Niche Staffers Generate Higher Margins

A Thanksgiving Lesson in Margin Strategy

Thanksgiving is almost here, and grocery carts everywhere look the same, cranberry sauce, mashed potatoes, pumpkin pie, and of course… the turkey.

This time of year, big-box grocers sell turkeys by the truckload, often at or below cost. It’s a volume play designed to get shoppers through the door. For small independent shops, though? Competing on price is a losing battle.

I know from experience. Years ago, I helped run a small butcher shop on Chicago’s north side. When November hit, the major chains would advertise whole turkeys for pennies per pound. If we tried to match those prices, we’d have gone under.

So we took a different approach.

When You Stop Competing on Price, Everything Changes

Instead of cheap turkeys, we brought in:

Free-range birds
Heritage breeds
Locally raised options

We charged two or three times more than the chains. And guess what?

We sold fewer turkeys but our margins skyrocketed. Customers who cared about quality, sourcing, and flavor were happy to pay the premium. We weren’t “just another meat counter” anymore. We became the place for the best Thanksgiving turkey in the neighborhood.

Less volume. Higher margins. Loyal customers. A niche well served.

The Same Playbook Works in Staffing

Today, the highest-volume staffing categories—light industrial, warehousing, general labor, admin—are dominated by national firms. They compete on price just like the grocery giants, often driving margins into the ground to win or keep accounts.

For independent staffing firms, trying to beat them at that game rarely ends well.

But there’s a better path: specialization.

Where Specialists Thrive

Independent firms that carve out niches consistently earn higher margins, especially in areas such as:

Healthcare (professional and specialty)
IT & engineering
Accounting & finance
Skilled trades
Emerging and niche verticals (aerospace, life sciences, renewable energy, logistics tech, etc.)
Mid-market clients too small for the national players’ attention

Why do specialists win?

The work requires real recruiting not just posting jobs and hoping someone bites.

The talent is harder to find: Scarcity increases value.

Clients need expertise, not just bodies: When you speak their language and solve their problems, price becomes secondary. Even firms serving lower-skilled categories can lift margins by going niche, like focusing on one industry, one region, or one workflow where they deliver unmatched consistency and service.

The Right Funding Partner Supercharges a Niche Strategy

At Madison Resources, we’re built differently from generic lenders.

We work exclusively with staffing companies. No other industries. No divided focus.

That means:

Higher advance rates to take on high-quality niche work
Real industry insight when you explore new verticals
A true partnership, not transactional banking

When your cash flow is stable and your partner understands your business, you can invest in specialization. Better recruiters, targeted marketing, deeper expertise, without chasing low-margin volume to survive.

The Playbook for High-Margin Growth

Here’s the formula successful niche firms follow:

Choose a niche where your expertise meets real market demand.
Deliver standout quality that clients can’t get from high-volume competitors.
Partner with specialists who understand staffing and support your growth.

Follow that model, and you won’t just compete with the nationals—you’ll outperform them.

A Thanksgiving Worth Giving Thanks For

This season, remember the turkey lesson:
You don’t win by being the cheapest. You win by being the best in your lane.

Here’s to building a staffing business that earns loyalty, margin, and growth all year long.

Ready to start your funding journey? Partner with Madison Resources today [apply here]

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

Nick Andriacchi

Nick Andriacchi is the Chief Revenue Officer at Madison Resources, bringing over 30 years of experience in the funding and payroll industry. Before joining Madison, Nick held leadership roles at two other funding companies, where he built a reputation as a trusted advisor and strategic thinker. Widely regarded as a true industry expert, Nick is passionate about helping staffing firms grow through smart funding solutions and operational support.

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‘Tis The Season! The Hidden Year-End Bonus Many Staffing Companies Miss

Understanding the SUTA “Bonus”

Every staffing company knows that margins are tight and every dollar counts. But there’s a hidden “bonus” that shows up every year when your employees hit their SUTA (State Unemployment Tax Act) limits. It’s one of those behind-the-scenes moments that quietly boosts your bottom line. Once employees reach their annual wage cap for SUTA, the employer’s tax liability for those workers stops. In other words, the staffing company keeps paying the same bill rates, but payroll costs go down.

Why It Matters to Your Bottom Line

Think of it as an end-of-year dividend for staffing companies that have kept their people working. The longer your contract employees stay on assignment, the faster they reach those limits and the sooner your costs drop. That’s real money back into your business. Professional placement firms tend to hit these limits early because of their higher pay rates, but even entry-level and mid-range employees can reach them with steady hours and consistent assignments.

Turning Savings into Employee Loyalty

This is where smart staffing operators can take it a step further. Use it as an opportunity to reward loyalty. When your contract employees stay, you win financially. So, consider sharing that success. A small year-end bonus, an extra PTO day, or even a simple thank-you can go a long way. Not only does it help you keep good people, but it reinforces that staying with your agency has value. It’s a win-win! Employees feel appreciated, and your bottom line improves.

