What 8 Staffing Agency Owners Wish They Knew Starting Out

The 8 Staffing Owners

Staffing agency ownership comes with great opportunity, but not without a learning curve and challenges.  

I asked 8 successful staffing agency owners across segments and geography to share their most valuable tips and lessons learned.  Here’s what they said! 

Check out this exclusive article to learn the secrets to their success and set your agency on the right track to growth and profitability. 

Don’t Get Fat, Dumb, and Happy

My name is Dot Peterson, and I am the owner of A Hire Power. In the 25-years I have been in business, my business has evolved quite a bit. I started as a Franchisee of a nationally known staffing agency providing temp and temp-to-hire services in the Administrative field. We added a little Light Industrial and a little Hospitality. Then we added Convention and Event staffing. A unique service niche’ and one in which I am particularly excellent. So good in fact that I let myself get fat, dumb, and happy with convention work and let my entire pipeline of temp and temp-to-hire in the other markets disappear. After all, what could go wrong? Fast forward to 2020. There was a little virus you might have heard of, and that little virus completely wiped out my business. By the end of March 2020, I had lost all my business through the end of May. Then by the end of May, I had lost all my business through the end of the year. I had to close my franchise. With the aid of the PPP and ERC, I was able to stay in staffing and start a new company. A Hire Power! While we are currently handling mostly convention and event staffing, I am working diligently to build the other side of my business; Temp and temp-to-hire in Office Clerical and Light Industrial. My lesson learned – Diversify. 

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Five Things I’d Tell My “New Owner Self”

“How in the world? What do I do? How did I decide to do this?”   These were just a few of the questions running through my head when I first realized I was the actual owner of a staffing business.  It was both exhilarating and overwhelming. Now, looking back, I often think about what advice I’d give to my rookie self, knowing what I know today. Here’s my top five:

Build Your Network Early

Don’t wait—connect with other staffing business owners as soon as possible. This industry moves fast, and staying informed about trends, challenges, and innovations is critical. A strong network can provide guidance, share solutions, and sometimes even become your safety net. Plus, there’s nothing like speaking with someone who truly understands your unique challenges.

Understand the Nuts and Bolts

Learn the operational side of your business. Even if you’re not the one sourcing candidates or navigating recruitment platforms daily, you need a solid understanding of what those tasks entail. Knowing the tools, processes, and workflows empowers you to make informed “tech stack” decisions and effectively support your team.

Reward What You Want to See

Key Performance Indicators (KPIs) are useful, but motivation thrives on recognition. Align your bonus and reward systems with the behaviors and outcomes you want to encourage. Whether it’s exceptional client service, innovative sourcing strategies, or meeting ambitious placement goals, incentivize actions that drive your company forward.

Embrace Mistakes as Learning Opportunities

Fear of failure stifles growth. Mistakes will happen—they’re inevitable. The key is to take risks, analyze what went wrong, and apply those lessons moving forward. I even keep a “best mistakes” list to remind myself of the incredible growth that came from those moments. Don’t let perfectionism hold you back!

Fasten Your Seatbelt

Staffing is an industry that moves at lightning speed. By the time you’ve analyzed one solution, the problem may have already evolved. Stay adaptable, anticipate change, and foster a culture that thrives on agility, and be ready to pivot quickly when necessary. This mindset will help you keep pace with the ever-shifting landscape of our industry.

Closing Thoughts:  Owning a staffing company is not for the faint of heart, but it is immensely rewarding. You’ll learn more than you ever imagined—not just about business, but about yourself.

So, to all new staffing company owners: take a deep breath, trust your instincts, and dive in. The journey is worth it.

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Peer Networks are Invaluable to a Staffing Owner

Networking is a fundamental piece of recruiting.  Word of mouth, referrals and talking to other hyper networked people can help any staffing business find more candidates and land more clients.  However, who do you network with when you have a challenge in your business that you just can’t figure out.  Peer Networks can be invaluable in a staffing business.  Just in the last 10 years staffing businesses had to launch the affordable care act, respond to changes in employment law and manage the PPP and ERC that came out of the pandemic.  If you had already built a peer network, you could put your heads together and figure out a solution.  Some of us even take that further and join an association like TempNet where your peers are protected by territories.  A protected territory organization like TempNet allows its members to talk at a strategic level about everything from marketing to sales and compensation.  A well-developed Peer Network pays dividends both today and well into the future. 

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Managing Cashflow with Flexible Funding Partners

I think it’s fair to say that every new business owner understands that cashflow management is crucial for small businesses, especially during their early years. One of the biggest lessons learned for me was not understanding the difference between payroll funding and invoice factoring. Based on the financial needs of your business I would encourage you to take the time to completely understand the pros and cons of each funding option before deciding.

Additionally, many businesses struggle with funding options that require 36-month commitments, leaving them locked in and no out clause. Partnering with a funding provider that offers month-to-month agreements offers the flexibility to adapt as business needs evolve.

A lot can change in the first few years of operation—sales may fluctuate, new opportunities may arise, and priorities may shift. With month-to-month agreements, businesses avoid costly penalties for early termination, allowing them to stay agile. Having this level of flexibility is key to maintaining healthy cashflow and setting the foundation for long-term success.

Flexible funding allows businesses to adjust payments, pause when necessary, or increase capital access during periods of growth. This adaptability reduces financial stress and ensures companies can respond quickly to market changes or unexpected challenges.

