5 Reasons to Start a Staffing Business in 2025

Optimism is humming in the new year, leading some to wonder how to start a franchise in 2025. If that sounds like you, read on to learn more about some of the best franchises for 2025.

If the growing excitement around entrepreneurship has you thinking you might like to start a franchise in 2025, you’re not alone! More people than ever are exploring opportunities to take charge of their careers and build something of their own—and one of the most exciting industries to consider right now is staffing, with a projected growth of 5% in 2025. Beyond predictions like these, staffing’s unique mix of stability, growth, and the chance to make a real impact mean these businesses are perfectly positioned for success in 2025. 

Clearly, for those looking to start a franchise in 2025, staffing is a good place to start. We’ll walk you through five key reasons why starting a staffing business is a smart move this year: from the affordability of launching a staffing franchise to the industry’s growth potential, the wave of economic optimism fueling entrepreneurs, and the growing desire for career independence. Plus, with the support of an experienced franchise partner like Spherion, you won’t have to go it alone. 

1. Staffing franchises are easy and affordable to launch

Starting a business can feel like a big leap, but staffing franchises make the process surprisingly approachable. Compared to other industries, which can have startup costs of between $100.000-$300,000, staffing has much lower startup costs. You won’t need to sink money into expensive equipment, inventory, or large physical spaces. Instead, your focus will be on providing a service, which makes it a leaner and more cost-effective business model.

The service-driven nature of staffing makes it even more accessible. Instead of managing a stockroom or purchasing high-end equipment, your energy is focused on connecting businesses with talented workers. If you’ve been dreaming of becoming a business owner but worried about the complexity of getting started, a staffing franchise offers an affordable, streamlined path to success—one where you’re never in it alone.

The basics: Workers' compensation in staffing

Managing workers’ compensation may not be the most glamorous part of owning a staffing franchise, but it’s one of the most important. More than just a box to check, it’s about protecting your team, your clients, and your bottom line. Here’s what you need to know about workers’ compensation in staffing.

What is workers’ compensation insurance?

Workers’ compensation insurance is a safety net that protects both employees and employers. It provides financial support to workers who are injured on the job by covering medical expenses, lost wages, and rehabilitation costs. For employers, it offers protection against lawsuits that could arise from workplace injuries. In the staffing world, where employees often work in varied and sometimes unpredictable environments like manufacturing or warehouses, having proper coverage is vital.

What’s the difference between workers compensation vs personal injury claims?

When looking at workers compensation vs personal injury claims, there are a few key differences. Workers’ compensation claims cover injuries or illnesses that occur while performing job-related duties and provide benefits like medical expenses, wage replacement, and disability coverage. For example, if a warehouse worker injures their back while lifting heavy boxes, they can file a workers’ comp claim. Personal injury claims, on the other hand, apply when someone is harmed due to another party’s negligence or actions and typically occur outside your workplace. For instance, if someone slips on a wet floor in a store and the business failed to post a warning sign, they could pursue a personal injury claim.

Special considerations for workers’ compensation in staffing

As a staffing agency owner, your responsibilities go beyond what’s considered the “norm.” You’re not only managing workers’ comp for your own internal team but also for the temporary workers you place with clients. Both of these groups present different risks and needs that require careful management.

While your internal team may injure themselves while working in an office setting, temporary workers often work in industries with much higher injury risks, such as manufacturing, logistics, and construction. And since they’re not working directly under your supervision, you have less control over their day-to-day environment. This dual responsibility means staffing agencies must be extra diligent about risk management and choosing clients with safe workplaces.

Key cost factors for staffing agencies

Finally, there are few things you should keep in mind when you’re thinking about the potential workers’ comp costs for your franchise:

• Frequency and severity of incidents: The number and seriousness of workplace injuries significantly impact your workers’ comp costs. A higher frequency of incidents or more severe injuries will drive up your claims, increasing your overall expenses.
• Premium calculations: Your workers’ comp insurance premiums are influenced by factors like your industry classification, payroll size, and the type of jobs your employees perform. Riskier industries come with higher premiums, which can quickly add up in staffing.
• Experience modification rates (EMR): Your EMR is essentially a safety score for your business. If your agency has fewer claims than the industry average, your EMR goes down, reducing your premiums. On the flip side, a poor safety record can lead to higher costs. Maintaining a strong safety culture is key to keeping this score in check.
• Impact on profitability: In staffing, out-of-control workers’ comp costs can tax your bottom line. Every claim eats into your profits, so effective risk management and cost control are crucial to sustaining your business.

