How to Grow a Staffing Agency (8 Steps for Growth)

Here’s how to grow a staffing agency: pick a niche, nail your positioning, build candidate pipelines, create client acquisition systems, standardize resume submissions, act on the right metrics, and focus on brand marketing. If done right, paid advertising can also be an effective strategy for growing and scaling a staffing agency. 

I’ve spoken with recruiters and career organizations we’ve partnered with through Rezi Enterprise, and many of them shared similar challenges. 

Some felt stuck spending too much time fixing candidate resumes. Others were chasing clients, competing with bigger players, or plateauing after a few early wins.

Outbound is usually your best bet in the very early stages, but to truly grow and scale, you need more than hustle. It takes a bit of deeper thinking, strategy, and the right systems.

The staffing agencies we’ve seen thriving today are the ones refining their processes with technology, sharpening their positioning, and consistently delivering value to both candidates and clients. I’ve seen how teams that tightened up operations and adopted the right tools were able to boost placements, win repeat business, build client trust, and ultimately grow faster.

In this article, I’ll walk you through how to grow a staffing agency with practical steps and strategies you can start applying right now.

Is It Worth Starting and Growing a Staffing Agency in 2026?

Honestly, it depends. 

Starting a staffing agency, like any normal new business venture, is usually tough. And as of now in 2025, there have been some concerns in the staffing industry, as shared on this Statista report: 

“Reductions in job requisitions from clients emerged as the primary challenge for global staffing firms in 2025. The persistent struggle to find qualified candidates highlights a growing mismatch between available talent and industry demands.”

The demand to find qualified talent is there, but the bar is higher. At the same time, the staffing industry (like many other industries) is shifting. 

Amidst all the noise, there’s still room for staffing agencies to carve out a niche and excel in a specific area. The staffing agencies that will thrive are the ones adapting with technology and consistently delivering value to both clients and candidates. 

How to Grow a Staffing Agency Step-by-Step

Here’s how to grow a staffing agency:

• Focus on a specific niche.
• Refine your positioning and messaging.
• Build candidate pipelines that don’t run dry.
• Create a consistent system for winning clients.
• Win more placements by standardizing resume submissions.
• Track and act on the right metrics.
• Focus on brand marketing. 
• Use ads.

One of the biggest reasons I’ve seen recruiting platforms and staffing agencies grow is that they build a structured approach to growth—something that compounds over time. 

Below, I’ll dive into each step in more detail. 

1. Focus on a specific niche

Focusing on a niche gives you clarity on who you serve, how you market, and why clients should choose you. Being the go-to authority in a specific space also allows you to command higher rates thanks to your specialized expertise.

Here’s how you can approach it: 

• Look at demand. Focus on industries that continue hiring even through disruption, sectors like tech. For instance, healthcare and logistics have shown resilience even with advancements in AI.
• Match your strengths. Lean into markets where you or your team already have knowledge, connections, or credibility. That makes it easier to build trust quickly.
• Validate before committing. Talk to potential clients, check job boards, and use LinkedIn searches to confirm there’s consistent demand for the roles you’d focus on.
• Position yourself clearly. Craft a value proposition that highlights your specialization. For example: “We help early-stage startups find senior software engineers in half the time.”

Double down on the clients that actually drive profit. Use your data to identify which ones are most valuable, then focus your efforts on attracting more of them.

2. Refine your positioning and messaging 

Your positioning is the foundation for all of your marketing and client acquisition efforts. It should resonate with your target clientele and immediately let them know why they should pick you over your competitors. 

It’s not enough to know just who you serve. You need to clearly communicate how you solve a specific problem and why clients and candidates should work with you. 

Here’s how to approach it:

• Define your value proposition. What do you do better or faster than others? It could be turnaround time, candidate quality, industry expertise, and so forth. 
• Tailor your messaging. Speak directly to the pain points of your clients and candidates. For example, busy hiring managers care about speed and trust, while candidates value transparency and career growth.
• Keep it consistent. From your website to LinkedIn outreach to client presentations, your message should always reinforce the same strengths.
• Show proof. Case studies, testimonials, or even simple success metrics build credibility and make your claims more believable.

