Staffing and employment services companies face the irony of being in the talent business while struggling with their own talent challenges. With internal staff turnover at 45.5% and average salaries of $42,000, staffing agencies experience the costly cycle of constantly replacing recruiters, account managers, and operational staff. At a replacement cost of 35% of salary ($14,700 per departure), a 50-employee staffing agency losing 23 internal staff annually spends over $338,000 on turnover — money that could fund a comprehensive benefits program three times over.

The staffing industry's unique position creates both challenges and opportunities regarding benefits. On the challenge side, internal staff (recruiters, account managers, and operations personnel) often feel undervalued relative to the clients they serve and the placed candidates they support. On the opportunity side, staffing agencies that provide excellent internal benefits create a workforce that is more knowledgeable about benefits, more passionate about their employer, and more effective at selling benefits-inclusive staffing solutions to clients.

For staffing agencies that co-employ or directly employ placed workers, the benefits equation extends to the temporary and contract workforce as well. The Affordable Care Act's employer mandate provisions, multi-state compliance requirements, and workers' compensation complexity create a regulatory maze that benefits from professional management — whether through internal expertise or a PEO partnership.