The Staffing Edge Blog

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7 Traits You Need to Succeed in the Staffing Industry

Posted by Laura D’Andrea


Nov 20, 2017 9:00:00 AM

7 Traits You Need to Succeed in the Staffing Industry.jpgWhether you’re thinking about becoming a staffing industry professional or you already own a new staffing firm, it’s always a good idea to periodically run an inventory of your key traits.


As we’re sure you’re aware, it takes a lot to dedicate yourself to a career in the staffing industry. But what specific traits are most important to be successful? Check them out below.

1. Niche Expertise

This trait is critical to success in the staffing industry because it’s about focusing on a corner of the job market you know you can excel at. When you adopt a jack-of-all-trades mentality towards recruitment, you’re bound to spread your skills and resources too thin.

There are many advantages to choosing a niche to focus on as a recruiter or the owner of a staffing firm. Chief among them is being able to limit your competitors and hone your expertise to a fine point in your field. Having a niche offers much more value to your clients because you’ll know your corner of the job market inside and out.

2. Highly Organized

A keen recruiter or staffing firm owner possesses meticulous organizational skills. As hiring volume continues to increase in the staffing industry, the success of a firm (especially a new one) is determined by its efficiency. If you want to land the best candidates, you must be quick or another staffing firm will snatch them up first!

Efficiency must be optimized if you don’t want to drown in paperwork or lose candidates to the competition. That’s why staffing firms are using proprietary software like Stafftrak to automate their most time-consuming tasks, from applicant tracking and data entry to client relationship management and financial reporting. The less drudgery recruiters must deal with, the more time they have to focus on sourcing talent.

3. Excellent Communication

According to a study from 2016, 77 percent of job seekers still prefer human interaction during the hiring process.

A successful staffing professional should excel at communicating with people. Clients and candidates should view you as a knowledgeable and confident guide. Being able to connect on a personal level with those who engage your services makes it easier for you to zero in on their wants and needs.

4. Effective Time Management

This trait is tied in with being highly organized but is important enough that it should be highlighted on its own. The staffing industry is very much a “strike while the iron’s hot” kind of industry. Staffing professionals who are prone to procrastination will miss out on many candidates.

5. Vigilant about Compliance

Canadian business legislation is constantly changing, which is why a staffing professional should be committed to compliance. Updates to employment standards are constantly occurring; therefore, it’s imperative to keep up with changing legislature and make necessary changes to your staffing firm.

Compliance is considered one of the top 10 things you need to know when starting a temp staffing agency. Make sure you’re vigilant.

6. Know Your Weaknesses

As a successful staffing professional, you should know your weaknesses as well as your strengths. Being aware of your shortcomings ensures you always work to up your game and improve the quality of your work.

By understanding your weaknesses, you can ensure they don’t affect the success of your agency.

7. Committed to Customer Service

The ultimate goal of a staffing firm is customer satisfaction. You should be committed to constantly improving the client and candidate experience. If you make customer service one of the central goals of your firm, you’re bound to succeed.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

6 Staffing Industry Trends You Can’t Afford to Ignore

Posted by Mai Dowdie


Nov 17, 2017 9:00:00 AM


You must keep up to date with industry trends in order to keep up with the competition and improve your business operations.

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That’s why we’ve gathered a list of our top six staffing industry trends that can shrink your profit margins if you remain unaware of them. Read on for trends that will help elevate your staffing firm to new levels in 2018!

1. The Gig Economy Is the New Normal

While we’re sure you’re at least aware of how much the gig economy has become a hot topic in recent years (it’s part of why the staffing industry is thriving after all), the term is no longer a buzzword. The gig economy is now considered the status quo for the North American job market Many workers prefer the workplace flexibility of contract work to the traditional nine-to-five position. Business owners too benefit from greater worker flexibility.

To stay competitive, include contract staffing in your range of services.

2. Online Marketing

Online marketing for staffing firms is vital now, with nearly all clients and candidates investing a fair amount of time researching agencies online before engaging them. With effective online marketing, you can attract clients and candidates to your agency.  

