Professional Staffing Group | Professional Staffing Service Answers

Professional Staffing GroupThe staffing industry can look simple on its face, but it’s actually quite complicated. If you contact one professional staffing group, they might be miles apart from what you’re really seeking.

It’s important to know the ins and outs of professional staffing groups, and you should contact the executive recruiters who can truly add value for your specific needs. Here’s what you need to know about recruitment and staffing. 

What percentage does a staffing company take?

Professional Staffing GroupOn average, staffing companies usually have a 55-70% markup for important temporary hires. A professional staffing group is a firm that generally specializes in providing skilled employees to fill specific short-term needs on a temporary basis. Often employers’ needs for workers ebb and flow depending on seasonal demands or fluctuations in markets. For direct hire, staffing agencies typically charge in the 20-30% range. 

Since it is not economical to keep a large staff at the ready for sporadic staffing needs, savvy employers turn to staffing agencies to quickly provide the workers who are able to add immediate value. The percentage that a staffing company takes more than pays for itself when you make a quality hire. 


how much do staffing agencies charge for direct hire


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What is staffing?

professional staffing groupStaffing is simply the concept that a staffing agency can provide a list of any number of workers with similar job skills and a desire to work on short-term assignments to fill the needs of an employer or multiple employers. For example, a company could need to hire a temporary Chief Financial Officer for four months while the current CFO is out on maternity leave. Or another example is if your current company is about to put itself up for sale, and you temporarily need an accounting consultant to help get your books in good order. 


Who is the best staffing agency?

professional staffing groupStaffing agencies often have specific industry capabilities such as medical, high tech, human resources or finance so there is no one best overall. That said, there are certainly industry leaders.

Clay Burnett Group can offer guidance on how to connect with the right agency. One other idea is to leverage keyword searches in Google including your geographical area of need. Here’s an example, Google: Executive Search Firms Los Angeles OR Headhunters Los Angeles.


Is a Staffing Agency a good idea?

Using a qualified staffing agency to recruit the talent you need is an excellent idea. There is always an advantage in finding a pro to manage your hiring needs. Let’s say you’re a C-Suite hiring manager with limited internal resources to attract an ideal candidate. Would you rather place an advertisement for a particular position and end up receiving 100 resumes with 2 candidates worth interviewing or hire a staffing agency that will find you 10 candidates worth interviewing?

There’s a strong likelihood the professional staffing group that finds you 10 candidates will end up saving you a lot of money in the long-run. Making the wrong hire is quite often very expensive. Let the staffing industry professionals do what they do best and that is by finding you hires who will be true difference makers. Turn to frequently asked questions for more. 


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How do you price staffing services?

Often staffing agencies serve as the actual employer of the skilled workers they contract to supply to individual companies. They price their services using their knowledge of current industry salary ranges and then add a fee for becoming the employer of record, managing payroll, benefits, new hires, terminations and more. Expect to be in the 55-70% markup territory for staffing services. 


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How do staffing agencies get clients?

professional staffing groupStaffing agencies find clients in a wide range of industries where the need for qualified workers ebb and flow according to the volume of their workloads. Retail is an excellent example of an industry that is impacted by surges in the need for qualified workers. Clients actually find staffing agencies via referrals, search engines, social media sites, advertisements, and proactive business development strategies. 


What is a staffing example?

Let’s say your company is putting itself up for sale but your accounting and finance team needs assistance preparing your accounting books for would-be purchasers. Would it help if you had a hands-on Controller level consultant helping the team to make sure you are properly prepared? The answer should always be an unequivocal yes. A professional staffing group will then find you the perfect accounting consultant for your specific needs so you’re set up for success. 


What is the difference between recruitment and staffing?

Recruitment agencies contract with employers to find employees who fit a specific description of job requirements. Executive recruiters will often provide several candidates meeting the job description for the employer to hire. Staffing agencies conversely can serve as an employer, providing skilled individuals available to work on assignments with a defined and undefined length of time.

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Furthermore, staffing agencies will put the employee on their payroll vs. the client’s payroll. While recruitment agencies often find the talent but the client will pay the employee directly once hired. Recruitment can also signify long-term intent while staffing signifies short-time.  


What are the types of staffing?

There are three types of staffing. 1) Interim/temporary, 2) temp-to-hire, and 3) direct-hire. Notoriously, staffing implies most of all: interim/temporary. A company’s staffing needs can vary depending on its size, industry, and financial viability. 


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largest staffing companyWhat is the largest staffing company in the world?

According to Statista, Randstad is the largest with The Addeco Group a close second.


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Who is the largest recruitment company in the world?

Globally Randstad remains the largest followed by The Adecco Group, ManpowerGroup, Recruit, and Allegis Group.


Is the staffing industry growing?

