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How an Employer of Record Can Get Your Staffing Firm Ready for Business

Posted on March 23rd, 2020 Read time: 3 minutes

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Once you’re feeling good about your skills as a professional recruiter matching candidates and clients, you may be eager to learn how to start a staffing firm of your own. After all, you know the language, rhythm, and trends of the recruitment industry. It’s time to take that expertise and use it to build your own business.

Although starting a staffing firm carries risks, the rewards can outweigh the downsides. Besides, you have a secret weapon to help you handle all the human resources tasks without spending capital upfront on creating your own back-office staff: partnering with an employer of record (EOR).


Hone Your Focus by Leveraging Key Employer of Record Services

As a recruiter, you likely have amassed many connections and built a positive reputation. When you open your staffing firm doors, you want to build your business by focusing on what you do best. You should avoid getting mired in day-to-day operations management so you can source, interview, and negotiate. Don’t waste precious hours completing payroll tasks, procuring needed insurance, onboarding, and securing benefits. Even if you possess a high level of confidence in those areas, your talents are better spent generating sales.

Finding an EOR saves you from burning the midnight oil to establish all the elements needed when hiring workers, including general and professional liability insurance, healthcare options, workers’ compensation insurance documents, and more.

By removing time-consuming burdens from your list and placing them in the hands of a reliable employer of record, you can dedicate yourself to securing top talent. Plus, companies that don’t outsource these functions pay up to 18% more than ones who do, according PwC’s study, “The Hidden Reality of Payroll and HR Administration Costs.” That’s real money you can plow back into your business.


Starting Your Own Firm

Here are a few simple steps recruiters should take when starting a staffing firm.


Narrow your focus.

Rather than trying to do everything, you should concentrate on staffing for the needs of one or two specific industries. For example, some staffing or recruiting companies look solely for applicants in IT or engineering fields. Others prefer to find and place talented healthcare workers.

Which industries are most promising? All have their advantages. Just pick the one that dovetails with your knowledge and experience. That way, you can bring your connections along for the ride. Be sure to reach out to everyone you know on LinkedIn and request referrals. You’ll probably find your first clients through people who already know you and trust your recruiting abilities.


Share your vision.

Begin building a visible online presence by constructing a website that speaks to the talent and clients you want to help. Use strong, vibrant words and imagery to brand your staffing firm as different from the competition.

In addition to having a dedicated website, construct comprehensive LinkedIn, Facebook, and YouTube pages that you can populate with posts, links, and videos. On a weekly basis, share important articles and tidbits about staffing as well as the industries you work with.

Your own website and LinkedIn page should showcase your strategic vision and passion for staffing. Be sure the “why” behind your vision is crystal clear. Why should clients be confident working with you? Why are you focused on staffing? Why are you serving these industries? Your online presence should position you as a thought leader rather than just function as a direct sales tool.


Choose a back-office partner.

You’re focused, branded, and prepped for a true entrepreneurial adventure. Now all you need is the right employer of record. When on the lookout for the perfect fit, seek out a partner familiar with the industries you serve. For instance, if you staff engineering professionals, look for an EOR knee-deep in that vertical.

Make sure to complete your contract setup with your employer of record before you begin placing candidates. That way, you can support clients’ needs from their initial contracts. Your employer of record partner will be your best resource when setting up service agreements between all parties. Your new staffing firm can use the legal counsel of your EOR partner to be sure you have done your due diligence when setting up your service agreements.

Want to know more about how an EOR can help you as you start up your staffing firm? At Innovative Employee Solutions (IES), our team has the expertise you need to help you take care of every necessity before you sign your first client. Contact us with any questions you have, or learn more by downloading our report, “Devour the Competition with the Help of a Payroll Provider.”


Written by: Antonio Barraza, Business Development Representative

Antonio Barraza is a business development representative and contingent workforce expert at Innovative Employee Solutions (IES), a leading global Employer of Record in more than 150 countries that specializes in contingent workforce solutions such as outsourced payrolling, independent contractor compliance, and contractor management services. Founded in 1974, IES has grown into one of San Diego’s largest women-owned businesses and has been named one of the city’s “Best Places to Work” for 10 years in a row.

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