How Do Staffing Agencies Generate Income?

How Do Staffing Agencies Generate Income?

As potential franchisees explore the AtWork opportunity, inevitably the question of how, exactly, a staffing agency generates revenue comes up. Staffing agencies, such as AtWork, are charging for a service, rather than a specific product, which leads many potential owners to wonder what services are offered, and how should they be billed.

For many agencies, AtWork included, revenue is generated by two types of services:

Temporary Employee Placement: Companies placing temporary employees typically do so for a percentage of the employee’s salary. Employees work directly for the agency, and the agency charges clients an hourly fee for the employee’s work. The employee is then paid less than this rate, and the agency keeps the remainder as their fee. When dealing with high-volume accounts, such as a manufacturing facility, these placements can be quite lucrative!

Direct Employee Placement: A second way staffing agencies generate revenue is by directly placing an employee with a company. In these cases, the employee will work directly for the company, not the agency, and the agency will collect an amount based on the employee’s first year’s pay. The amount the agency retains varies depending upon the type of employee being placed, with executive positions earning far more than lower level jobs.

There has never been a more lucrative time to be involved in the staffing industry! If you’d like to learn more, please click HERE or call 888-553-1745 today!

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