Yes! The way the United States and the world for that matter works and organizes companies to provide services is rapidly changing and staffing agencies provide employers great flexibility to experiment with their employment needs before committing to long-term hires. Everyone knows about the growing gig economy, but there’s also a growing flex economy for employers wherein they will leverage headhunters in the staffing industry to provide them with 1099 or W2 employees who the headhunters will put on their own payroll. Learn more: what is a headhunter


Who is the largest staffing company in the US?

According to Bullhorn, here are the top 5 largest staffing companies in the US (based on 2018 revenue estimates): 1. Allegis Group. 2. Randstad Holding. 3. Adecco. 4. Robert Half International. 5. Kelly Services.


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How do staffing agencies make their money?

how staffing agencies make moneyStaffing agencies contract with employers to provide qualified, trained workers who work for specific periods of time. They pay fair wages to the employees and charge a percentage fee to the employers. This is a value add situation for companies aka employers because they’re effectively outsourcing their hiring needs to a professional staffing group that operates in the company all day every day.

Recruiting both executives and staff level employees is a time consuming endeavor. Job placement services are true assets to companies who know how to leverage this industry. 


how do employment agencies normally make money


What is the difference between a staffing agency and a temp agency?

Generally, they are the same. Firms that fall into these descriptions provide the same kinds of services. They provide employees for a fee and often assume the responsibility of becoming the employer of record. The main difference often proves to be that staffing agencies can at times be more used for facilitating direct-hires while temp agencies core (and often purpose) is for temporary hires. 

Depending on your company’s needs, you may want to contact a staffing agency because they can provide mores services often than say a temp agency that really likely has one core service. 


Why are recruiters bad for your career?

professional staffing groupThey are actually absolutely great for your career! When recruiters are searching for potential candidates to meet a client’s job description, they often approach individuals who may not even be considering a job change.  If you get approached “out of the blue”, take a listen, you may find a new opportunity. Because recruiters are constantly watching social media sites to discover new talent it’s imperative that you keep your professional online profile up to date.

At a bare minimum, most people in the workforce would benefit from keeping an updated LinkedIn profile. This is the best professional network. Opportunity often knocks when you least expect it. 


Are staffing agencies a waste of time?

Not at all! Every day staffing agencies assist companies with finding and hiring critical employees and, and they help job seekers locate career opportunities.

That said, not all staffing agencies were created equal. Make sure you partner with the firm that has the experience and ability to help with your specific needs. How do you know if a particular professional staffing group is a fit for you you may ask? Research their website. If a particular staffing group looks up your alley for your needs, contact them via their website. Or simply pick up the phone and call them or send them an email. The best time to reach out when you have a need is today.  


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What are the benefits of using a staffing agency?

Staffing agencies and other job recruiters save clients time and money because of the specialized services they offer. Regardless of whether an employer has a small or large HR department they often lack the resources to stay on top of current market trends, the ability to track salary levels, and the time to monitor existing pools of available talent etc.

Now that many professional staffing groups have changed their business models to accommodate distance workers, the number of potential good hires has expanded, making it even more important to outsource hiring to skilled and up-to-date recruiters.

Whether employers make the right hire or the wrong hire, a business’s future will be impacted regardless. Contact a professional staffing group, when choosing the right hire is critical. 


Professional Staffing Services


How do I choose a staffing agency?

staffing agencies near meYou know what kind of workers you want to hire so do an online search to find the names of staffing agencies that list the specific job expertise you need. Next, contact the staffing agencies who meet your specifications and see how fast they respond to your outreach. Speed matters because it’s an indication of how much they value your business. If you like the person you talk to, give them a try.

A professional staffing group quite often works on a contingency basis. The primary immediate risk in the employer and staffing agency relationship is a particular staffing agency’s time. The staffing industry normally only gets paid when an employer has green-lighted the hire of a specific qualified candidate who they believe fits their needs. 


How do I get out of a staffing agency contract?

cancel staffing agency contractRead the contract carefully BEFORE signing it in the first place! If you anticipate any problems, negotiate the terms you prefer in advance. If in the end, you want out, you may face a penalty in a worst-case scenario. All that said, most respectable professional staffing groups, work on a contingency basis especially if they’ve never engaged with your company before. 

Once a hire is made, if an employer wants to get out of a staffing agency’s contact, there should be a buyout clause. Also on the flip side, placements aka candidates (while likely not contractually married to a staffing agency) have the right to request to switch their employer of record to the client. In that scenario, the client and the staffing agency will have to discuss buyout terms (which again should have been pre-negotiated). 


How long can a company keep you on as an agency?

agency contract lengthAs long as the contract terms allow. If a company doesn’t want to keep using a staffing agency, they will likely buyout the contact(s) of existing staffing agency hires. Companies aren’t obligated to use an agency forever, especially when contract terms don’t stipulate a specific time period.

