A brief overview of business of Staffing Services

Staffing services has become a lucrative business for those willing to make quick bucks

and to serve the needs of the corporate that are facing the dilemma of getting professional

and experienced employees for running their businesses. The staffing services industry is

a multi billion industry with the U.S. staffing companies having employed an average of

2.78 million temporary and contract workers per day during the first three months of 2012

as per the recent data released by the American Staffing Association or ASA.

Despite, of the painful economic recession and job recovery, staffing firms are continuing to

play an important role in helping the job seeker in getting back on their employment track.

Even with the seasonal dip during the fourth quarter of 2011, there has been a 6% growth

on year-to-year on basis in the staffing industry job growth during 2012. As per the survey

of the ASA, the temporary and contract sales totaled $25 billion in the first quarter of 2012

which is a 9.8% higher than in the same quarter last year. This quarterly survey is carried

on by ASA based on temporary and contract staffing data on sales, payroll and employment.

The Staffing services also include the staff supply service sector which is projected to

grow rapidly by the U.S. Bureau of Labor Statistics or BLS. This sector is predicted to be the

arena where most of the jobs would be created in the next few decades. In a broad sense

the staffing services embraces all the below mentioned areas:

• Employers – As employers, these services take on qualified candidates as employees

and pay for their salaries, withhold income tax and pay unemployment insurance and

workers’ compensation.

• Contractors – As contractors, these services offer business organizations temp or

contract or permanent employees for different positions in all sectors of employment. This

include from areas such as industrial, clerical to professional categories. In other words,

these services act as an intermediary between employees and client companies.

• Businesses – In the staffing industry the clients are those companies that approach

them to contract for labor or ability. The product for staffing industry is the same labor or

ability they provide to their client organizations. The revenue for the staffing industry comes

in the form of mark up fees to cover their labor charges or by charging the client

organization a fee known as “Finder’s fees”.

Summing up it can be said that these services are now providing a helpful hand to the

employment sector.