Common Staffing Terms & Definitions

Parse – An act of or the result obtained by analyzing a string or a text.  

Resume Parsing – is a technology that allows you to process online resumes by extracting data in an intelligent way. It helps recruiters to efficiently manage electronic resume documents sent via the internet.

Applicant Tracking System (ATS) – An applicant tracking system is a software application that enables the electronic handling of recruitment needs. An ATS can be implemented or accessed online at enterprise- or small-business levels, depending on the needs of the organization

Markup – Staffing markup is a term used by staffing companies to describe the fees charged over and above wages paid to a contract or temporary employee. The implication is that, the client, has input into the decision on pay rate of the temp or contract employee.

VMS – A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor.  MSP’s typically use VMS applications.  

MSP –  Managed Service Provider (MSP) is an outsourced agency that manages the contingent worker program (temporary staffing) of a client company (typically a Fortune 1000 company like Coca Cola or Citibank) by managing its preferred staffing agencies.  MSP’s typically manage their preferred staffing agencies through a VMS.

Burden – Total Pay Rates + Total Payroll Taxes = Total Burden to Staffing Agency  

Recruiter – Staffing Recruiters work at staffing agencies. They match qualified candidates with the right position that aligns with their background. They work across multiple verticals and are great problem solvers. The ideal Staffing Recruiter is able to assess a situation and make a decisive decision. If you are looking for a job they are your new best friend  

Temporary Worker – An employment situation where an employee is expected to remain in a position only for a certain period of time. Temporary employees may have the opportunity to achieve permanent employment status after the time period has lapsed, Temporary workers may also be referred to as seasonal employees or temps.

Direct-hire position – A direct hire position is one in which the client company utilizes the staffing company to find the talent, then hires them directly. A candidate offered a direct hire position is not an employee of the staffing company, but goes directly on the client company payroll.

Payroll Services – A business service that provides payroll processing, pay check writing, and payroll tax administration, for a fee.  The service can be provided by specialist payroll companies or, many times, directly by staffing companies.

Payroll Processing – Payroll processing refers to the task of managing the payment of wages by a company to its employees. The steps involved in payroll processing typically include gathering employee time information for a selected time period, managing benefits & deductions, and distributing employee pay for that time period.

PEO (Professional Employer Organization) – a business entity that provides human resources outsourcing services to client companies through the use of a co-employment relationship.

Co-Employment – a relationship between two or more employers in which each has actual or potential legal rights and duties with respect to the same employee.

Independent Contractor (1099) – Independent contractors are specifically not temporary workers because they do not fill out time sheets, or are paid and taxed using a W-2. Instead, independent contractors are responsible for the delivery of a product or service, by a specified deadline, no matter how many hours are spent working.

Temp Agency – A temporary work agency, temp agency or temporary staffing firm finds and retains workers. Other companies, in need of short-term workers, contract with the temporary work agency to send temporary workers, or temps, on assignments to work at the other companies