health staffing business plan

(951) 284-1500

• The 7 Step Business Plan for a Medical Staffing Agency

By Adam Day

• Uncategorized

April 22, 2021

A strong business plan can make or break a new startup. Therefore, if you’re looking to open a healthcare staffing agency, a solid business plan should be your first port of call.

Not only does it provide a clear road map for getting your business up and running, it’s also the first step in applying for a business loan. Furthermore, with so much to handle from financing to legal protection, the act of writing it all down with actionable steps can take a huge load off your mind and make that mountain ahead seem a lot easier to climb 

To help you in your journey, we’ve outlined below in seven easy steps how you can create a business plan for a medical staffing agency.

1. Outline Your Business Goals and Purpose

Start by writing out in clear terms what your business goals are for starting a healthcare staffing agency.

It should be concise and easy to understand. Furthemore, If you’re going to be applying for a business loan, this is your chance to lay out why you’ll need the funds and what your growth targets are. 

2. Decide on the Type of Business You’ll Be Running

Every staffing agency must decide on the type of ownership structure it will operate under. You have a few options, and each have their own pros and cons. Take some time to decide which one might work best for you depending on your personal and business goals. 

• Sole Proprietorship – This is where one person owns the entire business under their own name. Any debts or liabilities that the business takes on are the sole personal responsibility of the owner.
• Joint Partnership – When two or more people open a business together, they enter into a partnership. Depending on the arrangement, each owner may hold an equal or different share in the business. All debts and liabilities are still considered personal. 
• A Limited Liability Company – An LLC comes with significant tax benefits and can be opened under sole proprietorship or joint partnership. Another benefit to this arrangement is that it offers the legal protection of being a corporation. 
• A Corporation – Functions much the same as an LLC, with the important difference that it is owned by its shareholders, whereas an LLC is owned by one or more individuals. 

Whatever type of business you decide on, keeping track of employee time and attendance will make your life a whole lot easier. Learn more about our staffing agency software here . 

3. Ensure Liability Protection

As a nurse staffing agency, you’re in a rather unique position regarding legal protection. Your staff will be working in several different locations, some safer than others and you need to ensure that both they and you have proper protection.

Outline the type of liability insurance you’ll need and how it will protect your company from any damages caused. Since you’re operating in the medical industry, it’s advisable that you go with premium liability insurance. 

You’ll also need proper worker’s compensation in case one of your employees suffers an injury on the job. Your insurance program should cover both medical costs and rehabilitation. As an added bonus, it may also be worth getting short or long-term disability insurance on top of the base package. 

4. Investigate Funding Options

Whatever agency you operate within, when you first get started, you’ll likely be operating out of a spare room.

Furthermore, for the first few months, as you try to hire staff and find clients, your business will probably be in the red, financially speaking.

This is perfectly normal. That being said, eventually you’re going to have to find extra funding before your business can really take off. Employees will have to be paid before you even have clients and you’ll have advertising, recruiting, and operating costs to cover. 

To get yourself through these first early months, outline a plan for how you will fund your business venture. Some of it can come from your own personal savings, but in all likelihood, you’re going to need a business loan to cover the rest. Research what loan options are available and what the requirements are to be approved.

5. Make Revenue Projections

Key to the success of any business venture is an accurate revenue projection. This will be crucial when it comes time to apply for a business loan, so lay out your expected earnings for each month and yearly quarter for the first 2-3 years. It should be properly cited with market reports and financial statements to back up your projections. Be aggressive in your goals, but also realistic. Your loan officer will want to see clear evidence that you can cover your monthly loan payments and any other debts or liabilities you may have taken on.

This is also a good time to think about how you can achieve critical mass, the point at which you have enough staff and clients that your business becomes self-sustaining. When you first get started, you’ll be operating on a shoestring budget and largely dependent on whatever funding you could get.

Try to get a clear sense of how much you’ll need to grow before you can compete in the medical market effectively and remain competitive. Your point of critical mass will be an ever-changing target, so be aware that you’ll need to revise it over time. The revenue projections you make will have a direct impact on the balance between your medical staffing agency’s bill rate vs pay rate .

Revenue projections and medical staffing analysis is made easier by using our staffing agency software . Learn more here. 

6. Develop a Marketing Plan

This is where you will lay out your marketing plans and how you intend to achieve them. You’ll need to outline two marketing plans, one for attracting medical employees and another for clients.

For your medical employees, brainstorm a bunch of ideas for how you can draw talent. For instance, reach out to local schools that specialize in nursing and medical care. You could even try teaming up with a local faculty to encourage new graduates to join your agency. Other methods for finding staff include reaching out on social media or asking medical staff you already have on the books to reach out through their connections and pitch job offers.

As for clients, draw up a list of all the nearby hospitals, health clinics, and anywhere else that needs medical staff. These will be the targets for your marketing campaign, and you should have a clear idea for how you can attract their business.

If you have a unique selling proposition (USP), this is your chance to showcase it and explain how you will compete with other staffing agencies. You should also research any educational events in your area. Medical personnel are always in need of continuing education credits to maintain their professional licenses, and these events can be a great place to find both new recruits and new business clients.

7. Bring It All Together

Type out everything in a single document with each area categorized and properly indexed. It should be easy to present to lenders and provide a clear blueprint for how your business will operate and grow in the future. A basic business plan should include the following:

• An executive summary
• Company ownership structure and financing
• Market analysis and business plan
• Pricing model and marketing plan
• An appendix section listing supporting information

Bottom Line

There you have it! While there is no blueprint for how to open a healthcare staffing agency, if you follow these 7 steps your chance of success will drastically increase. 

Once you’re up and running, make sure you finalize your temp agency markup rates to ensure you’re profitable but don’t price yourself out of the market.

Furthermore, to offer unique value and attract the best medical professionals, invest in staffing agency software in order to streamline your time and attendance, payroll and HR.

Want to learn more about how Timerack can benefit your medical staffing agency? Book a personalized demo here . 

Recent Posts

• Your Complete Guide to CA Break Laws in 2024
• We’re Bringing Sexy Back to Middle-Office Integrations
• 4 Ways to Combat Buddy Punching
• Enter the Era of Timekeeping Innovation with the New Timerack Mobile App
• Overcoming Staffing Struggles in 2024: 7 Priorities for Employment Staffing Agencies

We assist with more than Time and Attendance challenge. Let's talk.

Request a personalized demo by filling out the form.

Looking for our logo?

Download a zipped file with our logo in EPS, AI, SVG, JPG, PNG and PDF formats.

Staffing Agency Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Staffing Agency Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Staffing Agency Plan Here

You’ve come to the right place to create your staffing agency business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies.

Below are links to each section of your staffing agency business plan template:

Next Section: Executive Summary >

Staffing Agency Business Plan FAQs

What is a staffing agency business plan.

A staffing agency business plan is a plan to start and/or grow your staffing agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your staffing agency business plan using our Staffing Agency Business Plan Template here .

What Are the Main Types of Staffing Agency Companies?

There are many types of staffing agency companies. Some staffing agencies will focus on a particular industry, such as clerical jobs. Other staffing agencies focus on executive job placement, while others will offer a wide range of services across all industries. Some even offer human resource functions, such as payroll, benefits administration and risk management.

What Are the Main Sources of Revenue and Expenses for a Staffing Agency Business?

The primary source of revenue for staffing agencies are the fees it charges clients to place them in a job and the revenue it receives from businesses that hire them to find and recruit suitable staff for their business.

The key expenses for a staffing agency business are the costs to market the business, as well as payroll for the support staff. Other expenses will be the rent, utilities, and overhead costs for the physical office space.

How Do You Get Funding for Your Staffing Agency Business Plan?

Staffing agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for an employment agency business plan and specialities like a healthcare staffing agency business plan.

What are the Steps To Start a Staffing Agency Business?

Starting a staffing agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Staffing Agency Business Plan - The first step in starting a business is to create a detailed staffing agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your staffing agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your staffing agency business is in compliance with local laws.

3. Register Your Staffing Agency Business - Once you have chosen a legal structure, the next step is to register your staffing agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your staffing agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Staffing Agency Equipment & Supplies - In order to start your staffing agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your staffing agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful staffing agency business:

• How to Start a Staffing Agency Business
• How to Open a Staffing Agency Business

Where Can I Get a Staffing Agency Business Plan PDF?

You can download our staffing agency business plan  PDF template here . This is a business plan template you can use in PDF format.

We earn commissions if you shop through the links below.  Read more

Nurse Staffing Agency

Back to All Business Ideas

How to Start a Nurse Staffing Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 11, 2022 Updated on March 13, 2024

Investment range

$3,550 - $10,100

Revenue potential

$80,000 - $400,000 p.a.

Time to build

1 – 3 months

Profit potential

$56,000 - $120,000 p.a.

Industry trend

Have you heard about the shortage of nurses in the US? It’s now reached record levels and become a full-blown crisis, as severely under-staffed hospitals continue to struggle with Covid hospitalizations. But you can be part of the solution by starting your own nursing agency and making a good living while providing reliable, much-needed nurses to area hospitals and clinics. The healthcare recruitment industry has nearly doubled in the last decade as a result of staff shortages, which means the opportunity is there. Whether you have a medical background or not, you could operate your agency from home for a small investment and start helping save lives. 

But before you start making calls, it’s crucial that you understand how to start a business. Fortunately, you can do all your homework by reading this step-by-step guide, which will put you on the road to running a successful nurse staffing agency. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a nurse staffing agency has pros and cons to consider before deciding if it’s right for you. 

• Rewarding – Help save lives and fix a serious social crisis
• Flexibility – No office necessary, work from home
• Good Money – Make a nice living on commission
• Time to Start – It will take time and work to build a reputation
• Crowded Market – Compete with large, established staffing agencies

Nurse staffing industry trends

Industry size and growth.

• Industry size and past growth – The US healthcare recruitment agency industry is worth $25.8 billion in 2022 after steady 4.4% growth the last five years. The industry has nearly doubled in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/healthcare-staff-recruitment-agencies-united-states/ )) 
• Growth forecast – The US healthcare recruitment agency industry is expected to grow more than 6% in 2022. 
• Number of businesses – In 2022, 3,182 healthcare recruitment agencies were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/healthcare-staff-recruitment-agencies-united-states/ ))
• Number of people employed – In 2022, the US healthcare recruitment agency industry employs 347,403 people.(( https://www.ibisworld.com/united-states/market-research-reports/healthcare-staff-recruitment-agencies-industry/ )) 

Trends and challenges

Trends in the nurse staffing agency industry include:

• Most healthcare staffing agencies have begun technology and automation to improve process efficiencies, such as database mining to find nursing candidates, which is obviously faster than a manual process. 
• Pre-credentialing is an increasingly common practice that aims to quickly narrow down fields of candidates and speed up the recruiting process.

Challenges in the nurse staffing agency industry include:

• Driven by the pandemic, nurse burnout is causing many nurses to seek other professions , making nurse shortages even larger.
• The rising cost of skilled nurses may drive some healthcare facilities to move away from staffing agencies to eliminate the extra cost. They will instead go back to handling the recruiting process internally, which is likely to take longer and result in inferior health care.

Demand hotspots

• Most popular states – The most popular states for nurse recruiters are Washington, California, and Pennsylvania.(( https://www.zippia.com/nurse-recruiter-jobs/best-states/ ))
• Least popular states – The least popular states for nurse recruiters are Ohio, Mississippi, and Kentucky. 

What kind of people work in nurse staffing agencies?

• Gender – 73.7% of nurse recruiters are female, while 22.1% are male.(( https://www.zippia.com/nurse-recruiter-jobs/demographics/ ))
• Average level of education – The average nurse recruiter has a bachelor’s degree.
• Average age – The average nurse recruiter in the US is 41 years old.

How much does it cost to start a nurse staffing agency business?

Startup costs for a nurse staffing agency range from $3,500 to $10,000. Costs include a website, software, and nurse and healthcare facility databases. 

How much can you earn from a nurse staffing agency business?

Generally, the nurse staffing agency fee is 25% of the nurse’s first-year salary. Your profit margin when you’re working at home should be about 70%.

In your first year or two, you could work from home and place 8 nurses in a year, each with a $40,000 contract, you’ll be bringing in $80,000 in annual revenue. This would mean $56,000 in profit, assuming that 70% margin. As you increase your networking and contacts, you could do 40 placements a year. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to 30%. With annual revenue of $400,000, you’d make an impressive profit of $120,000.

What barriers to entry are there?

There are a few barriers to entry for a nurse staffing agency. Your biggest challenges will be:

• The networking and sales skills necessary to get contracts
• The competition from established agencies

Related Business Ideas

How to Start a Home Health Care Business

How to Start a Home Health Agency

How to Start a Medical Courier Business

Step 2: hone your idea.

Now that you know what’s involved in starting a nurse staffing agency, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research nurse staffing agencies in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a travel nurse staffing agency, an agency that recruits certified nursing assistants, or a temporary nursing agency. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as travel nursing or home nursing.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your services will be very straightforward. You’ll connect nursing candidates with health care facilities. You can specialize in certain types of nursing or work with all types. 

How much should you charge for nurse staffing agency services?

Generally, the fee is 25% of the nurse’s first-year salary. Your profit margin when working by yourself should be about 70%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be nurses, hospitals and clinics, and healthcare organizations. You can find all of these on LinkedIn, and you can also find many nursing groups to connect with on Facebook. It’s also a good idea to buy access to the leading nurse and healthcare facility databases and reach out to those in your area. NurseRecuiter is a good place to start.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Staffing Agency Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “nurse staffing” or “healthcare staffing”, boosts SEO
• Name should allow for expansion, for ex: “Synergy Staffing Solutions” over “TechTalent Solutions”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Nurse Staffing Agency Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary of the nurse staffing agency business plan, highlighting its key points and objectives.
• Business Overview: A concise description of the nurse staffing agency, including its mission, vision, and core values.
• Product and Services: An outline of the specific services the agency will provide, such as nurse placement, staffing solutions, and related offerings.
• Market Analysis: An examination of the healthcare industry and the demand for nurse staffing services, including market trends and potential growth.
• Competitive Analysis: An assessment of the agency’s competitors in the nurse staffing market, highlighting their strengths and weaknesses.
• Sales and Marketing: A plan for promoting the agency’s services and acquiring clients, including sales strategies and marketing channels.
• Management Team: An introduction to the key individuals leading the agency, their qualifications, and their roles.
• Operations Plan: Details on how the agency will operate, including staffing procedures, technology systems, and day-to-day activities.
• Financial Plan: Projections of the agency’s financial performance, including income statements, cash flow, and balance sheets.
• Appendix: Supplementary materials, such as resumes, legal documents, and any additional information supporting the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to nurse staffing agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your nurse staffing agency will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a  tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a nurse staffing agency business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Nurse Staffing Agency Licenses and Permits

Starting a nurse staffing agency business requires obtaining a number of licenses and permits from local, state, and federal governments. Some states require nurse staffing agencies to have a medical agency license. Check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your nurse staffing agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as ABILITY , Bullhorn , Akken , to manage candidate information, job openings, billings, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Launching a nurse staffing agency requires strategic marketing to stand out in a competitive healthcare staffing landscape. In addition to creating a website and networking, here are practical marketing strategies to boost your agency’s success:

• Targeted Social Media Advertising: Leverage platforms like LinkedIn and Facebook to run targeted ads that specifically reach healthcare professionals, emphasizing the benefits of working with your agency, such as flexible schedules, competitive pay, and career advancement opportunities.
• Referral Programs: Implement a robust referral program for both nurses and clients, offering incentives for successful placements or bringing in new business. Word-of-mouth recommendations carry significant weight in the healthcare industry.
• Specialized Training Partnerships: Establish partnerships with nursing schools and offer specialized training programs. This not only helps you tap into a fresh pool of talent but also positions your agency as a supporter of ongoing professional development.
• Quality Content Marketing: Develop a content strategy that showcases your agency’s expertise in the healthcare staffing industry. Regularly publish blog posts, whitepapers, or case studies that address industry trends, challenges, and solutions, positioning your agency as a thought leader.
• Community Engagement and Sponsorships: Actively participate in local healthcare events, conferences, and community outreach programs. Sponsorship of relevant events can enhance your agency’s visibility while demonstrating a commitment to the local healthcare community.
• Utilize Online Reviews and Testimonials: Encourage satisfied clients and nurses to leave positive reviews on platforms like Google, Yelp, or industry-specific websites. Positive testimonials build trust and credibility, influencing potential clients and candidates.
• Data-Driven Decision Making: Utilize data analytics to identify trends in the healthcare staffing market. This information can guide your marketing efforts, ensuring you target the right demographics and provide the services in highest demand.
• Mobile-Friendly Campaigns: Optimize your marketing materials for mobile devices, as healthcare professionals often use smartphones and tablets. Ensure that your emails, website, and other content are easily accessible and navigable on mobile platforms.
• Strategic Alliances with Healthcare Facilities: Establish partnerships with healthcare facilities, hospitals, and clinics. Collaborate on solutions to their staffing needs, creating a win-win situation and solidifying your agency as a reliable staffing partner.
• Participate in Industry Associations: Join and actively participate in nursing and healthcare staffing associations. Networking within these communities can lead to valuable connections, insights, and partnerships that can propel your agency forward.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your nurse staffing agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your nurse staffing agency business could be: 

• Skilled nurses for your home healthcare agency
• Reliable travel nurses for short or long-term contracts
• Temporary registered nurses to meet your staffing shortages

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a nurse staffing agency business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in nursing for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in nurse staffing. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a nurse staffing agency business include:

• Recruiters – recruit nurses for open positions
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Nurse Staffing Agency – Start Making Money!

