How to Make Money with Employment Agency: 12 Best Staffing Services

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Looking for how to make money with employment agency? You’re in the right place.

Looking for a job or finding the right staff can be challenging. Employment agencies ease this process by helping both job seekers and employers. They act as matchmakers and get paid for offering this service.

If that sounds interesting to you and want to make money with employment agency, I have compiled a list of different services that you can offer to earn from companies that need your services.

Here are the services that can help you make with employment agency:

1. Contingency

The contingency model is usually used for placing permanent salaried staff. This implies that you will not earn anything if there is no placement.

When you successfully hire a staff, you can charge a percentage of the annual basic salary of the role filled.

The fee in this case usually ranges between 15% and 30% of the annual basic salary of the role. This will be due when the placement passes a probationary period, usually 3 months.

SEE: How to Make Money Writing Resumes

2. Exclusive Search

The exclusive search eliminates the risk associated with the contingency model. This model makes the client make certain financial commitments, usually by paying an upfront fee, while the other fees are paid on shortlist delivery and successful hire.

3. Agreement Recruiting

In agreement recruiting, a company enlists a huge list of representatives that a company can choose from. In this case, you can be hired to join the organization.

You will work with the organization, under the direction of the organization. In most cases, you are paid depending on a specific hourly rate without placing much emphasis on the competitors sourced and enlisted for the organization.

This service is usually used in place of contingency searches. It is valuable if the company does not have much HR staff and can make a profit by having a professional onboard quickly.

4. Freelance or Contract Services

You can also make money with employment agency by working as a freelancer.

Under this type of service, the company will re-appropriate an entire capacity without being committed to a specific employment agency on a full-time basis.

In this case, the company would not like to deal with a specific zone of business and can find an employment agency that has certain capabilities in the area managed.

5. Recruitment Process Outsourcing (RPO)

In Recruitment Process Outsourcing, you will perform the entire process of selecting for a particular ability level. For instance, an organization may need a care staff and may choose in-house staff for administrative and center staff roles.

This allows the directors and HR of the organization to direct their focus on the company’s core business while also ensuring that the best hands are hired for all roles.

Recruitment process outsourcing applies the general principle of business process outsourcing. You will be in charge of searching, selecting, and hiring to replace the entire staff acquisition function.

Large organizations usually use this service. This strategic approach frees companies from the hassles associated with staffing and allows them to focus on growing their businesses.

SEE: Side Income Ideas for HR Consultants

6. Temporary Help

This is the service that comes to the mind of many people when they hear of employment agencies. With this form of service, you will enroll, screen, and hire workers to develop a huge pool of qualified representatives.

These representatives are then allocated to your customers for short durations and obligations. Most companies use temporary staff since it allows them to easily adapt and also have access to the employees’ abilities.

7. Temporary to Hire

This is another way through which you can make money with employment agency. In this case, the company you’re hiring for can evaluate the applicant before they enlist the person for a particular role.

The drawback of this type of staffing service is that the applicant may go ahead with his or her pursuit of employment and accept a permanent role even before you have concluded to hire the person.

8. Permanent Recruitment

Permanent recruitment is a staffing service whereby you hire full-time employees that are ready to work and grow with the organization for a long period.

The employee that you provide to the companies is given a payroll and can also be eligible for the benefits the company offers.

The benefits, which the companies provide based on law, including pension entitlements, tax relief, sick pay, and lots more.

9. On-Demand Recruiting

This form of recruitment service is a project-based approach where the company hires you at an hourly rate to hire internal teams or offer consultancy and support to the in-house recruiters while the company is growing.

Since smaller firms may not have internal recruiting firms, they can hire an external recruitment expert when the need arises. Here is where you come in.

While offering this service, your main goal (as an employment agency) should be to add capacity to an internal team and not to replace it (which is what RPO is designed to achieve).

10. Volume Recruitment

You can also work with larger organizations and get enlisted on their Preferred Supplier Lists. This enables companies to do away with cold calls from speculative recruiters and concentrate on working with a few reliable agencies.

It is not easy to be on a company’s Preferred Supplier Lists; it requires lots of effort. However, it is a rewarding task. You may need to discount standard agency rates to woo the companies.

The benefit of getting significant numbers of staff for each company can help you to make a huge income.

SEE: Practical Tips for Making Money without a College Degree

11. Recruitment-as-a-Service (RaaS)

Recruitment-as-a-service is a recent development that you can leverage to make money with employment agency. You can charge for this service every month.

