Are Staffing Agencies Worth It?
What Fortune 500s Know That You Might Be Missing
Let’s get something straight: Billion-dollar companies don’t hire staffing agencies because they can’t hire. They hire us because they know better.
So… are staffing agencies worth it?
If you’re asking that question, good. Because the real answer has nothing to do with résumés or convenience. It has everything to do with risk, cost, and control.
Let me break it down for you.
Workers' Comp Isn’t Just Insurance — It’s a Time Bomb on Your P&L
The average cost of a workers’ comp claim in 2022? $44,179.
The average cost of an amputation claim? $120,077.
A neck injury? $68,000+. A motor vehicle crash? $90,914.
(Source: NCCI – National Council on Compensation Insurance)
“But wait — I have insurance for that.”
Exactly. But here’s what most small to mid-size operators don’t realize:
Every claim affects your premium.
Your Ex-Mod (Experience Modifier) goes up.
You’ll get hit harder at audit time.
If you’re using independent contractors incorrectly? You’ll pay back premiums on those 1099s too.
And your workers’ comp rate isn’t the same as everyone else’s.
In low-risk industries like admin or office, it might be under $1 per $100 in payroll. But in construction or hospitality? It’s often $7–$18 per $100.
That’s why staffing feels “expensive” in those industries. Because we’re the ones holding that risk on our insurance, not you.
Motor Vehicle and Burn are leading the cause
Source: injuryfacts.nsc.org
Payroll Isn’t Just Wages — It’s Loaded With Hidden Costs
Every $100 in gross pay has a real cost closer to $130–$150+ depending on your setup:
Every Industry will be different - know yours
Big Picture? When a company says, “We pay $20/hr,” the real cost might be $26–$30+/hr.
That’s before you factor in:
Hiring costs
Background checks
Turnover
Onboarding
Termination headaches
Legal risk
When you use a staffing agency? You pay one flat rate — and we eat the rest.
One Bad Hire Can Cost You 30% of Their Salary
U.S. Department of Labor says one bad hire = 30% of annual salary.
That includes:
Recruiting time
Training costs
Mistakes they make
Time lost replacing them
We see it every day:
No-shows
Ghosting
Attitude problems
Compliance failures
Poor performance
With staffing, you’re not gambling with your own payroll. We are.
And we’ll replace them at no extra charge.
Staffing = Risk Transfer. Not Just “Finding People.”
This is where people misunderstand staffing.
We’re not just “finding people” — we’re absorbing risk and responsibility:
We are the employer of record
We hold the workers’ comp policy
We deal with unemployment claims
We take on ACA, IRS, EEOC compliance
We handle replacements, onboarding
We don’t just send workers. We protect your business.
Staffing does carry your liabilities too
Why Would a Fortune 500 Use Staffing?
Because they:
Understand cost of delay
Need to stay lean on overhead
Want to limit long-term liability
Value speed, compliance, and flexibility
And most of all?
Because they know the real cost of NOT outsourcing.
The Takeaway
Staffing isn’t just about solving today’s hiring pain. It’s about protecting your time, money, and reputation.
If you're still asking:
“Are staffing agencies worth it?”
The real question is:
Can you afford to absorb the risk of every single hire?
What We Do at ATI Solutions
At ATI Solutions, we’re not in the business of gambling with your people. We’re in the business of solving labor problems before they explode.
We specialize in:
Hospitality
Light Industrial
Construction Support
Pharmaceutical
Janitorial & Maintenance
Manufacturing
Tech and IT
Logistics
Whether you need:
Temp labor
Direct hire
Employer-of-record/payroll solutions
We’re not the cheapest. But if things go wrong, we’re the ones holding the bag — not you.
Go to our Contact page and Let’s talk about staffing that actually protects your business.
