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There are many factors that have a part in a staffing franchise’s growth, yet 2 main ones stand out from the rest. Every staffing franchise business is subject to the influences of the economy and government regulations. Sometimes these are helpful for growth and sometimes not; either way, staffing franchises are in a growing market. Let’s examine these 2 factors that influence a staffing franchise’s growth:



According to online publication Franchise Help in an article called: “ Business Services in 2016 at a Glance”, which is part of their “Business Services Industry Analysis 2016 – Cost & Trends” – we learn:

“The staffing, recruiting and workforce solutions segment is one of the largest of the business services industry. In 2014 there were 17,000 companies in the United States with annual revenue totaling $130 billion, an increase of more than 5% over the previous year.”

Staffing agencies, whether permanent or temporary, have increased since the recession of 2008, as have the popularity and number of franchises. According to a summary article by the International Franchise Association, which interprets the data from the: “Franchise Business Economic Outlook for 2016” by IHS Economics,

“Franchise businesses will have a 3.1 percent growth in jobs, adding 278,000 direct jobs to the economy this year for a total of 9.1 million.”

The economy of the United States is always a big factor influencing staffing franchise growth, yet staffing franchises are more resilience than other businesses during a recession. This means staffing franchise growth can happen in a bad or good economy.

We find evidence of this trend in an article found on Entrepreneur.com called: “Need to Hire? The Benefits of Using a Staffing Agency.”, written on July 1, 2015 by Jason Daley. The article explains:

“While recovery from the Great Recession is well underway, in its wake there have been socioeconomic shifts that seem to signal permanent change…One of the big shifts? Employers are using staffing firms to fill job openings instead of hiring people directly.”

The economy is a big influencing factor in the growth of a staffing franchise, yet keen owners will leverage both good and bad economies to work in their favor. The staffing industry has many verticals to target and many services to offer, making them a sustainable business in a good or bad economy.


Regulations and Compliance

Some interesting data is found – about regulations around employment – in the Entrepreneur.com article quoted before:

“Being an employer has gotten a lot harder. In 1900 there were two employment laws. In 1980 there were 125. Now there are 2,200 different laws or clauses that employers have to comply with. They now face the Affordable Care Act, workers’ comp, health insurance, paid sick leave and the EEOC. There can be multi-million-dollar penalties for noncompliance. They want to shift direct and potential risk away from the company.”

So, one of the main reasons employers are not hiring permanent employees directly, as often, is because of growing regulation and compliance issues with the government. There are other factors involved (more cultural and generational), yet regulation and compliance issues are main influencing factors involved in a staffing franchise’s growth.

Staffing franchise owners would benefit by having a working understanding of current regulations and compliance laws, in order to capitalize on this trend and ease the burden employers have when hiring directly. Increasing regulations and compliance can be used to the advantage of the staffing franchise, to stay relevant and useful for employer clients.


Since the Great Recession of 2008, employers are increasingly using staffing agencies to outsource their recruiting, hiring, and employing. This is part of an outsourcing trend in modern business in general. Staffing franchises are in a growing market and offer entrepreneurs a great business opportunity; at least for owners able to take advantage of these  influencing factors.

Entrepreneurs, interested in starting a staffing franchise business, have a great choice with Nextaff. Headquartered in Louisville, KY with a regional support center in Overland Park, Kansas, Nextaff has been operating since 1998 and has 9 franchise locations. If interested in learning more about starting a Nextaff Staffing Franchise, please contact us today.