Why Employees of Staffing Companies Strike Out on 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.

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 my employer 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, CRM's, 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.