Temp staffing agency for outsourcing companies
Supply temporary and contract workers to outsourcing firms and earn a margin on every hour worked.
- £3k-15k
- Full-time
- From home
Estimates for a small start in the UK, not guarantees.
Official data
14,284 UK companies in this field, 27% registered in the last 2 years
SIC 78300 “Human resources provision and management of human resources functions”. Source: Companies House, November 2026.
What it is
A small agency that supplies temporary and contract staff to outsourcing companies, for example for seasonal peaks or new contracts. You recruit, check and pay the workers, and invoice the client.
Your first three steps
- Speak to a few outsourcing firms about their temp needs and typical pay rates, then decide on a niche
- Compare agency payroll software or an umbrella or payroll partner, and get quotes for insurance
- Create terms of business, right-to-work checking procedures and a small pool of vetted candidates before pitching for your first contract
Who pays
Outsourcing and business services firms that need flexible staff at short notice.
How it makes money
You charge the client an hourly rate and pay the worker less. The difference covers employer costs, your overheads and your profit. Regular temps on repeat contracts give steadier income than one-off placements.
Skills that help
- Sales and building long-term client relationships
- Careful with paperwork, payroll and compliance
- Calm at handling last-minute staffing gaps
Watch out for
- Cash flow: you usually pay workers weekly before clients pay you, so check your working capital or invoice finance options
- Check agency worker rules (Agency Workers Regulations 2010), holiday pay, PAYE, National Insurance and pension auto-enrolment duties
- Employer's liability and professional indemnity insurance, and public liability, are worth checking before you place anyone
- Right-to-work checks must be done properly, as errors can lead to penalties
- Some sectors, such as food processing, packaging or agriculture, may need a Gangmasters licence, check with the GLAA
- Consider taking advice from an accountant on VAT and margin handling
Deep research report · UK
Everything you need to start: temp staffing agency for outsourcing companies
Researched with live web search for United Kingdom: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a temp staffing agency?
Startup costs are estimates, typically around £3,000 to £15,000, depending on your systems and insurance. Cash flow matters, as you usually pay workers weekly before clients pay you, so check your working capital or invoice finance options.
What rules should I check before supplying temporary workers?
Check the Agency Workers Regulations 2010, holiday pay, PAYE, National Insurance and pension auto-enrolment duties. Also check right-to-work checks, insurance such as employer's liability, and any Gangmasters licence needs with the GLAA.
How much can a temp staffing agency earn?
Monthly revenue is estimated at typically around £1,500 to £7,500, depending on the hours your workers cover and your margin. The estimates assume at least around 25 hours a week. Consider taking advice from an accountant on VAT and margin handling.
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