Check Your EOR or PEO Costs

If you’re using an EOR (Employer of Record) or PEO (Professional Employer Organization), it’s worth asking a key question: Do your administrative costs go down once your employees hit their SUTA limits? Many providers don’t automatically adjust these costs, which means you could be missing out on savings that should rightfully be yours.

How Madison Resources Helps You Leverage SUTA Limits

That’s where Madison Resources steps in with real value. Our clients have access to detailed reporting that highlight which employees are approaching or have already hit their SUTA limits. That kind of visibility is powerful. You can forecast your year-end savings, plan better for upcoming payrolls, and even make smarter placement decisions.

Strategic Staffing for Maximum Savings

For example, if a worker was employed through your staffing company earlier in the year and is now close to the limit, it makes sense to put them back out on assignment first. Until the end of the year, they’re effectively a lower-cost employee. Same bill rate, less employer tax. That strategic awareness gives you a competitive edge and helps stretch your margin further without raising rates or cutting pay.

Small Efficiencies, Big Impact

In staffing, it’s a penny business. Small efficiencies make a big difference. Understanding and leveraging SUTA limits is one of those subtle, often overlooked ways to boost profitability while rewarding the people who help make it happen. Madison Resources gives you the data and insight to make that process easy – and to keep your business one step ahead.

Ready to start your funding journey? Partner with Madison Resources today [apply here]

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

Nick Andriacchi

See Full Bio

Washington: Paid Family and Medical Leave Insurance Updates for 2026

Overview of the Update

On October 29, 2025, the Washington Employment Security Department (ESD) announced updates to the state’s Paid Family and Medical Leave (PFML) program. Effective January 1, 2026, Washington’s family leave insurance premium rate will increase from 0.92% to 1.13%. Additional legislative updates impacting employer responsibilities and employee benefits are also scheduled to take effect at the same time.

The full details will be made available on the ESD website in December 2025.

What Employers Need to Know

Premium Contributions

Employers with 50 or more employees must pay 28.57% of the total premium, while employees pay the remaining 71.43%.
Employers with fewer than 50 employees are not required to pay the employer portion but must still withhold and remit the employee portion.
The wage base for Washington’s Paid Leave program aligns with the federal Old Age, Survivors, and Disability Insurance (OASDI) wage base, which will be $184,500 for 2026.

Employee Notification

Employers are required to notify employees that the new premium rate applies to wages paid on or after January 1, 2026.
An updated mandatory workplace poster—available in both English and Spanish—will be included in the employer toolkit in December.

You can access the employer toolkit and related materials here:
Employer Roles and Responsibilities – Washington Paid Leave

Employee Eligibility Notices

If an employee notifies you of a qualifying event that may make them eligible for Paid Leave, employers must provide the state-issued notice within five days.
Download the required notice here:
Paid Leave Employee Notification Form (PDF)

Key Legislative Updates Effective January 1, 2026

The ESD will release new resources as they become available. Here’s what’s changing:

Job Protection: Expanded job protection for employees taking Paid Leave from employers with 25 or more employees.
Health Care Benefits: Clarified rules on maintaining health care benefits during job-protected Paid Leave.
Paid Leave and FMLA Concurrence: Guidance on managing job protection when employees qualify for both Paid Leave and FMLA.
Weekly Claim Minimums: Reduced the minimum time an employee must miss in a week to qualify for benefits—from 8 hours to 4 hours.
Small Business Assistance Grants: Expanded access to grants helping small employers cover costs related to employee leave.

Additional Resources

Employer Resources Page: https://paidleave.wa.gov/employers/
Employer’s Paid Leave Benefits Toolkit: Download PDF
Estimate Your Paid Leave Premium: https://paidleave.wa.gov/estimate-your-paid-leave-payments/
Sign Up for ESD Email Updates: Subscribe Here

Contact Information

Washington Employment Security Department
Phone: (833) 717-2273
Email: paidleave@esd.wa.gov

Stay Informed. Stay Compliant. Grow With Confidence.

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

Tyler Tierney

Tyler Tierney is a funding expert at Madison Resources, specializing in helping staffing firms secure the capital they need to grow. With a strong track record of supporting both established companies and startups, Tyler works closely with clients to design strategic funding solutions and operational plans that maximize business potential and drive sustainable growth.

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4 Reasons Recruiters Leave Staffing Firms to Start Their Own

If you’ve spent any time in staffing, you know the itch. That feeling that says, I could do this myself. For a lot of people inside agencies, especially those who’ve built solid books of business, loyal clients, and strong candidate relationships, that itch eventually becomes too hard to ignore. Over the years, I’ve seen four main reasons why good recruiters and sales reps leave the comfort of a staffing firm to hang their own shingle.

