Staffing Agency Insurance: Reported Industry Wide Prosperity
A new industry study released by recruiter software developer Bullhorn revealed staffing and recruiting trend reports from last year and shed light on the state of the industry. On average recruiters earned $74,000 annually last year, bringing in an average $16,602 fee for permanent placement of an employee. Those who work on a contingent basis often saw higher wages than those working on a retained search basis, receiving $96,000 and $84,000 on average respectively. Temporary staffing personnel saw the least reward for their efforts earning a median of $53,000 a year.
In their top findings, the report indicated that on average staffing professionals make a moderately prosperous living, and often see better compensation in smaller firms. In firms with 75+ employees the average annual compensation rate was $62,000. That estimates is a 27th of the $230,000 made by executives, partners and company figureheads of large firms. On the other hand, in firms with ten or fewer employees, recruiters’ average compensation reported was $78,000. The findings suggest that staffing industry professionals in companies with between eleven and twenty-five employees saw the highest wages with a median compensation rate of $250,000.
Other staffing industry findings revealed in the report indicate that large and repeat clients account for the greatest percentage of annual staffing agency revenue. Seventy-two percent of respondents to the Bullhorn study admitted that over half of their revenue comes from repeat clients. Nearly half of large firms report getting 70% of their revenue or more from a single client, although medium sized firms report less dependence on a single source.
Heavy reliance on large clients can be dangerous for any staffing organization. Six percent of firms admitted that they would go out of business if their largest client was lost; this data included firms of all sizes. Holding on to a large client may even become increasingly difficult as a result of the mounting shortage of skilled workers. The scarcity of skilled laborers along with changing industry trends can create major hurdles for staffing industry professionals trying to maintain their edge.
At World Wide Specialty Programs our responsibility to our clients is the same, to provide our clients the best Staffing Agency Insurance options available. We offer the most comprehensive portfolio of Staffing Insurance Policies to provide our clients with comprehensive solutions. From General Liability to Temporary Employee Workers Compensation, we make it our mission to educate the staffing industry on the best coverage plans for them. Please contact us today at (877) 256-0468 for more information.