Employment and hiring practices have significantly changed over the last few decades as: technology, laws and regulations, and workforce behaviors have shifted. The dynamic results have created a demand for employment recruitment and hiring services to facilitate HR functions for businesses. This shift has also created franchise opportunities for entrepreneurs; in this regard, let's examine 4 benefits of owning a staffing franchise.
#1. Industry Growth and Demand
One of the main benefits of starting a staffing franchise is being part of a large and growing industry that's in demand. This is backed up with a brief on HRDIVE called: “Experts: Positive growth in the temp staffing industry will continue”, published on June, 2016. According to the brief,
“The American Staffing Association (ASA) advises that the staffing industry as a whole is growing at a faster rate than the labor market and economy can keep up with. In fact, the staffing industry is expected to generate nearly $140 billion just in 2016, providing new jobs and workforce development opportunities worldwide.”
The positive growth and demand of staffing services gives entrepreneurs the confidence needed to invest into a staffing franchise. Although staffing franchises are more affordable than most franchise opportunities, they're still long-term investments that need a viable market to thrive in. In this regard, the staffing industry is indeed viable, as “Staffing Industry Statistics” from ASA tells us:
“More than three million temporary and contract employees work for America's staffing companies during an average week...During the course of a year, America's staffing companies hire nearly 16 million temporary and contract employees.”
An article summarizing “The 2016 ASA Staffing Industry Economic Analysis”, called: “How Much Runway Remains?”, written by Cynthia Poole and Steven P. Berchem, further concurs:
“While slowing, the staffing and recruiting industry continues to grow faster than jobs overall and the economy.”
#2. Flexibility in Vertical Markets
ASA shows the sectors staffing employees work in:
28% Office – Clerical and Administrative
13% Professional – Managerial
13% Engineering, Information Technology, and Scientific
9% Health Care
Understanding what sectors employees mainly work in, staffing agencies still have the flexibility to cater to whatever vertical market they desire. This is an important benefit that staffing franchises, uniquely, offer entrepreneurs; the ability to focus on certain sectors/markets/industries allows each agency to define itself as a specialist in the ones chosen. This type of vertical expertise gives agencies the flexibility to stay relevant in changing labor markets as well.
#3. Established System
Investing in a franchise provides entrepreneurs with an established system, including: marketing, advanced software, training, brand recognition, industry related resources, nationwide support, and more. This is one of the biggest benefits of starting a franchise, as it takes the guesswork out of the vital startup period. Already existing agencies also benefit when converting to an established system for the same reasons.
#4. Pleasant Workplace Environment
Staffing agencies are located in office environments, whether at the agency's office or at a business meeting with an employer client. Working in an office environment is clean and comfortable, yet owners won't be restricted to their desks; business meetings, conventions, and recruiting field work, will give them a chance to be mobile and active. By owning a staffing franchise, owners can avoid having to deal with food, kitchens, working out of a vehicle, or being in other people's houses – like many other franchises require.
While there are many other benefits of starting a staffing franchise, these 4 should be compelling enough to entice the right type of entrepreneur. Indeed, owning a staffing agency is a viable business in a thriving market with long-term growth projections. The shifting practices of hiring and recruiting are creating a definite demand for the services of staffing agencies, for both employers and candidates.
Starting a staffing franchise is a great career opportunity for business minded people with excellent networking and management skills. The established system of the staffing franchise will give entrepreneurs the confidence, resources, and support to thrive with a rewarding career. If interested in learning about Nextaff's staffing franchise opportunity, please contact us today.