Certified Staffing Profesional Practice Exam

What type of staffing arrangement assumes operational responsibility from the client?

1. Professional Employer Organization (PEO)

2. Managed Services

3. Independent Contractors

4. Temp-to-Hire

The correct answer is: Managed Services

The correct choice is Managed Services because this type of staffing arrangement involves a service provider assuming responsibility for the management and delivery of specific functions or services from a client. In a Managed Services arrangement, the provider takes on operational responsibilities, which can include managing staff, overseeing processes, or handling logistics, allowing the client company to focus on its core activities rather than the workforce management details. In contrast, a Professional Employer Organization (PEO) acts as a co-employer, sharing employer responsibilities with the client but not fully taking over operational control. Independent Contractors operate as separate entities and do not assume operational responsibility for the client. Temp-to-Hire arrangements involve temporary workers who may become permanent employees if they meet certain criteria, but the operational responsibility during the temp phase remains with the client organization.