/install afrexai-staffing-agency
Staffing Agency Operations
Run a staffing agency with hard numbers. Covers temp, temp-to-hire, and direct placement across light industrial, clerical, healthcare, and IT verticals.
Billing & Markup Rates
| Vertical | Bill Rate Range | Typical Markup | Temp-to-Hire Fee |
|---|---|---|---|
| Light Industrial | $15-22/hr | 35-55% | 15-25% annual salary |
| Clerical/Admin | $18-30/hr | 40-60% | 20-30% annual salary |
| Healthcare (CNA/LPN) | $22-45/hr | 35-50% | $3,000-8,000 flat |
| IT/Technical | $45-150/hr | 30-45% | 20-25% annual salary |
| Accounting/Finance | $25-65/hr | 40-55% | 20-30% annual salary |
| Executive Search | N/A | N/A | 25-33% annual salary (retained) |
Gross Margin Targets
- Temp staffing: 22-28% gross margin (after payroll burden)
- Temp-to-hire: 25-35% blended
- Direct placement: 80-90% (fee minus recruiter cost)
- Blended agency target: 28-32% gross margin
Payroll Burden (on top of pay rate)
| Component | Rate |
|---|---|
| FICA (employer share) | 7.65% |
| FUTA | 0.6% (first $7K) |
| SUTA | 1.5-5.4% (state-dependent) |
| Workers' Comp | 1-15% (industry-dependent) |
| ACA compliance (30+ hrs) | $350-550/mo per employee |
| General liability | 0.5-1.5% of payroll |
| Total burden | 12-30% of pay rate |
Key Metrics (Weekly Dashboard)
| Metric | Target | Red Flag |
|---|---|---|
| Fill rate | >85% | \x3C70% |
| Time-to-fill | \x3C3 days (light industrial), \x3C10 days (professional) | >7 / >21 |
| Gross margin % | >25% | \x3C20% |
| Temp turnover (weekly) | \x3C8% | >15% |
| Recruiter productivity | 8-12 placements/week (temp), 2-4/month (perm) | \x3C5 / \x3C1 |
| Days sales outstanding (DSO) | \x3C35 days | >50 days |
| Client retention (annual) | >80% | \x3C65% |
| Workers' comp mod rate | \x3C1.0 | >1.2 |
Compliance Requirements
Federal
- I-9 verification — within 3 business days of start. E-Verify if government contracts. Fines: $252-$2,507 per form (first offense), $2,507+ repeat.
- ACA employer mandate — if 50+ FTE, offer coverage to anyone averaging 30+ hrs/week. Penalty: $2,970/employee (2026).
- FLSA — joint employer liability. You AND the client can be liable for wage violations.
- OSHA — staffing agency shares responsibility for worksite safety. Must conduct site assessments.
State-Specific
- Licensing — required in: CA, FL, IL, MA, NJ, NY, TX, and others. Fees: $100-$5,000. Some require surety bonds ($10K-$100K).
- Pay transparency — CA, CO, NY, WA require pay ranges in job postings.
- Ban-the-box — 37 states restrict criminal history questions on applications.
- Temp worker bills of rights — IL (2024), NJ (2023) require equal pay/benefits parity. More states following.
Technology Stack Costs
| System | Monthly Cost | Purpose |
|---|---|---|
| ATS (Bullhorn/JobDiva) | $100-200/user | Applicant tracking, client management |
| VMS integration | $500-2,000 | Vendor management system connectivity |
| Payroll/billing (TempWorks/Avionte) | $5-15/employee/month | Payroll processing, invoicing |
| Background checks | $25-75/check | Pre-employment screening |
| Drug testing | $30-60/test | DOT and client requirements |
| Job board posting | $300-1,200/month | Indeed, LinkedIn, ZipRecruiter |
| Workers' comp (PEO vs direct) | 3-12% of payroll | Coverage and claims management |
Growth Playbook
Stage 1: $0-$500K revenue
- Solo owner-operator + 1 recruiter
- Single vertical focus (pick one: light industrial OR clerical)
- 15-30 temps on assignment at any time
- Startup costs: $20K-$75K (licensing, insurance, payroll funding)
- Critical: secure payroll funding line — you pay temps weekly, clients pay net-30
Stage 2: $500K-$2M revenue
- 3-5 internal staff (recruiters + account manager)
- Add second vertical
- 50-100 temps on assignment
- Invest in ATS, systematize onboarding
- Workers' comp mod rate becomes make-or-break
Stage 3: $2M-$10M revenue
- Branch office or second market
- Dedicated sales team vs recruiting team
- 150-500+ temps on assignment
- VMS/MSP program participation
- Consider direct placement division (higher margins)
Stage 4: $10M+ revenue
- Multi-market, multi-vertical
- M&A for geographic expansion
- Technology platform investment
- Enterprise MSP contracts
- Exit multiples: 0.5-1.5x revenue, 4-8x EBITDA
Cash Flow Warning
Staffing is a cash-intensive business. You fund payroll before collecting from clients.
| Revenue Level | Working Capital Needed |
|---|---|
| $500K/yr | $40-80K credit line |
| $2M/yr | $150-300K credit line |
| $10M/yr | $750K-$1.5M credit line |
Factoring (selling invoices at 2-5% discount) is common for agencies under $5M. Transition to traditional LOC as you scale.
Built by AfrexAI — AI agents that actually know your industry. Get the full Recruitment Context Pack ($47) or try the free AI Revenue Calculator.
- Make sure OpenClaw is installed (local or Docker)
- Run the install command in chat:
/install afrexai-staffing-agency - After installation, invoke the skill by name or use
/afrexai-staffing-agency - Provide required inputs per the skill's parameter spec and get structured output
What is Staffing Agency Operations?
Manage staffing agency finances, compliance, and operations across multiple verticals, optimizing billing, margins, payroll burden, and key performance metrics. It is an AI Agent Skill for Claude Code / OpenClaw, with 369 downloads so far.
How do I install Staffing Agency Operations?
Run "/install afrexai-staffing-agency" in the OpenClaw or Claude Code chat to install it in one step — no extra setup required.
Is Staffing Agency Operations free?
Yes, Staffing Agency Operations is completely free (open-source). You can download, install and use it at no cost.
Which platforms does Staffing Agency Operations support?
Staffing Agency Operations is cross-platform and runs anywhere OpenClaw / Claude Code is available (cross-platform).
Who created Staffing Agency Operations?
It is built and maintained by 1kalin (@1kalin); the current version is v1.0.0.