Nurse staffing agencies can help solve a major social problem, and you can be a part of that solution, and make good money, by starting your own nurse staffing agency. You could get started for a small investment and run the business from home while gaining a real sense of fulfillment from your important work. What could be better than that? 

Now that you understand the business aspects, it’s time to pound the pavement and get your successful nurse staffing agency off the ground!

• Nurse Staffing Agency Business FAQs

A nurse staffing agency can be very profitable. However, your real reward will come from knowing that you’re helping to solve the nurse shortage crisis that the U.S. is experiencing.

Generally, nurse staffing agencies get a fee of about 25% of the job contract that is signed for the nurse. The employer pays the fees.

Effective marketing strategies for a nurse staffing agency include building strong relationships with healthcare facilities, establishing an online presence and utilizing digital marketing, implementing referral programs, targeted advertising, and showcasing thought leadership through content marketing.

To expand a nurse staffing agency and reach more clients and markets, conduct market research to identify new areas of demand, develop strategic partnerships with relevant organizations, offer specialized services, expand recruitment efforts, and actively participate in trade shows and industry events.

To differentiate a nurse staffing agency from competitors, focus on providing exceptional customer service, offer customized staffing solutions, emphasize the quality and qualifications of your nursing staff, highlight unique value propositions such as technology integration or specialized training programs, and gather and showcase positive client testimonials.

A nurse staffing agency’s success is determined by factors such as building strong relationships with healthcare facilities and candidates, maintaining a reliable and qualified pool of nurses, effectively marketing services, providing excellent customer service, adapting to industry changes, having efficient operations and systems, and continuously striving for excellence in fulfilling client staffing needs.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Staffing Agency Name
• Create a Nurse Staffing Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Nurse Staffing Agency Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Nurse Staffing Agency - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

17 Best Healthcare Business Ideas

Carolyn Young

Published on November 4, 2022

The healthcare industry is booming and expected to continue growing as more Americans age and require healthcare services. The emergence of morecoro ...

15 Business Ideas For Empaths

Esther Strauss

Are you able to intuit other people’s feelings? If so, you’re probably an empath and there’s a good chance you’ll find success as anentrepre ...

21 Agency Business Ideas

David Lepeska

Published on August 11, 2022

Dreaming of running your own agency? There are a lot of possibilities out there, from travel to advertising and marketing, to recruiting, SEOconsult ...

No thanks, I don't want to stay up to date on industry trends and news.

A Beginner's Guide to Starting a Healthcare Staffing Agency

AI software built for Recruiters

Try out our candidate sourcing and recruitment CRM powered by artificial intelligence.

Download our free Recruitment Signals report!

Healthcare staffing agencies serve as a critical link between healthcare facilities and healthcare professionals. These agencies address the growing demand for healthcare professionals, which has increased due to population growth, advancements in healthcare tech and legislature. Starting a healthcare staffing agency can be a profitable and meaningful business endeavor for anyone with interest in healthcare and entrepreneurship.

Why Start a Healthcare Staffing Agency?

The healthcare staffing industry is booming, and it is expected to continue to grow in the coming years. The demand for healthcare professionals is high, and hospitals, nursing homes, and other healthcare facilities continually struggle to recruit and retain qualified professionals.

The healthcare sector is currently employing about 22 million professionals . And that's just the start. An aging population around the globe and continuous health issues are one of the main factors that will boost healthcare employment to 13% by 2031. This means around 2 million jobs in the healthcare sector need to be filled per year.

Healthcare staffing agencies come in and solve this issue by providing a pool of qualified healthcare professionals to healthcare facilities. Starting a healthcare staffing agency offers a lucrative business opportunity and a chance to make a positive impact on the healthcare industry.

Moreover, healthcare staffing agencies also provide flexibility for healthcare professionals who may prefer temporary or contract work rather than a full-time position. This allows healthcare professionals to have more control over their work schedules and work-life balance. Additionally, healthcare staffing agencies can offer training and professional development opportunities for their staff, which can lead to increased job satisfaction and retention rates.

Overall, starting a healthcare staffing agency not only benefits healthcare facilities but also provides a valuable service to healthcare professionals and can contribute to the overall improvement of the healthcare industry.

YOU MIGHT LIKE: 8 Steps for Starting Your Recruitment Agency

Understanding the Healthcare Staffing Industry

To start a healthcare staffing agency, it is essential to understand the healthcare staffing industry. Healthcare staffing agencies specialize in recruiting, screening, and placing healthcare professionals in temporary and permanent staffing positions. Healthcare staffing agencies work with a variety of healthcare professionals, such as registered nurses, licensed practical nurses, medical assistants, and nurse practitioners.

One of the biggest challenges in the healthcare staffing industry is the shortage of qualified healthcare professionals. This shortage has led to increased competition among healthcare staffing agencies to attract and retain top talent. To overcome this challenge, healthcare staffing agencies need to offer competitive compensation packages, flexible work schedules, and opportunities for career advancement.

Another important aspect of the healthcare staffing industry is compliance with state and federal regulations. Healthcare staffing agencies must comply with regulations related to background checks, drug testing, and licensing requirements for healthcare professionals. Failure to comply with these regulations can result in legal and financial consequences for the staffing agency.

Identifying Your Niche in the Healthcare Staffing Market

Identifying a niche is crucial when starting a healthcare staffing agency. A niche market allows you to focus your resources and attention on a specific demographic, such as a specific geographic location, specialty, or type of healthcare professional.

By identifying your niche, you can tailor your services and marketing efforts to meet specific needs, which can set you apart from other healthcare staffing agencies.

One way to identify your niche is to conduct market research and analyze the demand for healthcare staffing services in your area. This can help you determine which specialties or types of healthcare professionals are in high demand and where there may be gaps in the market that you can fill.

Another important factor to consider when identifying your niche is your own expertise and experience. If you have a background in a specific area of healthcare, such as nursing or physical therapy, you may be able to leverage that expertise to specialize in staffing for that particular field.

POPULAR: How Recruitment Software Can Help to Fill Jobs Faster in Healthcare

Developing a Business Plan for Your Healthcare Staffing Agency

Developing a business plan is an essential part of starting a healthcare staffing agency. A business plan outlines your company's goals, target market, marketing strategies, financial projections, and other vital areas of your business. A well-developed business plan is crucial to secure financing and attracting investors.

One important aspect to consider when developing a business plan for your healthcare staffing agency is the competition in the market. Researching your competitors and understanding their strong and weak points can help you identify opportunities for differentiation and growth. Additionally, it is important to consider the regulatory requirements and licensing procedures for healthcare staffing agencies in your state or region.

Another key component of a business plan for a healthcare staffing agency is the recruitment and retention of qualified healthcare professionals. Developing a comprehensive recruitment strategy, including job postings, networking, and referral programs, can help you attract top talent. Additionally, implementing retention strategies, such as competitive compensation and benefits packages, can help you retain your staff and reduce turnover rates.

Choosing a Legal Structure and Registering Your Business

When starting a healthcare staffing agency, you need to choose a legal structure and register your business with the state. Common structures include sole proprietorship, partnership, or corporation . Consider tax implications and liability protection when choosing a structure. You may need licenses and permits depending on the services you offer and the state you operate in. Research and comply with legal requirements to avoid penalties or issues.

LEARN MORE: What is staffing agency?

Creating a Brand Identity for Your Healthcare Staffing Agency

Creating a brand identity is a key component of marketing your healthcare staffing agency. A brand identity includes:

• Your company's name
• Marketing materials

A strong brand identity can help establish credibility and attract potential clients and healthcare professionals.

When creating a brand identity for your healthcare staffing agency, it's important to consider your target audience. Are you primarily targeting hospitals, clinics, or private practices? Understanding your audience can help you tailor your brand identity to better appeal to them. Additionally, consistency is key when it comes to branding. Make sure your logo, website, and other marketing materials all have a cohesive look and feel to help establish a strong brand presence.

Building Your Team: Hiring Employees vs. Contractors

Building a team for your healthcare staffing agency involves deciding whether to hire employees or contractors. Hiring employees can be more expensive but offers more control over your staff. Hiring contractors can be a more cost-effective option but allows fewer opportunities for staffing control.

It's important to consider the legal and tax implications of hiring employees versus contractors. When you hire employees, you are responsible for withholding and paying their taxes, providing benefits, and complying with labor laws. On the other hand, contractors are responsible for their own taxes and benefits, and you are not required to comply with labor laws for them. However, misclassifying employees as contractors can result in legal and financial consequences. It's important to consult with a legal or tax professional to ensure you are making the right decision for your healthcare staffing agency.

PODCAST: EP31: Thoughtworks - Why Recruiting Is a Sales Role (and More) (with Reece Fallon)

Finding and Building Relationships with Clients

Building relationships with clients is crucial to the success of your healthcare staffing agency. Healthcare facilities rely on staffing agencies to provide qualified professionals promptly. Building strong relationships with client facilities requires excellent communication, responsiveness, and service quality.

One effective way to find new clients is through networking and attending industry events . This allows you to meet potential clients face-to-face and showcase your agency's services. Additionally, offering incentives or discounts to clients who refer new business to your agency can also help to build strong relationships and increase your client base.

Finding and Recruiting Qualified Healthcare Professionals

Finding and recruiting qualified healthcare professionals is the primary function of healthcare staffing agencies. Healthcare staffing agencies use various recruitment strategies, such as job postings, referrals, and social media advertising. The recruitment process typically involves screening, interviewing, and verifying candidates' credentials and background checks.

One of the biggest challenges in healthcare staffing is finding candidates with the right combination of skills and experience. Healthcare staffing agencies often work closely with healthcare facilities to understand their specific needs and requirements. This allows them to identify candidates who not only have the necessary qualifications but also possess the right personality traits and work ethic to succeed in the healthcare industry.

Managing Employee Payroll and Benefits

Managing employee payroll and benefits is essential when starting a healthcare staffing agency. Healthcare staffing agencies are responsible for paying their employees and providing benefits such as health insurance, sick leave, and paid time off. Accurate record-keeping is necessary when managing employee payroll and benefits.

It is important to stay up-to-date with the latest laws and regulations regarding employee payroll and benefits. This includes understanding minimum wage requirements, overtime laws, and tax regulations. Healthcare staffing agencies must also ensure that they are providing fair and competitive compensation packages to attract and retain top talent in the industry. By prioritizing employee payroll and benefits management, healthcare staffing agencies can create a positive work environment and maintain a strong team of healthcare professionals.

Advertising and Marketing Your Healthcare Staffing Agency

Advertising and marketing are critical components of starting a healthcare staffing agency. Effective marketing strategies for healthcare staffing agencies include online marketing, networking, print advertisements, SMS marketing and direct mail. Building word-of-mouth referrals is another effective marketing strategy.

One important aspect of advertising and marketing your healthcare staffing agency is to establish a strong online presence. This can be achieved by creating a website that showcases your agency's services, expertise, and testimonials from satisfied clients. Additionally, utilizing social media platforms such as LinkedIn, Twitter, and Facebook can help you reach a wider audience and connect with potential clients and candidates. It is also important to regularly update your online presence with relevant and engaging content to keep your audience interested and informed.

Measuring Success: Key Performance Indicators for Your Healthcare Staffing Agency

Measuring success is essential when starting a healthcare staffing agency. Key performance indicators (KPIs) provide measurable data on your company's performance. KPIs for healthcare staffing agencies include employee retention rates, client satisfaction, financial performance, and the number of successful staffing placements.

Another important KPI for healthcare staffing agencies is the time it takes to fill a staffing request . This metric measures the efficiency of your agency in responding to client needs. A shorter time to fill a request indicates that your agency is able to quickly provide qualified staff to healthcare facilities, which can lead to increased client satisfaction and repeat business.

Metrics to Track for Employee Training and Development:

• Number of training hours provided to employees
• Percentage of employees who have completed required training
• Number of employees who have received promotions or advanced to higher positions within the company

These metrics can help you assess the effectiveness of your training programs and measure your success as a staffing agency.

Common Challenges When Starting a Healthcare Staffing Agency and How to Overcome Them

Starting a healthcare staffing agency has its challenges. Common challenges include competition, staff turnover, and managing financial resources. Remaining flexible and developing contingency plans can help you overcome these challenges.

Another challenge that healthcare staffing agencies face is maintaining compliance with state and federal regulations. These regulations can be complex and constantly changing, making it difficult to stay up-to-date. It is important to have a dedicated compliance team or partner to ensure that your agency is following all necessary regulations and avoiding any legal issues. Additionally, investing in training and education for your staff on compliance can help prevent any mistakes or oversights.

Overcome Challenges in Starting Healthcare Staffing Agency with ATS

There are many ways to overcome challenges when it comes to starting a healthcare staffing agency. One way that would keep you ahead of the game while ensuring that you end up with a better result each campaign is equipping yourself with a tool. A tool designed for recruitment, in particular, like Applicant Tracking System (ATS), can help you get the right start with many innovative features. How? Let us give you an example.

An ATS like Manatal comes with the ability to automate daunting tasks like applicant screening or resume parsing, making the hiring process run faster and more seamlessly. Within one click, you can push out your job advertisements and reach prospective candidates across over 2500 channels, including Indeed, LinkedIn, Monster, CareerJet, JobStreet, and many more.

Once you've set up your talent pool, Manatal's Candidate Enrichment feature grants you the capability to know candidates beyond their CVs. The feature browses the web and extracts candidates' information from their available online profiles into a single database. You'll be able to make more informed decisions when it comes to crafting a strong shortlist.

Also, for a recruitment agency, reinforcing and maintaining good relationships with hiring managers throughout the process is as critical as connecting with candidates. And Manatal has a specific tool that can help you with this. With its Recruitment CRM (Customer Relationship Management), you'll be able to smoothly track and manage the sales funnel from end to end in a single platform.

Moreover, Manatal's Activities & Collaboration allows you to keep the hiring manager up-to-date throughout the hiring process. You can provide access to hiring managers to come in and see candidates' information, as well as leave notes on a certain individual that they'd like to engage further. At the same time, you can easily manage the schedule, ensure no overlap appointments, and offer the smoothest experience to both candidates and hiring managers.

LEARN MORE: What does Manatal’s Recruitment CRM offer?

Opportunities for Growth and Expansion in the Healthcare Staffing Industry

The healthcare staffing industry offers ample opportunities for growth and expansion. Growth opportunities include expanding your service offerings, entering new markets, and acquiring or merging with other healthcare staffing agencies. Continual market analysis and identifying new trends and opportunities can help drive growth and expansion.

Starting a healthcare staffing agency requires careful planning, a deep understanding of the healthcare staffing industry, and a commitment to providing exceptional service. By following these guidelines, you can establish a successful healthcare staffing agency that will make a difference in the healthcare industry.

Start a 14-day free trial with Manatal today, discover its innovative features, and see how its cloud-based recruitment solution can help you get the right start at running a healthcare staffing agency.

Sourcing candidates shouldn't be hard.

Explore how manatal can fit your business, get started with manatal, transform the way you recruit today..

Bill Twinning

Ahmed Firdaus

Dina Demajo

Maxime Ferreira

Ngoc-Thinh Tran

Kevin martin, try manatal for free during 14-day with no commitment..

Crafting a Sample Healthcare Staffing Agency Business Plan

Understanding the Healthcare Staffing Industry

Conducting market research for your business plan, defining your agency's mission and vision, identifying target customers and tailoring services to meet their needs, developing a marketing strategy to promote your agency, creating a financial plan and setting realistic goals, determining staffing needs and recruitment strategies.

• Developing a Training Program for Your Staff

Establishing Quality Control Measures to Ensure Client Satisfaction

Managing legal and regulatory requirements for healthcare staffing agencies, evaluating risks and implementing risk management strategies, measuring success and tracking key performance indicators (kpis).

