Staffing or Employing

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

4yrs ago

Staffing or Employing

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.

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reply by a searcher 4yrs ago
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?

reply by a professional 4yrs ago
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.