Staffing or Employing

by a searcher from Yeshiva University

1 year ago

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 like
84 views
2 comments

professional from University of Richmond

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.

1 year ago | like reply | 0 likes

searcher from New Mexico State University - College of Business

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?

1 year ago | like reply | 0 likes

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