Staffing Industry Review recently published a very informative article about the current state of workers compensation for staffing companies. They reference several leading experts on their perceptions of where the workers compensation market is heading.
Here is a link to that article-
http://www.staffingindustry.com/Research-Publications/Publications/Staffing-Industry-Review/July-2013/Rising-Tide
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These authorities generally deal with larger staffing companies with sales over 10M and premiums above 200K. From my experience of working with start ups and smaller staffing agencies, the difficult market conditions will exist for a longer period of time since many of these smaller staffing companies are less profitable for these insurance companies or State Funds.
A solution that many smaller staffing companies are selecting is partnering with a Professional Employer Organization or PEO. These PEO’s are experiencing a stabilization in their rates. Because of their huge size, these PEO’s are afforded much lower workers compensation rates than a typical staffing company that may use the State Fund. As a result, the PEO’s pass some of these lower rates to their smaller staffing clients to make and keep them more competitive– like a good insurance partner.
Please feel free to contact me at davidstaffing@gmail.com to discuss how you can start utilizing a PEO partner to better manage your workers compensation costs. Also visit us at https://StaffingCompSolutions.com/Work Comp Staffing Solutions-staffing-consulting-services/ to find out about our other staffing support services.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association