In North America, there are estimated to be more than 25,000 staffing and recruiting agencies, with nearly 50,000 offices in the U.S. alone. After the ups and downs the workforce experienced the past few years, businesses are looking for solutions for future growth, but with cost-cutting solutions. This is where staffing services excel.
Staffing companies can save your company time and money by minimizing expenses associated with training new hires, freeing up valuable time, and executing employee-management-related tasks. A common misconception is that partnering with a staffing company is expensive. The American Staffing Association outlines the components that factor into a staffing company’s bill rate and how net profit is calculated.
If a staffing company pays an average hourly rate, for example, $17, it would have to mark up that pay rate by 51.5% to account for operating expenses, legally mandated labor costs, like unemployment and workers’ compensation, and the industry’s national average net profit rate of 3.3%. This results in an hourly bill rate of $25.76.
Partnering with a staffing company is not just cost-efficient but is a strategic investment for your business’ success. Let’s look at the benefits they provide employers.
Maintaining a Passive Talent Pool
While businesses only recruit and seek talent when filling an open job position, staffing agencies are constantly connecting with professionals and building relationships with those who are either actively looking for a job or who are just open to test the waters of the market. However, creating a deep talent pool not only takes time and energy, but maintaining it can be just as difficult.
By teaming up with a staffing company, businesses can expand their talent reach exponentially, while staying focused on company operations.
Recruiting Workers for Direct Hire
When unemployment rates are low, it usually means we’re in a job-seekers’ market. This means employees may be open to seeking opportunities outside their current positions. These individuals could be passive talent who wouldn’t normally apply for an open position but would be willing to speak with a recruiter if the job position was intriguing enough.
This is where staffing companies shine. By seeking out professionals who fit the culture and have the values and skills needed to excel in the open position, staffing agencies can find the right person and place them in a full-time position either through recruiting or accessing the pipeline of talent staffing agencies have at all times.
Allowing Businesses to Hire Through Evaluation
As companies adjust to the current job market, hiring managers likewise are adjusting their traditional views on which workers would be a good fit for open positions, looking past customary requirements. However, without checking off all the boxes, the question remains if the candidate has what it takes to excel in their position.
Staffing companies, like Express Employment Professionals, offer the opportunity to place a candidate through Evaluation Hire. During the evaluation period, the employee is able to prove to the company that they are the right match for the job, as well as see if the job is the right fit for their career goals. At the end of the evaluation period, the company can decide to hire or to move on to another candidate.
Last Updated on November 4, 2025
