Did you know that roughly sixteen million people are hired by staffing companies over a single year in the United States?
The expansive growth of the staffing industry—78% since 1995 according to some estimates—accounts for many of these hires.
Business people, entrepreneurs, and corporations alike who are familiar with these figures may be wondering if owning a staffing franchise is a smart investment. Owning a slice of the $140 billion staffing industry pie can be rewarding, but the questions below should help you make a decision.
Have You Investigated Your Market Area Hiring Pool?
Having a deep understanding about your market area is perhaps one of the most important considerations to make before getting involved with a staffing franchise.
Ultimately, your investigation should conclude whether or not a target location is ideal for a staffing franchise opportunity. One of the most common mistakes potential franchise owners make is to only research employment opportunities, simply assuming that the labor pool will be available and willing.
To successfully investigate a local market, one should explore both employment and staffing opportunities. This means that in addition to learning about market area employers and how you might be able to help them, closely examine the labor pool of available workers. Do these two match up well?
Finally, consider what staffing opportunities already exist for employers and workers (in order to size up your competition).
Have You Developed a Strategy for Growth?
After you have an idea of the market area for your staffing franchise, consider your growth strategy after you launch.
Do you have...
- ...Community contacts?
- ...Networking opportunities to connect with local employers?
- ...A burning entrepreneurial desire to grow and cultivate a rewarding experience for yourself, your employees, and your clients?
If you answered "yes" to all of these questions, you'll find yourself in a very well-prepared position with your staffing franchise.
Community and business contacts are important so that you can begin building a client base to send them the most qualified individuals from your recruitment pool. For many employers, the hiring process is cumbersome, either due to regulations or a simple lack of time—they're busy running their own business.
Many employers may dread the idea of delving through online job sites, resumes, and conducting interviews. Your role is to send them the most qualified talent from your recruitment pool.
Often, the easiest way to build a business contact is to simply ask questions like:
- "What's the most difficult or frustrating problem you have when searching for a new employee?"
- "How much time do you or your HR department spend on hiring?"
- "What would it mean for your business if you could fill your open positions with an ideal candidate?"
Have You Developed Proactive and Passive Recruitment Strategies?
A proactive recruitment strategy involves actively seeking out new talent from the market area labor pool.
A passive recruitment strategy involves your ability to make your staffing franchise attractive to workers so that they come to you.
Most staffing franchise owners use both strategies. Ultimately, the goal here is to determine how you will convince employment candidates to work with your staffing agency.
Effective methods to use may include:
- Outreach campaigns to the local area, which may include community centers, colleges, or industry-specific organizations
- Attending local trade shows and conventions
- Attending job fairs in the market area (or hosting your own)
- Hosting other events such as seminars
Eventually, you'll find a methodology that ensures:
1.) A constant influx of high quality candidates for your clients, and
2.) A means to acquire new business contacts.
How to Learn More About Owning a Staffing Franchise
Staffing companies are unique in that they assist local companies grow and create opportunities for individuals looking for work within a community. If you'd like to learn more about owning your own staffing franchise, please feel welcomed and encouraged to contact us.