Staffing companies are evolving, and plenty of mergers are taking place in the United States. The U.S. labor market is thriving, with low unemployment rates despite layoffs across various sectors. These layoffs mean placement opportunities for staffing agencies, but increasing competition in the staffing industry means agencies must attract qualified talent and more clients.
How Staffing Companies Are Adjusting
Offering employee benefits can attract talent, while solid insurance plans, like employee benefits liability, can protect staffing companies.
Determining Employee Benefits Liability
One of the trends in the staffing industry is the number of mergers taking place. Mergers and acquisitions help improve profitability through the company’s expansion, but these also help spread the risks of operations across a more extensive base. With more to worry about, the liability risks increase, but there are usually more resources to address them.
Seeing the Benefits of Mergers
While staffing agencies may want to continue independently, mergers can bring many benefits. For these companies, the benefits include:
- Expanded range of services
- Diverse and niche-industry talent acquisition
- More competitive pricing
- Reduced competition
A larger enterprise has a stronger position in the market, with the benefits of expanded services and highly qualified talent further increasing growth potential.
Watching the Staffing Companies Merging in 2023
Several big companies are merging in the staffing industry. Here are a few to take note of.
Sterling Acquires A-Check Global
A global provider of identity services and background screenings, Sterling Check Corp., is acquiring A-Check Global, which provides procurement, employment, and global workforce management solutions. This deal will help with Sterling’s expansion into crucial U.S. verticals.
Thoma Braco Acquired Coupa Software
Coupa Software, a Business Spend Management leader, has been acquired by Thoma Bravo, a software investment firm. Coupa can better serve its customer base and accelerate growth through Thoma Bravo’s software domain.
Next Move Healthcare Acquires Prime Surgical Associates
The acquisition of Prime Surgical Associates by Next Move Healthcare, a clinical talent provider, brings Next Move into the surgical staffing place. Prime Surgical Associates is a surgical staffing firm based in Kansas City.
24 Seven Cquires SketchDeck
24 Seven is a creative recruiting and digital marketing firm that recently acquired SketchDeck. As a design studio that offers full-stack creative services in an on-demand format, SketchDeck will expand the current capabilities and scale of 24 Seven.
Medical Solutions Acquires Worldwide HealthStaff Solutions
WorldWide HealthStaff Solutions is an organization that offers allied health recruiting and direct hire for international nurses. Its acquisition by Medical Solutions may expand the healthcare talent ecosystem currently in place with Medical Solutions.
Dscout Acquires Panelfox
As an end-to-end human experience research platform looking to make significant gains in the industry in the coming years, dscout invested in the acquisition of Panelfox. It is an all-in-one software platform that can help manage recruitment while aiding researchers as they build panels and develop smaller teams.
Managing Mergers and Employee Benefits Liability
As the structure of a business changes when a merger takes place, it could create a concern with employee benefits liability. Work with clients to create a peaceful transition of health or retirement plans, as proactively addressing these changes could help reduce potential legal claims over benefits issues.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.