Without online marketing, on the other hand, your staffing firm will face a steep challenge in making the initial connection with clients and candidates. How will you get noticed? It’s worthwhile to invest in a holistic online marketing strategy.

3. Mobile Recruiting

This trend is about widening your window of opportunity to capture more talent. A Pew Research Center study identified a whopping 94 percent of job seekers have browsed or researched positions via their smartphones!

What does this mean for those in the staffing industry? Your website and job ads must be mobile friendly. Don’t miss out on such a large percentage of candidates.

4. Involved Social Recruiting

This trend is one that your firm will follow naturally if your online marketing is on point. When you set up your firm’s Twitter or LinkedIn accounts, for example, don’t just devote those platforms solely to promoting job opportunities. Use social media to communicate your employer brand and expertise.

Social recruiting can land you top talent. By staying engaged and showcasing your knowledge, you attract culturally fit candidates.

5. Making Diversity a Priority

Your staffing firm must account for several types of diversity moving forward. We already know from Mckinsey’s 2015 research that gender, racial, and ethnic diversity helps companies boost performance. But have you considered age and thought diversity?

Moving forward, your firm will need to become even more unbiased in its recruitment process to ensure you don’t overlook promising candidates due to arbitrary factors. Companies are striving to gain unique talent by increasing their diversity, and your firm can be the one to provide such talent.

6. Automating Time-Consuming Admin

Often, managing back office administration is the biggest hurdle for staffing firms. That’s why the trend of automating administrative tasks with all-in-one recruitment software has become so important.

Automating data entry, applicant tracking, client relationship management, and financial reporting frees up your firm to focus on your core business. 

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Industry

How to Show Clients Temp Staffing Is Right for Them

Posted by Corinne Camara


Nov 15, 2017 9:00:00 AM


Are you having trouble convincing potential clients that temp staffing is right for them as a hiring solution? We’re here to help you show clients who are on the fence that there are more benefits to temp staffing than they might think.

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Industry-Specific Expertise

If your agency is focused on a staffing niche, you know that your candidate base is made up of talented industry specialists. Temp workers are often industry veterans who are looking to supplement their income or take on new challenges.

Let your clients know your staffing agency can provide them with highly skilled candidates who can hit the ground running after their placements. One of the major advantages of engaging with a niche staffing firm is that you can land talent for specific positions and not worry about spending too much time or resources on training. So, if your client is looking to land candidates for an industry-specific project, temp staffing is ideal.

What Slow Season?

Another great aspect of temp staffing that often gets overlooked is how it reduces the complications of seasonal turnover and employees on leave. When your clients have access to a steady stream of candidates when they need them, their businesses can kiss slow seasons for productivity goodbye!

Be sure to inform clients they will have the ability to supplement their staff whenever the need arises thanks to temporary staffing. As already mentioned, your clients might have special projects they need completed but are lacking in manpower or skilled permanent employees to do so. Clients no longer have to shelve important tasks or stretch their available staff thin with overtime to cover empty positions or complete special projects.

Boost Your Resources

Speaking of overtime, your clients will also be happy to know that temp staffing is often more economical than permanent staffing. When you provide skilled temp workers for your clients, they will have more than enough staff to cover all bases throughout the year, reducing the costs of overtime work.

Explain to your clients that many businesses are choosing to engage with temp staffing firms because it reduces their overhead costs in several ways. With a staffing firm, clients have ready access to candidates who won’t cost them in extra training, who can provide specific talent for only the time needed, and who don’t need benefits packages.

Take what you’ve learned here about how temp workers offer clients an efficient and profitable hiring solution and weave it throughout your online marketing strategy. Your future clients will thank you for offering them such a solution.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

5 Costs That Ruin Employment Agency Profit Margins

Posted by Anna Mastrandrea


Nov 13, 2017 9:00:00 AM


Running an employment agency, even in the age of a soaring gig economy and the ongoing skilled worker shortage, is tough. While you might have a niche that’s in demand and potentially lucrative, your employment agency’s success is dependent on whether you can keep your books balanced.


You could have the best talent on your roster, but you could still find that your profit margins are narrow. The reason for this is complex, but a lot of it comes down to improper back office administration and untrustworthy clients.

