What Staffing Firms Do
Temporary and contract staffing firms play a vital and positive role in the U.S. economy by providing job opportunities and work schedule flexibility to millions of people and a broad range of workforce solutions to businesses.
People engage with the staffing industry because it is a proven bridge to permanent employment. Staffing also offers much-desired work schedule flexibility, the ability to work where, when, and how one wants to help achieve work-life balance. Temporary and contract employees work in virtually all occupations, ranging from skilled trades to degreed professionals and across industry sectors: engineering, information technology, and scientific; health care; industrial; office/clerical and administrative; and professional/managerial.
Because staffing firms employ the employees they assign to clients, they are responsible for paying wages, withholding and remitting employment taxes (including Social Security and unemployment), providing workers' compensation insurance, and providing a variety of employee benefits. As employers, staffing firms are responsible for compliance with all applicable labor, employment, and employee benefit laws, including those pertaining to worker health and safety.
Businesses say that workforce flexibility is an important reason to work with staffing firms because it allows them to remain fully staffed during busy times. Whether it's a temporary job lasting a few months or several years, or a temp-to-hire placement, staffing firms allow businesses to adjust their workforces to meet their changing needs. Partnering with a staffing firm can be a powerful business strategy for a company.