1. The Pay Cut Reality

Let’s be honest, nothing gets under your skin faster than seeing the size of the check you bring in for the company versus what hits your own account. You make the calls, work the candidates, close the deals, and then watch half – or more – of the margin go somewhere else. When commissions get trimmed, bonuses capped, or ownership changes the structure, it pushes good people to ask the question: Why am I doing this for someone else? Starting your own staffing company means betting on yourself. You’re not splitting profits with a corporate overhead machine, you’re building equity in something with your name on it.

2. Office Closures and Layoffs: The Wake-Up Call

This one happens fast. One day you’re in an all-hands meeting, the next your keycard doesn’t work. Mergers, acquisitions, and “strategic consolidations” are part of this business. But even when the office closes, the relationships don’t disappear. There’s still business out there! Clients who trust you, candidates who pick up when you call. The only question is whether you have the guts to grab it. Many successful founders started their firms right after a layoff or closure. What looked like a setback turned into the push they needed to take control of their future.

3. Lifestyle and Freedom

Staffing is demanding: long hours, constant fires, high expectations. But the truth is, most top producers can make similar money (sometimes more) on their own with less stress and far more flexibility. Owning your own firm means choosing your clients, your pace, and your priorities. Want to work remote? Take Fridays off? Build a lean operation that runs on automation instead of meetings? You can. The tradeoff is responsibility. But for many, that’s a fair exchange for freedom

4. The Entrepreneurial Pull

Some people are just wired to build. They see opportunity everywhere and get restless working under someone else’s vision. They want to create something, shape a culture, and prove to themselves that they can do it. Staffing, more than most industries, rewards that mindset. If you’ve built relationships, understand cash flow, and can deliver results, the barriers to entry are low – and the upside is huge

The Bottom Line

I have been in the payroll funding business for over 30 years and have seen lots of successes. And here’s the thing, starting your own staffing company isn’t as complicated as you think. Full-service funding partners like Madison Resources make it possible to launch and scale with confidence. Madison provides payroll funding, invoicing, and back-office support that lets new

owners focus on what they do best: building relationships and filling jobs. You don’t have to be a finance or back-office expert – you can run your business, and they handle the rest.

Beyond funding and back office, they bring access to a powerful network of referral partners for workers’ comp insurance, CRMs, benefits administration, tax credits, and background checks. It’s a turnkey ecosystem built around the staffing world.

Madison is also a great solution for existing staffing companies looking to grow or streamline.

Whether you’re starting from scratch or ready to scale, having a partner like Madison Resources in your corner can make all the difference. They don’t just fund staffing companies—they help guide them.

Ready to start your funding journey? Partner with Madison Resources today [apply here]

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

Nick Andriacchi

See Full Bio

Building Recognition That Converts: A Practical Guide for Staffing Agencies

In the world of B2B services, especially staffing, seeing your company’s name once isn’t enough. To win new clients, your agency needs to show up again and again, until the buyer not only remembers your name but connects it directly with the value you provide. This isn’t a one and done game. Recognition is earned through consistency.

The Rule of 7 (And Why It’s Really More Like 17)

You may have heard of the “Rule of 7.” The idea that it takes about seven exposures before someone remembers your brand and trusts it enough to act. In consumer marketing, that might hold up. But for staffing agencies selling to other businesses, it’s often just the starting point.

B2B services—like HR, payroll, and staffing—tend to have longer sales cycles and multiple decision makers. Studies back this up:

Business services often require 16.9 touchpoints before a sale (Focus Digital).
Complex deals can involve hundreds of interactions before a decision is made (Instantly).

So, if you’re running a staffing agency trying to earn the trust of hiring managers, CFOs, and operations leaders, expect somewhere between 10 to 20 meaningful interactions before they confidently say, “Yes, I know who you are, and I know what you do.”

What That Looks Like in Practice

Let’s take an example. You run Premier Staffing Solutions, a staffing firm focused on manufacturing and logistics. Your prospects aren’t going to call you after seeing a single LinkedIn post. Recognition builds when they encounter your name across multiple, consistent touchpoints, like these:

LinkedIn posts introducing your agency as a trusted workforce partner
Sponsored ads targeting HR and operations managers
Monthly email newsletters with client success stories
Guest blogs or podcast appearances on industry platforms
Remarketing ads reminding prospects who you are
Direct mail or trade association features aimed at key decision makers

Each of these is a small but crucial step in building familiarity and credibility. The magic happens when they all work together.