Curious about which costs can wreck your employment agency profit margins? Check out five of the worst issues below.

1. Disorganization

This might not seem like the worst offender on the surface, but disorganization (particularly regarding your accounting paperwork) can shrink your employment agency profit margins in several ways.

Let’s say your agency is new. Chances are you won’t be focusing on accounting as much because you’re preoccupied with sourcing talent and drumming up clients who want that talent. But once you start regularly placing candidates, you’ll most likely have misplaced an invoice or two, not to mention time cards. An inefficient financial reporting system can quickly hurt your profits due to late payments.

2. Non-Paying Clients

Non-paying clients coupled with a disorganized back office could spell disaster for your employment agency profit margins. Some clients are simply looking for free labour. Cash flow management for employment agencies is difficult. You must pay your temps on time, even if your clients haven’t paid you, which means non-paying clients can seriously set back your agency’s growth

Credit checking before you start a relationship with a client is vital to keeping your employment agency profit margins healthy.

3. Poorly Matched Pay Schedules

Unfortunately, there are going to be instances when your profit margins are down due to late payments from clients. Every business has its own individual pay schedule, and not all of them are going to be perfectly in sync with your agency’s schedule.

A typical payroll schedule for an employment agency is weekly or bi-weekly, but what if your client only pays every 60 or 90 days? That means you’ll be using your own funds to pay employees until your client finally pays you.

4. Compliance Woes

Canada has many employment laws and standards that staffing agency owners must meet. Keeping track of ever-evolving legislature and ensuring your agency is always compliant is a difficult task. Employee misclassification is a real—and costly—risk in the industry. You also have to comply with minimum wage, overtime laws, holiday pay standards, and so much more.

Add to the above missed tax returns and remittances (which will be inevitable if your back office is very disorganized), and your profit margins will rapidly shrink.

5. No Payroll Financing

Just as you trust your clients to pay on time, your temps trust your agency to pay on time, which is why payroll financing is vital to the financial health of your staffing agency.

Keep these five costs in mind when launching your agency, and you should have no trouble keeping your profit margins up!

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

3 Top Industries That Hire Temporary Workers

Posted by Corinne Camara


Nov 10, 2017 9:00:00 AM

3 Top Industries That Hire Temporary Workers--.jpgAs the owner of a new Canadian staffing agency, you know without a doubt that the country has been shifting to a nation of temporary workers. Since the recession, the Canadian economy has been slowly recovering and the mindset among employers and young workers has shifted as well.

There are now many industries that need temporary workers so they can gain more flexibility for the unpredictable economy as well. As a staffing agency, you’ll want to know which industries are most in need of temporary workers so you can position yourself as a go-to source for their hiring needs.


If your staffing agency falls into one of the three categories discussed below but doesn’t currently offer temp staffing services, now’s the time to consider offering them.

1. Trades and Industrial

Perhaps out of all the Canadian industries, the trades and industrial sector is most in need of temporary workers. Statistics Canada was quoted in recent years as identifying a growing shortage of 1 million skilled trades workers needed for occupations such as construction, mining, and petroleum by 2020. 

Industrial warehouses are also in need of many temporary workers for seasonal work or for temp-to-permanent positions. If your staffing agency has targeted this niche, it was a smart move to do so. But if you only focus on permanent staffing opportunities, you could be missing out on a huge demographic of clients looking for temporary trade and industrial workers. 

There are many advantages to offering temp staffing, not least of which is offering your target market a broader range of service. If you can provide skilled temporary workers to help clients looking for more flexibility in this particular industry, your staffing agency will see continuous growth for some years to come.

2. Information Technology

This industry is listed second, following trades and industrial, for a very good reason. Despite all the recent grads from computer technology programs across Canada, there simply aren’t enough skilled candidates to fill the demands of the many companies out there with technical needs. This is because, at the rate that technology is transforming and disrupting everyday business operations, there are numerous digitization initiatives and projects that need skilled technology workers of various specializations. 

