Staffing services specialize in supplying temporary or contract personnel to address immediate, short-term operational requirements, typically overseeing payroll, compliance, and workforce management.
Recruiting services, conversely, concentrate on strategically sourcing, evaluating, and securing permanent candidates, prioritizing alignment with organizational goals and long-term suitability.
What's right for you? Let's look at the Staffing Models we offer here at AbStrategy Staffing Solutions:
How It Works:
We charge a percentage of the candidate's first-year salary (typically 15–30%) only when a candidate is successfully placed and hired. No upfront fees are required, and the firm absorbs the risk if no placement occurs.
Is it right for your needs?
This model is highly attractive to cost-conscious clients, especially small businesses, startups, and mid-sized companies, as it minimizes financial risk and aligns with their need for cost containment. It's the most common pricing model in the staffing industry, making it familiar and trusted by clients across sectors (e.g., retail, hospitality, IT).
Performance-Driven: Reinforces the firm's confidence in its ability to deliver results, fostering trust and loyalty.
Data/Trends: According to SHRM (2024), 62% of companies prefer contingency-based pricing for non-executive roles, citing its low-risk nature. Data suggests this model provides high retention rates for temporary and permanent placements.
Tier-Pricing Structure:
How It Works:
We offer a base fee (e.g., 10–15% of salary) with a bonus or higher fee (e.g., up to 30%) if the candidate exceeds expectations (e.g., stays longer than 6 months, hits performance targets).
Alternatively, we include a refund or reduced fee if the placement fails (e.g., candidate leaves within 90 days).
Pros:
Data/Trends:
Current data reports a 15% increase in client satisfaction with performance-based models since 2023, with small businesses showing a 60% preference for risk-free options (source: Staffing Industry Analysts, 2024).
Implementation Requirements:
The Big Why?
This is a Guaranteed-Results driven model designed to attract cost-conscious clients, especially small businesses.
This offers a low-risk, high-value option, emphasizing our specialized knowledge, rapid placement capabilities, and our willingness to put our skills to the test with no risk to small businesses giving it their all.
Simply and straight forward.
Best fit for lower-skilled job needs such as general laborers, cleaners, or unskilled staff needs.
We maintain the payroll responsibility and pay the employee directly. We then invoice you a differential based upon the hours of worked performed.
For example:
This model works best for industries that see the highest costs and rates of turnover. If a candidate does not meet your standards, you simply notify our offices, and a replacement will be provided within 48-72 hours. However, we have previously been able to fill positions within a few hours' notice.
Please note that should the employee's hours exceed 40 hours per week, federal overtime provisions will apply to both our pay to the employee and your billable hourly rate at the normal overtime rate. This is also applies to holiday pay, etc.
Retainer-Based Pricing (Exclusive Search):
How It Works:
We charge an upfront fee ($3,000–$50,000, depending on role and industry) for exclusive search services, followed by a success fee (e.g., 10–20% of salary) upon placement.
When To Use This Type of Staffing:
Common for executive, C-level, or highly specialized roles.
How It Works:
We offer a monthly subscription ($1,000–$5,000/month) for ongoing recruitment support, including priority access, rapid placements for multiple roles, and dedicated account management. A success fee may apply per placement.
Why It's Successful:
Predictable Costs: Appeals to clients with recurring hiring needs (e.g., seasonal staffing, growth phases, or small businesses scaling up), offering budget stability and cost containment.
Long-Term Partnerships: Fosters ongoing relationships, ensuring steady revenue for the firm and loyalty from clients who value consistent, fast service.
Current data reports g rowing adoption of subscription models for clients in logistics, retail, and tech, with a 20% increase in client retention since 2023 (source: Staffing Industry Analysts, 2024).
Data/Trends:
Current data reports growing adoption of subscription models for clients in logistics, retail, and tech, with a 20% increase in client retention since 2023 (source: Staffing Industry Analysts, 2024).
Small businesses, in particular, appreciate predictable costs, with 58% citing it as a key factor (SBA, 2024).
Implementation Requirements:
Define clear terms, such as guaranteed placement timelines (e.g., 14–21 days) and inclusion limits (e.g., number of roles or hours).
We offer introductory discounts (e.g., first month free, partnership discounts), especially small businesses.
Our systems and long-standing partnerships as well as team of qualified, certified and experienced consultants deliver fast, high-quality placements.
The Why?
This model is a cost-effective, long-term solution for clients needing consistent staffing support, emphasizing our speed, expertise, and reliability compared to compeition.