Staffing agencies in San Antonio: who they are, the Texas rules and how to compare quotes

San Antonio's staffing market is overwhelmingly temp help: 95% of the people on agency payrolls work for temporary help firms, most of them at someone else's site. That makes the quote, not the agency's website, the thing to compare, and the cheapest markup is not always the cheapest hire.

Market report7 min readPublished

The San Antonio metro area had 314 staffing agency establishments in 2023, employing 16,968 people on a $748 million payroll (Census County Business Patterns). Temporary help firms ran 235 of them and carried 16,086 of the employees, mostly temps placed at client sites; the rest were 52 placement agencies and 27 executive search offices. Bexar County held 273. To choose one, match the agency type to the job, get every fee in the quote and check insurance and references.

  • 314 staffing establishments in the San Antonio metro employ 16,968 people; 16,086 of them are on temporary help payrolls.
  • Temp help locations average 68 employees each, and 54 of them have 100 or more.
  • Texas Labor Code chapter 92 sets rules for day labor firms that run a labor hall, and lets cities over one million people set stricter ones.
  • Bexar County has 21 of the 502 professional employer organization licenses on the state's TDLR register.
  • In the worked example, the agency with the lowest markup costs $1,524 more per worker once its conversion fee is counted.
On this page

This page is for three readers: San Antonio employers deciding which agency to call, job seekers working out which agencies are worth registering with, and B2B sellers whose customers are staffing firms.

San Antonio staffing agencies in Census data

The figures cover the San Antonio-New Braunfels, TX Metro Area (CBSA 41700) and two industry codes: NAICS 56131 (Employment Placement Agencies and Executive Search Services) and NAICS 56132 (Temporary Help Services). Source: US Census Bureau, County Business Patterns 2023.

Measure (2023)San Antonio metro
Establishments314
Employees (week of March 12)16,968
Annual payroll$747,992,000
Average employees per establishment54.0
Average annual pay$44,083
Share of US establishments0.61% of 51,830

No SEC-registered listed staffing company has its business address in the metro, so every agency here is either private or a branch of a company based elsewhere.

Why 314 agencies employ almost 17,000 people

A temp agency is the legal employer of the people it places. The Census Bureau's definition of temporary help services says the individuals supplied "are employees of the temporary help services establishment," while placement and search firms place people who are not their employees. So the employee count below is mostly temps on assignment at warehouses, offices and clinics, not recruiters.

Industry (NAICS, 2023)EstablishmentsEmployeesAnnual payrollAverage annual pay
Temporary help services (561320)23516,086$712,840,000$44,314
Employment placement agencies (561311)52721$22,727,000$31,521
Executive search services (561312)27161$12,425,000$77,174

The industry rows come from the same County Business Patterns metro file. Temp help averages 68 employees per location; placement agencies average 14 and search offices 6.

Size and location

Employees per establishmentEstablishments
1 to 4115
5 to 934
10 to 1919
20 to 4950
50 to 99Not published
100 to 249Not published
250 to 499Not published
500 to 999Not published
1,000 or moreNot published

The Census Bureau doesn't publish the classes from 50 employees up for the two codes combined, but it does for temp help alone: 38 temp help locations have 50 to 99 employees, 42 have 100 to 249 and 10 have 250 to 499. That leaves two temp help locations in the unpublished 500-plus classes (235 less the published cells). In broader bands, 168 establishments have 1 to 19 employees.

CountyEstablishmentsEmployees
Bexar County, Texas27315,433
Comal County, Texas21Not reported (high-noise figure)
Guadalupe County, Texas8Not reported (high-noise figure)
Kendall County, Texas6Not reported (high-noise figure)

"Not reported" means the Census Bureau's confidentiality noise changed the figure by 5% or more, so it isn't shown here. Bexar County has 87% of the locations and 91% of the employees.

County Business Patterns counts establishments with paid employees, not companies, so a national firm with four San Antonio branches counts four times. Self-employed recruiters are excluded, employment is a single week in March, and professional employer organizations (NAICS 561330: 38 locations and 2,507 employees here) are left out.

Which kind of agency you need

TypeUse it forHow you paySan Antonio count
Day labor or light industrial tempShift work, peaks, warehouse and event crewsHourly bill ratePart of 235 temp help locations
Office, healthcare or IT contractCover for leave, projects, specialist shiftsHourly bill ratePart of 235 temp help locations
Temp-to-hireA trial before you hireBill rate, then a conversion fee if you hire earlyOffered by most temp firms
Direct hire placementA permanent hire on your payrollA one-off fee, usually a share of first-year pay52 placement agencies
Executive searchSenior and specialist rolesRetainer or contingency fee27 search offices
Professional employer organization (PEO)Payroll, benefits and HR for your existing staffA per-employee or percentage fee38 locations; licensed by TDLR

Texas rules that apply in San Antonio

  • Labor halls. Texas Labor Code chapter 92 covers "temporary common worker employers": firms that supply unskilled labor and run a labor hall where workers gather and are dispatched. It exempts skilled temp agencies, PEOs and firms without a labor hall (section 92.012). A covered firm is the employer of the workers it supplies (92.021) and must keep records of each worker's hours, work locations, wages and deductions for two years (92.022). Section 92.013 lets a city of more than one million people set stricter standards, so in San Antonio ask whether any city requirement applies to the hall you use.
  • PEOs need a state license. The Texas Department of Licensing and Regulation's data lists 502 PEO licenses; 367 belong to out-of-state firms and 21 to firms with a Bexar County business address. A staffing agency that only supplies temps doesn't need one.
  • Pay floor. Texas adopts the federal $7.25 minimum wage by reference, so local temp rates are set by the market.
  • Injury cover. Workers' compensation is elective for private employers in Texas (Labor Code 406.002), so ask for the agency's certificate before workers start.

