Staffing or Employing

searcher profile

May 17, 2022

by a searcher from Yeshiva University in New York, NY, USA

Would you rather own a staffing business or a outsourced employment company?

The difference --

Staffing: you provide a third party with employees and it is on them to manage the employees

Employment: you manage the employees for the third party.

Staffing has lower margins but also less headaches from employees.

1
2
91
Replies
2
commentor profile
Reply by a searcher
from New Mexico State University in Denver, CO, USA
Owning a staffing business I am biased, but the margins are much higher doing staffing in my opinion and experience. A solid staffing company in professional ranks (IT, Finance, Accounting, HIT, etc.) is going to have 40% margins on cost of employment. If you are doing high volume the margins will be lower and the headache higher for sure. What % margins are you finding for employment outsourcing or PEO's?
commentor profile
Reply by a professional
from University of Richmond in Boston, MA, USA
I agree w/Jarvis that staffing has higher margins. It comes w/it's own share of headaches, such as candidates not showing up for interviews/work, but I would much rather own a staffing firm than an outsourced employment company.
Join the discussion