3. Build candidate pipelines that don’t run dry

If you can consistently deliver qualified candidates, you’ll always have leverage in the market. Clients come and go but the strength of your candidate pipeline is key for keeping your agency running.

Here’s how to build a pipeline that lasts:

• Be proactive. Don’t wait for open roles to start sourcing. Keep building relationships with candidates even when you don’t have an immediate job for them.
• Diversify sourcing channels. LinkedIn is important, but don’t ignore job boards, niche communities, referrals, or alumni networks. Casting a wider net gives you access to untapped talent.
• Nurture relationships. Check in with past candidates, share useful insights, and keep them warm. Candidates who trust you are more likely to return and refer others.
• Use technology. Applicant tracking systems (ATS) and AI sourcing tools can save hours and help you scale without burning yourself and your team out.

Further resources:

• How to Build the Best College Career Service
• Navigating the ‘A.I. Sludge’ Era: A Case for Ethical AI Integration in Modern Hiring
• Why Skills-Based Hiring Matters and How Learning Platforms Can Help You Stay Relevant

4. Create a consistent system for winning clients

Landing one client is good. Building a system that consistently wins clients is what keeps your agency growing. Make your process repeatable, professional, and scalable so that you’re not just reinventing the wheel with every new lead.

A good place to start is by documenting everything you do—outreach, contracts, proposals, and follow-ups—so you can close more deals while saving time.

Here’s a few more things I would add: 

• Refine your outreach. Have a clear process for how you introduce yourself and what you do to your target clientele.
• Qualify early. Not every prospect is worth the effort. Create a simple checklist to make sure prospects fit your niche and budget before investing time.
• Standardize contracts. Use clear, professional templates that outline fees, guarantees, and terms upfront. It saves time, builds trust, and protects your business.
• Systematize proposals. Keep proposals and pitch decks consistent with reusable templates. This makes your agency look sharp and saves hours.

5. Win more placements by standardizing resume submissions

To be frank, I didn’t expect how extremely common messy, inconsistent resumes were for staffing agencies until I saw firsthand how many of the ones we’ve partnered with at Rezi struggle with it.

Clients don’t want to waste time trying to decode formatting issues or sift through resumes that all look different. Inconsistent submissions genuinely hurt credibility and slow down placements.

Rezi Enterprise helps you solve this problem by making sure every candidate resume you get is automatically formatted to professional standards that pass ATS scans. That means each submission is polished, consistent with your agency’s brand, and easy for clients to review. The result is faster feedback, quicker placements, and more repeat business because clients know they can rely on you for quality every time.

Relevant articles:

• How Organizations Increase Revenue With Rezi Enterprise
• How to Reformat a Resume
• Common Resume Mistakes Among Students & Fresh Grads

6. Track and act on the right metrics

What gets measured gets managed. Too many agencies fixate over vanity numbers like total outreach or number of resumes sent without focusing on the metrics that actually drive growth. The most effective staffing teams track the numbers that reveal efficiency, quality, and client trust.

However, tracking is only half the battle. You also need to act on the data. If submissions aren’t converting, improve resume quality. If feedback is slow, streamline communication. 

Here are a few metrics to consider:

• Time-to-submit: Speed is a competitive advantage; faster submissions usually mean more placements.
• Time-to-fill: The total time from requisition to hire, a key client satisfaction metric.
• Submission-to-interview ratio: Shows candidate quality and how well you’re matching roles.
• Interview-to-offer ratio: Another quality check: are candidates making it through the funnel?
• Placement rate: The percentage of roles you successfully fill.
• Client retention/repeat business: Indicates trust and long-term relationships.
• Gross margin per placement: Ensures you’re scaling profitably, not just busily.
• Candidate satisfaction/NPS: Happy candidates refer others and strengthen your pipeline.

7. Focus on brand marketing

Brand marketing compounds. The more consistent and trustworthy your presence, the easier it becomes to attract new business and talent without chasing every lead. This is crucial for long-term growth. 

