Ascen

Michael Bartels and I are proud to be sponsors of the REACH event in Boston September 12th at the Boston Marriott Long Warf. The team from Access Capital have lined up a trio of fantastic speakers which includes Ron Walters from 3Humans, Patrick Morin from Transact Capital Securities, LLC, Francis Larson from Ascen & Dan Quigg from Public Insight. All three will be sharing their insights on People, Processes and Technology. There is still time to register for this fantastic event: https://lnkd.in/emiKSgQp

Join Ascen‎ in Boston September 12th for the REACH Staffing Executive Masterclass. I'm going to be giving a talk on the state of the staffing industry and what staffing agency owners can do about it. The answer: Power. So what is Power and how do you get it? Find out in Boston on September 12th. The event is free and you will get to mingle with some of the talented minds in the staffing industry. A can't miss event: Register here: https://lnkd.in/eVNHJ2vR

Thinking of launching a Staffing Agency in the US Market? In our latest article (link in comments), we cover some costs you should be budgeting for.  Here are some key points: Sales is Crucial: The number one skill for success in staffing is sales. Outsourcing recruitment is possible, but outsourcing sales is almost impossible. If you can sell, you can win. If you can't sell, it will be very tough. Cost Flexibility: Starting a staffing agency can range from a few thousand dollars to over $150,000 depending on whether you handle tasks yourself or outsource key functions. Hidden Costs: Beyond the obvious expenses like insurance and software, things like payroll funding and compliance management can add significant costs.  Employer of Record (EOR): EOR services can simplify staffing by outsourcing payroll, compliance, and back-office processes, helping agencies focus on growth while aligning costs with revenue.

Social-Hire.com - London, 4 September - Scaling Across the Atlantic: Growing Your Recruitment Agency in North America, open only to UK-based recruitment agency founders and leadership teams. Join Francis Larson, Founder & CEO at Ascen, David Ballew, Founder & CEO at Nimble Global, and a panel of industry experts as we discuss - Scaling Across the Atlantic: Growing Your Recruitment Agency in North America. https://lnkd.in/eBg-Dn23 #ukrecruitment #ukstaffing #staffing #recruitment #socialhire #ascen #nimbleglobal

Expanding in the US staffing market presents significant opportunities, but it also comes with challenges, particularly around pricing strategy.  Our latest article breaks down the key elements of US staffing agency pricing, including gross profit, burden rate, markup, pay rate, and net profit. Some points to consider: - US W-2 Markups are around 50-60% across all industries on our platform (higher or lower depending on sector) - US C2C/IC markups are closer to 30% - W-2 burdens vary by state and workers' comp code (Workers' comp is below .3% for office-type work, however) - ICs/C2Cs have no burdens (but carry misclassification risk), hence why markups are lower - You should be sensitive to location, client expectations, and also how niche you are when doing pricing: high volume commercial staffing has very low markups (38-45%), whereas niche professional staffing has markups closer to 65-70%.  - Gross Profit must be high enough to cover your internal expenses. - If you are worried about fluctuations or fixed costs like setting up an entity, using an EOR/AOR like Ascen‎ can help you grow without needing a fixed back office team or entity.

30% of US employers have misclassified at least one worker. Misclassification isn't just about W-2, 1099, or Corp-to-Corp. It's a complex area full of nuances, responsibilities, and consequences. One of the key issues for staffing agencies in the US - you have to contend with US *and* state laws, which can vary dramatically, and there is no bright line test between ICs and W-2s. Here are the key considerations to think about for classifying between W-2s, 1099s, and Corp-to-Corp. - W-2 employees should be your default classification for most staffing roles in the US - Large staffing clients will often require staffing companies to have everyone as W-2 employees - Independent Contractors (ICs) are often called "1099" or "Corp-to-corp"/"C2C". Legally there is no difference between these -- they are both independent contractors, but 1099 usually refers to individuals (who receive a 1099-NEC form) and C2C to ICs with an entity.  - If you misclassify someone as an IC, you could could owe back taxes (withholding, FICA, SUI) as well as any missed overtime.  - Misclassification is risky in the US because you have a lot of compliance surface area: class action lawsuits from workers, regulatory action from state and federal DOLs, state unemployment agencies, and the IRS.  - Some industries have many ICs (ERP developers), others (Light Industrial) do not.  - Even if you see staffing app platforms calling everyone an IC, that doesn't mean they are correct: many app-based staffing platforms are currently shifting their workforces to employees, often using EORs like Ascen‎ There's an easier way: Consider leveraging an Employer of Record (EOR)/Agent of Record (AOR) solution to manage classifications accurately, ensuring compliance while reducing administrative overhead.

