An Atlanta-based staffing company has acquired a similar, Charlotte-based firm, a combination that creates a company with roughly 38,000 jobs – half of them in Atlanta.
The merged company will be one of the five largest staffing firms in the southeastern United States.
Hire Dynamics, which typically arranges work for about 22,000 people, has purchased StaffMasters, which handles job assignments for 16,000 people, according to a statement by Larry Feinstein, the CEO of Hire Dynamics.
Together, the companies will provide support for about 1,500 clients, he said.
“The companies both provide support for contact centers, warehouses, administration and manufacturing,” Feinstein said. “The combination of Hire Dynamics and StaffMasters is an ideal match.
Both companies operate in the Carolinas, but their businesses compliment each other, he said.
Hire Dynamics, which was founded in 2001, also has offices in Georgia, Tennessee, Alabama and Texas.
The companies declined to say how much Hire Dynamics paid for the purchase.
Staffing employees are typically paid by the staffing company, which is also paid a fee by the companies where the employees work each day.
And while the cost to the company is often more than the wage a full-time employee might get for the same job, the company bears no cost for benefits. Moreover, staffing employees offer a company much more flexibility.
That is because staffing is “just-in-time” labor: When a company doesn’t have work for them, they tell the staffing company to stop sending the worker.
The staffing sector has waxed and waned along with the economy, often growing stronger when business is good but the outlook is uncertain.
The pay and benefits for workers is typically modest, but many workers use the placements as stepping stones to more permanent jobs. On the other hand, some prefer the flexibility.
Hire Dynamics does offer benefits.
Nationally, the staffing industry generates more than $100 billion a year in revenue, according to a report by Staffing Industry Analysts.