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3 Mar.
2023

Employment Agency Business Plan


Employment Agency Business Plan


All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger area, the proprietor realized the need for a personnel agency in the southern Willamette Valley to fill the gap left by other agencies that specialize in temporary and permanent placements. AAP matches clients with skilled workers, saving them time and money. It also provides honesty and integrity for its employees. This requires a high level of communication. This involves asking open-ended and thoughtful questions. It also means listening, not speaking. This requires a deep understanding of the local market, so AAP can better serve each client. AAP stands for quality service.

Long-term goals include the establishment of several offices in the southern Willamette Valley. The challenge is not in the growth of the business, but in training AAP staff to treat every client and employee with the exact same care and communication.

Managing your Growth

AAP is a sole-proprietorship that will eventually convert to an S Corporation. AAP will be considered a new entity in the business plan. All services were provided by the proprietor during the last few years. In Year 1, the company will have a parttime office staff person as well as an employment specialist. AAP will offer a manual of procedures for employees in-house to accommodate this growth. AAP will also provide training to employees in each division to ensure they fully understand the details of their daily work. Year 2 projections include a receptionist, another employment specialist, and a field representative. AAP will investigate the possibility of opening a branch office within the Salem, Bend or Medford/Ashland area in Year 3.

The Market

AAP works in the same way as other temporary and permanent placement agencies. It will only serve those who require specialized professionals and not clerical workers or light industrial workers. While there are many businesses that offer similar services to certain groups in Portland, Oregon, none of them provide the same service for the Willamette Valley. AAP has five divisions. They specialize in the following:

  • Computers
  • Editors/Writers
  • Event Planners
  • Graphic Artists
  • Interpreters/Translators.

Services

AAP will manage all aspects of the recruitment process, including skill evaluations, references, interviews, and screening for all clients. AAP acts as an extension for the client’s HR department. This ensures there is open communication with employees and their supervisors, and helps with any problems or solution.

Financials

The startup cost for the company is $55,464, which includes $7,600 from the owner. The remainder will be obtained by loans.

We expect to be able charge a 50% markup for our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. According to the company, it expects to be able generate sales of around $300,000. The company has no direct sales costs; instead, we track the payments to those who have been placed as regular payroll.

1.1 Objectives

AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Many Portland businesses offer similar services for specific groups. AAP was based on the above-mentioned model.

Temporary employees are employed by contract engineering firms who are both software and hardware engineers. An average of seven employees are hired per month and earn between $80- $100 an hour. The firm advertises in trade publications, newspapers, magazines and magazines and recruits through its website. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. Their employees are 60 per cent male, 40 per cent female, and age evenly.

AAP assists the client business by finding a professional worker, interviewing that worker and screening them, setting up interviews, and managing all paperwork. The company pays the client bimonthly.

AAP will also manage your professional, communicating with you regarding any personnel problems and staying in close touch with you.

The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo to any coverage selected from the group package.

1.2 Mission

All About People’s mission, is to provide skilled, professional, contingent workers to meet community needs. The company will provide workers with a safe and independent environment. The company will offer businesses high-quality staff available for work on projects or permanently. All About People takes the time to listen to each client and creates a customized personnel solution for them.