A quick comparison of staffing agency relationships vs. Free Agent Source shows benefits to both the company and Free Agent:
Staffing Agency |
Free Agent Source |
| Corp to Corp Contract | Corp to Corp Contract |
| Negotiate Billable Rate with Staffing Agency | Negotiate Billable Rate with the Free Agent (like hiring an employee) |
| No Transparency to the Professional on % Agency Keeps | 100% Transparency (= professional, satisfied professionals) |
| No Group Rate Benefits (health care, retirement plan, etc.) | Group Rate Benefits (= happy, secure professionals) |
| Professionals makes half or less of what the Agency is paid | Free Agent keeps 85% or so (= content, well paid professionals) |
| Professionals are “temps” with little or no status, support, or stake | Free Agents have the support of an employer (FAS) and our back office |
| High Risk, High Expense, Low Commitment | Low Risk, Moderate Expense, High Commitment |
Ask yourself: would you try to build an effective project team out of staff agency “temps”? We wouldn’t, either. They’re underpaid, since the agency keeps half or more. Besides that, they have no employee benefits, so they’re constantly looking around for ‘permanent’ employment opportunities. But in this economy, hiring a lot of traditional employees comes with its own risks and challenges for the company. Hiring 1099 contractors puts you all over the map with a dozen different contracts (where FAS provides a standardized corp to corp contract). By contrast, Free Agent status benefits the professional and the company.
Crafted By Daniel DiGriz
Daniel DiGriz is a business developer, community organizer for business, and President of Market Moose, where he serves as a consultant on business processes, internet marketing, content creation, and web production. He is also author of the Rules of Work blog and creator/contributor at JobHacker.org. As co-founder of Free Agent Source and Business Development Executive, Daniel concentrates on developing company marketing initiatives and engaging the Northeastern community of entrepreneurs, startups, and small businesses. Daniel is based in the New York City area.
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