---
title: Is Your Staffing Firm Ready for Success in a Disruptive Marketplace?
description: Staffing firms best positioned to adjust for unexpected disruptions can continue to successfully support their clients’ rapidly evolving hiring needs
image: https://www.headcountmgmt.com/hubfs/Stock%20images/Close%20up%20low%20angle%20view%20of%20a%20man%20working%20from%20home%20on%20a%20laptop%20computer%20sitting%20at%20a%20desk%20surfing%20the%20internet.jpeg
---

# Is Your Staffing Firm Ready for Success in a Disruptive Marketplace?

[ Mark Arrow ](https://www.headcountmgmt.com/blog/author/mark-arrow)

 Jul 15, 2021 3:07:47 PM

*An Employer of Record (EOR) partner serves as an employer for tax purposes, assuming a wide range of traditional employment tasks, obligations, and liabilities. During these challenging times, utilizing Employer of Record services changes the game for staffing agencies in several essential ways.*

![](https://www.headcountmgmt.com/hubfs/Stock%20images/Close%20up%20low%20angle%20view%20of%20a%20man%20working%20from%20home%20on%20a%20laptop%20computer%20sitting%20at%20a%20desk%20surfing%20the%20internet.jpeg)

Right now, the coronavirus is redefining what business as usual looks like for companies across virtually every industry and vertical. Many companies throughout the U.S. are adjusting to the new need to support remote working capabilities that keep staff and clients safe, all while attempting to hit pending deliverables and deadlines. As a result, many enterprises are assessing their current operations to determine if they should cut costs or bring on additional resources to keep the momentum moving forward. 

**  
How Utilizing Employer of Record Services Can Change the Game for Staffing Firms**

Staffing firms best positioned to adjust for unexpected disruptions can continue to successfully support their clients’ rapidly evolving hiring needs. Today’s recruiting firms must reevaluate their current operations to ensure they are running as effectively and efficiently as possible, which often requires delegating peripheral responsibilities. For many small- to mid-sized agencies, this can mean partnering with an [Employer of Record (EOR)](https://bit.ly/employer-of-record) services provider. 

An EOR partner serves as an employer for tax purposes, assuming a wide range of traditional employment tasks, obligations, and liabilities. During these challenging times, utilizing Employer of Record services changes the game for staffing agencies in several essential ways:

**Lower Internal Costs**

Staying focused on unnecessary expenses is always an essential practice for [recruiting firms](https://bit.ly/starting-recruiting-firm). However, trimming costs during a downward market can play a critical role in helping an agency stay afloat. Now is the time to reassess essential vs. non-essential employees to your operations. Reducing your own internal staff and outsourcing vital functions, such as onboarding, payroll, background checks, and invoicing can increase savings as well as protect your working capital. 

**  
Time Savings**

Right now, recruiters must dedicate their time and energy to functions that will support clients who are scrambling to keep up with a changing office environment and potentially new remote workforce. An [Employer of Record (EOR)](https://bit.ly/employer-of-record) partner can instantly help free up valuable bandwidth for staffing agencies. Your chosen provider will manage a full suite of [back-office](https://bit.ly/back-office-solutions) related tasks, affording you and your sales team the time needed to stay focused on sourcing talent and building up a contingent workforce network. 

**Payroll Burden **

The [fluctuating economy](https://bit.ly/staffing-success-in-disruptive-market) can wreak havoc on payroll processing for contractors. As a result, many staffing firms that were managing payroll internally, or through the use of traditional lenders, are [outsourcing their payroll needs](https://bit.ly/outsource-payroll-benefits) to an established Employer of Record services company. A third-party payroll company accelerates the entire process, delivering a vital layer of infrastructure to your firm that manages unexpected hiccups and ensures your workers continue to get paid on time. Additionally, an experienced EOR will also offer digital tools and resources to help you quickly calculate effective pricing strategies that protect profit margins and reduce overall risk for your organization.

**Compliance Management**

Most recruiting firms owners don’t have the time or motivation to keep up with the latest human resource, data intelligence, and tax compliance mandates—an Employer of Record service means they don’t have to. An EOR provider manages all necessary compliance needs, allowing staffing firms to avoid financial penalties and sanctions that stem from potentially non-compliant practices. 

 

Download Headcount Management’s [free Gross Profit MarkUp Calculator](http://bit.ly/markup-calculator-recruiters) to help your staffing firm develop effective pricing strategies in today’s fluctuating economy. 

 

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[Payroll & Cost Optimization](https://www.headcountmgmt.com/blog/tag/payroll-cost-optimization)

#### Resources for Staffing Agency Leaders

[![Free employer of record ebook: A roadmap to accelerated staffing agency growth](https://no-cache.hubspot.com/cta/default/6693758/20ec341e-6c37-43cd-baf1-b7d4fe2d1c23.png)](https://cta-redirect.hubspot.com/cta/redirect/6693758/20ec341e-6c37-43cd-baf1-b7d4fe2d1c23)

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## Related Posts

### [Oct 19, 2021 9:44:42 AM Growth & Scale in Large Staffing Agencies](https://www.headcountmgmt.com/blog/growth-scale-in-large-staffing-agencies)

### [Mar 11, 2020 3:00:00 PM Understanding Financing for Staffing & Recruiting Agencies](https://www.headcountmgmt.com/blog/financial-solutions-for-staffing-agencies-just-getting-started-0)

### [Jul 15, 2021 3:09:29 PM Financing Solutions for Staffing Agencies Just Getting Started](https://www.headcountmgmt.com/blog/financial-solutions-for-staffing-agencies-just-getting-started)

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