Fine Print

You’ll want to engage a lawyer when you decide to sell your staffing agency. Agreements can be tricky to negotiate. You want to be sure you’re selling the business for fair market value. You also want to be sure the agreement doesn’t allow the buyer to skip out at the last minute.

If you have partners or shareholders, you’ll also need to be sure the sales agreement doesn’t impact them or any agreements you have with them in a negative way.


Plan Ahead

A last-minute sale is sometimes unavoidable. You may receive life-altering news and need to sell the business quickly.

For the most part, however, selling your staffing agency should be a long-term plan. If you want to sell your agency, you should be planning to do so in three to five years from the time you start planning.

This gives you a chance to build the value of the business so you can get an optimal price. Take steps like diversifying your client base and motivating your internal team to deliver results. When the time comes, you can command a higher price for a well-run and growing staffing agency.


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Topics: Staffing Agency

How the Gig Economy Is Helping the Staffing Industry Grow

Posted by Chelsea Henry

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Jan 23, 2019 9:00:00 AM

How_the_Gig_Economy_Is_Helping_the_Staffing_Industry_GrowTemporary employment has become more common in the last 30 years or so. However, it’s only been in the last decade that people have discussed what’s known as the gig economy.

The gig economy, at first glance, looks a bit like temporary staffing. In it, workers move from job to job or task to task. They may work for a series of employers, one after another, or they may work for a number of different employers concurrently.

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The difference is that in the gig economy, more workers are choosing short-term employment opportunities. It’s also spreading to more skilled professions, such as IT and healthcare. Finally, the gig economy comes with benefits many workers are seeking, such as increasing variety, more freedom in terms of assignments and job types, and even more flexibility in terms of schedules.

The gig economy has also had significant impacts on the staffing industry.


The Staffing Industry Is Equipped for the Requirements of Gigging

As mentioned, the gig economy looks very similar to temporary employment. It does have a fair amount in common with the idea of temporary work. Workers are offered time-limited roles or hired on an as-needed basis. They’re assigned tasks, and when those tasks are completed, they may have the opportunity to re-sign with the employer or move on to the next gig.

Complex legal requirements apply, and the staffing industry has the experience and expertise to help both workers and companies maneuver through this potential legal minefield.

There’s also an increasing focus on finding the right talent. As mentioned, the gig economy encompasses more skilled workers. The staffing industry already has experience finding those workers and matching them with employers.


Helping Clients Adjust to the New Economy

Many employers aren’t equipped to deal with the new demands of the gig economy. As already demonstrated, they may not be ready to deal with the legal demands of hiring contract workers or the administrative burden of bringing on temporary employees.

Many employers are also unaware of what these types of workers are looking for. They may believe most people are still wedded to the idea of a steady 9-to-5 job. In reality, more workers are looking for increasing flexibility. They’re happy to work remotely or have flex hours that allow them to work when it suits them.

Staffing agencies help their clients adjust to these new realities by keeping up with trends and providing valuable expertise and insights. This, in turn, makes their services more valuable.


Helping Workers Find Gigs

Staffing agencies can also assist those who are looking for their next gig. As a result, many agencies are noting an increasing number of candidates who stay on the roster. In the past, permanent staffing meant a candidate was unlikely to stay in your database. Temporary positions were often limited to general labour and administrative positions.

Talented and highly trained individuals are now more likely to stay on your roster of candidates for a longer time. They may be willing to accept more than one job at a time as well, provided the gigs can work together.

As the gig economy continues to grow, both employers and workers are turning to the staffing industry to find each other.


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Topics: Staffing Industry

How Back Office Support Cuts Staffing Agency Costs

Posted by Corinne Camara

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Jan 21, 2019 9:00:00 AM

How_Back_Office_Support_Cuts_Staffing_Agency_CostsMost agencies operate on a slim profit margin, with most of their gross margin eaten up by overhead expenses like payroll. Other administrative functions can add to your overheads. Some statistics suggest the staffing industry is incredibly capital intensive, with most of what you make going right back out again.

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At some point, most staffing agency owners wonder how they can cut staffing agency costs and improve their profit margins. In an environment where rising labour costs are a reality, it may seem impossible. Back office support might be the answer you’re looking for.


How Can You Cut Staffing Agency Costs?

There are a few different ways you can go about cutting costs around your staffing agency. Some of them are more practical than others.

Labour costs are one common area staffing agency owners focus on. In an environment where labour costs continue to rise, agency owners may focus on curbing on-call shifts or overtime. Others may focus on limiting benefits like health insurance or vacation time.