Starting a healthcare staffing agency is a challenging but rewarding endeavor, and requires careful planning and preparation to be successful. In this article, we will discuss the key considerations and steps involved in crafting a sample healthcare staffing agency business plan.

Before you start developing your business plan, it's important to have a solid understanding of the healthcare staffing industry. This includes understanding the current demand for healthcare workers, the types of positions that are in high demand, and the trends in the industry.

It's also important to understand the competition in the healthcare staffing industry, including the key players, their strengths and weaknesses, and any potential gaps in the market that your agency may be able to fill. This will help you determine your agency's unique value proposition and positioning in the market.

Another important aspect to consider when understanding the healthcare staffing industry is the regulatory environment. Healthcare staffing agencies must comply with various federal and state regulations, such as licensing requirements, background checks, and healthcare industry standards. It's crucial to have a thorough understanding of these regulations to ensure your agency operates legally and ethically.

In order to develop a successful business plan, you need to conduct thorough market research. This includes analyzing industry trends and demand for healthcare workers, identifying your target customers and their needs, and analyzing your competition.

You should also conduct a SWOT analysis to identify your agency's strengths, weaknesses, opportunities, and threats. This will help you develop a plan that capitalizes on your strengths while addressing your weaknesses and mitigating potential risks.

Another important aspect of market research is understanding the regulatory environment in which your agency will operate. This includes understanding the licensing and certification requirements for healthcare workers, as well as any relevant state and federal regulations that may impact your business operations.

Your agency's mission and vision provide the guiding principles for your business. Your mission statement should define your agency's purpose and core values, while your vision statement should describe your agency's long-term goals and aspirations.

Having a clearly defined mission and vision will help you stay focused on your objectives and make strategic decisions that align with your goals.

It is important to regularly review and update your agency's mission and vision to ensure they remain relevant and aligned with your business goals. As your agency grows and evolves, your mission and vision may need to be adjusted to reflect changes in the industry or shifts in your target market. By regularly revisiting and refining your mission and vision, you can ensure that your agency stays on track and continues to thrive.

To be successful, your agency needs to understand the needs of its target customers and develop services that meet those needs. This requires careful research and analysis of the healthcare industry and your target customers.

You should also consider your agency's unique value proposition and how it can differentiate itself from the competition. This could include offering specialized services or focusing on a particular niche within the healthcare industry.

Once you have identified your target customers and developed services that meet their needs, it is important to continually evaluate and adapt your offerings. The healthcare industry is constantly evolving, and your agency must stay up-to-date with the latest trends and technologies to remain competitive.

Once you have identified your target customers and developed your agency's unique value proposition, you need to develop a marketing strategy to promote your services and attract clients.

This can include developing a brand identity, creating a website and social media presence, networking with potential clients and referral sources, and developing marketing materials such as brochures and flyers.

It is important to regularly evaluate the effectiveness of your marketing strategy and make adjustments as needed. This can involve tracking website traffic and social media engagement, monitoring the success of networking efforts, and soliciting feedback from clients and referral sources.

A financial plan is essential to the success of any business, and is particularly important when starting a healthcare staffing agency. This includes developing a comprehensive budget, projecting revenue and expenses, and setting realistic goals for growth and profitability.

You should also consider financing options for your agency, including loans, grants, and investment capital.

It is important to regularly review and adjust your financial plan as your business grows and changes. This can include reevaluating your budget, revising revenue and expense projections, and adjusting your goals to reflect new opportunities or challenges. By regularly monitoring and updating your financial plan, you can ensure that your healthcare staffing agency remains on track for long-term success.

As a healthcare staffing agency, your success will depend on your ability to recruit and retain qualified healthcare professionals. This requires careful planning and strategy, including developing job descriptions, identifying qualifications and skills required for each position, and developing recruitment strategies that attract top talent.

You should also develop systems for onboarding and training new hires, as well as performance evaluation and retention strategies.

One effective recruitment strategy is to establish partnerships with nursing schools and other healthcare training programs. This allows you to build relationships with students and faculty, and to identify top performers who may be interested in working with your agency after graduation. Additionally, offering internships or other opportunities for students to gain experience with your agency can help to build a pipeline of qualified candidates for future staffing needs.

To be successful in the healthcare staffing industry, your agency needs to prioritize quality control measures that ensure client satisfaction. This includes developing systems for screening and evaluating candidates, verifying credentials and references, and conducting periodic performance evaluations.

You should also establish clear communication channels with your clients, and respond quickly and effectively to any concerns or complaints.

Another important aspect of quality control measures is to regularly gather feedback from clients and use it to improve your services. This can be done through surveys, focus groups, or one-on-one meetings. By actively seeking out and addressing client feedback, you can demonstrate your commitment to providing high-quality staffing solutions and build long-term relationships with your clients.

Starting a healthcare staffing agency involves complying with a variety of legal and regulatory requirements, including licensing, insurance, and compliance with state and federal labor laws.

You should do your research and work with legal and accounting professionals to ensure that your agency is fully compliant with all applicable laws and regulations.

Starting any business involves inherent risks, and healthcare staffing agencies are no exception. It's important to evaluate potential risks and develop strategies for mitigating those risks.

This could include developing contingency plans for unexpected events such as staff shortages or client cancellations, and having proper insurance coverage to protect your agency and its clients.

Finally, it's important to regularly measure and track your agency's performance against key performance indicators (KPIs) such as revenue growth, client satisfaction, and employee retention.

By regularly evaluating your agency's performance and making adjustments as needed, you can ensure that your agency stays on track and continues to thrive in the competitive healthcare staffing industry.

In conclusion, starting a healthcare staffing agency requires careful planning and preparation. By following these key steps and developing a comprehensive business plan, you can increase your chances of success and build a thriving healthcare staffing agency.

Related Articles

Creating a Professional Staffing Website with a Template

• Why Use a Template to Create Your Staffing Website
• Choosing the Right Template for Your Staffing Website
• Customizing Your Template to Match Your Brand Identity

Finding the Right Graphic Design Staffing Agency for Your Business

• Why You Need a Graphic Design Staffing Agency
• Understanding the Benefits of Outsourcing Your Graphic Design Needs
• Evaluating Your Business's Graphic Design...

513-860-0600

A comprehensive guide to starting your own healthcare staffing business.

• August 19, 2023

The demand for qualified professionals in the healthcare industry has never been more critical, particularly in the wake of the COVID-19 pandemic. As healthcare organizations face unprecedented challenges and staffing needs continue to evolve, launching your own healthcare staffing business presents a remarkable opportunity to address this demand and make a positive impact. 

In this comprehensive guide, we will explore the step-by-step process of starting your own healthcare staffing agency, equipping you with the knowledge and insights needed to navigate this rapidly changing landscape. From understanding the industry dynamics to developing a strategic business plan, and from building relationships with healthcare facilities to sourcing and screening top-tier professionals, we will guide you through the essential steps required to successfully launch and grow your healthcare staffing agency. So, let’s get started together and understand how to build a thriving healthcare staffing business in the midst of evolving healthcare needs.

Understanding the Healthcare Staffing Industry

The staffing industry plays a critical role in connecting healthcare professionals with facilities in need of their expertise. As a healthcare staffing agency, your primary objective is to bridge the gap between talent and demand, ensuring that healthcare institutions have access to qualified professionals to deliver optimal patient care.

Before diving into the world of healthcare staffing, it’s essential to conduct a comprehensive market analysis. Understand the specific healthcare sectors in your target geographic location and identify the current and projected workforce needs. Analyze local demographics, healthcare trends such as the increasing demand for specialized professionals, the rise of telehealth, and the growing need for flexible staffing solutions, and emerging opportunities to gain insights into the market dynamics and potential demand for your services. We will go over this in more detail below. We also need to be aware of the challenges that healthcare staffing agencies face, including competition, regulatory compliance, and talent retention.

Conducting Market Research

Identifying target geographic location and healthcare sectors:.

   When starting a healthcare staffing business, the first step is identifing your target geographic location and the specific healthcare sectors you aim to serve. Consider factors such as population demographics, healthcare infrastructure, and the demand for healthcare services in the area. This focus will help you tailor your services and marketing efforts to meet the unique needs of the local healthcare market.

Assessing Local Demand and Competition:

Conduct a thorough assessment of the local demand for healthcare staffing services. Identify the number and types of healthcare facilities in the area, such as hospitals, clinics, long-term care facilities, and home healthcare agencies. Evaluate their staffing needs and determine the level of competition in the market. Understanding the demand-supply dynamics will enable you to position your agency strategically and identify opportunities for growth.

Analyzing Current and Projected Workforce Needs:

Keep a close eye on current and projected workforce needs within the healthcare industry. Consider factors such as population growth, aging demographics, and advancements in medical technology. Stay informed about changes in healthcare policies and regulations that may impact staffing requirements. This analysis will help you align your staffing solutions with the evolving needs of healthcare organizations, ensuring a sustainable business model.

By conducting thorough market research, you gather valuable insights that shape your business strategy and decision-making. The next section will guide you through the process of developing a comprehensive business plan, a crucial step in laying a solid foundation for your healthcare staffing agency. So, let’s continue this journey and explore the power of effective planning.

Developing a Business Plan

A business plan serves as a roadmap for your healthcare staffing agency. It outlines your mission, vision, and goals while providing a strategic framework for decision-making. A well-crafted business plan not only helps you clarify your business concept but also communicates your ideas effectively to potential stakeholders, including investors, lenders, and partners.

Key Components of a Healthcare Staffing Business Plan:

• Executive Summary: Provide a concise overview of your business, highlighting its unique value proposition and the market opportunity it addresses.
• Company Description: Describe your healthcare staffing company , its mission, and the specific services you will offer. Outline your target market and key differentiators.
• Market Analysis and Strategy: Present a detailed analysis of the healthcare staffing market in your target area. Identify your target clients and competitors. Develop a strategic plan to position your agency effectively.
• Service Offerings and Target Market: Define the healthcare specialties and disciplines your agency will focus on. Outline the range of staffing services you will provide, such as temporary placements, permanent placements, or travel assignments.
• Organizational Structure and Staffing: Detail the organizational structure of your agency, including key roles and responsibilities. Discuss your recruitment and selection processes to ensure the sourcing of qualified healthcare professionals.
• Marketing and Sales Strategies: Outline your marketing plan, including branding, advertising, and lead generation strategies. Describe how you will build relationships with healthcare facilities and establish partnerships.
• Financial Projections and Budgeting: Develop financial projections, including revenue forecasts, startup costs, and operating expenses. Create a budget to track and manage your financial resources effectively.

Crafting a comprehensive business plan allows you to assess the viability of your healthcare staffing agency and provides a roadmap for success. In the next section, we will explore the crucial legal and regulatory considerations you need to navigate to ensure compliance and smooth operations. So, let’s continue our journey and lay a strong foundation for your healthcare staffing business. Legal and Regulatory Considerations

Before launching your healthcare staffing agency, you will need to register your business and fulfill all legal requirements. Consult with local authorities to determine the necessary licenses and permits specific to your location. This may include business registration, tax identification numbers, and professional licensing for certain healthcare specialties.

Complying with Healthcare Industry Regulations:

The healthcare industry is highly regulated to ensure patient safety and quality of care. Familiarize yourself with the applicable regulations, such as those set by government agencies and healthcare accrediting bodies. Understand the requirements for background checks, credentialing, and ongoing monitoring of healthcare professionals to maintain compliance and ensure the integrity of your agency.

Understanding Employment Laws and Regulations:

As an employer, it’s crucial to be well-versed in employment laws and regulations to protect both your agency and your employees. Familiarize yourself with labor laws, anti-discrimination laws, and regulations regarding employee benefits, working hours, and compensation. Establish clear policies and procedures that align with these laws to create a fair and compliant work environment.

Building Relationships with Healthcare Facilities

Start by identifying healthcare facilities in your target market that could benefit from your staffing services. These may include hospitals, clinics, nursing homes, rehabilitation centers, and other healthcare organizations. Attend industry conferences, join local healthcare associations, and participate in networking events to build connections with key decision-makers in these facilities.

Creating a Compelling Value Proposition:

Clearly communicate the unique value your healthcare staffing agency brings to potential clients. Highlight your expertise in matching qualified professionals to specific healthcare settings, emphasizing the benefits they will gain by partnering with your agency. Showcase your knowledge of the local market and your commitment to providing reliable and highly skilled healthcare professionals.

Establishing Partnerships and Contracts:

Work towards establishing formal partnerships with healthcare facilities through contractual agreements. Collaborate with facility administrators and human resources departments to understand their staffing needs and develop customized staffing solutions. Negotiate mutually beneficial contracts that outline the terms of the partnership, including service levels, rates, and expectations.

Building strong relationships with healthcare facilities is crucial for the success of your staffing agency. By demonstrating your commitment to delivering high-quality staffing solutions, you’ll gain their trust and become their go-to resource for their staffing needs.

Sourcing and Screening Healthcare Professionals

Developing a talent acquisition strategy:.

Create a comprehensive plan for sourcing and attracting talented healthcare professionals to join your agency. Utilize a multi-faceted approach that includes online job boards, social media platforms, networking events, and partnerships with educational institutions. Leverage your agency’s unique value proposition to attract top-quality candidates.

Effective Sourcing Channels and Recruitment Methods:

Explore various sourcing channels to reach a wide pool of healthcare professionals. Advertise your job openings on niche healthcare job boards, professional networking platforms, and industry-specific forums. Additionally, consider establishing relationships with nursing schools, allied health programs, and professional associations to tap into their talent pool.

Conducting Comprehensive Screening and Credentialing:

Implement a thorough screening process to ensure that candidates possess the necessary qualifications, skills, and credentials. This may include verifying licenses, certifications, educational background, and professional experience. Perform reference checks and conduct interviews to assess the candidate’s suitability for the specific healthcare roles you aim to fill.

Providing Excellent Staffing Services

• Utilize your in-depth understanding of healthcare facility requirements and the skills of your healthcare professionals to make successful matches. Consider factors such as clinical expertise, specialization, experience, and cultural fit. By aligning the needs of the healthcare facility with the capabilities of your professionals, you can ensure a strong match that leads to positive outcomes for both parties.
• Effectively manage staff assignments and schedules to meet the demands of healthcare facilities. Maintain clear communication channels with both the professionals and the clients, ensuring that shifts and assignments are filled promptly. Implement efficient scheduling systems and processes that minimize conflicts and ensure optimal coverage.
• Continuously monitor and evaluate the performance of the healthcare professionals you place in client facilities. Implement quality assurance measures, such as performance evaluations and feedback mechanisms, to ensure that professionals maintain high standards of care. Provide ongoing support to your professionals, addressing any challenges they may face in their assignments and offering resources and training opportunities to enhance their skills.

By providing excellent staffing services, you build a reputation for reliability and quality within the healthcare industry. Healthcare facilities will trust your agency to deliver top-notch professionals who meet their specific needs, leading to long-lasting partnerships and repeat business. 

Marketing and Branding Strategies

Creating a strong brand identity:.

Develop a compelling brand identity that reflects the values and unique qualities of your healthcare staffing agency. Design a memorable logo, choose consistent brand colors, and craft a clear and concise mission statement. Your brand identity should convey professionalism, trustworthiness, and a commitment to delivering exceptional staffing services.

Developing a Marketing Plan and Online Presence:

Create a comprehensive marketing plan that outlines your strategies for reaching your target market. Utilize a mix of online and offline marketing channels to maximize your reach. Establish a professional website that highlights your agency’s services, testimonials, and contact information. Utilize social media platforms to engage with potential clients and healthcare professionals, sharing relevant content and promoting your agency’s expertise.

Leveraging Digital Marketing Tools and Social Media:

Embrace digital marketing tools to expand your agency’s reach and increase brand visibility. Use search engine optimization (SEO) techniques to improve your website’s search rankings. Utilize pay-per-click (PPC) advertising, email marketing, and content marketing strategies to generate leads and nurture relationships with potential clients. Engage with your audience on social media platforms to establish thought leadership and build trust within the healthcare community.

Financial Management and Growth Strategies

Budgeting and financial forecasting:.

Develop a comprehensive budget that accounts for all your expenses, including employee salaries, marketing costs, technology investments, and administrative overhead. Monitor your cash flow regularly and project your financials to identify potential revenue streams and areas for cost optimization. By implementing sound financial management practices, you can ensure the financial stability of your healthcare staffing agency.

Managing Cash Flow and Revenue Streams:

Cash flow is vital for the smooth operation of your healthcare staffing agency. Establish clear payment terms with healthcare facilities to maintain a steady cash flow. Consider implementing invoice factoring or utilizing a line of credit to manage any gaps between receivables and payables. Explore additional revenue streams, such as offering training programs or providing consulting services, to diversify your income sources.

