Staffing Service: Managed Services

Some agencies provide “managed services” (aka “statement of work” or “outsourcing”) to do work outside your core business – for example, janitorial services, security services, IT services or web development services. Services like these can be short-term or they can last for years. It all depends on your organization’s needs.




Use this approach when:

  • You need new staff who will work outside the scope of your core business to support long-term growth.
  • You want to provide stability to workers that serve in supporting roles without having to add them to your permanent payroll.
  • You need extra help in roles that can be clearly defined and differentiated from your main products or services.
  • You need consistent help from people who know your business even if they aren’t employees.
  • You need supplemental HR services, benefits, and screening / offer process support.
  • You want a streamlined, ongoing hiring process that requires little of your input.

Keep in mind:

  • Workers providing services over an extended period of time will expect an increase in pay, even if they aren’t your direct employees. Plan ahead for COLA increases to allow for pay raises.
  • Clarity around responsibilities of a managed services team is critical to a successful engagement. Make sure both companies understand what work is being outsourced and how success will be measured.
  • Most managed services do not require a set duration of time for the employees’ contracts, but all contracts should include an end date to allow for review and adjustments.


There are a lot of industry terms in the recruiting and staffing world. If you are not familiar, refer to this glossary of recruiting terms that we’ve been building.

*This content was originally written as a guest post on Mac’s list, available here: