Do Staffing Agencies Offer Benefits?
Staffing needs in the insurance industry are constantly evolving. While some employees may stay long-term, frequent changes are common. As your organization grows, you’ll be responsible for managing and mentoring a diverse workforce. At the same time, it’s important to stay aware of the shifting responsibilities and expectations of your clients. This is where employment leasing companies can offer valuable support.
Whether you want to get hired part-time or apply for a full-time position, employment leasing companies offer different benefits, from retirement savings plans and training programs to health insurance benefits. Keep reading to discover the benefits of working with staffing agencies.
Do Staffing Firms Employ Direct Hires?
The staffing industry continues to grow at a faster rate than the overall economy and job market. In 2025, agencies are navigating ongoing regulatory updates and shifting economic conditions—yet the demand for flexible workforce solutions remains strong. It’s no surprise that staffing firms continue to generate significant revenue in this dynamic landscape.
It is estimated that more than 6.6 million people across the nation are employed through over 54,000 agencies, with approximately 123 workers per agency.
Are they direct-hire companies? Do they provide health insurance to their new hires? This depends on whether a staffing firm is the employer or not. Some agencies pay the employees directly, while others prefer to outsource the workers to other businesses for a commission.
The staffing agency acts as an employer in a direct hire. Healthcare compliance is the responsibility of the company that pays the salary in case the agency opts to broker an arrangement for them.
So, before hiring a staffing agency, try to determine if they act as a temporary employment organization or a direct-hire company. If it works for you, then you will also want to know what benefits they offer.
What Are the Benefits of Working with Staffing Agencies?
Depending on the kind of employment contract and agency structure, the advantages and disadvantages can differ significantly. That’s why you should understand the specifics before hiring an agency.
While this type of agreement is typically advantageous, sometimes there are cons of getting hired through a staffing agency, such as job instability and limited advancement (e.g. fewer chances for promotions or career growth).
The following are benefits offered by most employment companies:
- Health insurance: Health benefits are the common benefits that employees get from staffing agencies. This is particularly true for long-tenured employees working for a company for an extended period.
- Paid Time Off: It is not uncommon for staffing firms to offer PTO (paid time off), especially when it comes to long-term assignments. This may include sick leaves, vacation days, or holidays.
- Retirement plans: Retirement savings plans are also offered by some staffing agencies. For example, an agency may provide a workplace retirement plan known as a 401(k) plan.
- Referral bonuses: Referrals of other applicants for employment placements may result in bonuses from agencies.
- Development & training: Some agencies also offer workshops, various training programs, and certifications. This way, they assist employees in developing their skills.
- Flexible work schedules: Flexible scheduling is another benefit. Many staffing firms implement flexible work policies at workplaces to make arrangements more attractive to workers.
About 50% of agencies offer medical insurance, which is lower than the national average of nearly 70%. Life insurance is offered by roughly 35% of staffing firms. It is also below the national average.
In addition to medical and life insurance, some agencies also provide disability insurance. Not many offer this benefit, though. Only 14 percent of them offer long-term, and 21 percent provide short-term disability insurance.
What Conditions Must Be Met to Get Health Insurance?
The clients act as full-time employers when the agencies function as placement companies. Depending on the number of full-time workers on the payroll, the Affordable Care Act (ACA) may apply if agencies aren’t operating as placement companies.
Companies that have 50+ full-time employees are required by law to provide healthcare insurance coverage to each worker who puts in at least 30 hours weekly.
Those who work for direct-hire agencies are often employed full-time. However, some client contracts allow them to work a variety of part-time jobs.
As a result, determining who is qualified for health care benefits may become challenging. That’s why the companies need to calculate the average number of hours worked per week for each employee.
Final Thoughts
When compared to the national standards, staffing firms generally fall short of offering full perks to employees. To foster value in the workplace, build trust, and increase productivity, they need to select the best benefits for workers.
As a company, you want to work with a firm that can help you maintain continuity and draw in talent while saving money at the same time. Look for an agency that offers a full range of benefits to your employees, from health insurance and paid vacation time to training programs and retirement plans.