My struggle in the staffing space is that our clients don’t sign 3-year contracts, so why should our suppliers make us sign 3-year contracts?

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Don’t be Afraid to Delegate – It’s a Super-Power

I started working at Assured in January of 2018.  Prior to that, I had been a direct hire recruiter, solopreneur, and in various corporate roles.  At Assured Healthcare, I learned the business by scheduling, recruiting, and understanding the timekeeping system.  I was initially the Branch Manager, then became the Vice President in 2020, and bought the business in 2021.  

As my responsibilities grew, my available time lessened.  Motivating the team, updating systems and processes, and navigating the shifting sands of healthcare in the post-pandemic era proved to be a formidable challenge. Initially, I tried to keep all the balls in the air, but I realized I was a bottleneck. I believed that I was leading by example by always being ready to help, but in some cases, the underlying message was that I didn’t trust my team to do the work. I had to get better at delegating to build a better team and to be a better leader.

My skills as a delegator are evolving.  Here are a few things I’ve learned along the way:

• Ask my team if they can own the work and give them the full responsibility
• Check in and offer support to ensure it feels like delegation is not getting dumped on
• Create space for them to do it their way
• Debrief when things don’t go as expected and celebrate when they do
• Make sure each team member has an opportunity to step up – even the least experienced team members can lead the right projects.
• Hire fractional experts whenever possible.

Despite the challenges we have continued to grow, are more efficient, and are better able to work together.  

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Build your Agency by Empowering your Employees

Empowering employees has been essential to building our agency, as it fosters a sense of ownership, accountability, and motivation. Training plays a crucial role in this process, equipping recruiters with the knowledge, skills, and confidence to make key decisions independently.

At StaffNow, recruiters are empowered to make decisions on candidate selection, contract terms, and matching talent with client needs, as well as resolving client concerns in real-time. By providing clear guidelines, ongoing support, and professional development opportunities, our employees are more agile and proactive, leading to a more responsive and effective organization.

 Empowered employees feel trusted, which translates into better client relationships and overall business growth. 

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Andrea’s Secret Sauce: Building Success Through Innovation and Longevity

“When my parents, Jerry and Maria Novoa-Brenholz, founded ATR International in 1988, they laid the groundwork for a company that thrives on relationships and results. They taught me that trust, industry knowledge, and a commitment to doing right by people are the pillars of success. Today, I carry forward their legacy, blending those timeless principles with innovative strategies and cutting-edge technology to shape the future of staffing.”

The Role of Technology in Human-to-Human Connections

“At ATR, we’ve always been about relationships. But we also know that technology is a powerful enabler. Platforms like Pandologic allow us to target and attract the best talent quickly and efficiently, using AI-driven insights to enhance—not replace—our human touch.

Our internally built CRM is another critical piece of the puzzle. It’s tailored to our unique processes, giving us the flexibility to track interactions, strengthen connections, and ensure seamless collaboration across teams. These tools make our work smarter, faster, and more impactful. And we’re proud to use them to identify and place diverse and military talent, helping create opportunities for communities often overlooked.”

Advice for New Staffing Agency Owners

“If you’re just starting out, the tech landscape can be overwhelming. My advice? Start with the essentials. A great applicant tracking system (ATS)—like Bullhorn or JobDiva—is the backbone of any staffing agency. It helps you organize, manage, and scale your candidate database.

Once you have that foundation, consider tools that enhance your workflow:

• Pandologic for sourcing top talent using AI.
• Automated outreach platforms like TextRecruit to communicate quickly and effectively.
• Digital onboarding systems like Greenhouse Onboarding to provide a seamless experience for candidates.

And if you can, invest in a custom CRM that reflects your unique needs. For us, our internally built CRM has been a game-changer, helping us stay nimble and aligned with our goals.”

The Secret Sauce

“What truly sets ATR apart is our people-first approach, rooted in the values my parents instilled when they started this company. Technology is a tool, but relationships are the foundation. By blending cutting-edge innovation with our proven processes, we create meaningful opportunities that stand the test of time.

So, if you’re building your own agency, remember this: it’s not just about filling roles or adopting the latest tech. It’s about creating trust, focusing on long-term sustainability, and leaving a lasting impact—for your clients, your candidates, and the generations to come.”

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Employee Engagement Matters

“In today’s workforce, Millennials and Gen Z prioritize work that is meaningful and purposeful, transcending the monotony of the traditional 9-to-5. To attract and retain these individuals, implementing a comprehensive employee engagement strategy is essential.”

Our Leadership development program is designed to nurture and inspire the next generation of leaders within our organization.

We also facilitate employee engagement through our Recruiter training program, where new recruiters collaborate with seasoned peers to grasp key concepts and policies, ensuring they adapt and thrive in their new roles.

Fostering a sense of community within teams is equally important. We promote this in two ways, specifically. 

• Service projects encouraging volunteering and donation drives that allow employees to make a positive impact beyond their usual responsibilities.
•  “Better Together” days where employees from all our offices convene weekly at our corporate headquarters, enhancing collaboration and boosting both productivity and morale.

By implementing these strategies, we provide our team with greater job satisfaction and a deeper sense of fulfillment.

If you have any additional questions or would like to connect with any of these Staffing agency owners, write your comment