Is Insight Global a Pyramid Scheme? Insight Global is one of the largest temporary and permanent staffing companies in the United States that offers Professional Employment Organization services. This organization began its operations in 2003 and has since expanded tremendously to open branches in different places within the United States of America. However, this business model has been getting more and more popular, and increasingly more people are getting involved, it is getting to the point when many people ask whether or not such business models are actually legitimate. Simply put: Is Insight Global a pyramid scheme moreover, or is there more than what is clearly seen? We should critically discuss it in detail.
What is a Pyramid Scheme?
Now is the right time to consider, what is the meaning of pyramid scheme at all, in order to comprehend the details of Insight Global. The definition of a pyramid scheme is a business where new members are to pay the former, but not to give any goods or services. In other words, it is a pyramidal marketing system, where participants earn their income mostly through the recruitment of more participants, not via the sale of a certain product or service. Of course, such structure results in having few people at the top who get most of the profits while the rest of the participants in achieving the organizational goals get negligible or no profits at all.
Is Insight Global a Pyramid Scheme?
The first biggest problem with pyramid schemes is its inability to have sustained growth if the company is not continually fed by new entrants into the scheme. Thus, when the number of new members is no longer rising, the entire context collapses and those users at the bottom incur substantial losses. In order to stop this from happening, you need to distinguish between two things: a pyramid scheme and a different legitimate organization, which is Multi-Level Marketing (MLM) but offers a product or service for making money.
This paper aims at analyzing the Insight Global business model:
Insight global is a company that deals with human resource services that include temporary and permanent staffing services. This is actually a referred company which purely dependent on a large network of recruiters who actively search for and then place suitable candidates into jobs within the United States of America. Like most of the staffing firms, Insight Global earns its incomes through collection of a fee from both the client and the candidate. The amount of money charged to the client depends on a percentage basis of the candidate salary; the candidate may be charged a processing fee or some other charges in relation to his/her placement.
Another area of focus for Insight Global is how the company hires its workers. The company encourages the creation of close relations with the representatives of different professions and establish a pool of qualified personnel. This has over time created a rich talent base on the market to ensure that the company can place professionals where they are needed most and in different fields of specialization.
The second important aspect of Insight Global business model is the firm’s attitude to technology. Through the use of software’s and tools right from the recruitment process and the efficiency of the same, a lot of money has been invested in this firm. In this technology it toute makes it possible for the recruiters to assess and sift through a large database of individuals to ensure that the professionals are posted to proper stations.
Strategic Business Area of Insight Global That Relates To MLM:
The concern here with Insight Global is the business model which is the same as multi-level marketing system and the same as a pyramid recruitment system. Insight Global hires people to become recruiters and then get paid based on how many people they put into jobs. This type of recruitment model can also be deemed as having issues with it for the simple reason that organizations may end up focusing more on the number of people they are able to recruit, rather than delivering good service to the candidates and clients respectively.
However, Insight Global is not solely relying on recruitment as IT service by placing candidates in jobs. Moreover, the company possesses technologies and tools, which helps it to gain revenues, and that distinguishes it from the pyramid type of work.
Legitimacy of Insight Global:
There are some reasons why the business of Insight Global is legitimate though their structure resembles the pyramid schemes. First of all, it provides worth to both the clients, and potential candidates that perform the role of ‘workers,’ while in contrast to the most usual Pyramid schemes which serve mainly the purpose of leading new people to the company.
Secondly, Insight Global operates on the market that is heavily saturated with a vast range of competitors, and despite all the existing challenges, the company adapts itself and its activity to different types of economic environment, including the impact of the pandemic. This success suggest that the company is not dependent on generation of new recruits as its only source of revenue.
Last, it is possible to state that there are variety of success stories shared by the candidates and clients who have used services of Insight Global. Obviously, these are as much reviews as a pinch of salt, but they are simply an indication that the company is doing its job of providing beneficial services to its users.
Conclusion:
Insight Global operates on a recruitment model that has some bits of multi-level marketing, but we have some good reasons why we can’t call it a pyramid scheme. Thus, taking into consideration provision of a real service to clients and candidates, the use of technologies, and management of different economical situations Insight Global can be considered as a real company that receives money due to providing people with professionals in different fields of work. You can contact us here.
It is important thus that any potential clients and candidates make their investigations and assessments well before they engage with Insight Global or any other staffing agency. Finally, the Insight Global, Inc.’s business model will be successful if it can sustain its competitive advantages, brings value to its customers, and has the ability to accept changes in its industry and worldwide economy.
