Why the market offers space for new players
The employment agency sector is not standing still. According to the annual figures of the employment agency sector for 2024, published by the industry organization ABU, the total number of hours worked decreased by 8% compared to a year earlier. Revenue remained stable with a decline of only 1%. Fewer hours, but relatively stable revenues: this means that the value per hour is increasing. Those who enter the market with a sharp profile and a clear niche can capitalize on this smartly.
Large agencies are slow and generic. Small, specialized intermediaries can adapt more quickly, build more personal relationships with clients, and know their target audience inside and out. That is the opening.
What to expect
Those who think that starting an employment agency is all about matching people are right, but that is only the fun part. Behind the scenes, there are obligations that should not be underestimated.
Payroll administration is complex and error-prone. You pay the wages of temporary workers upfront, even if the client has not yet paid. This requires a healthy liquidity position. Additionally, you have to deal with collective labor agreement obligations, sick leave and reintegration, tax returns, and liability issues. Treating this as a side issue will lead to problems sooner or later.
And then there is the legislation and regulations surrounding the employment itself, which have been significantly tightened in recent years. The Act on the Provision of Labor, certification requirements, membership in ABU or NBBU: these are not details.
Starting without carrying the administrative burden alone
This is the difference between startups that survive and those that grow. Most new intermediaries try to handle everything themselves. Understandably, because overhead feels like a cost item. But time spent on payroll administration and accounts receivable management does not go towards finding new clients.
The smart approach is to outsource the back office to a party that has specifically built this for employment agencies. A party that arranges the pre-financing, takes over payroll processing, and monitors the legal framework. Starting an employment agency without getting stuck in administration: that is exactly what specialized back office partners are built for.
Such a partner typically works with an online portal. Entering hours, viewing invoices, reporting changes: everything in one place. Yaper Backoffice is an example of this; a system specifically built for intermediaries who want to focus on the work itself, not the hassle around it.
What a good business plan must not miss
Starting as an entrepreneur always requires a clear plan, and this is especially true for an employment agency. Define your niche sharply: are you targeting a specific sector, a certain region, or a particular target group? The broader you start, the harder it is to differentiate yourself.
Calculate your liquidity needs realistically. How many weeks can you pre-finance wages without your cash flow becoming tight? Suppose you have ten temporary workers who work forty hours a week: then you have a significant amount to bridge weekly before the invoice is paid by the client.
Also, consciously choose your first clients. One large client who wants thirty people immediately is tempting, but it can overload your back office if you are not yet operational at scale. Start controlled, scale up once the processes are in place.
The first step is not a big leap
Building an employment agency does not have to start with a large office and a full team. It starts with a sharp idea, a solid network, and the willingness to organize the operational burden smartly. Those who handle this well have a real competitive advantage. The demand for flexible staff is not going away. The question is only who is well positioned enough to meet that demand.