What’s more, it’s not only businesses within the IT sector that need skilled workers, it’s any business worth its salt. To stay competitive with the demands of digital-age consumers, businesses in practically every industry need a constant stream of technical workers for mobile app projects, data analysis, cybersecurity, web administration, and more. Many businesses also require temp workers because they need a specific project completed or extra manpower for their online help desks during busy seasons. 

Don’t be surprised if offering temp IT workers helps you keep more clients for lengthier periods of time. Moving forward, technology will continue to become more ubiquitous in our society. Temp workers help businesses through their rocky transitions to digitally driven organizations.

3. Office and Administration

Office and administration workers are always going to be needed. While this niche might not be as specialized as the above two in terms of skills, there’s a lot of variety in the skilled temp workers you can offer.

When it comes to the front and back offices, employers see many of their employees go on sick or maternal leave, and there’s always going to be a need for more manpower during vacation seasons like summer. There’s a lot of profit to be made in office and administration staffing because it’s the backbone of a business.

If your staffing agency can offer temporary workers for any of these three industries, you’ll be able to unlock a lucrative revenue stream and grow fast.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

3 Reasons the Staffing Industry Is Thriving

Posted by Laura D’Andrea


Nov 8, 2017 9:00:00 AM

3 Reasons the Staffing Industry Is Thriving--.jpgAs 2017 draws to a close, it’s clear that the competition in the staffing industry isn’t dying down anytime soon. And according to LinkedIn’s Global Recruiting Trends Report, 79 percent of the staffing leader respondents expect the volume of candidates they place to continue increasing. If you’ve been on the fence about starting a staffing agency, now’s the best time to decide to go all in.


The staffing industry is thriving right now for several reasons, but many of them are interrelated to three overarching trends. Read on if you want a fuller picture of why there’s no better time to start a staffing firm and make a smart investment.

1. The Gig Economy

A combination of the recovery from the last recession, digital disruption, and an ongoing skills shortage has led to a paradigm shift in the job market. For both clients and candidates, the gig economy is considered the new status quo because it offers an ongoing solution to the triple threat just mentioned. To put it simply, the gig economy is about a job market driven by temp and contract work. 

For clients, temp and contract workers offer increased staffing flexibility, allowing for optimal staffing levels and reduced costs. A staffing firm can thrive by providing these much-needed temp or contract workers. 

Candidates benefit from participating in the gig economy by having access to multiple temp/contract job offerings. The gig economy enables candidates to supplement their income, break into an industry (especially if they are new grads), and achieve a better work-life balance. 

The gig economy is why there’s lively growth and competition in the staffing industry, and it’s also why temp staffing is the employment solution of the future.

2. Technological Innovation

As much as technology disrupts traditional business models, it also transforms daily operations for the better. Proprietary software has been developed specifically for the staffing industry, taking the most time-consuming matters into account. Things like customer relationship management (CRM), applicant tracking, and compliant financial reporting can be dealt with through one integrated software, like the Staffing Edge’s award-winning Stafftrak. 

With daily tasks optimized, the application and placement process is faster and less complicated. Recruiters can now focus whole-heartedly on sourcing talent and closing deals with clients without stressing about back office details. And with most progressive firms implementing such software, the staffing industry is seeing healthy competition and constant improvements.

3. Online Marketing

While this last point is related to technological innovation, it’s a phenomenon worth talking about in more detail because of its significant growth in recent years. Especially now that mobile technology is highly sophisticated, successful online marketing allows staffing firms to tap into an even larger base of potential candidates.

The tech-savvy millennial generation of talent is often on the go, and online marketing accounts for this with mobile responsive sites and application designs. One of Stafftrak’s major strengths in fact is that it’s web-based software, making it accessible by staffing firm agents anywhere and expanding the window of opportunity to source millennial talent.

Online marketing entails how you present yourself as a brand as well. Employer branding has now become just as important to the hiring process as candidate branding. If you have the correct mix of strong communication (via your website, its blog, and social media) and search engine optimization, your staffing firm is guaranteed high attraction rates.

Effective online marketing keeps the industry thriving because it improves staffing firm visibility and enables better talent attraction.

We hope you found the above facts about the industry’s growth insightful!