Big Results Don’t Always Require a Big Budget

For smaller staffing firms, the good news is that recognition doesn’t have to cost a fortune. You can make serious progress through consistent, focused efforts like:

Regular organic social posts
Writing guest articles or blogs in your niche
Running modest retargeting campaigns
Networking in your local business community

The key isn’t the size of your spend, it’s the consistency of your presence.

Freeing Time and Capital to Focus on Growth

This is where a strategic partner like Madison Resources can make a real difference. By outsourcing critical but time-consuming functions, like payroll funding, processing, and invoicing staffing owners can turn fixed costs into scalable, revenue-tied expenses.

That shift:

Frees up working capital for marketing and business development
Removes administrative bottlenecks that slow growth
Lets you focus on building relationships and increasing visibility

When your back office runs smoothly and your cash flow is predictable, it’s easier to stay consistent where it counts, out in the market.

The Takeaway: Be Seen, Be Known, Be Trusted

You can’t win the sale if your prospect doesn’t recognize your name and trust your value. Building recognition that converts isn’t about flashy one off campaigns, it’s about showing up consistently and delivering a clear, credible message across every channel.

Stay visible. Stay consistent. And let partners like Madison Resources handle the rest so you can focus on growing your staffing firm.

Ready to start your funding journey? Partner with Madison Resources today [apply here]

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

Nick Andriacchi

See Full Bio

New York: Paid Family Leave Update 2024

New York State continues to strengthen employee benefits with the 2024 Paid Family Leave (PFL) program. This update applies to anyone working in New York State — regardless of where their employer is headquartered or where the employee lives — and requires private employers to provide Paid Family Leave coverage once eligibility thresholds are met.

What Employers Need to Know

Any private employer with one or more employees in New York State on each of 30 days in a calendar year becomes a covered employer four weeks after the 30th day of employment. Coverage applies to all full-time and part-time employees, including domestic workers who meet weekly hour requirements. Employees who do not meet eligibility thresholds may waive coverage by completing the official PFL Waiver Form.

Most employers are required to obtain Paid Family Leave insurance, typically added as a rider to an existing disability policy. Self-insured employers can apply to the NYS Workers’ Compensation Board for self-insurance or purchase a separate PFL policy. Employers must display the Notice of Compliance provided by their carrier and include PFL details in their employee handbooks or written communication.

Employee Contributions

The program is employee-funded through payroll deductions. For 2024, the contribution rate is 0.373% of an employee’s gross wages, capped at $333.25 annually. Employers are responsible for collecting contributions, maintaining waiver records, and reporting these deductions on employee Form W-2 (Box 14).

Employer Responsibilities

Obtain Paid Family Leave insurance coverage.
Provide the PFL waiver to ineligible employees.
Deduct and remit employee contributions.
Post the Notice of Compliance.
Include PFL information in employee materials.

For More Information

For more details, visit https://paidfamilyleave.ny.gov/ or contact the PFL Helpline at (844) 337-6303.
For employers seeking official forms and resources:

Stay Informed. Stay Compliant. Grow With Confidence.

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

Tyler Tierney

See Full Bio

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Blog

Trending Stories

Industry Insights

Niche Staffers Generate Higher Margins

A Thanksgiving Lesson in Margin Strategy

When You Stop Competing on Price, Everything Changes

The Same Playbook Works in Staffing

Where Specialists Thrive

The Right Funding Partner Supercharges a Niche Strategy

The Playbook for High-Margin Growth

A Thanksgiving Worth Giving Thanks For

‘Tis The Season! The Hidden Year-End Bonus Many Staffing Companies Miss

Understanding the SUTA “Bonus”

Why It Matters to Your Bottom Line

Turning Savings into Employee Loyalty

Check Your EOR or PEO Costs

How Madison Resources Helps You Leverage SUTA Limits

Strategic Staffing for Maximum Savings

Small Efficiencies, Big Impact

Washington: Paid Family and Medical Leave Insurance Updates for 2026

Overview of the Update

What Employers Need to Know

Premium Contributions

Employee Notification

Employee Eligibility Notices

Key Legislative Updates Effective January 1, 2026

Additional Resources

Contact Information

4 Reasons Recruiters Leave Staffing Firms to Start Their Own

1. The Pay Cut Reality

2. Office Closures and Layoffs: The Wake-Up Call

3. Lifestyle and Freedom

4. The Entrepreneurial Pull

The Bottom Line

Building Recognition That Converts: A Practical Guide for Staffing Agencies

The Rule of 7 (And Why It’s Really More Like 17)

What That Looks Like in Practice

Big Results Don’t Always Require a Big Budget

Freeing Time and Capital to Focus on Growth

The Takeaway: Be Seen, Be Known, Be Trusted

New York: Paid Family Leave Update 2024

What Employers Need to Know

Employee Contributions

Employer Responsibilities

For More Information

Community Involvement