Your own agency operations are often more under your control. You can look for an office with lower rent, for example, or you can opt not to implement new staffing agency software. You might decide to turn down the heat or turn off the lights to save on your energy bill.

Some of these measures won’t be popular with your staff. Another strategy is getting the right back office support for your agency. This solution is likely to be much more welcome.


What Is Back Office Support?

Back office functions are the administrative functions you have to complete in order to keep your doors open. They include payroll and compliance monitoring.

They aren’t your core activities, and they aren’t usually revenue-generating tasks. As a result, they tend to take you away from those core functions, which limits your capacity to increase revenue.

Getting the right support can help you get back to those core activities. You can generate more revenue as a result. This is just one way back office support helps staffing agencies. It can also help you cut costs.


Saving Time and Saving Money

Think about your areas of expertise. Chances are you’re not an HR specialist or a payroll professional. You might manage the bookkeeping, but it’s a long, arduous process. You often make mistakes.

Not only are you being taken away from revenue-generating activities, you’re also increasing the risk of error. When it comes to bookkeeping, compliance, HR, and payroll, those mistakes can be costly.

Why not let the experts handle these tasks instead? Bookkeepers, HR specialists, and payroll professionals can streamline your back office functions. They’ll complete these tasks more efficiently, which saves you both time and money. It can also save you from making costly mistakes.

This is how the right back office support can cut staffing agency costs. It reduces the amount of time spent on activities that don’t generate revenue, and it also helps you avoid mistakes that might cost you otherwise. Completing tasks efficiently and correctly translates into lower costs.

It also improves productivity across all of your business activities.


Is It Time to Invest in Back Office Support?

For many staffing agency owners, getting back office support looks like an expenditure, rather than a cost-saving mechanism. As demonstrated, it could help you save even more.

If you’re looking for ways to cut staffing agency costs, consider the back office support you have. It may be time to invest in a support solution for your business.


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Topics: Back Office Service Provider

5 Tips to Get Your Clients to Pay Sooner for Staffing Services

Posted by Ray Gonder

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Jan 16, 2019 9:00:00 AM

5_Tips_to_Get_Your_Clients_to_Pay_Sooner_for_Staffing_Services-1Cash flow is often a concern for those involved in the staffing industry. You require liquid funds to administer payroll on a regular basis. You also have other expenses to worry about, such as the rent for your office space and the bill for your staffing services website.

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One of the most common issues with cash flow is the payment of invoices. You bill your clients, then wait 30, 60, or even 90 days for them to settle their bill. In the meantime, you need to keep administering payroll and paying your bills. The picture can become even bleaker if clients are late paying their invoices.

These tips can help you change the story at your staffing agency. Use some or all of them to encourage your clients to pay their invoices sooner and keep the cash flowing through your agency.


1. Offer a Discount for Paying for Staffing Services Early

This may sound counterintuitive to you, especially if you spent a good deal of time working out your price points. Offering a discount just may not seem to be in the cards because you have to maintain optimal profit margins.

Nonetheless, this can be a great technique for encouraging your clients to pay invoices sooner. A small discount may encourage them to pay early, so they can save a little bit extra. This keeps the cash flowing through your agency. It keeps your clients happy too.


2. Adopt a Penalty to Discourage Late Payment

Offering a discount for paying staffing services invoices early is a “carrot.” You can also adopt a “stick” method and enforce a penalty for late payment. This discourages your clients from paying late since they’ll end up paying more.

Be sure to communicate the penalty clearly, and be sure to enforce it when someone is late. Many companies communicate a late-payment policy, but they don’t enforce it.


3. Collect a Down Payment from New Clients

Before you provide staffing services to new clients, ask them to put a deposit on their account. This can help you manage your cash flow more readily, and it also secures you in case the new client pays late or doesn’t pay at all.

You might also create a policy that allows clients to get their deposit back after a certain amount of time. This can encourage your clients to pay you on time whenever they have an invoice.


4. Create Payment Plans for Trusted Clients

Some clients may not be able to pay you in full every month. In that case, create a payment plan for them to ease their payments. This can help keep cash flowing and ensure that your clients are paying you on a regular basis.

The details of the payment plan can also include terms about making early payments, which can encourage clients to pay if they happen to have some extra cash.


5. Communicate about When Payments Are Due

One of the simplest things to do is send reminders to your clients. If your invoices are due 30 days after receipt, send out a payment reminder three weeks after the invoice goes out. Your clients are busy, and the invoice may have slipped their minds. The reminder might get them to pay the invoice sooner.

Also be sure to tell your clients about the different ways to pay for their staffing services. Offering them alternative payment methods, such as credit cards, can mean you see payment sooner rather than later.