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Industry

Why Your Staffing Agency Profit Margin Is Shrinking, and How to Fix It

Posted by Stacey Duggan


Nov 6, 2017 9:00:00 AM

Why Your Staffing Agency Profit Margin Is Shrinking, and How to Fix It.jpgSo, you have a relatively new staffing agency and you’ve also focused on a niche. You know all about the gig economy and how it will be changing the definition of work. You’re sourcing great talent. Everything seems to be going well…So, why then are you seeing your staffing agency profit margins shrink already?


The truth of the matter is that staffing agency profit margins aren’t all that transparent. On the surface, you might think it’s mostly about covering your general overhead and having extra saved for emergency costs. But the most draining expenses for staffing agencies have a lot to do with customer service and compliance as well.

Want to know how to fix your shrinking profit margins? Continue reading for a clearer picture of why your margins are tightening and a way to regain some financial breathing room.

Is Your Customer Service Unique?

Can you say without a doubt you’re offering customized service to your customers and a great experience to your candidates? If you can’t, this is likely part of the reason why your staffing agency profit margins are shrinking.

Although you do need to stay competitive with your rate of placements, you can’t compromise on the quality of your customer service. You can’t rush your clients and candidates off the phone or ignore their emails when they have questions and concerns simply because you want to move on to the next placement. You must provide quality customer service.

Being speedy is good, but being empathetic to your candidates’ needs and your clients’ staffing challenges is even better.

Cookie-cutter customer service that’s solely focused on quantity rather than quality of placements will lead to customer dissatisfaction. And as your talent database shrinks, your clients will begin to leave.

Are You Behind on Canadian Compliance?

The Canadian business law landscape is constantly shifting and evolving. Your current perception might be that profit margins aren’t affected much by this fact, barring exceptional law updates and changes. But even yearly taxes and remittances can impact your staffing agency profit margins. 

You literally can’t afford to default on your Canada Revenue Agency (CRA) remittances. There are automatic monetary penalties for late or failed remittances that rapidly accumulate large costs. For example, the penalty for payments that are six or seven days late is 7 percent of the amount owed, and if you’re a repeat offender, the CRA will add another 20 percent to that amount. 

There are also more slippery compliance matters, like employee classification, that you need to stay on top of. The misclassification of employees as independent contractors can lead to prosecution, public disclosure of conviction, and monetary penalties to boot! 

None of these fines and penalties are particularly helpful for improving your profit margins (or business reputation).

You Need Canadian Admin Experts

To consistently improve your staffing agency’s performance levels regarding customer service and ensure there aren’t major oversights with administration, you’ll need to upgrade your infrastructure. More specifically, you’ll need to target your back office infrastructure. The efficiency of your admin determines your day-to-day success on the front end.

A back office solutions provider can take over back-end tasks and offer you software that allows you to improve client relationship management and applicant tracking. This will help you focus on customer service.

Compliance experts can also help you with correct financial reporting, so you won’t see profits bleed from missed remittances or oversights with Canadian business laws.

Your profit margins must stay strong if you want to eventually compete with the big staffing firms. The key to fixing shrinking profit margins is offering conscientious customer service that grows your network and keeping administration is watertight.

We hope you keep this blog’s discussion in mind when addressing your profit margin challenges.

Starting a Staffing Agency

Topics: Staffing Agency

7 Staffing Industry Innovations to Anticipate in 2018

Posted by Karen McMullen


Nov 3, 2017 9:00:00 AM

7 Staffing Industry Innovations to Anticipate in 2018--.jpgThe year 2017 was all about the potential of harnessing technology. We learned technology in staffing could amplify the efficiency of daily operations and improve sourcing accuracy. Employer brand was also a key trend in 2017.

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It’s time to consider which staffing industry innovations will prevail in 2018. Some of our roundup below may be familiar to you, but these innovations are expected to trend well into the coming year and beyond. To remain a competitive staffing agency, you’ll need to anticipate these following 7 innovations.

1. Upgraded Applicant Tracking Systems (ATS)

There are several ways an applicant tracking system can sink a temp agency. Most of the reasons a poorly designed ATS could cause trouble are connected to lack of customization and integrated client relationship management tools. Not to mention a less effective ATS had trouble keeping all its data on applicants and clients straight.

