Staffing companies act as intermediaries providing contract, temporary, and permanent staff to businesses with specialized workers. Major companies include Adecco, Randstad, ManpowerGroup, Allegis and Recruit accounting for over 20 percent of the market. The US Affordable Health Care act and other economic and political drivers have increased the demand for the personnel staffing industry with yearly growth estimated at 6%. Small staffing companies tend to compete by specializing in a niche industry or a job function.
The US industry is divided into three major segments:
1) Temporary help services (50% of the industry)
2) Professional employer organizations (PEOs) (45% of the industry)
3) Placement agencies (5% of the industry)
Temporary agencies find employees to fill short-term temporary jobs. Temps are often hired to work seasonally such as Christmas or to cover vacations or illnesses or other employees. A PEO is a firm that provides HR services under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting and other human resources roles. Placement agencies provide services such as career counseling, resume preparation, employer contacts, and interview opportunities for those seeking positions.
At Small Business Fundz we’ve been working with the staffing industry to help with their working capital for many years. We are proud to help the industry grow, help staffing companies meet payroll when cash is tight and overall help create opportunity. Give us a call or e-mail us about your working capital needs.
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