Scaling and Expanding Your Healthcare Staffing Business:

As your agency grows, consider expansion opportunities to increase your market reach and client base. This may involve opening satellite offices in different geographic areas or expanding your service offerings to new healthcare specialties. Conduct thorough market research and develop a strategic growth plan to ensure that expansion aligns with the demand and market opportunities.

By effectively managing your finances and strategically planning for growth, you can position your healthcare staffing agency for long-term success. By maintaining a healthy cash flow and exploring growth opportunities, you’ll be able to scale your business and meet the evolving needs of the healthcare industry. In the concluding section, we will summarize the key steps and considerations covered in this guide and provide final thoughts for aspiring healthcare staffing entrepreneurs. So, let’s continue our journey and bring it all together.

Congratulations, you have reached the end of our guide to starting your own healthcare staffing business. Throughout this journey, we have explored the essential steps and considerations necessary for launching a successful healthcare staffing agency. Let’s recap the key takeaways:

Understanding the Healthcare Staffing Industry:

Gain a deep understanding of the healthcare staffing industry, its scope, and the current trends and challenges it faces.

Conducting Market Research:

Thoroughly research your target market, assess local demand, and identify opportunities for your healthcare staffing agency.

Developing a Business Plan:

Create a well-crafted business plan that outlines your mission, market strategy, service offerings, and financial projections.

Navigating Legal and Regulatory Considerations:

Ensure compliance with legal and regulatory requirements, including business registration, licenses, and healthcare industry regulations.

Building Relationships with Healthcare Facilities:

Forge strong partnerships with healthcare facilities by understanding their needs, communicating your value proposition, and establishing contractual agreements.

Sourcing and Screening Healthcare Professionals:

Develop effective talent acquisition strategies to attract and screen qualified healthcare professionals to meet the staffing needs of your clients.

Providing Excellent Staffing Services:

Match professionals with client needs, manage assignments and schedules efficiently and ensure ongoing quality assurance and support.

Implementing Marketing and Branding Strategies:

Create a strong brand identity, develop a comprehensive marketing plan, and leverage digital tools and social media to promote your agency.

Financial Management and Growth Strategies:

Implement sound financial practices, monitor cash flow, explore additional revenue streams, and strategically plan for expansion and growth.

As you start your own journey to launch your healthcare staffing agency, remember that perseverance, adaptability, and a commitment to excellence are key. Continuously stay updated on industry trends, seek feedback from clients and professionals, and adapt your strategies accordingly. And, never underestimate the power of passion and dedication. Your healthcare staffing agency has the potential to make a significant impact on the delivery of healthcare and the lives of both professionals and patients. Embrace this opportunity and strive to create a positive difference in the healthcare industry. For more details you can contact us now.

Best of luck on your and may your healthcare staffing agency thrive and prosper.

Let's Get In Touch

i4 Search Group Healthcare Recruiting is a leading Permanent Placement Healthcare Recruiting company in the United States. Contact us to learn more about us and our services.

Related Posts

The Pharmacist's Role in Streamlining Medication Management for Seniors

Revitalizing Health in Golden Years: Embracing Physical Therapy for Enhanced Senior Wellness

Improving people’s lives by matching them with the career they deserve, while delivering the top talent available to our client partners, nationwide

Let’s Socialize

i4 Search Group Healthcare Recruiting is a leading Permanent Placement Healthcare Recruiting company in the United States. With a team of 20+ Market Partners leading an additional 20+ Healthcare Recruiters, i4 specializes in matching Healthcare Heroes with the finest healthcare facilities, so they can serve their patients and communities across the United States. Some of the positions i4 specializes in recruiting for are: Nursing, Allied Health, Advanced Practice, Physician, as well as Leadership & Administration roles.

• Nurse Recruiting
• Allied Health Recruiting
• Advance Practice Recruiting
• Healthcare Executive & Administration Recruiting
• Physician Recruiting

How To Start a Healthcare Staffing Agency

Starting a staffing agency can be a lucrative business venture, but it’s important to ensure you have a clear understanding of what’s involved in the process. This article will explore the step-by-step of how to start a staffing agency and examples of what to expect.

Here are the steps you can take to build a healthcare staffing agency .

10 Steps to Launching a New Healthcare Staffing Agency  

1. choose your type of healthcare staffing agency  .

The first step in launching a healthcare staffing agency is to identify the type of healthcare staffing agency business you want to launch. You might choose from the following types among others: 

• Contingency : This type of healthcare staffing agency is paid by the client only when a placement is made.
• Retained : In this type of healthcare staffing agency, the client pays an upfront fee in addition to a percentage of the placed candidate’s first-year salary.
• Contract : A contract healthcare staffing agency provides candidates to fill temporary positions at a client company.
• In-house : This type of healthcare staffing agency is owned by the client company and provides candidates only to that company.

2. Name Your Healthcare Staffing Agency  

Give your healthcare staffing agency an identity so people will think of it as a well-known and respected brand. You can take the name of your healthcare staffing agency from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your healthcare staffing agency is to make it sound appealing and trustworthy so that clients will be confident in your ability to provide them with high-quality candidates.

3. Determine Your Healthcare Staffing Agency Business Model

There are several possible types of business models for a healthcare staffing agencies including:

• Full-service : A full-service staffing agency provides end-to-end solutions including candidate sourcing, screening, interviewing, and placement.
• Boutique : A boutique staffing agency focuses on a specific niche or industry and provides personalized services to clients in that area.
• Recruitment process outsourcing (RPO): An RPO staffing agency manages the entire recruitment process for a client company including candidate sourcing, screening, and interviewing.
• Master vendor : A master vendor staffing agency acts as a single point of contact for all of a client company’s staffing needs and manages a team of subcontractors to provide the required services.

No matter which model you choose, make sure that it aligns with your business goals and the services you offer.

4. Choose a Legal Form for Your Firm

By incorporating your healthcare staffing agency , you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your healthcare staffing agency will determine the amount of taxes you pay and which state or federal tax forms you need to file.

5. Write a Healthcare Staffing Agency Business Plan

All healthcare staffing agency owners should develop a staffing agency business plan . 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your healthcare staffing agency .

For example, many states require healthcare staffing agencies to have a surety bond in order to operate. A surety bond is a type of insurance that protects the client company from losses caused by fraudulent or dishonest acts of the healthcare staffing agency. The amount of the bond will vary depending on the state but is typically 1-2% of the estimated annual payroll of the workers you will place.

Other common licenses and permits for healthcare staffing agencies include a business license, an employment agency license, and a professional employer organization (PEO) license.

You must also register your healthcare staffing agency as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website if you plan to hire employees.

7. Determine Your Budget & Apply for Funding as Needed

In developing your healthcare staffing agency business plan, you will figure out how much funding you need to start and grow your staffing agency business .

If you have your own funds to invest in your healthcare staffing agency , you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your healthcare staffing agency business include traditional bank loans, SBA loans, credit cards, angel investors, and family and friends.

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your healthcare staffing agency , it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access and accounting software for tracking expenses and revenue. 

You may also want to invest in a customer relationship management (CRM) system to help you track your clients, candidates, and job openings. A CRM system can automate many of the tasks associated with healthcare staffing agencies such as sending emails, scheduling appointments, and creating reports.

There are a number of different CRM systems available for healthcare staffing agencies. Some popular options include Bullhorn, Jobvite, and Zoho Recruit.

You may also want to consider using an applicant tracking system (ATS) to help you manage job postings and applications. An ATS can help you post jobs to multiple job boards with the click of a button, as well as track which candidates have applied for which positions.

9. Market Your Healthcare Staffing Agency to Potential Clients

Before you start selling your services , you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Twitter. Consider networking with other people in the healthcare staffing industry through social media and blogs so you can identify mutually beneficial ways to partner. 

You also need to start preparing for your promotions strategy — your strategy for attracting new customers. Healthcare staffing agencies should consider: 

• Creating an SEO website
• Promoting your website through social media and educational blogs
• Networking with other healthcare professionals and potential clients
• Creating informative and persuasive sales materials, such as brochures, presentations, and proposals
• Developing targeted marketing campaigns to reach specific industries
• Attending industry trade shows and events

10. Get New Clients & Grow Your Business

When you promote your services , you’ll start to get interest from potential clients . Make sure you’re ready to serve these clients . If you let down on guarantees early on, you’ll start to lost trust within the industry.

Establish systems to ensure consistency and reduce costs from the beginning. Document what you do in a day, any training procedures, and projects you solve. When you go to do the same action again, you can refine your process and your documentation accordingly. Each time you’ll be able to improve, and you’ll have a solid foundation to pass on as you begin delegating. 

Finally, if you want to scale, you must hire and train the right people to take on different areas of your business, like servicing specific industries.

Starting a Healthcare Staffing Agency FAQs

Why start a healthcare staffing agency.

There are a number of reasons why you might want to start a healthcare staffing agency. It’s a great way to be your own boss and have control over your career. Second, healthcare staffing agencies can be very profitable businesses. Finally, you can make a difference in people’s lives by helping them find gainful employment.

What is Needed to Start a Successful Healthcare Staffing Agency?

To start a successful healthcare staffing agency, you need to have the right technology in place, a strong marketing strategy, and the right people to help you grow your firm.

How Can I Start a Healthcare Staffing Agency From Home?

You can start a healthcare staffing agency from home by investing in the right technology, developing a strong marketing strategy, and networking with other people in the healthcare staffing industry.

How Can I Start a Healthcare Staffing Agency Online?

You can start a healthcare staffing agency online by developing a strong website and promoting it through social media and blogs. You should also consider networking with other people in the healthcare staffing industry so they can help share your business.

For example, you can start a job board or online job-matching website.

What are Some Tips for Starting a Healthcare Staffing Agency?

Here are some tips for starting a healthcare staffing agency:

• Invest in the right technology
• Develop a strong marketing strategy
• Network with other healthcare professionals
• Create informative and persuasive sales materials
• Attend industry trade shows and events
• Get new clients and grow your business
• Find and train the right people to help you grow your firm
• Establish systems to ensure consistency and reduce costs
• Promote your healthcare staffing agency through social media and blogs
• Consider starting a job board or online job-matching website

Where Can I Find a Simple Checklist for Starting a Healthcare Staffing Agency?

A simple checklist to use when starting a healthcare staffing agency is as follows:

• Choose Your Type of Healthcare Staffing Agency Firm : This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
• Name Your Healthcare Staffing Agency : This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business : Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Determine Your Healthcare Staffing Agency Business Model : Determine how your business will make money. Will you sell products, services, or a combination of both?
• Write a Healthcare Staffing Agency Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow .
• Apply for the Necessary Permits and Licenses : In most locations you will be required to apply for a business license and/or permits before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
• Get the Technology & Software Needed to Run Your Business Efficiently : You need the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Market Your Healthcare Staffing Service s to Potential Clients : A solid marketing plan is crucial to your success. It should focus on attracting the right customers to provide them with the services they truly need. 
• Get Clients & Grow Your Business : Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services . 

Start a Healthcare Staffing Agency

Starting a healthcare staffing agency can be a great way to help businesses find the right employees, and it can also be a great way to make money. To start a healthcare staffing agency, you’ll need to invest in the right technology, develop a strong marketing strategy, network with other people in the industry, create persuasive sales materials, and attend industry trade shows.

• Elderly Care
• Child Care (Nanny + Babysitting)

Workforce Management Software

• Doula & Newborn Care
• Daycare Childcare Management
• Recruiting and Vetting Workflows
• Candidate Dashboards
• Portfolio Builder
• Job Boards & Applications
• Matching System
• Staffing & Scheduling
• Client Lead Generation
• Client Dashboards
• Payment And Invoicing
• API Integrations
• Communications
• Price Manager
• Learn About Staffing

Mastering the Essentials: A Comprehensive 7-Step Business Plan for a Successful Medical Staffing Agency

• akash.kalathil
• January 10, 2024

Launching a medical staffing agency is a journey that intertwines ambition with meticulous planning. In a sector as dynamic and critical as healthcare staffing, a robust business plan isn’t just beneficial—it’s essential. It serves not only as a strategic blueprint for your startup’s success but also as a critical document for securing funding and navigating the complex healthcare industry.

1. executive summary: capturing your vision.

Begin your business plan with a compelling executive summary. This section is your opportunity to make a strong first impression. Clearly articulate your agency’s mission, the specific staffing services you intend to offer, and your unique selling proposition. This summary should not only capture the essence of your business but also ignite interest in potential investors or partners.

2. In-Depth Market Analysis: Knowing Your Arena

Conducting thorough market research is foundational. Understand the nuances of the healthcare staffing market, identify your niche, and analyze your competition. This step is about more than just numbers; it’s about grasping the pulse of the market, understanding the needs of healthcare providers, and aligning your services to fill those gaps.

3. Services and Operational Plan: The Core of Your Agency

Detail the range of staffing services your agency will provide, whether it’s short-term, long-term, or permanent placements, and in what specialties. Describe your operational strategy – how will you source candidates, ensure quality, and handle placements? This section should also address your plans for training, credential verification, and compliance with healthcare regulations.

4. Strategic Marketing and Sales Plan: Building Your Brand

A robust marketing and sales strategy is crucial in a competitive market. Outline how you plan to build your brand and attract clients and healthcare professionals. Consider digital marketing tactics, traditional advertising, attending industry conferences, and building a strong online presence. Your strategy should also include networking with healthcare facilities and leveraging client testimonials and case studies.

5. Financial Projections and Management: Ensuring Viability

Your financial plan should be both realistic and comprehensive. Include detailed projections for startup costs, cash flow, profit and loss, and a break-even analysis. This section is critical, especially if you are seeking funding from investors or banks. Be transparent about your pricing model, including how you will determine temp agency markup rates, and provide a clear plan for financial sustainability and growth.

6. Legal Structure and Compliance: Protecting Your Business

Address the legal structure of your business and your plan for compliance with industry regulations. This includes obtaining necessary licenses, understanding employment laws, and ensuring the protection of both your clients and your workforce. Consider the implications of different legal structures on taxes, liability, and business operations.

7. Technology Integration: Enhancing Operational Efficiency

In today’s digital era, leveraging technology can give your agency a significant edge. Discuss how you plan to implement staffing agency software to optimize processes like scheduling, payroll, time tracking, and HR management. Highlight how technology will improve efficiency, accuracy, and client satisfaction.

Remember, your business plan is a living document that should evolve as your agency grows. It’s not only a roadmap for starting your business but also a guide for its ongoing development. By following these seven steps and continually adapting to the changing healthcare landscape, your medical staffing agency can thrive in a competitive and ever-evolving industry. With dedication and strategic planning, your agency can become a vital link connecting healthcare facilities with the professional staff they need.

Learn more about staffing software, leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

All-In-One Software Solution for Staffing Agencies, Temp and Placement

Staffing agency software, book a demo, staffing agency blog, customer support, testimonials & references, google reviews, knowledge base, products & services, nanny agency software, babysitter agency software, medical staffing software, newborn care professional software, childcare daycare management software, pro staffing mobile app, dental agency software, elderly care agency software, au pair agency software, domestic staffing agency software, event childcare agency management, candidate portfolio manager, household staffing agency software, privacy & terms, privacy policy, terms of service, 📞1.855.775.4473, [email protected], 1.855.775.4473.

© 2024 Enginehire Inc. | All rights reserved

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning Services
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB-1 Business Plan
• EB-2 NIW Business Plan
• EB-5 Business Plan
• Innovator Founder Visa Business Plan
• Start-Up Visa Business Plan
• Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Plan
• Landlord business plan
• Nonprofit Start-Up Business Plan
• USDA Business Plan
• Cannabis business plan
• Ecommerce business plan
• Online boutique business plan
• Mobile application business plan
• Daycare business plan
• Restaurant business plan
• Food delivery business plan
• Real estate business plan
• Business Continuity Plan
• Pitch Deck Consulting Services
• Financial Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Healthcare Staffing Agency Business Plan

JAN.20, 2024

A healthcare staffing agency supplies temporary or permanent health care professionals to various facilities, such as hospitals, clinics, nursing homes, etc. It can provide services like temporary, contract, per diem, travel, and permanent placement of nurses, physicians, therapists, technicians, and other allied health workers. A healthcare staffing agency plan describes the business’s goals, strategies, and financial forecasts. A medical business plan guides the owner, helping them attract funding and partnerships.

How to Write a Medical Staffing Business Plan?

To write a medical staffing company plan, research the market, industry, competitors, and customers of your business. Define your business model, value proposition, marketing plan, operations plan, management team, and financial plan. Use reliable data and cite sources to support your claims and assumptions. Present your information clearly and professionally. Use online templates like our medical device business plan , software, or professional services if needed.