The process involves bringing the Service Level Agreement approach that is found in IT to the recruitment field.

This transforms the process of hiring into a managed service. It eliminates the commission-based approach that hinders your ability to build solid relationships with customers.

When a company works with a RaaS agency, the company will have access to a large pool and search and selection services.

The monthly income that you earn from these companies provides stability and cash flow that will enable your agency to grow.

12. Job Boards

As an employment agency, you can create a job board to offer your staffing services. This platform will provide recruiters and employers opportunities to search for candidates. You can advertise jobs on these platforms by using Google’s PPC ads.

The ads will place your roles at the top of the results page thereby allowing job seekers to discover the jobs you’re hiring for easily.

You can easily adapt this technology if you want to offer one or a combination of the services discussed in this post.

What Do Employment Agencies Do?

Employment agencies recruit employees for companies that want to fill positions. They also help employers find appropriate jobs. The positions may be temporary in some cases and can also be part-time or full-time.

As an employment agency owner, you will allow employees that want to start working in a new industry to gather experience and test new roles before making any commitment.

Staffing agencies usually focus on a particular industry. Employment agencies work through the job opening to the hiring stage. The specific tasks that such agencies do include the following:

  • Employers will contact the employment agency.
  • Candidates apply for the roles advertised by the agency.
  • Once the employment agency finds the right candidates, they perform interviews.
  • The employment agency will manage the candidates’ contracts and also terminate them when necessary.

Marketing Strategies for Employment Agencies

Marketing for an employment agency is not an easy task. The top 5 employment agencies in the United States own more than 50 percent of the total recruitment market share.

This makes the competition fierce because more than 20,000 employment agencies are competing with each other.

In a nutshell, there is huge competition in the employment industry.

To stand out from the crowd, you need to have a consistent, well-designed marketing strategy and plan. Listed below are some marketing ideas that you can use to attract employers to your service:

  • Improve your social media presence.
  • Publish in local newspapers and publications in your industry.
  • Improve your site’s visibility in the search engine by working on your SEO practices.
  • Create and optimize your Google My Business profile.
  • Build your brand’s prominence and relevance on Google by using industry directories.
  • Create a blog and attract organic traffic through content marketing.

SEE: Proven Ways to Make Money with Online Marketing

How Much Do Employment Agencies Make?

Owners of employment agencies earn about $103,000 per year. The exact value that they make varies from agency to agency depending on different factors.


How do employment agencies make money?

Employment agencies earn by charging employers for the recruitment services they offer. As an employment agency, you can collect a portion of the temporary worker’s hourly wages.

For instance, if the worker earns $10 per hour, you can charge the business $14 per hour while the $4 difference will be your fee.

Are employment agencies profitable?

Employment agencies are profitable but they are not as profitable as other industries.

Recruiting agencies are service providers. According to a study carried out by NYU’s Stern School of Business, the business services industry has a Profit margin of 4.6 percent.

This makes them 4 times less profitable than most of the profitable industries in the United States.

Are employment agencies necessary?

Yes, employment agencies are necessary. Employment agencies work with employers. They have a better insight into what employers need. They may also know about positions that employers might have not heard of.

More so, employment agencies can help job seekers to be better candidates. They develop job seekers to suit the available roles since they earn when they hire.


This article has discussed the different services you can offer to make money with employment agency.

As discussed in the article, the employment industry is highly competitive. You need to spend time on your growth and profit strategy so that you won’t lag behind. As the competition becomes more intense, your priority should be to increase your agency’s profit.

Being an employment agency owner can be a lucrative career. But there is one factor to charging a lot and making lots of money. You need to know how to be a good recruiter. You must be adept at finding candidates and placing them in the appropriate roles.

Recruiting is not for everybody since it is a unique profession. It takes a lot of effort to conduct a great search for the right candidate. Unfortunately, some employment agencies burn out and throw in the towel even before they become great.

If you’re willing to confront the challenges that employment agencies encounter, you can go ahead and offer any of the services discussed in this article.

You can start by offering freelancing services. This is an easier way to offer your service and get noticed in the industry. As you gain more experience and have more satisfied clients, you can have your agency and offer other services that allow you to charge more.

Remember; promote the services your employment agency offers, and don’t let the initial challenges discourage you.

You can also use your skill to earn as an HR consultant. Check out this guide for more on how you can make money as an HR consultant.

Thanks for reading.