That said, if a company has a worker who is on the staffing agency’s payroll, it should not be expected that eventually the company can merely hire the worker themselves. There’s likely a financial commitment that will have to be honored to buy out the contract. 


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Is owning a staffing agency profitable?

Staffing agencies are profitable when they are run by professionals who understand the businesses they serve. Typically staffing agencies are started by individuals who have considerable experience in the industries they serve such as medicine, law or accounting & finance, operations, information technology, human resources, etc.

When a staffing agency thinks short-term vs. long-term in how they interact with their clientele, this business can quickly become unprofitable. The agencies who think long-term, work-hard, and treat everyone with respect, will have a great chance of being profitable. 


What is markup in staffing?

Staffing agencies charge by adding a service fee to the salary paid to the employee.  The fee is often computed as a percentage of the salary and includes the costs of recruitment, payroll, insurance costs etc. throughout the tenure of the worker’s length of employment.

For example, let’s say Company A wants to hire Jane Doe as an Interim Chief Financial Officer. The pre-agreed upon markup is 65%. If Jane’s pay rate is $100, the temp agency’s bill rate will then be $165. The markup equates to this $65 delta


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What is the average direct hire fee?

average direct hire feeFees for direct-hires are often computed as a percentage of the employee’s annual total compensation inclusive of signing and discretionary bonuses. Employers can expect to pay between 20% and 30% on average for a respectable executive search firm. 

Mom and pop shop type recruiters can charge as low as a 10% fee. And serious, respected executive search consultants quite often charge a 1/3 fee by default. When considering options, 25% is a very reasonable fee for any recruiting company who delivers on promises. 


When does the employer instead of the employee pay the fee to an employment agency?

Employers pay the fees associated with a new hire nearly 100% of the time because it is the employer who contracts with the agency to recruit potential workers.

employment agency feesAs a candidate, if a professional staffing group asks you to pay a fee, you should run and disassociate yourself with this particular staffing group.

Employment agencies as a cost of doing business could see a reason to charge a candidate/future employee for helping out with that particular job seeker’s resume. Aside from that, never pay an employment agency when you’re on the employee side. 


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How do staffing agencies negotiate salary?

salary negotiationProfessional Staffing Groups track industry trends in specific labor markets and have up-to-date information on the supply and demand for workers so they can calibrate their salary offers on real-world data.

Staffing agencies should negotiate in good faith on behalf of both the candidate and the company. Win-win situations exist in every legitimate hiring situation. There’s middle ground when candidates and companies are reasonable about acceptable terms.

If there’s no middle ground, a professional staffing group should vocalize the different goals between the two sides. If a resolution is still not found at this point, an ethical staffing agency recommends other options to both the candidate and the company. A bad salary fit, is a lose-lose situation and must be avoided. 


How much money do you need to set up a recruitment company?

A recruitment company can be started with a small investment, however, there are important needs to consider for long-term success. Software is needed to manage on-going searches, a website is helpful for contact/marketing purposes, researchers are important to locate and evaluate potential candidates, legal advice is necessary for creating contracts, and accounting advice is needed to manage cash-flow and tax structure.

Once you have all your ducks in a row, you can expect to have started your professional staffing group with as little as $10,000. Get working. You will need to start earning placement fees as soon as possible if you don’t have a rainy day savings account to protect you from going into debt without any income. 


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How does the staffing industry work?

professional staffing groupThe best way to think of the staffing industry is the old proverb – “Find a need and fill it”. The staffing industry is constantly evolving, watching as industries change to meet the very fast-changing economic reality.

Executive recruiters thrive in the staffing industry when they’re matching talent with opportunity. A successful recruiter recommends the talent who can immediately add value at a specific company. This can happen within the first 24 hours from the onset of an executive search beginning. Quality recruiters should be able to present multiple qualified candidates to their clients within two to three weeks on average.


How do you build a successful staffing agency?

Attention to detail is the best advice if you want to build a successful staffing agency. Personal service is a key component and the most necessary skill for a professional staffing group. The includes the ability to listen to a client’s real needs and to respond as ethically and quickly as possible within 24 hours notice. Every time.

Attentive service to clients is the time-proven path to success. Treat every company and future employee relationship as long-term vs. short-term, and your chances of success will go up exponentially. If you don’t value other people’s time, your staffing group has a chance to never be profitable. Repeat business and referrals are critical if you want to build a successful staffing agency. 


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Professional staffing group conclusion

A professional staffing group is a firm that takes its mission seriously, carefully listening to the needs of its clients for highly trained professional workers who can complete job assignments with skill and dedication. Using their deep knowledge of industry trends, a professional staffing group is able to provide up to date advice because they are in constant contact with a fast-changing labor pool. For workers looking to advance their career goals, staffing agencies provide them with exposure to a wide range of employers and opportunities to find short-term and long-term satisfying jobs dependant on the workers interests.