Sections in the Nurse Staffing Agency Business Plan

A nurse practitioner private practice business plan should have the following sections:

• Executive Summary: Brief overview of the plan – mission, vision, goals, target market, competitive advantage, financial highlights.
• Company Overview: Description of business – legal structure, ownership, history, location, services. Includes mission, vision, values, objectives, and milestones.
• Industry Analysis: Analysis of external factors affecting business – size, growth, trends, industry challenges, opportunities, and threats. Includes market analysis.
• Competitive Analysis: Evaluation of competitors’ strengths and weaknesses, competitive advantage, and differentiation strategy. Includes SWOT analysis.
• Marketing Plan: Customer acquisition, retention, and satisfaction plan. Includes objectives, strategies, tactics, budget, marketing mix – product, price, place, promotion.
• Operations Plan: Business operations plan – processes, procedures, policies, standards. Includes HR, and technology plans.
• Management Team: Roles, responsibilities, qualifications, and experience of the management team. Organizational structure and culture. Advisory board.
• Financial Plan: Projections of financial performance and position – income statement, balance sheet, cash flow, break-even analysis.

Here’s a sample medical staffing agency business plan for a fictional start-up called Medic.

Executive Summary

Medic is a fresh agency that supplies dependable and top-notch medical personnel to health care facilities in Texas. 

We offer multiple services to become the preferred partner for health facilities and medical employee. Our vision at Medic is clear – we’re striving to become a leading agency in the region. How? By expanding our network, diversifying our services, and boosting our reputation.

With the increasing demand for skilled and experienced medical professionals in the allied medical staffing industry, Medic sees a growing market opportunity.

Medic is seeking an initial investment of $500,000 to launch and operate its business. Medic will use the investment for the following purposes:

Medic projects to achieve the following revenue in the first three years of operation:

Year 1 – Revenue of $1.2 million, net income of $120,000

Year 2 – Revenue of $2.4 million, net income of $240,000

Year 3 – Revenue of $3.6 million, net income of $360,000

Medic believes it has a viable and profitable business idea that will benefit health facilities and medical professionals in Texas.

Company Overview

Medic is a health care agency founded in 2024 by Alex Lee and Josh Woods, two health professionals with over 10 years of experience. Medic is an LLC based in Austin, Texas.

Medic provides medical professionals to facilities in Texas. Medic offers:

• Temporary medical professionals
• Contract medical professionals
• Per diem medical professionals
• Travel medical professionals
• Permanent placement

Medic targets both health care facilities and medical professionals in Texas. Medic’s ideal customers are:

• Health facilities that need medical professionals, have few qualified candidates, have a tight budget, and have a flexible schedule.
• Medical professionals who have skills, experience, and credentials, and are willing to move and have a flexible schedule.

Image Source – Precedence Research

Medic’s value proposition is:

• For health facilities: To improve quality of care, patient satisfaction, and operational efficiency.
• For medical professionals: To advance their careers, enhance their skills, and increase their income.

Industry Analysis

The healthcare staffing industry is part of a larger industry providing workers to various sectors. According to a Grand View Research report , the global market was valued at USD 36.9 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.93% from 2023 to 2030.

Image Source – Grand View Research report

Marketing Plan

The marketing plan for Medic outlines attracting and retaining customers, both candidates and clients, in the competitive industry. The plan has four components:

1. Marketing Objectives

• Increase website traffic by 50% in the next 12 months
• Generate 500 leads per month from online and offline sources
• Convert 10% of leads into customers within 30 days
• Achieve a customer retention rate of 90% and a referral rate of 20%

2. Marketing Strategy

The marketing strategy for Medic is based on the 4Ps of marketing: 

• Product – High-quality temporary and permanent nurse for facilities in Texas, specializing in various specialties.
• Price – Competitive, transparent rates based on specialty, experience, location, and supply/demand. Flexible contracts and payment options.
• Place – Texas, with high nurse demand and low supply. User-friendly website for candidates and clients.
• Social media

3. Marketing Tactics

The marketing tactics are based on the SMART criteria, i.e., Specific, Measurable, Achievable, Relevant, and Time-bound. Some marketing tactics are:

• Launch improved website by June 2024
• Post 3 social media posts per week per platform
• Send 2 monthly newsletter
• Optimize for SEO; rank on Google page 1 for 10 keywords
• Run 1 Google Ads campaign
• Attend 2 events per quarter
• Issue press release for every milestone
• Implement a referral program

4. Marketing Budget

The total marketing budget for Medic is $40,000 for the initial development and launch and $30,000 per month for the ongoing marketing activities and channels.

OGSCapital Can Help You with Your Staffing Agency Plan

At OGSCapital, we are a team of experts who have helped thousands of entrepreneurs and business owners across various industries and sectors. We can help you with your hospital business plan by conducting comprehensive market research and analysis by developing a clear and compelling value proposition, marketing strategy, and financial plan. We will write a professional and customized plan and hospital feasibility study and provide ongoing support and consultation.

If you are ready to take your agency to the next level, contact us today for consultation and quote. We will be happy to discuss your requirements and provide you with a medical agency business plan that suits your budget and timeline.

Download Medical Staffing Agency Business Plan Sample in pdf

Frequently Asked Questions

How do I start a nursing staffing agency in the UK?

To start a nursing agency in the UK, register your business, create a medical billing business plan , get insurance, create a website and social media, find a location, hire employees, and get financial help. You also need to register with the Care Quality Commission, the main regulator for health and social workers in England.

Do you need a license to start a medical staffing agency? 

Yes, medical agencies in the US require state licensing, and the requirements vary by state. In addition to business registration, general agencies looking to employ medical workers need agency licensing. Some states require specialty agencies to get specific licenses to place employees.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Add comment

E-mail is already registered on the site. Please use the Login form or enter another .

You entered an incorrect username or password

Comments (0)

mentioned in the press:

Search the site:

OGScapital website is not supported for your current browser. Please use:

HealthCare Staffing Agency

• COVID-19 Response
• Medical Staffing

The Healthcare business is booming swiftly, and so is the demand for skilled healthcare staff. Thus, the healthcare staffing agency is expanding and providing a lucrative business opportunity. If you implement a solid system and process, attract skilled workers, and satisfy clients’ requirements, your chances of having a successful business are at the top. Creating a staffing agency, mainly if appropriately managed, can scale exponentially and be profitable in the long run. In fact, staffing is a $17B industry – and one of the fastest-growing industries in B2B services. Over 20,000 staffing and recruiting companies in the U.S. have over 39,000 offices combined.

Healthcare staffing agencies supply healthcare professionals, such as nurses, doctors, dentists, and paramedics, to healthcare organizations, such as hospitals, clinics, medical centers, or nursing home facilities. While this creates a great business opportunity, knowing how to start a healthcare staffing agency is essential. To help you a little and give you a clear perspective on your business idea, below, we have outlined eight easy steps on how you can create a business plan for a healthcare staffing agency.

Write Your Business Goals And Purpose

Start by writing a detailed business plan for starting a healthcare staffing company. Your business proposal must be concise and easy to understand. Describe who you are and what your company plans to do. Make sure to provide a description that includes the types of staffing options. List target markets such as hospitals, clinics, medical offices, hospices, nursing homes, home health care providers, non-profit organizations, and government-run health care centers

Set a financial goal to maintain momentum, and if you apply for a business loan, this is the time to write down why you need the funds and what your target is—also, list startup and overhead costs such as software equipment and marketing costs.

Mention What Sets You Apart

Use this section to think, plan, and execute what sets you apart. How will your agency be different from other healthcare staffing agencies? Are you in a unique niche? What are your standards of service? What is your strategy? How will you handle recruitments? What will be your fee structure? What will you do if you receive a disappointed client? Plan now to prevent chaos in the future.

Evaluate Your Competitors

List the healthcare agencies in your target area. Take a detailed look at those who are excelling and even those who are lying behind. Mark their strategies or mistakes. Where they are doing great and what opportunities they are missing. A detailed evaluation of your competitors before starting your business will help you create a brilliant business strategy and even the correct idea to execute.

Register Your Company

Government requirements for staffing agencies vary, but you must obtain an LLC, a limited liability company. Be sure your new name doesn’t already exist. It will help you establish a name for your healthcare staffing agency.

The registration and licensing process can be done online quickly, but the registration process varies state by state. Ensure to check the rules and functions for your location. Once registered, you’ll get a tax identification number to pay business taxes and employee withholding.

Ensure Liability Protection 

Your healthcare workers are your responsibility. Make sure to take general and professional liability insurance and worker compensation insurance. Even if they are out of your administration, their mistakes, improprieties, and accidents return to you as their employer. Many healthcare centers ask for proof of your insurance before they agree to hire anyone from your agency.

Explore Funding Options

As you start your agency, try to find clients, and hire staff, your business may be in the red flag category for the first few months. It’s perfectly normal and is the case with most startups. But you have to find extra funding to help your business take off. The marketing, recruiting, and operating costs must be paid, and you have the employees before you even have clients.

Read Also:- Travel Hospice Nurse Salary And the Detailed Perks of the Job

Market your services.

Promote your services and build healthy relationships with hospitals, nursing homes, doctors’ offices, health care centers, and other medical institutes in your target area. Make cold calls to spread words about yourself and make appointments to meet with decision-makers in these establishments, such as the human resources manager, director of nursing, administrator, or other executive directors. Build a direct mail campaign and attend networking events relevant to the health industry. Advertise in health care trade publications and develop a website to market your medical staffing agency.

Advertise For Staff And Build Healthy Relations

Social media and recruiting are a match made in heaven. There are illimitable ways to promote your facilities using various online platforms such as Craigslist, CareerBuilder, Monster or Instagram, Facebook, Twitter, and so on to connect with job seekers and share content that showcases the requirements.

Offer benefits

Don’t forget to mention the perks or benefits your clients offer to their employees. Every prospective employee is curious about the perks of a new job. It is a significant factor in deciding where to work.

Sell location

Location plays a significant role in deciding where to work. Sometimes the candidate likes the job, but the site does not suit them. So make sure to highlight the location and emphasize the convenience.

Do Competency Test

Do competency tests for specific medical positions to determine if a potential employee can perform the required duties for the post. Verify the licensure and certification of your candidates by calling or viewing the online database of the licensing body in your state.

Build Strong Relations

Recruiting healthcare staff can be a difficult job. It requires a skill set that includes organization, determination, and a natural ability to interact with people. Building genuine relationships with clients and competent candidates will lead to overall satisfaction on everyone’s end. It will help you receive solid positive reviews, which is critical for every successful business.

Bottom Line

Preparing to start a healthcare staffing agency can be time-consuming and overwhelming. Startup costs can scare you off, and the hard work you need to put in may exhaust you but don’t give up! Remember, a solid work ethic, consistency, and perseverance are the keys to success in your venture.

I’Kare Consulting Firm is an emerging healthcare staffing agency focused on delivering potential and skilled candidates to our clients, including hospitals, clinics, medical institutions, and other relevant facilities. When we dreamt of starting our healthcare staffing agency, we followed all the aforementioned steps and guidelines to make a boom in the market, and now we are here to cater to the most prominent healthcare facilities’ requirements.  Plus, we have also helped numerous medical aspirants fetch their dream job.

How to Start a Healthcare Staffing Agency

By Colin Posted on 04/20/2022

Do you want to start a healthcare staffing agency? Have your friends or colleagues started one recently due to the growing demand for healthcare professionals? Over the past 24 months, the  demand for contract and temporary staffing  in healthcare has boomed. This is mostly due to the COVID-19 pandemic and the growing staffing shortage due to healthcare workers leaving the workforce. Many believe starting an agency is easy, but there are some major keys to success and pitfalls to be aware of before venturing into the healthcare staffing space. Below we will explore those best practices, options, and pitfalls so that you can start your firm with confidence.

Can anyone start a healthcare staffing agency?

The short answer is yes. Many staffing owners are former healthcare professionals themselves, and you do not have to come from the “business world” to be a successful recruiter in the healthcare space. In fact, medical professionals are sometimes the best fit to start firms because they know all the things it takes to work in the field. However, there are some things to be aware of if you plan on starting your firm and you are not a medical professional.

Things you will need:

• Applicant Tracking System
• Payroll funding
• Payroll administration or software
• Workers Compensation insurance
• Professional Liability insurance
• Background check vendor
• Drug screens
• Credentialing vendor
• Immunization vendor
• Invoicing capabilities
• Employee handbook
• Employment contract for workers
• Services contract for clients
• Business license in each state you plan to work
• Nurse Pool license (for states that require them)

Is “do it yourself” the only way?

You do not have to do everything listed above yourself. There are many service providers that can help with some or all of the things mentioned above. However, working with 3,5, or even 7 different vendors may take a lot of your time. Not being able to focus on your candidates and clients may prohibit you from growing your business. Good news is, there are services that handle all of the above for staffing agencies so that recruiters like you can focus on finding candidates and clients. Those types of services are called Employers of Record of “EORs”.

What is an Employer of Record (EOR)?

An  employer of record is an organization that serves as the employer for tax purposes while the employee performs work at a different company. The employer of record takes on the responsibility of traditional employment tasks and liabilities, so that their clients (recruiting and staffing agencies) do not have to carry those responsibilities. Basically they bring to the table almost everything on the above list, so you can focus on finding great talent for clients.

By using an EOR, recruiters and other businesses can free up time. Not having to deal with payroll, insurance, and HR issues can potentially save hours every week. Those hours can be used to find candidates and clients, which is the most important thing when first starting out.

EORs are cost-effective ways to outsource payroll and HR functions. The business pays the employer of record a set rate for every hour the employee works, and the employer of record handles all tasks.

EOR services can be especially helpful when dealing with payroll and employment laws for employees in multiple states. The employer of record stays updated on the state and local laws so you don’t have to worry about learning and complying with laws in multiple places. This also helps small staffing firms compete with the big players by opening up the entire united states for business, and not just their local area.

Major Pitfalls for Healthcare Staffing:

1. 1099 compliance.

Many healthcare staffing firms start out by placing RNs, LPNs, CNAs and more on a 1099 basis. However, this can be a major pitfall that leads to fines and penalties. The government is watching out for non-compliant 1099 workers, especially when they blow the whistle on staffing firms. If they do so, and your firm is found to have violated the Fair Labor Standards Act, you could end up owing a lof of money back to those works, and penalties, like  this firm .

2. Licenses

Many states require licenses for staffing firms to place healthcare professionals. In fact 10+ states have this requirement. Some of these states also require the staffing firm to have an RN or higher level professional on staff to “manage” the temp workers. So for those of you that are not medical professionals, this may be a tough barrier to entry, unless you use an Employer of Record (EOR).

3. Reliable staff

Last but not least many new staffing firms struggle to get reliable staff to work for their clients. This has been a trend among lower level healthcare roles for many years. However, with the demand in healthcare growing, there are so many options for these healthcare workers to choose from. So many are incentivized to jump between different firms and employers in search of the best rate, or “crisis pay”. Be sure to vet each member of your team prior to deploying them at a client in order to avoid wasted time, no-shows, and lost revenues.

Next Steps:

Whether you are just starting out or you’ve been doing healthcare staffing for a while, you need to make sure employees are classified correctly, paid accurately, and employment issues are handled. Otherwise, there can be consequences at the state and federal levels. FoxHire  provides an employer of record back office solution for recruiting agencies and other small businesses. Learn more about FoxHire’s contract staffing services.

Need an Employer of Record (EOR)?

Hire and place employees anywhere with FoxHire’s EOR platform!

You may also be interested in…

Terminating an Employee in New York: What You Need to Know

Termination is an inevitable aspect that every employer must navigate with diligence...

New Zealand Based Company Expands to USA with FoxHire

How can an international company expand to America and hire new employees?...

Conversion Fees for Dummies: A Guide for Recruiters

In this webinar, we break down the often misunderstood topic of conversion...

Try FoxHire for free

Want to hire without the traditional admin hassles, compliance risks, and payroll burden?

A complete Employer of Record (EOR) platform for onboarding, payroll, and compliance – so you can hire without the hassle.

Privacy Overview

Sample Staffing Agency Business Plan

Writing a business plan is a crucial step in starting a staffing agency. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring staffing agency owners, having access to a sample staffing agency business plan can be especially helpful in providing direction and gaining insight into how to draft their own staffing agency business plan.

Download our Ultimate Staffing Agency Business Plan Template

Having a thorough business plan in place is critical for any successful staffing agency venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A staffing agency business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The staffing agency business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your staffing agency as Growthink’s Ultimate Staffing Agency Business Plan Template , but it can help you write a staffing agency business plan of your own.

Staffing Agency Business Plan Example – HireHorizon Staffing

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to HireHorizon Staffing, a beacon of staffing solutions located in the bustling heart of Corpus Christi, TX. Our agency, the first of its kind in the region, is dedicated to bridging the gap between talented job seekers and businesses seeking skilled personnel. With a comprehensive suite of services including Recruitment and Placement, Temporary and Contract Staffing, Direct Placement, and Consulting, we cater to a wide array of employment needs. Our mission is to ensure a perfect match that benefits both employers and employees, thereby contributing to the success of our local community and its economy. As a newly established entity, we are committed to leveraging our deep understanding of the local job market and fostering strong community relationships, setting us apart as a trusted staffing partner in Corpus Christi.