There are many ways to encourage your clients to pay their invoices sooner. Try out some of these techniques and see the difference it makes in when you’re paid for staffing services.


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Topics: Staffing Agency

5 Pricing Mistakes Independent Recruiters Should Avoid

Posted by Mai Dowdie

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Jan 14, 2019 9:00:00 AM

5_Pricing_Mistakes_Independent_Recruiters_Should_AvoidIndependent recruiters have both an exciting and a challenging market ahead of them. Many changes in the past few years have forced recruiters to change their tactics and become more competitive. Other changes have opened up more opportunities than ever before.

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The staffing industry is currently in an immense growth phase in Canada, spurred by shifting employer and employee demands. Employees want more flexible workplaces, and employers want a more flexible workforce. Staffing industry professionals can help both sides achieve what they want.

One of the most challenging aspects of operating an independent recruiting business is setting prices for contract services. Going too high or too low can spell trouble, among other things. Here are a few of the most common pricing mistakes, and how you can avoid them in your business.


1. Independent Recruiters Can’t Go Too Low

As an independent recruiter, it might be tempting to set your prices at the lowest possible point to undercut your competition. If you offer the best price, it’s likely you’ll drum up the most business, right?

Unfortunately, going too low can cause problems. If your prices are too low, you may not be able to break even, let alone turn a profit. Your competition may have set their prices higher for a reason.

Another issue with low pricing is that it can turn potential clients away. They may feel you must offer poorer service or are unable to truly deliver what they need based on your prices.


2. Sky-High Prices Are a Problem Too

On the opposite end of the spectrum are independent recruiters who set their prices too high. They may bank on selling their clients superior services, but many will see the price tag and turn in the opposite direction.

High prices will limit the number of clients who will utilize your services. As you can see, setting prices for independent recruiters is truly a “just right” scenario.


3. You Didn’t Conduct Market Research

Pricing your services too high or too low often stems from another mistake. Many independent recruiters don’t research their market thoroughly enough. Good market research should reveal to you the “sweet spot” for pricing.

Market research includes surveying your clients and prospects about what they’re currently paying and how satisfied they are with their services. You can also ask what they’re willing to pay or what they believe they should pay for superior service. You can also discover what your competitors are charging.

From all this information, you can begin to determine the right pricing structure for your contract services.


4. You Don’t Offer a Sliding Scale

Another common mistake is charging all clients the same fee across the board. This means your large clients pay as much as your smaller clients, even though you may end up doing more work for those larger clients.

This often ends up driving certain clients away. Smaller clients may feel they’re paying too much if they’re being charged the same as larger clients, for example.

A sliding scale can help you meet every client’s unique needs more easily. Determining the right price is easier when you build flexibility into your pricing model.


5. You Use a Flat Rate

Do you charge the same price for every service you offer? Some independent recruiters do. This is often because they’ve just started offering contract staffing services, and they’re not quite sure how to price this service versus their permanent staffing solutions.

Again, your market research can help you find the right price for all the different services you offer.

By avoiding these common mistakes, you’ll be well on your way to creating a lucrative independent recruiting business.


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Topics: Independent Recruiters

Why You Should Analyze Your Back Office Data

Posted by Stacey Duggan

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Jan 9, 2019 9:00:00 AM

Why_You_Should_Analyze_Your_Back_Office_DataRunning a staffing firm is full of challenges. For people like you, that’s a good thing. The little ups and downs keep you on your toes. You love being able to sit down with a problem and think it through to find creative solutions.

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One of the most common places to find challenges in a staffing firm is in the back office. With back office data, however, you can start making better decisions to overcome these obstacles.


What Is Back Office Data?

What is back office data, anyway? It’s the data generated by the administrative tasks in your business. Think of the information you generate when administering payroll or creating invoices.

It can also include information about time. How are your employees spending their time? How long does a particular task take in your business?

The information can even include marketing data and overhead costs.

All of this information is important for your business. You probably knew it was important to keep tabs on how much you were spending on payroll and overtime, or how much revenue you brought in.

Back office data can tell you much more about your business, however, provided you analyze it.


What You Can Learn

When you begin analyzing data in your business, you’ll learn much more than just how much revenue you’re bringing in or how much you’re spending.

You might have already known about the kinds of information you can gather in financial data reports. You can see increases in expenditures or decreases in overheads. You can then tie that information back to changes in the regulatory environment or new programs you’ve implemented.

Data analysis can tell you more about the health of the business than just year-over-year growth statistics. It can show you information about things like productivity, efficiency, and other performance indicators.

