Spotlight on the Staffing Industry

By Pamela Gold Waldo

"Staffing is a professional industry with sensible hours. It is the type of business in which franchisees go home at night and tell their spouse they had a great day, by helping both companies and temporary associates. We have extremely high caliber people that are attracted to PrideStaff as franchisees. Our reputation is based on the success of our franchisees and our priority is truly on helping them succeed by building a significant staffing business," explained Gerry Rhydderch, Vice President of Franchise Development for PrideStaff, a mid-sized, privately held staffing organization that currently has 26 franchises located throughout the U.S.

Staffing agencies offer a wide range of services including temporary and contract staffing, recruiting and placement, outsourcing, training, and human resources consulting. With 10% annual industry growth and 300% revenue growth in the last decade, a staffing business is an appealing opportunity for qualified individuals.

"This is a fascinating activity driven business which requires that franchisees are passionate about developing a business through embracing the proven PrideStaff system. To succeed in this industry, you must be comfortable with going to prospective clients and developing a nurturing relationship with them. At PrideStaff, we want franchisees that will go out and involve themselves with the daily operations of their business," said Rhydderch.

Staffing Industry Snapshot

• 98% of U.S. businesses use staffing services
• 71% of employers cite labor force flexibility as the #1 reason for using temporaries
• 79% of temporaries work full-time
• 75% of temporaries transition to direct employment as a result of their staffing assignments
• Staffing is a $62 billion a year industry

   Source: American Staffing Association

An Economy That Promotes the Staffing Industry
70% of the layoffs that occur in the U.S. are a result of restructuring and reengineering of companies. The staffing industry is increasingly providing a safety net for employees that have been affected by layoffs. In fact, the temporary workforce has grown by 2 1/2 times for the second decade in a row. Today, 2 million people per day are employed by staffing companies.

"Corporate America embraces the staffing industry because it desires a flexible workforce that moves with the cyclical nature of business. By using flexible staffing as a strategic way of staffing their business, it becomes a variable expense on their balance sheet rather than a fixed expense," commented Rhydderch. Staffing organizations provide employees during seasonal increases in business, maintain productivity until a vacant position is filled, and assist during times of increased business.

A Great Business to Own
With a surging economy, opportunities to own a franchise in the staffing industry abound. For well-educated individuals that have solid communication skills, enjoy networking with decision makers, have good listening and problem-solving skills, and truly enjoy helping people find work, the staffing industry can be a great business choice. Unlike retail, restaurants, or other service businesses, staffing organizations such as PrideStaff, have hours of operation similar to those of Corporate America: 8-5:30, 5 days a week.

When you own a staffing organization, you become an extension of small and mid-sized company's HR departments. You will get to know your temporary employees, and the employment you provide them with will have a great impact on their lives, as Rhydderch explains; "PrideStaff helps change people's lives! It provides a vehicle for individuals to grow, change career fields, and feel a sense of empowerment. It's equally as rewarding for our franchisees. PrideStaff franchisees go home after a day in the office and feel really good about their work and their life!"

Rhydderch continued, "As a franchisee, you will need to develop long term relationships with your clients by helping solve their staffing issues and creating solutions for them. Our franchisees often have HR, sales, or marketing backgrounds. We provide them with proven "cookbooks" and recipes which cover all aspects of developing a profitable business. They add their own herbs and spices. There is some flexibility in this industry which is not available in many franchised industries."

PrideStaff: Changing the Industry
In 1978, George Rogers created a staffing organization unlike any other company in the industry. PrideStaff offers the resources and expertise of a national firm with the spirit, dedication and personal service of smaller, entrepreneurial firms. In 1995, the company began selectively franchising and today there are 26 franchises throughout the country.

"PrideStaff has embraced the model of franchising to take our message to Corporate America. Franchising allows us to find high-caliber people to own and run this business and spread brand awareness," explained Rhydderch.

He continued, "At PrideStaff, the home office takes care of all the non-revenue generating functions for our franchisees so they can concentrate on the important tasks such as attracting high-quality temps, networking, serving clients, and growing their business. We do all the back-end work, including payroll and billing and most importantly the funding of the temporary employee payroll."

The company is poised for significant growth in the coming years, and is focused on growing the business exclusively through franchising. Rhydderch said, "Our founder, George Rogers, is totally committed to providing the support and training to our franchisees. He wakes up each morning thinking about how he can help our franchisees succeed. This type of thought pattern showers down to everyone in the company and it is certainly felt by the franchisees. This is a great company to be part of."

From the way in which franchisees are treated, to the methods used to serve clients, PrideStaff has proven to be a very unique and successful staffing organization. Today, the company is a leader in the industry. Its niche market as a boutique staffing firm has proven itself time and time again. In comparison to the large staffing corporations who tend to focus on high volume, low margin business, the net dollar per hour that a boutique model staffing operation generates is substantially higher. Clients are willing to pay more for the personalized service and highly compatible temporary employees.

Begin Your Search Today
If the staffing industry sounds appealing to you, begin your search for a franchise opportunity today. Click here to view available opportunities on Franchise Solutions' Staffing Industry page.

Pamela Gold Waldo is a Senior Writer for Franchise Solutions, a leading provider of marketing and lead generation solutions for the franchise industry. Offering franchisors an array of technology-based tools as well as the services of a full-service marketing agency, Franchise Solutions has helped many franchisors reach new levels of branding and growth, while helping thousands of prospective franchisees find the business that's right for them. To start your online search for a franchise, use Franchise Solution's Franchise Finder. Click here for more information.

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