Our foundation for success at HireHorizon Staffing is built on the extensive experience and insights brought by our founder, who has a proven track record in the staffing industry. This expertise, combined with our innovative approach to candidate identification and placement, positions us as the premier choice for quality staffing solutions in Corpus Christi, TX. Since our inception on January 3, 2024, we have achieved key milestones including the development of our brand identity and securing a prime location for our operations. These accomplishments are just the beginning of our journey to make a significant impact on the local job market, demonstrating our potential for growth and success in the staffing industry.

The Staffing Agency industry in the United States, valued at $152.5 billion in 2020, is on a steady growth trajectory, with projections suggesting it will reach $178.3 billion by 2025. This growth is fueled by the increasing demand for flexible and specialized staffing solutions across various sectors. HireHorizon Staffing, by entering this lucrative market in Corpus Christi, TX, is poised to capitalize on these expanding opportunities. The rise of remote work and the gig economy present additional avenues for us to innovate and provide tailored staffing solutions that meet the evolving needs of businesses. Our strategic positioning and dedication to excellence place us well within this dynamic and growing market, ready to serve the diverse staffing needs of the Corpus Christi community.

At HireHorizon Staffing, our target demographic encompasses a wide range of local residents in Corpus Christi, TX, including recent graduates and experienced professionals seeking career advancement or transition. We understand the diverse needs of this demographic across various industries and job levels and are committed to offering personalized job placement and career development services. Additionally, we aim to serve the staffing needs of small to medium-sized businesses within the area, addressing their challenges in attracting and retaining top talent. Our ability to cater to the seasonal employment demands, particularly in the tourism and hospitality sectors, further strengthens our role in enhancing the local employment ecosystem and contributing to regional economic growth.

HireHorizon Staffing stands out in the Corpus Christi staffing industry landscape by offering unparalleled client assistance in identifying and hiring the most suitable candidates. Our competitors, including Unique Employment Services, Absolute Staffing, and Remedy Intelligent Staffing, offer a range of staffing solutions but often lack our comprehensive understanding of the local job market and our innovative use of recruitment technology. Our competitive edge is further sharpened by our commitment to personalized service, ensuring that we not only meet but exceed the staffing needs of our clients by providing them with a diverse pool of talented candidates. This strategy, combined with our deep industry expertise, secures our position as the top staffing agency choice for businesses in Corpus Christi.

HireHorizon Staffing is committed to providing a broad spectrum of staffing services, from temporary assignments to direct placements and consulting, designed to meet the varied needs of businesses in Corpus Christi. Our transparent pricing model, which ranges based on service complexity and candidate expertise, ensures that businesses can efficiently manage their staffing requirements. To promote our services, we are implementing a robust online marketing strategy, optimizing our website for search engines and engaging in targeted social media advertising. Additionally, we will leverage traditional marketing avenues, including local networking events and job fairs, to build strong community relationships. Our comprehensive promotional efforts, supported by a strategic referral program, aim to solidify our presence in the local market and establish long-term client relationships.

To deliver on our promise of exceptional staffing solutions, HireHorizon Staffing will engage in key operational activities such as client consultations, candidate sourcing, screening, interviewing, and skills assessment to ensure a perfect match between businesses and job seekers. We will also focus on compliance, record-keeping, and continuous market analysis to adapt to the evolving needs of the Corpus Christi job market. Our operational milestones include launching our agency, securing necessary licenses and insurance, building a quality talent pool, signing our first client contracts, and reaching operational efficiency through the adoption of advanced software tools. These steps are critical in establishing HireHorizon Staffing as a leading staffing agency in Corpus Christi.

Leading the charge at HireHorizon Staffing is Isaac Jordan, our CEO, whose extensive experience and visionary leadership in the staffing industry set the foundation for our success. Isaac’s previous accomplishments in running a successful staffing agency have imbued him with invaluable insights into the staffing and recruitment process. His strategic foresight and commitment to innovation are instrumental in guiding HireHorizon towards becoming a key player in the competitive staffing landscape of Corpus Christi.

Welcome to HireHorizon Staffing, a newly established Staffing Agency dedicated to serving customers in Corpus Christi, TX. As a local staffing agency, we pride ourselves on being the first of our kind in the area to offer high-quality staffing solutions. Our mission is to bridge the gap between talented individuals seeking employment and businesses in need of skilled personnel, ensuring a perfect match that benefits both parties.

At HireHorizon Staffing, our range of products and services are designed to meet the diverse needs of our clients. We specialize in Recruitment and Placement Services, Temporary Staffing, Contract Staffing, Direct Placement Services, and Consulting Services. Our comprehensive offerings enable us to cater to various employment requirements, whether our clients are looking for short-term solutions or permanent hires. By leveraging our expertise and resources, we ensure that each placement is a step towards success for both the employer and the employee.

Located in the heart of Corpus Christi, TX, HireHorizon Staffing is strategically positioned to serve the local community and its businesses. Our deep understanding of the local job market and our commitment to fostering strong relationships within the community set us apart as a trusted partner for all staffing needs.

HireHorizon Staffing is uniquely qualified to succeed for several reasons. Our founder brings valuable experience from previously running a successful staffing agency, equipping us with the knowledge and insights necessary to excel in this industry. Additionally, our approach to assisting clients in identifying and hiring suitable candidates surpasses the competition, making us the go-to choice for quality staffing solutions.

Since our founding on January 3, 2024, HireHorizon Staffing has achieved significant milestones as a Limited Liability Company. Our accomplishments to date include designing our logo, developing our company name, and securing a prime location for our operations. These achievements mark the beginning of our journey, and we are excited about the impact we will make in the Corpus Christi job market.

The Staffing Agency industry in the United States is a significant and growing market. With an estimated value of $152.5 billion in 2020, the industry has shown steady growth over the past few years. The demand for flexible and temporary staffing solutions has driven the expansion of the market, making it a lucrative opportunity for new players like HireHorizon Staffing.

Experts predict that the Staffing Agency industry in the United States will continue to grow in the coming years. By 2025, the market is expected to reach a value of $178.3 billion, driven by the increasing need for skilled and specialized workers across various industries. This projected growth presents a promising outlook for HireHorizon Staffing as it establishes its presence in Corpus Christi, TX.

Recent trends in the Staffing Agency industry, such as the rise of remote work and the gig economy, have created new opportunities for staffing agencies to thrive. HireHorizon Staffing can leverage these trends to attract both clients and candidates, offering tailored staffing solutions that cater to the evolving needs of businesses in Corpus Christi. By staying ahead of industry trends and providing exceptional service, HireHorizon Staffing is well-positioned to succeed in this dynamic and growing market.

Below is a description of our target customers and their core needs.

Target Customers

HireHorizon Staffing will target a broad spectrum of local residents in Corpus Christi, TX, ranging from recent graduates seeking their first professional roles to experienced individuals aiming for career advancement or transition. This demographic is diverse, including individuals across various industries and job levels, from entry-level positions to executive roles. The agency will tailor its services to meet the specific needs of this local workforce, ensuring a personalized approach to job placement and career development.

In addition to local residents, HireHorizon Staffing will also focus on serving the small to medium-sized businesses within the Corpus Christi area. These businesses often face challenges in attracting and retaining top talent due to limited resources compared to larger corporations. By providing customized staffing solutions, HireHorizon will facilitate the connection between these businesses and qualified candidates, enhancing the local employment ecosystem and contributing to the region’s economic growth.

Furthermore, HireHorizon Staffing will extend its services to cater to the seasonal employment needs that are characteristic of the Corpus Christi region, particularly in the tourism and hospitality sectors. This approach will not only provide job seekers with flexible employment opportunities but also support local businesses in managing workforce fluctuations effectively. By addressing the unique staffing requirements of the seasonal industries, HireHorizon will play a pivotal role in sustaining the vibrancy and resilience of the local economy.

Customer Needs

HireHorizon Staffing meets the crucial need for high-quality recruitment and placement services for residents in the local area. By understanding the specific skills and qualifications that employers seek, they can expertly match candidates with positions that fit their capabilities and career goals. This approach ensures that both employers and job seekers find the most suitable and beneficial opportunities.

In addition to matchmaking, HireHorizon Staffing offers comprehensive support services to candidates, including resume crafting and interview preparation. These services equip candidates with the tools and confidence they need to stand out in the competitive job market. The agency’s commitment to personal and professional development helps ensure that individuals not only secure employment but also embark on fulfilling career paths.

HireHorizon Staffing also addresses the needs of businesses by providing them with a pool of pre-vetted candidates, significantly reducing the time and resources spent on the hiring process. This efficiency is particularly beneficial for companies looking to quickly fill positions without compromising on the quality of their hires. The agency’s personalized approach to understanding each business’s unique requirements ensures that the staffing solutions they provide are effective and tailored to meet specific operational needs.

HireHorizon Staffing’s competitors include the following companies:

Unique Employment Services offers a comprehensive range of staffing solutions, including temporary staffing, permanent placement, and executive search. They cater to various industries such as healthcare, IT, and manufacturing. Their price points vary depending on the specific needs of the client, including the level of position being filled and the duration of the employment.

The company operates primarily in the Corpus Christi area, focusing on serving local businesses and job seekers. Unique Employment Services prides itself on a deep understanding of the local job market, which serves as one of its key strengths. However, its geographical concentration in a single area could be seen as a limitation in reaching a wider audience.

Unique Employment Services has built strong relationships with local businesses, which contributes to its solid reputation in the community. Nonetheless, its relatively narrow industry focus may limit its appeal to potential clients in sectors outside its core competencies.

Absolute Staffing specializes in providing temporary, temp-to-hire, and direct hire staffing services across various sectors such as administrative, industrial, and technical fields. They offer competitive pricing models that are designed to meet the diverse needs of their clients, with flexibility in terms and conditions to attract a wide range of businesses.

With multiple locations across Texas, including a presence in Corpus Christi, Absolute Staffing serves a broad geographic area. This allows them to cater to a diverse client base and tap into a larger pool of job seekers. Their extensive network is a key strength, enabling them to quickly fill positions with qualified candidates.

Absolute Staffing’s broad industry coverage allows them to serve a wide range of customer segments, from small businesses to large corporations. However, this wide focus might dilute their expertise in any single sector, potentially affecting their ability to provide specialized staffing solutions.

Remedy Intelligent Staffing offers a wide array of staffing services including temporary staffing, permanent placement, and outsourced solutions. They operate in a variety of industries, including logistics, finance, and customer service. Their pricing is competitive, aiming to offer value to both small and large businesses.

Remedy Intelligent Staffing has a national presence, with locations across the United States, including in Corpus Christi, TX. This national footprint is a significant strength, as it allows them to leverage a wide network of candidates and clients. Additionally, their extensive industry coverage enables them to cater to a diverse range of customer needs.

One of Remedy Intelligent Staffing’s key strengths is its use of technology in streamlining the recruitment process, improving efficiency for both employers and job seekers. However, their wide geographic and industry scope might occasionally result in challenges with maintaining a high level of service quality in all markets.

Competitive Advantages

At HireHorizon Staffing, we stand out in the competitive landscape through our unparalleled assistance to clients in identifying and hiring the most suitable candidates for their job openings. Our approach combines cutting-edge recruitment technology with a deep understanding of the local job market, enabling us to match businesses with the ideal candidates swiftly and efficiently. This capability not only saves our clients valuable time and resources but also significantly enhances their operational productivity by bringing in high-quality talent that fits perfectly with their organizational culture and requirements.

Furthermore, our competitive advantage is fortified by our commitment to personalized service. We recognize that each business has unique staffing needs, and our dedicated team works closely with each client to tailor our services accordingly. This personalized approach ensures that businesses are not just filling vacancies but are making strategic hires that contribute to their long-term success. Additionally, our extensive network of job seekers, ranging from entry-level to executive positions, enables us to offer a diverse pool of candidates to our clients. This diversity in talent availability, combined with our expertise in various industries, positions us as the go-to staffing agency in Corpus Christi for companies looking to drive growth and innovation through strategic hiring.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

HireHorizon Staffing emerges as a distinguished provider in the staffing industry, offering a comprehensive range of services tailored to meet the diverse needs of businesses across various sectors. The agency specializes in connecting qualified candidates with suitable job positions, ensuring both parties achieve their professional objectives. Among their key offerings are recruitment and placement services, temporary staffing, contract staffing, direct placement services, and consulting services. Each of these services is designed to address specific hiring challenges and workforce requirements, facilitating seamless recruitment processes and optimal employment matches.

At the forefront of HireHorizon Staffing’s offerings are their recruitment and placement services. These services are adept at identifying and vetting candidates for a variety of roles, ensuring that only the most suitable individuals are presented to employers. Businesses can expect to invest approximately $500 – $1,000 per placement for these services, depending on the complexity of the job requirements and the level of expertise required for the position.

Temporary staffing is another pivotal service provided by HireHorizon Staffing. This option is perfect for companies experiencing seasonal peaks, project-based work, or those in need of short-term replacements. The pricing model for temporary staffing is typically based on the hourly rates of the employees, with HireHorizon Staffing adding a markup ranging from 20% to 50% on the employee’s pay rate. This flexibility allows businesses to efficiently manage their workforce according to fluctuating demands.

Contract staffing services cater to organizations looking for professionals to undertake project-based or medium-term assignments. This service is particularly beneficial for tasks that require specialized skills for a finite duration. Employers can expect the cost for contract staffing services to be slightly higher than temporary staffing, due to the specialized nature of many contract roles. Pricing often includes a markup on the contractor’s hourly rate, similar to temporary staffing, but adjusted for the contract’s length and the scarcity of the skill set required.

Direct placement services are a cornerstone for HireHorizon Staffing, offering a robust solution for businesses seeking to fill permanent positions. This service encompasses rigorous candidate screening and matching processes, ensuring that hires are perfectly aligned with the company’s long-term goals and culture. The fee for direct placement services is usually calculated as a percentage of the candidate’s first-year salary, typically ranging between 15% and 25%. This provides a cost-effective option for companies aiming to make long-term, impactful hires.

Last but not least, HireHorizon Staffing provides consulting services designed to enhance recruitment strategies and optimize workforce management. These services can range from helping to develop effective hiring processes, to advising on workforce planning and HR technology utilization. Consulting fees are based on the scope and duration of the project, with daily or hourly rates applying. Businesses can anticipate spending $100 – $300 per hour for these expert services, a valuable investment in streamlining their recruitment and staffing operations.

In conclusion, HireHorizon Staffing stands as a versatile and efficient partner for businesses in need of tailored staffing solutions. With a focus on quality and compatibility, their diverse service offerings and transparent pricing models cater to the unique challenges and objectives of each client, paving the way for successful employment outcomes.

Promotions Plan

To attract customers in the competitive staffing industry, HireHorizon Staffing employs a comprehensive promotional strategy that leverages the power of online marketing among other methods. Understanding the importance of a strong digital presence, HireHorizon Staffing will invest in a multi-faceted online marketing approach. This includes optimizing their website for search engines to ensure high visibility when potential clients search for staffing solutions in Corpus Christi, TX. Additionally, they will engage in targeted social media advertising, reaching out to local businesses through platforms such as LinkedIn, Facebook, and Instagram, where they can share success stories, client testimonials, and valuable content related to employment and staffing.

Beyond online marketing, HireHorizon Staffing will also utilize traditional marketing tactics. This includes attending local business networking events to foster relationships with potential clients in person. They will also host workshops and seminars on topics relevant to hiring and workforce management, positioning themselves as thought leaders in the staffing industry in Corpus Christi. To further enhance their visibility, they will participate in local job fairs, connecting directly with job seekers, and demonstrating their commitment to finding the right matches for their clients.

Email marketing campaigns will play a crucial role in their strategy, allowing HireHorizon Staffing to maintain regular contact with both potential and existing clients. These campaigns will highlight their services, share industry insights, and keep their audience informed about the latest job openings and staffing solutions. Through personalized and value-driven email content, they will build trust and establish long-term relationships with their client base.

Referral programs will also be a key component of their promotional efforts. Encouraging satisfied clients to refer others to HireHorizon Staffing with incentives for both the referrer and the referee will help them expand their clientele organically. This word-of-mouth marketing will complement their online efforts, creating a synergistic effect that boosts their overall brand awareness and reputation in Corpus Christi.

By combining these strategies, HireHorizon Staffing expects to not only attract but also retain a solid customer base in Corpus Christi, TX. Their comprehensive approach to promotion, emphasizing both digital and traditional marketing methods, along with a strong focus on community engagement, will ensure that they stand out in the staffing industry.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of HireHorizon Staffing, there are several key day-to-day operational processes that we will perform.

