← Business Models: Core (all topics)
Flexi-staffing & wage pass-through
What it is
Staffing companies employ workers on their own rolls and deploy them to client sites, billing the wage plus a markup. Facility management, manned security and cash logistics work the same way
Formalisation and the labour codes are converting informal employment into contracted flexi-staffing
Impact on industries
- Employment formalisation is the structural driver - every worker moved from informal to contracted employment is revenue for the sector
- Outsourcing of non-core functions grows with client scale and compliance burden, and the labour codes raise the cost of managing staff in-house
- The markup over wages is very thin, so the business is high-turnover and low-margin by construction
- Working capital is severe - wages are paid monthly while clients settle on credit, so growth consumes cash proportionally
- Digital payment substitution is eroding cash-management and ATM logistics volumes structurally