What is the Role of a Staffing Agency Franchise in the Economy?
Employment. It’s absolutely central to a thriving economy. And more, than most, staffing agencies enjoy a very privileged position in this critical sector. The staffing industry occupies a clear market niche in today’s employment landscape. Gone are the days of job seekers looking for openings in the local newspaper or knocking on doors from business to business. Today, staffing agencies are the ones taking on all of these tasks – and more!
One thing hasn’t changed though. A skilled workforce is still the number one most valuable asset to any employer. But these days it can be challenging for employers to find the skilled labor they need via traditional methods. Today, the staffing agency is quite literally the life-blood of the employment economy. When employers find themselves without the resources to get critical work done, staffing agencies step in to find skilled laborers to get the job done.
There’s never been a better time to start your own staffing agency. With millions of workers seeking jobs, you’ll be the missing link between employers in need of employees and employees in need of employers. The equation is simple, really. People always need jobs and companies always need workers. The numbers don’t lie. In 2019, the global staffing industry generated revenues of just below half a trillion U.S dollars, following five years of continuous growth. Luckily, that seems set to continue well into the future.
What is a staffing agency?
A staffing agency is an organization that brings employees and employers together. In other word, the staffing agency acts as the ‘middle man’ between companies who are hiring and job seekers looking for employment. Staffing agencies work across sectors to fill critical staffing vacancies. That could be anything from hospital vacancies to research, construction to retail. As such, staffing agencies are an economic pillar that upholds the employment economy and its stakeholders.
How staffing agencies fuel the economy
But what is it, exactly, that makes the staffing agency model so effective? The short answer is this. Staffing agencies help everyone from job seekers and small business owners to enterprise organizations and the wider economy. In fact, the industry contributes over $160 billion to the U.S economy through temporary and contract staffing, recruiting, permanent placements, outsourcing, outplacement, and human resource consulting.
Clearly, the staffing agency model is doing something right. Let’s take a look at some of the many benefits that staffing agencies facilitate in the wider economy.
Staffing agencies help employers
The key to any successful business venture is to make, bake, create, invent, do, or provide something that people need. And that’s precisely what the staffing agency does. It makes a perfect match between employers and employees.
Many companies depend on staffing agencies to fill vacancies during busy seasons and to staff major projects, bring on new clients, or facilitate a period of expansion.
The staffing agency meets that need head-on and offers companies a competitive edge over their competitors by matching them with the agile workforce they need. That’s some serious value. In other words, staffing agencies benefit the economy by providing that extra layer of flexibility and support businesses need in order to grow and prosper.
Staffing agencies help employees
At the other end of the spectrum, staffing agencies are also a valuable resource for employees. Oftentimes, a job found via a staffing agency is the bridge that individual jobseeker needs towards permanent employment. In fact, nine out of ten staffing employees agree that staffing work makes them more employable.
The role of staffing agencies in the economy
So, aside from providing flexible workforce solutions to employers and employees, how else can a staffing agency positively impact the wider economy? The ripple effect generating by the work of staffing agencies is profound. Let’s take a look.
Reduce the cost of recruitment
As well as aiding the recruitment process, staffing agencies actually reduce the cost of recruitment for employers. The recruitment process isn’t cheap. From job advertising and marketing to referral rewards, to processing fees, background checks, and payroll expenses, there are a lot of hidden costs that go on behind the scenes.
That’s where the staffing agency comes in. Instead of paying a team of full-time recruiters, companies can pay staffing agencies a fee to review resumes, and interview prospects from their pre-existing database of skilled job-seekers. With qualified candidates on tap- so to speak- staffing agencies save recruiters time and money.
Staffing agencies have proven time and again to be effective generators of employment. Starting a staffing agency is a fantastic way to reduce unemployment and keep the economy ticking over. In fact, research suggests that in America, the staffing industry is capable of employing more than three million people on contract and temporary employment in just one week. That culminates as 15 million workers in gainful employment per year. Impressive right? What’s more, many of these opportunities will then lead to full-time employment positions. In fact, 64% of staffing employees say that they work in the industry to fill in the gap between jobs or to help them land a job.
Bridge the skills gap
Staffing agencies can help bridge the skills gap. Sometimes career changers, new graduates, or those who have been out of work for a period of time can find it difficult to match their CVs with an employer’s requirements. Staffing agencies help close this ‘skills gap’ by training job seekers in the skills they need for entry-level skilled jobs.
Agencies continue to thrive in uncertain economies
Finally, one of the greatest assets that a staffing agency has is its ability to weather all storms. Agency hiring models are largely sustainable even in uncertain economies. Why? Because agency staffing is fast, cost-effective, and flexible. When businesses need to hire quickly, the staffing agency is the ideal first port of call. Likewise, when businesses need to cut costs, they’ll be able to bypass the financial burdens associated with permanent staffing.
Own a Staffing Agency Franchise With NEXTAFF
So, there we have it. Starting a staffing agency is a sure-fire way to aid the economy. Staffing agencies play a vital role in keeping the employment economy alive and thriving. That’s where NEXTAFF comes in. NEXTAFF can help you boost your local economy. We’re a staffing franchise based on one simple premise: companies are always looking to hire quality people, and people are always looking for jobs.
So, if you want to start a business that’s sure to play a vital role in any economy, then why not join us as Nextaff Franchise Owner. We’re always on the lookout for passionate investors interested in starting a staffing franchise. We’ll equip you with all the skills and resources you need to take advantage of this much sought-after sector.
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