Worked example: three quotes for the same 400 hours

Illustrative example. The company, agencies and rates are invented to show the arithmetic.

Mission Reach Fulfillment (missionreach.example), a distribution center on the South Side, needs ten pickers for about ten weeks and plans to hire the good ones after 400 hours. Each agency pays the worker $17.00 an hour.

AgencyMarkupBill rate400 hoursConversion fee at 400 hoursCost per worker
A38%$23.46$9,384.00$1,500 before 520 hours$10,884.00
B42%$24.14$9,656.00None after 400 hours$9,656.00
C35%$22.95$9,180.00$2,000 before 520 hours$11,180.00

Agency C has the lowest markup and the highest cost: $1,524.00 more per worker than B, or $15,240.00 across ten. Ask every agency for its conversion schedule in hours, not weeks, before you compare markups.

Shortlist and vet an agency

  1. Write the brief: role, shifts, headcount, start date, site, and what your own staff earn for the same work.
  2. Build a long list from the American Staffing Association member directory and ClearlyRated's San Antonio listings (141 firms, with client and talent ratings).
  3. Check the entity on the Texas Secretary of State's SOSDirect, and if the firm is really a PEO, on TDLR's license search.
  4. Ask for the insurance paperwork: a workers' compensation certificate (or written confirmation it has none) and general liability, both naming you.
  5. Get the full quote in writing: pay rate, markup, overtime, holiday pay and the conversion schedule.
  6. Call two references with similar roles, then pilot one shift before your peak.

If you're looking for work

Legitimate agencies are paid by the employer. The Federal Trade Commission's advice is blunt: if a placement firm asks you for a fee, especially in advance, walk away. Register with two or three agencies that place your kind of work, and compare them with the free services at Workforce Solutions Alamo, which runs hiring events across a 13-county region. City of San Antonio residents who meet the income limits can get training paid for through Ready to Work SA.

Selling to San Antonio staffing agencies

Establishment sizeCountWho usually decides
1 to 19 employees168The owner, often also the lead recruiter
20 to 49 employees50Branch or operations manager, with the owner signing
Temp help locations with 50 or moreAt least 92Regional operations, safety, finance or HR technology; national brands often buy centrally

The big temp branches buy for volume: drug and background screening, onboarding and timekeeping, safety training, protective equipment and worker transport. Placement and search offices buy candidate data, applicant tracking and job advertising. Read each agency's job postings to sort them: a branch posting forklift and picker jobs in the I-35 corridor needs different things from a boutique placing nurses. At volume, that sorting is the slow part; Bebop finds agencies that match a description and explains why each fits. For the list-building method, see how to build a prospect list.

Email to a temp branch manager
Subject: Same-day screens for your [role] starts

Hi [first name],

I saw [agency] is filling [number] [role] openings for sites in [area] this month. When a client wants people on Monday, waiting on drug screen results is often what pushes the start date.

We run a mobile clinic that does pre-placement drug screens and basic physicals at your branch, with results the same day.

Would it help to price one hiring day for your next start?

[Your name]

Local sources

SourceWhat it gives you
Workforce Solutions AlamoThe public workforce board: hiring events and recruiting help for employers, job search help for workers
Ready to Work SACity-funded training and job placement for eligible San Antonio residents, with an employer partner network
TDLR professional employer organizationsPEO licensing and license search
SOSDirectTexas Secretary of State business entity search
ClearlyRated: San Antonio staffingAgencies with client and talent ratings
ASA member directoryNational association members by location and job type
San Antonio Chamber of CommerceThe regional chamber
San Antonio Hispanic Chamber of CommerceMember businesses and events
greater:SATXThe regional economic development partnership, for employer expansions

Next step: compare the rules and numbers in another Texas market in the report on staffing agencies in El Paso.

Sources

Written by the Bebop team at Blackpearl Group. Published .

Questions people ask

How many staffing agencies are there in San Antonio?

Census County Business Patterns counted 314 staffing agency establishments in the San Antonio-New Braunfels metro area in 2023, employing 16,968 people. That's 235 temporary help locations, 52 employment placement agencies and 27 executive search offices, with 273 in Bexar County. It's a count of branches with payroll, not of companies, and it misses recruiters who work alone.

Do staffing agencies in San Antonio charge job seekers?

Reputable ones don't. Temp agencies earn their margin from the employer's bill rate, and placement firms are usually paid a fee by the hiring company. The Federal Trade Commission advises walking away from any placement firm that asks you for a fee, especially in advance. Texas Labor Code section 92.025 also stops labor hall firms charging workers for required safety equipment or for cashing their pay.

Does a staffing agency need a license in Texas?

Not as a staffing agency. The state license in this field is for professional employer organizations, issued by the Texas Department of Licensing and Regulation; its data lists 502 PEO licenses, 21 with a Bexar County address. Day labor firms that run a labor hall must follow Labor Code chapter 92 on facilities, records and charges. Any agency still needs a registered business entity, which you can check on SOSDirect.

Is a temp-to-hire worker cheaper than a direct hire?

It depends on the conversion schedule more than the markup. In an illustrative example with a $17.00 pay rate and 400 hours before hiring, an agency with a 42% markup and no fee after 400 hours cost $9,656.00 per worker, while one with a 35% markup and a $2,000 fee before 520 hours cost $11,180.00. Ask for the schedule in hours before you compare.

What's the difference between a staffing agency and a PEO?

A staffing agency recruits people and, for temp work, employs them while they work at your site for a limited time. A professional employer organization co-employs your existing staff to run payroll, benefits and HR administration. Census counts them separately (NAICS 56132 and 561330), and in Texas only the PEO needs a license from the Department of Licensing and Regulation.

Find the San Antonio agencies that fit your offer

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