• Client Consultation and Needs Assessment: Engage with new and existing clients to understand their staffing requirements, company culture, and specific job descriptions. This process will enable us to tailor our services to match their unique needs.
• Candidate Sourcing: Actively search for, identify, and approach potential candidates through various channels such as job boards, social media platforms, networking events, and our existing database. This will ensure a wide and diverse talent pool.
• Screening and Interviewing: Conduct initial screening calls and in-depth interviews with candidates to assess their qualifications, experience, and fit for the client’s needs. This will include verifying references and conducting background checks as required.
• Skills Assessment: Administer appropriate tests or assessments to evaluate candidates’ skills and competencies relevant to the job roles they are being considered for. This ensures that clients receive candidates who can perform effectively.
• Client-Candidate Matching: Use the information gathered from clients and candidates to make informed decisions about the best matches. This involves considering both the clients’ needs and the candidates’ career goals and preferences.
• Feedback Collection: After interviews or placements, collect feedback from both clients and candidates to improve our matching process and address any concerns promptly. Continuous improvement will be a focus.
• Follow-up Services: Maintain regular communication with both clients and placed candidates to ensure satisfaction and address any post-placement issues. This will help in building long-term relationships.
• Compliance and Record Keeping: Ensure all operations comply with relevant employment laws and regulations. Maintain accurate and up-to-date records of all client and candidate interactions, contracts, and placements.
• Market Analysis and Business Development: Regularly analyze local job market trends and business opportunities in Corpus Christi, TX, to adapt our strategies and identify new growth areas. This will include competitor analysis and networking to establish HireHorizon Staffing as a key player in the local market.
• Training and Development: Provide ongoing training and development opportunities for our staff to ensure they remain knowledgeable about recruitment best practices and industry trends. This will enhance our service quality and efficiency.

HireHorizon Staffing expects to complete the following milestones in the coming months in order to ensure its success:

• Launch Our Staffing Agency : Successfully open our doors for business, establishing our presence in Corpus Christi, TX, with a fully operational office, an engaging website, and active social media profiles to start engaging with both clients and job seekers.
• Obtain Necessary Licenses and Insurance : Secure all required local, state, and federal licenses to operate a staffing agency, along with appropriate business insurance to mitigate risks related to liability, workers’ compensation, and property damage.
• Build a Quality Talent Pool : Develop a robust database of qualified candidates across the key industries we aim to serve. This involves extensive outreach, networking, and partnerships with local educational institutions and training programs.
• Secure First Client Contracts : Sign contracts with at least three to five local businesses in need of staffing solutions, demonstrating our ability to meet the diverse staffing needs of Corpus Christi employers.
• Achieve Operational Efficiency : Streamline our recruitment, placement, and administrative processes through the implementation of efficient software tools for CRM (Customer Relationship Management), ATS (Applicant Tracking System), and financial management to ensure smooth operations and high-quality service delivery.
• Establish a Strong Brand Presence : Implement a targeted marketing campaign that includes digital marketing, local advertising, and community engagement activities to build HireHorizon Staffing’s brand as a reliable and innovative staffing solution in the local market.
• Reach Break-Even Point : Through effective cost management and increasing revenue streams, reach the financial milestone where monthly revenues equal monthly expenses, ensuring the company’s financial sustainability.
• Get to $15,000/Month in Revenue : Achieve the revenue goal of $15,000 per month through expanding client base, increasing placements, and possibly diversifying services offered (e.g., temporary, temp-to-hire, and direct hire placements).
• Expand Client and Candidate Services : Based on feedback and identified needs, broaden the range of services offered to clients and candidates, such as additional training, professional development opportunities for candidates, and HR consulting services for clients.
• Evaluate Expansion Opportunities : After establishing a strong foothold in Corpus Christi, assess the feasibility of expanding our services to neighboring regions or specific industries that are underserved, leveraging the reputation and operational capabilities we have built.

Our management team has the experience and expertise to successfully execute on our business plan.

Isaac Jordan, CEO

At the helm of HireHorizon Staffing is Isaac Jordan, a seasoned leader with a proven track record in the staffing industry. Isaac’s journey is marked by a history of remarkable success, particularly highlighted by his experience in successfully running a staffing agency prior to his role at HireHorizon. This previous venture not only showcases his ability to lead and grow a staffing business but also his deep understanding of the intricacies involved in the staffing and recruitment process. Isaac’s leadership is pivotal in steering HireHorizon Staffing towards achieving lasting success, leveraging his expertise in strategy, operations, and his innate ability to foresee and adapt to market trends. His visionary approach and dedication are key assets that position HireHorizon Staffing for growth and innovation in the competitive staffing landscape.

To achieve our growth objectives, HireHorizon Staffing requires $205,000 in funding. This investment will be allocated towards capital investments such as location buildout, equipment, and initial operational expenses including staff salaries, marketing, and insurance. These financial resources will enable us to establish a strong foothold in the Corpus Christi staffing market, ensuring our long-term success and sustainability.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Staffing Agency Business Plan Example PDF

Download our Staffing Agency Business Plan PDF here. This is a free staffing agency business plan example to help you get started on your own staffing agency plan.  

How to Finish Your Staffing Agency Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your staffing agency business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

• Sample Business Plans
• IT, Staffing & Customer Service

Staffing Agency Business Plan

As the job market becomes increasingly competitive, businesses are looking for innovative ways to attract and retain top talent. It is where your staffing agency will become profitable.

Are you looking to start writing a business plan for your staffing company? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a staffing agency business plan template for you to help in start writing yours.

Free Staffing Agency Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How To Write A Staffing Agency Business Plan?

Writing a staffing agency business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the whole business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon..

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview, But there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the staffing agency and the type of agency you want for example are you writing it for a nurse staffing agency, medical staffing agency or any direct hiring firm.
• Company structure of your staffing agency whether it is LLC, partnership firm, or some other.
• Location of your staffing company and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your recruitment business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your Recruitment agency business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a staffing company business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the services:

• Create a list of the services that your staffing agency will offer, which may include all the services for example, will the agency offer temporary staffing, temp-to-perm staffing, direct hire placement, or a combination of these services?
• Describe each service: For each service, provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide the service. For instance, do you need a full-time HR or some other personnel specific for interviews?

Screening and Placement Process:

Overall, the product and services section of a recruitment firm business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key points to include in your marketing plan:

The partnership is a blessing:

Have a competitive fee structure:, marketing strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business operations. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, client management:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your staffing business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the staffing agency. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan , it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the staffing industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your employment agency business should only include relevant and important information that supports the main content of your plan.

Download a sample staffing agency business plan

Need help writing your business plan from scratch? Here you go; download our free staffing agency business plan pdf to start.

It’s a modern business plan template specifically designed for your staffing agency business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This staffing agency business plan sample will provide an idea for writing a successful staffing agency business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready staffing business plan to impress your audience, then download our staffing agency business plan pdf.

Related Posts

IT Consulting Business Plan

Top 10 AI Business Plan Generators

400+ Sample Business Plan Template

HR Consultancy Business Plan

Top Business Plan Writers

Business Plan Cover Page Templates

Frequently asked questions, why do you need a staffing agency business plan.

A business plan is an essential tool for anyone looking to start or run a successful recruitment business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your staffing agency.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your agency.

How to get funding for your staffing agency business plan?

There are several ways to get funding for your staffing business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria first before you can apply for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your staffing agency, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your staffing agency business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your employment agency business plan and outline your vision as you have in your mind

What is the easiest way to write your staffing agency business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any staffing agency business example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Choose a plan

Pick the right solutions, standard nursing agency package & independent nurse contractor, all you need to start, bundle includes:.

• Comprehensive Start Up Nursing Agency Guide
• Guide to become an Independent Healthcare Recruiter
• Guide to be an Independent RN Contractor
• Affiliate Partnership Option
• Includes Forms & Contract Agreements
•  Includes 2 hours of consultations.

Includes Comprehensive Guide in Creating a Nursing Agency Business & document and forms needed for the business.

• Business to business full length contract agreements
• Employee and contractors agreementsto Nursing Agencies
• Independent contractors contract agreements to nursing agencies
• Healthcare recruiter contract agreements
• Policy and Procedures
• Job Order Forms
• Business Plans
• Business letters
• Time cards  and schedules
• Billings and Invoices
• Consent forms
• O.S.H.A required forms for Nursing Agencies
• Pre-employment nursing skills checklist
• Competency test
• Performance Evaluations
• Emergency Preparedness Plan

STANDARD HOME HEALTH PACKAGE

Home healthcare business.

• Comprehensive Start Up Home Health Agency Guide non medical and medical
• Includes 2 hours of consultations
• Affiliate Partnership Options

Includes Comprehensive Guide in creating a non medical and medical Home Healthcare Agency Business.  These plans includes these documents and forms required for the business. 

• Employee and contractors agreements to Home Healthcare Agencies
• Independent contractors contracts agreement to Home Health Agencies
• Home healthcare Policy and Procedures
• Homecare Business Plan
• Sample Business letters
• Time card and schedules
• Billing and Invoices
• O.S.H.A required forms for Home Health Care Agency
• Emergency Preparedness Plans
• Advance Directive and Medical Decision Form
• Home Health care plan
• Case Manager Admission Data Collection Form
• Checklist for Client Admission Process
• Consent to release information
• Confidential Policy
• Denial of Medicare 
• Diet Order forms
• Discharge against medical advice
• PCA guidelines to clients
• Mood and behavior forms
• Homemaker and PCA Time cards
• Intake and Output record
• Medication  Record Monitoring Form
• PCA responsibilities
• Pain evaluation form
• Self Administration of Medications Form
• Homemaker weekly reports forms

COMPLETE PACKAGE

Essential package.

• Includes the STANDARD NURSING AGENCY  PACKAGE & NON MEDICAL AND MEDICAL HOME HEALTH PACKAGE 
• Includes unlimited consultation for 3 months.
• Affiliate Partnership Optoin
• Includes  Website Development
• Includes 1 year hosting

Combine our two standard package which includes all the documents and forms needed to start your own healthcare business. Plus you get 3 months of unlimited consultations, complete website development and access to nurses of NursePartners.

PREMIUM PACKAGE

Contact sales, complete suite.

• Includes COMPLETE PACKAGE
• Includes unlimited consultation 
• Includes scalable Website Development
• Includes website hosting
• Includes access of RN’s, LPN/LVN, and CNA’s.
• Includes technology consulting
• Includes productivity improvements
• Sales & Marketing

This packages is a turnkey, ready for business. A full setup ready for you to operate. We can fully set up your business or buy an existing business. 

STANDARD NURSING AGENCY PACKAGE

• Includes the STANDARD NURSING AGENCY  PACKAGE & NON MEDICAL AND MEDICAL HOME HEALTH PACKAGE 
• Includes  Website Development
• Includes 1 year access of RN’s, LPN/LVN, and CNA’s.

78 10th Street-St. Paul, MN 55102

Nursing home staffing mandates are ‘wishful thinking,’ industry says

New York nursing homes are gearing up for the federal government’s new staffing mandate, but they say a lack of funding and staff shortages make it unlikely that they’ll be able to comply.

The Biden administration finalized a rule Monday that requires all nursing homes to provide all residents with nearly three and a half hours of direct care each day. The rule requires two and a half of those hours to come from a certified nurse assistant, and a half an hour to come from a registered nurse, who can do more complicated tasks like administering medications or assessing a patient’s mobility. Nursing homes can hire certified nurse assistants, registered nurses or licensed practical nurses to provide the remaining half hour of care required. 

More from today's Health Pulse

The federal nursing home staffing rule is not all that new for New York’s facilities, which have been subject to a state law requiring them to staff at similar levels since 2022 . Although the federal rule reinforces levels of care that are already mandated in New York state, nursing homes say they’re still not likely to meet it – evident by the fact that only half of homes statewide are currently in compliance, according to a Crain’s analysis of federal data.

James Clyne Jr., president of nonprofit nursing home industry group LeadingAge New York, said that a majority of New York nursing homes are not meeting the state mandate due to existing staffing shortages and a lack of funding to fill the gaps. Neither the state mandate nor the new federal rule are tied to funding to help nursing homes hire staff – a challenge that makes compliance with both nearly impossible, he said.

“If they want a staffing mandate, they have a responsibility to pay for it,” Clyne said. “Otherwise it’s just wishful thinking.”

The Centers for Medicare and Medicaid Services first proposed a nursing home staffing mandate in September, following increased attention on the poor conditions in nursing homes revealed by the Covid-19 pandemic. The federal government’s draft rule required nursing homes to provide a minimum three hours of resident care per day, sparking criticism from patient advocates and medical experts who said more care is needed to prevent patient harm.

The final rule not only adds an additional half an hour of direct care to the requirements, it also requires nursing homes to have a registered nurse on the premises at all times. Additionally, it includes a requirement for more assessments at facilities to determine whether the acuity levels of patients require even more staff.

Richard Mollot, executive director of the Midtown-based patient advocacy group Long-Term Community Care Coalition, said that the requirement to have a registered nurse onsite at all times is a win for patient care. But the overall staffing mandate, he said, is inadequate as it falls below four hours of care – a staffing level identified in a 2001 government-funded study as the bare minimum to avoid patient harm.

“The rule validates something that is really too low,” Mollot said. “Too often in these circumstances, the floor becomes the ceiling.”

Even at lower levels, the current mandates still pose barriers for nursing homes, Clyne said. The latest budget deal included $285 million for nursing homes – not nearly enough to cover the costs of care, let alone hire additional staff to meet mandates, he added.

Nursing homes are also not clear on whether the federal rule will take precedence to New York’s current mandate, but Clyne said that the layered laws will likely result in facilities juggling the separate clinician-specific ratios of each rule.  

Erin Clary, a spokeswoman for the Department of Health, said that the agency is reviewing the new federal rule and cannot comment further at this time.

New York’s staffing law went into effect last year, but the state implemented a delayed rollout because of severe staffing shortages in all counties across the state. Clyne’s organization filed a lawsuit against the state claiming that the mandate was not constitutional, but that lawsuit was thrown out by a judge in December and the mandate still stands.

The federal government’s nursing home mandate will be implemented over the next two years. Rural facilities and smaller homes will have additional time to put the mandate into practice. 

• Latest Issue
• Arts & Entertainment
• Banking & Finance
• Latest Commentary
• Letters to the Editor
• Health Care
• Politics & Policy
• Restaurants
• Sports & Recreation
• Transportation
• Latest News
• Commercial Real Estate
• Residential Real Estate
• Deals of the Day
• Who Owns the Block
• Real Estate Families of New York
• Health Pulse
• Top Earners
• Who's News
• On Politics
• Crain's Forum
• Chasing Giants
• Economic Outlook
• 20 in Their 20s
• 40 Under 40
• Best Places to Work
• Diversity & Inclusion Awards
• Hall of Fame
• Women of Influence
• 2023 Empire Whole Health Heroes Awards (sponsored)
• 2023 New York ORBIE Awards (sponsored)
• Nominations
• Data Center
• Highest-Paid CEOs
• Highest-Paid Hospital Execs & Doctors
• Largest Private Companies
• Largest Public Companies
• Largest Residential Sales

Nursing Homes, HHS on Collision Path Over Staffing Mandate

By Tony Pugh

The Biden administration’s push to improve nursing home care through better staffing—and the industry’s insistence that it needs more workers and funding to make it happen—could set the stage for intervention by Congress or the courts.

“We will vigorously defend our nursing home members by any means necessary,” said a statement from Rachel Reeves, spokesperson for the American Health Care Association, the nursing home industry’s largest trade group. “We are exploring all our options.”

The nursing home staffing rule ( RIN 0938-AV25 ) issued this week requires all Medicare- and Medicaid-certified facilities to have 3.48 “hours per resident day” (HPRD) of total staffing, according to a White House fact sheet . The original proposal called for only 3.0 HPRD. HPRD is the “total number of hours worked by each type of staff divided by the total number of residents,” according to the Centers for Medicare & Medicaid Services.

Under the rule, registered nurses must provide 0.55 HPRD toward the mandate, while nurse aides must provide 2.45 HPRD. Facilities can use any combination of RNs, licensed practical nurses, or nurse aides to account for the additional 0.48 HPRD.

“This means a facility with 100 residents would need at least two or three RNs and at least ten or eleven nurse aides as well as two additional nurse staff (which could be registered nurses, licensed professional nurses, or nurse aides) per shift to meet the minimum staffing standards,” according to the fact sheet.

The CMS estimates the industry would pay about $40.6 billion over 10 years to implement the requirements. An AHCA comment letter on the rule when it was first proposed cited legal arguments for why the requirements should be rescinded. The letter said the CMS “lacks the statutory authority to promulgate the proposed minimum-staffing requirements.”