In our next installment of Ascen's Staffing Industry Spotlight, we spoke with Patrick Morin, Partner at Transact Capital Securities, LLC, who talks about M&A in staffing with some rock-solid advice on how the M&A process works and what to do to make an acquisition successful. If you ever plan to sell your staffing agency, you can't miss this interview. Here are some of the big takeaways: Prepare Early: Engage with an investment banker 12-18 months before selling. Early preparation can significantly boost your company’s value, allowing time to address key factors like financials, team strength, and growth plans. Keep Up the Momentum: Don’t ease up before the sale. Maintaining strong business performance ensures a higher valuation and prevents buyer hesitation. It's not done until the money hits the bank. Understand the Sale Process: Whether you're targeting strategic buyers or private equity, or whether you're in a broad auction or negotiated sale, the process can vary. Strategics may pay for synergies, while private equity might seek a platform or tuck-in acquisition. Knowing your potential buyers can help tailor your approach for a successful deal. Build a Sellable Company: Strong financials, a capable team, a diversified customer base, and robust business systems are essential. These factors not only attract buyers but also maximize your company's valuation. Overall - amazing content for all staffing firm owners looking to sell one day. Enjoy!

Our TIARA Recruitment Awards UK&I Finalists have been announced, and it's now up to our esteemed panel of Judges to debate and decide the 2024 Winners! The TIARA judging panel is composed of distinguished industry executives, Non-Executive Directors and chairpersons alongside leading experts, advisors, tech specialists and corporate heads of Human Resources and Talent Acquisition.  We are delighted to be working with a great group of partners this year as their diverse expertise and experience will contribute to the judging process - Bullhorn, Ascen, Liquid Friday Ltd, ForeTwo Group, Workwell International - Powered by 6CATS, Qdos Contractor, Grant Thornton UK LLP, Parasol, SourceWhale, Saffery, Blackwood Capital Group, Trowers & Hamlins, Mishcon de Reya LLP and Mercury. You can view our Judging Panel here: https://lnkd.in/gKcwteA #TIARA2024 #TIARAAwards #AwardJudges #Recruitment

We had a perfect day for the first ever ISSA Member Networking Event! Attendees made new connections and caught up with colleagues, such a great time. Thank you to our Gold sponsors: Marsh McLennan Agency, Nixer Comp, NextCrew and Ascen #ISSA #MemberNetworking #SummerFun #JoinISSA

In our latest article (link in the comments), we look at where staffing owners should incorporate their US staffing agency. Whether you are based in the US and looking to launch or have an established firm based in the UK and you're looking to expand to the US, here are the key points to consider: Formation Fees: Vary by state, with some states like New Mexico having very low fees. Annual Fees: Also vary, with states like Delaware having minimal fees. Tax Rates: Some states like Wyoming and South Dakota have no corporate taxes, but you may need to pay taxes in every state where you have significant business activity. Corporate Laws: States like Delaware, Wyoming, and Nevada are business-friendly, while states like California are more employee-friendly and may increase the risk of lawsuits. Personal Preferences: Consider personal lifestyle preferences when choosing a state, but remember that where you incorporate doesn’t have to be where you live. Employer of Record (EOR) Solutions: For those who don’t want to set up a US entity, using an EOR like Ascen can simplify the process, allowing you to manage employees without dealing with complex state laws directly.