2. Staffing is a stable industry with tremendous growth potential

When it comes to starting a business, stability matters, and the staffing industry has a proven track record of resilience—even during economic ups and downs. While some industries struggle to weather recessions or shifting markets, staffing consistently adapts. Businesses always need skilled workers, whether to fill temporary gaps, meet seasonal demand, or grow their teams during boom times. This steady demand makes staffing a reliable industry to invest in.

The data backs this up, too. The US staffing market is expected to grow to $198 billion this year, with growth expected to continue as businesses embrace more flexible workforce models. And the ongoing labor shortage means the demand for qualified workers in healthcare, education, and technology will increase, while some markets may also be able to tap into other staffing opportunities. Trends like the increasing use of temporary and contract workers are fueling even more growth. 

3. Economic optimism is fueling entrepreneurial spirit

There’s something exciting in the air for 2025—more people are feeling ready to take the leap into entrepreneurship. Recent surveys show that 75% of small business owners are expecting to grow in 2025, and that optimism is giving aspiring entrepreneurs confidence in the economy and opportunities ahead. In fact, the US recently hit a record 21 million new business applications! 

One of the reasons so many people are jumping in is the improving access to funding. Small business loans are becoming more accessible, with favorable credit terms and programs specifically designed to support new ventures. When we add this to the projections of steady growth and increased consumer and business spending, the result is plenty of opportunities for entrepreneurs to succeed. If you’ve been waiting for the right time to start a business, the optimism and opportunities we’re seeing now could make it a smart move to start a staffing franchise in 2025.

4. People are prioritizing control over their future

Shifts in workplace dynamics, like return-to-office policies, wage stagnation, and rising cost-of-living pressures, are leading many to seek greater control over their financial futures. Instead of settling for rigid schedules or limited growth opportunities, they’re turning to entrepreneurship as a way to take charge—and owning a staffing business is one of the best ways to do it.

When you own a staffing business, you’re the one calling the shots. You have the power to shape your work-life balance and build a future that aligns with your personal goals. It’s a business that’s as flexible as it is rewarding, giving you the chance to connect talented job seekers with companies while creating financial security for yourself.

Take Leah MacGregor, for example. Once a Spherion employee, Leah decided to take the leap and open a Spherion staffing franchise to find greater autonomy and the ability to flex her entrepreneurial muscles. Now, she runs a thriving business on her own terms, helping her community while enjoying the independence she always dreamed of. Or Angela Swarts, who embraced franchise ownership and purchased her own Spherion franchise at the age of 28. Their stories show what’s possible when you take the reins and prioritize your future.

5. Partnering with Spherion means you won’t go it alone

Finally, if you’ve ever dreamed of owning a business but hesitated because of the uncertainty, Spherion makes the journey much smoother, acting as a trusted partner to guide you every step of the way. For those with staffing experience looking to take their careers to the next level, franchising with Spherion offers a unique opportunity to transform your expertise into business ownership—with support you can count on.

When you join the Spherion family, you’re not starting from scratch. You’ll have access to a proven business model, nationally recognized branding, and the tools you need to hit the ground running. With everything from training and marketing resources to ongoing operational support, Spherion is committed to helping you succeed. And the best part? You get to be your own boss while enjoying the backing of a brand with decades of industry experience.

Ready to start your staffing journey?

Starting a staffing business in 2025 could be the best decision you’ll ever make. From the affordability and simplicity of launching a staffing franchise to the stability and growth potential of the industry, the opportunities are endless. Best of all, partnering with Spherion means you’ll have the tools, support, and expertise to build a thriving business without going it alone.

If you’re ready to take charge of your career and make a lasting impact in your community, now is the perfect time to explore franchising opportunities with Spherion. With our proven model and dedicated support, you can confidently step into business ownership and create a future that works for you. Explore some of Spherion’s franchise opportunities and franchise resales to learn more and start your journey today!