Improper Taking?

“But the government has a lot of advantages when it deals with arguments about challenges to its statutory authority,” said Judy Waltz, partner and co-chair of the health-care practice group at Foley & Lardner, San Francisco.

A former HHS attorney, Waltz said courts have been deferential to federal agencies’ authority to implement policies through the notice-and-rulemaking process.

However, the mandate’s added labor costs for providers could be used to support a constitutional argument of “improper taking” of nursing homes’ ability “to have an economically viable entity by virtue of requirements that are not shown to be clinically necessary,” Waltz said. It would be hard, however, to “show that there’s a constitutional standard that’s been violated,” she said.

Another pathway for a legal challenge might be to claim the staffing requirements are “arbitrary and capricious” because they haven’t been shown to have a demonstrable clinical benefit, Waltz said. “Just having more people there, I think we don’t have evidence that that’s going to result in better care necessarily,” Waltz said.

Other possibilities for stopping implementation of the rule include a “Congressional Review Act resolution of disapproval to overturn” it, “which we would support,” said a statement from Katie Smith Sloan, president and CEO LeadingAge, which represents nonprofit aging services providers.

The group would also consider “using the congressional appropriations process to block funding for the rule’s implementation,” Sloan said.

Turning to Congress

Reeves said the AHCA will also work with Congress on advancing the Protecting America’s Seniors’ Access to Care Act ( H.R. 7513 ), which would block the staffing mandate.

The measure is among nearly 20 bills that are scheduled to be discussed at an April 30 House Energy and Commerce subcommittee hearing on strengthening Medicaid.

Sen. Deb Fischer (R-Neb.) said in a statement Tuesday that the administration ignored bipartisan opposition to the rule and “decided to plow ahead. This misguided rule will devastate nursing homes across this country and worsen the staffing shortages.”

Roughly 25% of US nursing homes could be granted exemptions from the staffing requirements, HHS officials said in a briefing with reporters Tuesday. Officials downplayed industry concerns that the requirements would cause some facilities to turn away patients and ultimately close due to labor shortages.

Stephen A. Moses, visiting fellow at the conservative Paragon Health Institute, said low reimbursement rates from Medicaid, the nation’s leading payer for long-term care, are driving the industry’s financial struggles.

In roughly 80% of nursing homes in 2019, Medicaid payment rates did not cover the cost of care, according to the Medicare Payment Advisory Commission.

But because Medicaid payment and cost data for nursing homes was incomplete and variable across states, the Medicaid and CHIP Payment and Access Commission recommended that all Medicaid provider payments be collected and reported consistently for a more complete accounting of how Medicaid payments compare to nursing home costs, a MedPAC analyst said in December.

To contact the reporter on this story: Tony Pugh in Washington at [email protected]

To contact the editors responsible for this story: Brent Bierman at [email protected] ; Karl Hardy at [email protected]

Learn more about Bloomberg Law or Log In to keep reading:

Learn about bloomberg law.

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.

• Skip to main content
• Keyboard shortcuts for audio player

Nursing home industry rebukes new federal rule on minimum staffing requirements

Kai McNamee

Sarah Handel

Scott Detrow

NPR's Scott Detrow talks with American Health Care Association's CEO Mark Parkinson about the new rule that establishes staffing minimums at nursing homes that receive Medicare and Medicaid funding.

SCOTT DETROW, HOST:

On Monday the Biden administration finalized a rule that establishes staffing minimums at nursing homes that receive Medicare and Medicaid funding. Xavier Becerra, Secretary of the Department of Health and Human Services, told NPR last fall that the rule is meant to define standards for the industry.

(SOUNDBITE OF ARCHIVED NPR BROADCAST)

XAVIER BECERRA: It's been the Wild, Wild West when it comes to quality and accountability at nursing homes throughout the country. What we're simply saying is we don't want Wild, Wild West when we send our loved ones.

DETROW: The rule has been met with backlash, including from the American Health Care Association, which represents the nursing home industry. In a statement, President and CEO Mark Parkinson called it, quote, "an unreasonable standard that only threatens to shut down more nursing homes." Mark Parkinson joins me now. Welcome to ALL THINGS CONSIDERED.

MARK PARKINSON: Good to be here.

DETROW: So, you know, according to the White House - and I'll just read a quote here from their announcement of this. "Under the new rules, the average nursing home, which has around a hundred residents, would need to have at least two RNs working each day and at least 10 to 11 nurse aides." In addition to that, nursing homes are going to have several years to comply with this. There is an application for hardship exemptions. Can you walk me through why that is unreasonable in your point of view? What is your concern here?

PARKINSON: There is a shortage of nurses across the country, but it is the most acute in skilled nursing facilities. The administration has done nothing to help us with this staffing crisis. And then to add on top of that, a requirement that we need to hire an additional 120,000 nurses - which is what the number is - would make it impossible. So it - we're not against more staffing. Believe me. Every nursing home in the country out there right now is hustling and advertising to get more staff. But what we are against is an impossible policy that, when it is enforced, will cause hundreds and possibly thousands of nursing homes to close.

DETROW: I just want to clarify right now. Is your point of view mostly that this is impossible to achieve or that the increased staff is not necessarily needed or wouldn't necessarily make care better? Which one is it, or is it a bit of both?

PARKINSON: We believe that more staff makes care better. The reason we're against it is because it's impossible to achieve. It is not possible to get these nurses. They're not out there. And the proposal is not paid for.

DETROW: The Kaiser Family Foundation did a study on this, found that about 80% of all nursing homes would have to hire more people to meet the new standard. Does that feel right to you?

PARKINSON: We think it's probably more like 95%. So it's somewhere 80 and 95% of all the facilities are unable to meet the requirement right now.

DETROW: Look. Big picture, NPR and so many other news organizations have reported on conditions in nursing homes. And there's been a lot of concerns - you know, residents experiencing bed sores, dehydration, malnourishment, falls, other things. We all know how hard COVID hit the nursing home community. We've been talking a lot about the staffing here. What are the big-picture solutions besides staffing - besides increasing staffing from your point of view?

PARKINSON: I think the big-picture solution is really the course that we were headed on before the pandemic, which is to look at the quality measures that are out there, trying to figure out what are the things that really matter in terms of the care that's being provided in a facility. And you mentioned some of them - falls, return to home, pain that a resident is experiencing, person-centered care, holding buildings accountable that aren't doing well on those metrics, weeding out the poor providers and really promoting and uplifting the good providers. And we've been on a good momentum to do that. If you look at the 20 quality measures that are out there on nursing homes, they have improved over the years.

Now, we definitely had a setback with COVID, which, you know, hopefully is a once-in-a-lifetime type experience. But now that that's behind us, the sector is really recommitted to a data-driven approach, not just, you know, making decisions based on anecdotes but a really data-driven approach to make sure that we continue to improve those quality measures.

DETROW: That's Mark Parkinson, President and CEO of the American Healthcare Association. Thank you so much.

PARKINSON: Thank you for having me.

Copyright © 2024 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Biden administration imposes first-ever staff minimum for nursing homes

The senior care industry lobbied furiously against the new standard, which will require a registered nurse on site at all times.

The Biden administration set a first-ever minimum staffing rule for nursing homes Monday, making good on the president’s promise more than two years ago to seek improvements in care for the nation’s 1.2 million nursing home residents.

The final rule, proposed in September, requires a registered nurse to be on-site in every skilled nursing facility for 24 hours a day, seven days a week. It mandates enough staff to provide every resident with at least 3.48 hours of care each day. And it beefs up rules for assessing the care needs of every resident, which will boost staff numbers above the minimum to care for sicker residents.

For a facility with 100 residents, it translates to a minimum of two or three registered nurses and at least 10 or 11 nurse aides per shift, as well as two additional staffers who could be nurses or aides per shift, according to the administration’s interpretation of its new formula. Set to phase in over the next few years, the mandate will replace the current vague standard that gives operators wide latitude on how to staff their facilities.

The nation’s 15,000 nursing homes are regulated by the federal government, which pays for the majority of stays through the Medicaid and Medicare federal insurance programs. Neglect and abuse have been concerns for decades, but the crisis of care reached a peak during the pandemic, when more than 160,000 nursing home residents died of covid-19.

While the administration has said the rule will improve care, industry lobbyists have said it’s unworkable, with staffing goals that will be impossible to achieve because of a shortage of workers.

The administration received 47,000 public comments on the rule since it was proposed last September. They included observations of people lying in their own filth for hours, not being fed appropriately and being left on the floor too long after falling, Secretary of Health and Human Services Xavier Becerra said in an interview Monday.

“These are the kinds of things that drive nightmares in the minds of family members,” he said. “If you’re claiming that you can’t find nurses, then explain to me how you’re running a nursing home.”

An industry study last year, in response to the proposal, said nearly all nursing homes would not meet the new standards and would be required to hire more people. Nursing homes would need to hire more than 100,000 additional workers: 80,077 nurse aides and 22,077 registered nurses, the study said.

The pandemic exacerbated staffing shortages in nursing homes. Poor wages and grueling working conditions put large amounts of stress on a low-wage workforce, which is made up mostly of women, minorities and immigrants.

An independent study released last year by KFF, a nonprofit group specializing in health care, said around 80 percent of facilities would need to hire more staff to meet the new requirements.

While the government said the cost of the plan would be $4.4 billion per year by the third year of adoption, industry groups said the number was closer to $7 billion.

“It is unconscionable that the Administration is finalizing this rule given our nation’s changing demographics and growing caregiver shortage,” Mark Parkinson, president and CEO of the American Health Care Association, the top lobbying group for the nursing home industry, said Monday in response to the administration’s release of the final proposal. “Issuing a final rule that demands hundreds of thousands of additional caregivers when there’s a nationwide shortfall of nurses just creates an impossible task for providers.”

The industry has warned that rural facilities may be forced to close if they can’t meet the requirements.

In a 71-bed facility in Pipestone, Minn., the operator, a large nonprofit system called Good Samaritan Society, would have to hire five more registered nurses and five certified nurse assistants to its total roster of staff, said Nate Schema, Good Samaritan’s president and CEO. That’s in a community of just 4,100 people.

“It’s unrealistic,” he said. “This unfunded mandate just doesn’t make sense, and it’s going to create additional access challenges for residents and families that we service.”

On Capitol Hill, Sen. Deb Fischer (R-Neb.) sponsored a bill that would prevent the administration from imposing the rule, but it did not advance after receiving insufficient support in the Democratic-controlled chamber.

The Democratic co-sponsor, Sen. Jon Tester (Mont.), warned that some rural nursing homes may close in his state. “I have serious concerns that this burdensome staffing requirement will be unworkable for rural nursing homes,” he said in a statement.

Nursing-home owners in urban areas will have two years to comply with the rules, while rural operators will have three years. Operators in rural areas without enough workers can qualify for hardship exemptions, the administration said.

The new requirement will replace a rule that merely required an operator to maintain a staff level “sufficient” to assure the safety and well-being of residents. Facilities will be required to have enough registered nurses to provide 0.55 hours of care per resident per day and enough nurse aides to provide 2.45 hours of care. The additional 0.48 hours of care can be provided by a registered nurse, a licensed practical nurse or a care aide, under the rule.

The rule also increases guidelines for annual assessments of residents’ care needs, which will dictate to what degree operators must exceed the new hourly requirements.

“They’re acknowledging this is a minimum. This is the floor, not the ceiling,” said Toby Edelman, senior policy attorney with the Center for Medicare Advocacy, which has fought for stronger quality and staffing requirements.

Advocates for the health and safety of nursing home residents say operators could attract workers if they pay more. Front-line workers in nursing homes are paid around $17 an hour, according to PHI, a nonprofit that tracks wage data for elder-care workers.

The pandemic exposed staff shortages at nursing homes. A new White House push aims for a remedy

W ASHINGTON (AP) — Vice President Kamala Harris on Monday said the first rule to set minimum staffing levels at federally funded nursing homes and require that a certain portion of the taxpayer dollars they receive go toward wages for care workers is a long-overdue “milestone” that recognizes their value to society.

Harris announced the rules in Washington before she flew to LaCrosse, Wisconsin to meet with nursing home care employees. In the battleground state, the Democratic vice president also held a campaign event focused on abortion rights.

“It is about time that we start to recognize your value and pay you accordingly and give you the structure and support that you deserve,” Harris told a small group of care workers.

The federal government is for the first time requiring nursing homes to have minimum staffing levels after the COVID-19 pandemic exposed grim realities in poorly staffed facilities . The change will mean more staff at these facilities, fewer emergency room visits for residents and peace of mind for caregivers, who will be able to spend more time with their patients, Harris said.

The vice president said that Medicaid, the federal-state health insurance program for lower-income people, pays $125 billion annually to home health care companies, which were not required to report on how they were spending the money. A second rule being finalized Monday will require that 80% of that money be used to pay workers, instead of administrative or overhead costs, Harris said.

“This is about dignity, and it's about dignity that we as a society owe to those in particular who care for the least of these,” she said.

President Joe Biden first announced his plan to set nursing home staffing levels in his 2022 State of the Union address. Current law only requires that nursing homes have “sufficient” staffing, leaving it up to states for interpretation.

The new rules implement a minimum number of hours that staff members spend with residents. They also require a registered nurse to be available around the clock at federally funded facilities, which are home to about 1.2 million people.

Allies of older adults have sought the regulation for decades, but the rules drew pushback from the nursing home industry.

Mark Parkinson, president of the American Health Care Association, which lobbies for care facilities, said Monday in a statement that the organization was disappointed and troubled that the federal government was moving forward with what he said was an “unfunded mandate.”

“It is unconscionable that the administration is finalizing this rule given our nation’s changing demographics and growing caregiver shortage,” Parkinson said. “Issuing a final rule that demands hundreds of thousands of additional caregivers when there’s a nationwide shortfall of nurses just creates an impossible task for providers.”

Wisconsin Republicans echoed the staffing concerns, noting shortages particularly in rural parts of the state. In Elroy, Wisconsin, for instance, an 80-bed nursing home would be required to hire six additional nurses, but “we simply don't have the bodies,” said Wisconsin state Rep. Tony Kurtz.

Noting the added costs and requirements, Republican U.S. Sen. Ron Johnson bluntly insisted to reporters on a conference call that the rule “might sound good. It won’t work.”

Health and Human Services Secretary Xavier Becerra said the change is about setting a standard for quality of care.

“We believe, that with more and more Americans going to nursing homes, it's time to make sure that quality is the standard that everyone strives for,” Becerra said in an interview.

He said the administration listened to feedback from the nursing home industry and is allowing the rule to be phased in with longer timeframes for nursing homes in rural communities and temporary hardship exemptions in places where it's hard to find staff.

The care event marked Harris' third visit to the battleground state this year and is part of Biden's push to earn the support of union workers in his bid for reelection. Republican presidential challenger Donald Trump made inroads with blue-collar workers in his 2016 victory. Biden regularly calls himself the "most pro-union” president in history and has received endorsements from leading labor groups such as the AFL-CIO, the American Federation of Teachers and the American Federation of State, County and Municipal Employees.

Lisa Gordon, a certified nursing assistant who told Harris, “I've been doing this job for 29 years,” said she was grateful that Biden and the vice president were “finally getting something done.”

“I entered this field because I care about taking care of our elderly,” Gordon said during a talk with other care providers, Chiquita Brooks-Lasure, administrator of the Centers for Medicare and Medicaid Services, and April Verrett, secretary-treasurer of the Service Employees International Union.

“Being short-staffed is not taking care of them like they should be,” Gordon said. “They didn't ask to be there. Your residents are your family. They're your loved ones. We need these changes.”

The coronavirus pandemic, which claimed more than 167,000 nursing home residents in the U.S., exposed the poor staffing levels at the facilities and led many workers to leave the industry. Advocates for the elderly and disabled reported residents who were neglected, going without meals and water or kept in soiled diapers for too long. Experts said staffing levels are the most important marker for quality of care.

The new rules call for staffing equivalent to 3.48 hours per resident per day, just over half an hour of it coming from registered nurses. The government said that means a facility with 100 residents would need two or three registered nurses and 10 or 11 nurse aides as well as two additional nurse staff per shift to meet the new standards.

The average U.S. nursing home already has overall caregiver staffing of about 3.6 hours per resident per day, including RN staffing just above the half-hour mark, but the government said a majority of the country’s roughly 15,000 nursing homes would have to add staff under the new regulation.

The new thresholds are still lower than those that had long been eyed by advocates after a landmark 2001 study funded by the Centers for Medicare and Medicaid Services recommended an average of 4.1 hours of nursing care per resident daily.

Associated Press writer Scott Bauer in Madison, Wisconsin, contributed to this report.