Pros And Cons Of Starting A Staffing Company


1. Low start up costs – Staffing companies require a relatively low level of initial capital investment.

2. High profit potential – Companies that do well can reap high levels of profits, often collecting the difference between what they pay employees and what employers are willing to pay for them.

3. Flexible hours – You can structure your staffing company in such a way that you can work the hours you want.

4. Fast growth – An effective staffing company can grow quickly, often with minimal effort.


1. High competition – The staffing industry is very competitive and while it is possible to gain a foothold in the market, there are many other companies vying for business.

2. Regulatory compliance – The staffing industry is heavily regulated and you must ensure that your company complies with all relevant laws and regulations in order to remain compliant.

3. High employee turnover – Staffing companies often have high levels of employee turnover, which can be costly in terms of recruiting and training new employees.

4. Liability concerns – You may be liable for any mistreatment or negligence of employees that are placed in positions through your staffing company.