By Monique Crapper
About the Author: Michelle Peterson has led global payroll strategy at one of the top 5 staffing companies in the U.S for over a decade. She understands firsthand the challenges payroll and operations teams face in managing temp talent. As the leader in staffing solutions at Instant, she now advises workforce organizations on time clock efficiency, payroll modernization, employee engagement, and digital pay solutions.
The secret is out: Read how earned wage access is driving positive business outcomes in staffing
In a high-volume, low-margin business like staffing, even a 1% improvement in gross margin can have a major impact on profitability. But with clients resistant to rate increases and talent in short supply, many firms feel stuck.
The truth is, there are meaningful ways to improve gross margin that don’t involve changing your bill rates—or cutting talent pay.
Let’s explore how.
Increase Order Fill Rate (Without Adding Overhead)
Higher fill rates directly boost revenue potential. When orders go unfilled, your recruiters are still working—but not earning.
With faster time-to-fill, fewer open shifts, and better recruiter productivity, staffing companies can:
- Maximize the utilization of current resources
- Reduce time spent chasing candidates
- Increase gross profit without increasing headcount
In short, more jobs filled with the same team = better margins.
Reduce Turnover, Reduce Cost
Turnover is expensive. But it’s unfortunately no stranger to the staffing industry. The American Staffing Association reported a 414% turnover rate in 2023 for temporary and contract employees. When workers drop off assignments early, the cost of replacement goes beyond sourcing:
- Time spent re-onboarding
- Lost productivity during transitions
- Loss of institutional knowledge
- Overtime for remaining workers
- Frustration for clients with training replacements
By increasing retention—even slightly—you dramatically reduce operational waste and improve the consistency your clients depend on.
Improve Time Reporting Accuracy
Chasing down missing punches and fixing errors eat up time and payroll resources. Not only does it cost money, but it also impacts your brand with both clients and employees.
With more accurate and timely time reporting, you’ll see:
- Fewer payroll corrections – The IRS found that 33% of employers make payroll errors each year.
- Faster client billing cycles
- Less administrative overhead
That’s real efficiency that feeds your bottom line.
The Role of Instant Pay
At Instant, we help staffing firms increase profitability by delivering same-day access to earned wages—without adding complexity or cost.
When workers have the option to get paid after each shift rather than wait weeks until payday, you’ll see measurable improvements in:
- Order fill rate
- Talent retention
- Timecard accuracy
- Overtime usage
- Recruiter efficiency
These operational gains translate directly into stronger gross margin performance.
Ready to See the ROI?
Instant works with top staffing firms across light industrial, healthcare, logistics, and commercial staffing—helping them become more competitive, more efficient, and more profitable.
Let’s talk about how earned wage access can strengthen your gross margin without increasing your bill rate.