Suppose you adopted new staffing firm software. You knew this software cost X dollars, and you were also aware you brought in more revenue and decreased expenditures after adopting it.

The data from the back office can show you more of the story. It can show you that your labour costs came down because your team was spending less time fixing mistakes or inputting data. It also shows they were able to accomplish more in the same time, improving their win rate with new clients. You already knew the outcomes, but now you also know how it happened.


Why Does It Matter?

Some business owners might ask if they really care why their expenditures decreased or their revenue increased. Those are both good trends, so it’s less important why they happened than that they occurred.

Understanding why these outcomes occurred is important, however, since it can help you make better business decisions. If you know how much time your staff spends on particular tasks, you can make better estimates about how much time you’ll save by adopting new tools.

This can help you decide whether adopting the new tool is really worth the investment.

You can also glean other information, such as how long it takes clients to pay their invoices on average. This could help you rethink your policies. Is there a way to entice clients to pay sooner?

You might rethink processes as well. How can you reduce the time spent on a task, for example?


Powering Your Business

It should be clear back office data gives you more information about your business. It helps you make smarter decisions.

As a result, you can provide better service to your clients and better experiences for your candidates alike.


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Topics: Back Office Service Provider

5 Client Retention Strategies for Staffing Agencies

Posted by Karen McMullen

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Jan 7, 2019 9:00:00 AM

5_Client_Retention_Strategies_for_Staffing_AgenciesCompetition in the staffing industry is heating up. As the industry continues its steady growth, more people have become aware of the opportunities in this area. The result has been a growing number of staffing agencies offering a growing number of services.

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The good news is the number of clients has also been on the rise. More companies are looking for workforce flexibility, which includes increased requests for temporary and contract workers. Many companies are also turning the process of finding permanent employees over to the staffing firms they work with to find other types of workers.

The question for many staffing agency owners is how to keep clients once they bring them on board. It’s five times more cost effective to keep an existing customer than it is to try to gain a new one. Once you’ve brought someone on as a client, you don’t want them to leave for another agency.

Try one or more of these client retention strategies. Your customers will likely be happier and stick around longer.


1. Staffing Agencies Must Focus on Good Customer Service

At the end of the day, a staffing agency is reliant on its clients. You want your clients to be happy with the services you provide, which means you must provide top-notch customer service.

While your primary goal is placing the right job candidates with the right clients to fill roles, customer service goes beyond this. Ask your clients for their feedback. Check in with them often. If there’s an issue, respond to it promptly.

Providing stellar customer service is the easiest way to keep clients happy and coming back for more.


2. Expand Your Service Offerings

Have you talked to your clients about their staffing needs lately? Someone who came to you looking for temporary staffing services may be looking to make more permanent hires. Others might be interested in contract staffing.

You could also offer other services if your clients demand them. By expanding your menu of offerings, you can keep your clients satisfied. In turn, they will be less likely to go looking for those same services elsewhere.


3. Reward Loyalty

Businesses often focus on getting new customers to sign up, sometimes at the risk of neglecting their existing clients. Think about bank adverts enticing new customers with iPads or free cash in their new accounts. What are their existing customers getting for sticking with them?

Staffing agencies should take the opposite approach. Remember, it’s more costeffective to keep a customer than to get a new one, so reward client loyalty. If someone has been with you for a while, why not send them a gift card and a thank-you note? You might consider offering a discount or another type of reward.

This helps your clients see value in sticking with you instead of setting out for greener pastures.


4. Become More Collaborative

You may believe your clients came to you because they wanted a “hands-off” approach to hiring. At the end of the day, however, they still have some say over who works for them. They’ll decide who’s the right fit and who isn’t.

By becoming more collaborative, staffing agencies can create a more inclusive hiring process for clients. This can eliminate poor hires for the client. It also helps them feel as though you’re responding to their needs, and that you really do care about helping them succeed in hiring.


5. Get the Right Candidates

This is easier said than done. Staffing agencies put quite a bit of emphasis on finding the right candidates to meet their clients’ hiring needs, so you may believe you’re already doing this.

Your clients may think otherwise. If some of your candidates haven’t been the right fit, your client may seek services elsewhere Listen to their feedback and refine your candidate search and hiring process. Your clients will believe their needs are being better served when you show you can bring in the right people every time.


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Topics: Staffing Agency

How the Wrong Funding Option Could Be Costing You Money

Posted by Chelsea Henry

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Jan 2, 2019 9:00:00 AM

How_the_Wrong_Funding_Option_Could_Be_Costing_You_MoneyEnsuring you have the right funding is crucial to keeping your operations afloat. This is especially true for a staffing agency owner. Whether you’re just starting out or you’re in the middle of expanding your business, the right funding options will keep the cash flowing and your business growing.