Your brand is your reputation. Clients want to work with agencies they trust, and candidates want to feel confident they’re in good hands. If you look like just another recruiter spamming LinkedIn, you’ll blend in with the noise.

Here’s how to stand out:

• Show up where your audience is. Share expert insights on LinkedIn, industry forums, or niche communities. Position yourself as someone who understands both client needs and candidate struggles.
• Invest in content. Blogs, case studies, and success stories showcase your expertise and build credibility over time.
• Highlight testimonials. Nothing builds trust faster than proof from happy clients and placed candidates.
• Keep it consistent. From your website to your outreach emails, your tone, style, and messaging should always align.

8. Use ads

Ads are a costly strategy, but they can accelerate your growth. 

With that in mind, spraying and praying job listings everywhere isn’t effective. It’s all about putting the right message in front of the right people at the right time. 

Here are a few tips to make ads work for you:

• Target clients, not just candidates. Many agencies only run job ads. Try campaigns that speak directly to hiring managers and decision-makers in your niche.
• Leverage LinkedIn. LinkedIn lets you target by job title, industry, and company size, which is ideal for B2B outreach. Industry-specific job boards or communities can also deliver strong ROI.
• Test small, scale what works. Start with a modest budget, measure cost per lead or placement, and double down on the channels that perform.
• Use retargeting. Keep your agency top-of-mind for prospects who visit your site but don’t reach out right away.

The Next Step: Scaling Your Staffing Agency

Scaling is more about doubling down on creating and refining systems. That being said, here are a few proven ways to scale your staffing agency:

• Leverage technology. Automate wherever possible, such as resume reformatting and tracking, to free up more time.
• Hire and train systematically. Document your processes so new recruiters can plug in quickly. 
• Expand strategically. Consider new niches or regions once your first niche is stable and profitable. 
• Focus more on client retention. Incentivize long-term contracts and provide premium service to existing clients. It’s usually easier (and faster) to grow with loyal clients than constantly chasing new ones.
• Track profitability. Don’t just focus on placements, but double down on scaling margins by monitoring the cost of delivery against revenue. 

Summary

Let’s recap how to grow a staffing agency:

• Pick a niche. Specialize in one area first so you stand out and build authority.
• Get your positioning and messaging right. Establish why clients and candidates should choose you.
• Build candidate pipelines that don’t run dry. Source proactively, diversify channels, and nurture relationships.
• Create a consistent system for winning clients. Document outreach, proposals, and contracts to scale smoothly.
• Win more placements by standardizing resume submissions. Present candidates in a consistent, professional format that builds trust.
• Track and act on the right metrics. Focus on speed, quality, and retention.
• Focus on brand marketing. This sets you up for long-term growth. 
• Use ads. Target clients and candidates strategically. Test small and then scale what works.

If you want a white-labeled resume platform that removes bad resumes from your pipeline and helps you win more placements with AI-tailored, branded resumes, you can request a demo for Rezi Enterprise.

FAQs

What’s a good profit margin for staffing agencies? 

Anywhere from 15% to 25% is a solid target for staffing agency profit margins, while 30% to 40% is considered excellent. Margins often vary by industry and role type. Niche or specialized placements typically command higher margins whereas high-volume entry-level roles tend to be slimmer.

How to market my staffing agency and get more clients?

Outbound outreach is highly effective, especially at the early stages. It’s also effective to focus on building your reputation and professional brand through LinkedIn, a polished website, and relevant industry case studies. At the same time, proactively network at events, use warm introductions, and run targeted outreach campaigns. Agencies that showcase results (like faster time-to-submit or stronger placements) stand out more than those that rely on generic sales pitches.

What mistakes do staffing agencies often make?

Common mistakes include relying too heavily on a single client, trying to cover too many industries, and sending poorly formatted or rushed candidate submissions. Reputation is everything. Many staffing agencies also miss opportunities by not tracking placement metrics and not setting up systems that allow them to scale.