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The technology industry is constantly evolving and expanding, creating a high demand for skilled IT professionals. As a result, starting an IT staffing firm can be a lucrative and rewarding business venture. If you’re considering launching your own IT staffing firm, this guide will help you get started on the right foot.

To start an IT staffing firm, you can categorize the duties into “Front Office” and “Back Office” tasks, as we have outlined previously. The front office tasks are customer-facing and directly involve your clients and candidates, while the back office tasks are more focused on internal operations and management. Here’s a breakdown:

Front Office Duties:

  1. Market Research: Conduct research to understand the IT job market, identify client needs, and determine the demand for specific IT skills.
  2. Sales and Business Development: Actively reach out to potential clients, build relationships, and secure contracts for staffing services. Develop and implement strategies to grow your client base.
  3. Client Relationship Management: Maintain strong relationships with clients by providing excellent customer service, understanding their staffing needs, and ensuring their satisfaction.
  4. Candidate Sourcing and Screening: Source IT candidates, conduct interviews, assess technical skills, and evaluate cultural fit with potential employers.
  5. Client and Candidate Networking: Attend industry events, job fairs, and join professional organizations to connect with potential clients and candidates.
  6. Online Presence: Establish and maintain a professional website and a presence on social media platforms to showcase your services and reach clients and candidates.
  7. Marketing and Promotion: Develop marketing strategies to promote your firm’s services, including content marketing, email campaigns, and branding efforts.
  8. Client Agreements: Create and manage contracts and agreements with clients for staffing services, ensuring legal compliance.

Back Office Duties:

  1. Business Planning: Develop a comprehensive business plan that outlines your firm’s goals, strategies, and financial projections.
  2. Legal and Regulatory Compliance: Ensure that your business is registered, licensed, and compliant with all local, state, and federal regulations. Draft contracts and agreements for clients and candidates.
  3. Secure Payroll Funding: If you are going to send IT professionals out on short term fixed contracts, also known as “contract staffing”, you will need to secure payroll funding. This funding helps you pay your employees before your clients pay your invoices. It may take 60-90 days to get paid, which could put a hefty financial burden on your firm if you do not have a 3rd party source of payroll funding.
  4. Tools and Systems: Running a back office is no joke. You will need some serious systems to help make things easy. Things like payroll, time keeping, accounting, and more need to be supported by these systems. So, make sure you have them ready and know how to use them once you get started.
  5. Human Resources: If you are going to be staffing you are going to need some HR support. As many staffing firms are the legal employer of their temporary employees, they are faced with HR issues and interface with laws and regulations. Having an HR professional available to help is key.
  6. Training and Development: Consider offering training and development programs to enhance the qualifications of your candidates, making them more attractive to clients.
  7. Compliance and Quality Control: Ensure that the candidates you provide meet legal and industry standards, including compliance with employment laws. Also ensure your firm complies with all relevant laws related to privacy, employment, insurance standards and more, if you are going to be the legal employer of your temporary employees while they are on assignment.
  8. Data Management: Safeguard and manage sensitive client and candidate data, ensuring privacy and security.
  9. Operations Monitoring and Adaptation: Stay up-to-date with industry trends and changes in technology, and monitor the performance of your business. Be prepared to adapt your strategies and operations as needed.


Can I outsource my back office? Yes!

Some start up staffing firms decide that the back office takes too much time and is too complex. They find their time is much better spent sourcing the best candidates for their clients. These firms decide to outsource their back office by partnering with an Employer of Record (EOR) provider. 

What do EORs cover?

  • Payroll Funding: Payroll funding involves securing the necessary capital to cover employee salaries and other payroll-related expenses. This is crucial for ensuring that your staffing firm can meet its financial obligations on time.
  • Payroll Administration: Payroll administration encompasses all tasks related to processing employee salaries, taxes, and benefits. It ensures that your employees are compensated accurately and on schedule while complying with tax regulations and employment laws.
  • Onboarding: Onboarding refers to the process of integrating new hires into your staffing firm. This includes orientation, training, and the completion of paperwork, ensuring that new employees are familiar with the company’s policies and procedures.
  • Credentialing: Credentialing involves verifying the qualifications, certifications, and background of candidates to ensure they meet the necessary requirements for the positions you are staffing. It helps ensure that candidates are qualified for the roles they are placed in.
  • Insurance: Managing insurance involves obtaining and maintaining the necessary insurance policies to protect your staffing firm and its employees. This may include liability insurance, workers’ compensation, and other coverage to mitigate potential risks.
  • Health Benefits: Health benefits include managing and providing healthcare options to your employees. This may involve selecting and offering health insurance plans and ensuring compliance with healthcare regulations.
  • Time and Attendance: Time and attendance systems are used to track and record employee work hours. These systems help in calculating wages, monitoring attendance, and ensuring accurate payroll processing.
  • Back Office Software: Back office software refers to the technology and tools used to manage the internal operations of your staffing firm. This may include applicant tracking systems (ATS), financial software, data management tools, and other software solutions to streamline and optimize various back-office tasks.

By organizing your tasks into front office and back office duties, you can better focus on the customer-facing aspects of your IT staffing firm while efficiently managing internal operations and compliance requirements. This structure can help you build a successful staffing business that provides valuable services to your clients and candidates. Additionally if you decide to outsource your back office operations to an EOR, you could reserve even more time to focus on revenue generating activities.

Starting an IT staffing firm can be a rewarding journey if you have the passion and commitment to succeed. By following these steps and continuously learning and adapting to industry changes, you can build a successful IT staffing firm that provides valuable services to both clients and job seekers in the ever-evolving world of technology. Remember that patience, persistence, and a dedication to excellence will be key to your long-term success in the IT staffing industry. Good luck on your entrepreneurial journey!

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