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The wrong funding option, on the other hand, could be costing you money, in addition to causing other problems within the business. Here’s how.


The Wrong Funding Adds to Your Bills

If you opt to take out a bank loan, you could actually end up adding to your bills without giving your business the liquidity it truly needs. A loan may seem like a great idea at first, but it deposits a lump sum into your account. Once the money is used, you’re on the hook for paying it back with interest.

This isn’t a long-term solution for a business trying to improve cash flow. Instead, the loan injects cash into your business on a one-time basis and then becomes yet another financial burden for you to manage month to month.


Interest and Debt Pile Up

It should be obvious how a loan can add strain to your finances, particularly if your cash flow is upside down. In the staffing industry, this scenario is all too common.

Once the cash is gone, you have a debt to pay, coupled with mounting interest payments. If your cash flow is uneven, you may find yourself torn between paying the interest on the debt or funding payroll. You might even be tempted to take on more debt to meet all of your financial obligations.

This could mean the financial situation within your business becomes worse instead of getting better, even with the additional funding.


There Are Other Funding Options

Many business owners choose bank loans because they believe this is the only option for them. This isn’t true.

You have plenty of options as a staffing agency owner. A bank loan might be just one of many options available to you, and in many cases, it may not be the right option for your business.

Explore other options to find the right funding for your business.


Are You Getting the Right Funding?

If you’re not sure you’ve picked the right funding option for your staffing agency, you can talk to the experts. They’ve helped many other businesses like yours, and they know what options are available.


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Topics: Staffing Agency

5 Tips for Pricing Your Services as a Startup Staffing Agency

Posted by Karen McMullen

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Dec 31, 2018 9:00:00 AM

5_Tips_for_Pricing_Your_Services_as_a_Startup_Staffing_AgencyStarting your very own staffing agency is both an exciting task and an exhausting one. You’ll need to make decisions on almost every minute detail, and every decision you make will affect how the business performs.

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You have the skills after years of working in the staffing industry and developing expertise. Nonetheless, there are many tasks you’ve likely never considered. For example, how will pricing work at your startup staffing agency?

Figuring out pricing is actually one of the more difficult tasks facing new staffing agency owners. You don’t want to go too high and scare off potential clients, but you also don’t want to go too low and undermine your operations. How can you figure out what pricing will be just right?

These five tips will help you determine the right prices for your startup staffing agency. By using them, you’ll have an easier time finding prices that work for both you and your clients.


1. Remember You’re a Startup Staffing Agency

The first thing you need to consider when you’re thinking about pricing is that you’re new to the scene. Clients and candidates don’t yet have a reason to trust you. Working with you is a bit of a gamble.

The right price will help them weigh the risk of working with a new, untested agency. For this reason, you shouldn’t price your services too high. This gives new clients an incentive to work with you.


2. You Must Account for Your Costs

You don’t want to go high, but you also don’t want to set your prices so low that you can’t cover all of your costs. As a startup staffing agency, however, it’s difficult to know what’s going to be “too low.”

You haven’t yet had a full year of operation, so predicting exactly what your costs will be is difficult. Even large companies can struggle with this task, particularly if something changes in the market or they’re undergoing growth.


3. Don’t Use the Lowest Possible Price

One good thing to do when you’re working on pricing for your startup staffing agency is to model a few scenarios and find the lowest possible pricing for your services. This may be the break-even point. Under this price point, you’d actually be losing money.

Once you’ve discovered this number, set your prices above it. Using a higher price point will give you leeway if things don’t work out quite the way you thought they might in your break-even model.


4. Look at Pricing Used by Similar Agencies

Another thing you can do is research how other staffing agencies are pricing their services. You might look at the large agencies, but also take a look at other smaller and startup agencies in your area.

These companies are your direct competitors, so you don’t want to be priced too much higher without offering much more in the way of service and value. Their pricing may also indicate something about their overhead costs, which could give you a ballpark figure for your own costs.

Finally, don’t forget to factor in how the company is doing. It can be difficult to find this information, but if the agency isn’t doing well, you probably don’t want to copy its pricing model.


5. Consider Sliding Scales for Your Clients

Different clients have different needs, and the pricing offered at your startup staffing agency should reflect this. You might want to consider using sliding scales for pricing. This gives you more leeway to find pricing that truly works for both you and the client.

Determining a pricing model for your startup staffing agency isn’t always a walk in the park. These tips can make it easier to find the right prices for your new agency.


Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

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