In 2017 ATS are slated for a level up with the introduction of innovations like machine learning, which will enable an ATS to rediscover successful candidates in your swelling database.

2. The Rise of Mobile Recruiting

We predict 2018 will be the year many temp agencies realize the power of sourcing candidates via mobile platforms. The reason for this is twofold: There’s rapid growth in the number of millennial new grads on the market, and smartphones and tablets have become the most prominent platforms for internet browsing.

The number of smartphone users alone is expected to reach 2.5 billion in 2018! There’s a good chance you could be missing out on diverse talent if your agency’s website and recruitment software aren’t mobile responsive.

3. Online Marketing

This innovation is one that’s evolving all the time, what with digital transformation continuing to make technology ubiquitous in business operations. To amplify your temp agency’s success rate, you’ll have to ensure your online marketing strategy hits all the sweet spots: search engine optimization (SEO), blogging, and social media. Don’t be afraid to include short but catchy videos as well.

4. Data-Driven Recruitment

While a human touch is still important to the staffing industry, data will become key to how you source and select candidates in 2018. We already use keywords and algorithms. Moving forward, we will see the rise of natural language processing (NLP), which enables automated candidate screening to become more diverse and unbiased.

NLP will also be important for writing job descriptions. Often, candidates who are diverse in more ways than one (gender, ethnicity, thought) are scared off by job descriptions that read exclusionary.

5. Hiring for Thought Diversity

As just mentioned above, hiring candidates who think diversely is fast becoming a game-changing innovation.

When you hire candidates who improve a company’s thought diversity, you’re empowering them with candidates who can improve their chances of innovating the “next big thing” in their field. Not to mention, this helps bring a fresh perspective on how to tackle daily operations.

6. Micro-Targeting

To spur your temp agency’s growth in 2018, focus not just on a specific field, but specific locations and skills for candidate sourcing. Micro-targeting may seem counterintuitive at the surface level, but remember that your job is to alleviate a very specific shortage of skilled talent.

7. Outsourcing Compliance

This last innovation speaks volumes about how complex Canadian business legislation has become. The year 2018 will see many temp agencies choosing to outsource their compliance to experts who can keep them up to date with employment standards.

With Ontario’s new employment standards affecting minimum wages, worker classification, and more, agencies will want to make sure their due diligence is always met.

These seven innovations paint a picture of a technologically advanced staffing industry in 2018.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

4 Reasons Your Staffing Agency Is Losing Clients

Posted by Shannon Dowdall


Nov 1, 2017 9:00:00 AM

4 Reasons Your Staffing Agency Is Losing Clients--.jpgThe competition rages on among staffing agencies of all sizes. Since the skills shortage continues to boost the rise of Canada’s gig economy, the coming new year doesn’t look as if there will be any let up on the race to land top talent. As a staffing agency owner, keeping up with the breakneck pace of the recruiting industry is challenging enough without having to worry about why your growth is stagnating.

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If you find you’ve been losing more clients than you’ve been signing on in recent months, then it’s time to assess your staffing agency’s recruitment process. Below, you’ll find four reasons that might just be the problem you need to fix.

1. You’re Taking Too Long to Place Candidates

In the staffing industry, time is perhaps your greatest resource and it shouldn’t be squandered on an insufficient applicant tracking system. Daily tasks like data entry and pre-screening shouldn’t eat up hours of your recruiters’ schedules.

The longer you take to find the right candidates for your clients, the more impatient they’ll become and the more likely they’ll engage a quicker and more experienced staffing agency the next time around. If you’re taking a long time to place candidates during a busy season, like summer, many clients who need temp workers to fill in for employees on vacation leave or for a special project will leave at once.

2. You Can’t Seem to Locate Candidates with High Potential

A staffing agency can’t thrive if it lacks the ability to offer uniquely talented candidates, no matter its niche. If you have been focusing on quantity of candidates placed over quality, you’ll notice your rate of losing clients will increase. One of the main reasons successful staffing agencies can grow their businesses sustainably is that they make the effort to find a steady stream of skilled and diverse candidates.

If talented candidates aren’t attracted to your brand, chances are your social media activity is low and your career site isn’t mobile responsive in design. A large portion of the job market is now driven by millennials, which means you need to make sure your staffing agency’s site is accessible by the smartphone-savvy crowd!

3. Your Staffing Niche Isn’t Really a Niche

Instead of choosing a niche, some staffing agency owners decide to “specialize” in several different industries. This results in them spreading their staff and resources thin. It means they don’t have a point of differentiation. It means they don’t have expertise or deep knowledge in any one sector.

Your agency will only become specialized in providing specific talent when it doesn’t have its hands stuck in so many pies.

When your agency’s focus is too broad, you lose clients because you can’t guarantee them consistent talent nor can you offer valuable industry insights and knowledge. Without those vital things, your brand loyalty plummets.

4. You Can’t Keep Compliant

If your agency lacks proper administration, this can lead to you running into trouble with the government for taxes, employment standards, and more. Noncompliance isn’t attractive to clients.

Noncompliant agencies appear risky and untrustworthy to clients, which is why you might be losing them if you can’t keep up with Canadian labour laws.

Take stock of these four reasons why you might be losing clients as they speak to what you need to know about starting a successful agency!

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

Top 5 Costs Eating into Staffing Agency Profit Margins

Posted by Anna Mastrandrea


Oct 30, 2017 9:00:00 AM

Top 5 Costs Eating into Staffing Agency Profit Margins--.jpgTemp staffing agencies may be on the rise but they can have a tough time keeping afloat financially.


For a new staffing agency to become more competitive and achieve sustainable growth, it must ensure its overhead isn’t exceeding its profit margins. The key to determining what costs are eating into your staffing agency profit margins is zeroing in on what aspects of your agency are the most inefficient.

With the above in mind, here are our top five costs that are eating into your staffing agency profit margins.

1. Non-Compliance

We know keeping on top of paperwork duties might be a pain, but it’s paramount for your staffing agency profit margins. If your agency is found to be noncompliant with Canadian business legislation and employment standards, your finances will take a downturn. 

You could face penalties and fines that can run into the thousands. 

If you aren’t on top of your compliance, it’s a sure bet your staffing agency profit margins are shrinking. Canadian business legislation is constantly changing, and you need to keep up to avoid costly fines.

2. Taxes and Government Remittances

This second cost is part of your compliance responsibilities, but it’s a matter that also entails how efficient your financial reporting system is. When it comes to paying taxes and government remittances on time, you literally can’t afford to be late. Staffing agencies that miss their remittance deadlines must deal with automatic penalties from the Canada Revenue Agency (CRA), rush to make payment arrangements, and appeal in court to contest fines. 

Of course, all the issues just mentioned cost your staffing agency precious time that could’ve been spent focusing on sourcing talent and securing placements for clients. One way agencies avoid this problem is by implementing proprietary software that has a built-in financial reporting system.

3. Non-Paying Clients

One of the key things you should know about starting a temp staffing agency is that your reputation is dependent on your ability to enter into valuable client relationships. If you’re too focused on the number of placements you make, you run the risk of connecting with clients who refuse to pay your agency (on time or at all).

You need to run credit checks on clients before you enter into a partnership with them. And your screening process should be thorough. Otherwise, you risk your profit margins and your employer brand in one fell swoop!

4. Overtime and Holidays

You need to know what the laws are for overtime and statutory holidays in your agency’s province. Every Canadian province has varying rules and standards in both cases. If you don’t follow them, you could find yourself dealing with extra costs if your temps have worked overtime or holidays during their placements.

5. Payroll Financing

Even if your clients are trustworthy, their business payroll schedule might be divergent from yours. Your candidates must be paid on time, regardless, or you risk losing their talent and dealing with complaints and a bad reputation. You could end up paying a lot of interest on lines of credits or other financing options from a bank, making it difficult to profit. That’s why staffing agencies seek services like receivables insurance to keep their payroll consistent.

Stay on top of these five potential costs, and your staffing agency will be able to keep its profit margins strong!

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

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