What is Brief History of BBSI Company?

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What is the history of BBSI?

BBSI has evolved from a staffing firm to a full-service Professional Employer Organization (PEO). This expansion allows them to support small and medium-sized businesses (SMBs) by managing payroll, HR, risk, and workers' compensation.

Founded by the Barrett family, the company was incorporated in 1965, initially focusing on the West Coast. Their core mission has always been to foster the growth and success of SMBs nationwide.

What is the brief history of BBSI Company?

Barrett Business Services, Inc. (BBSI) began its journey in 1951, with its formal incorporation in 1965. Initially, the company concentrated its efforts on the West Coast, particularly in Oregon and Washington, providing staffing solutions. Over time, BBSI strategically transitioned into a comprehensive Professional Employer Organization (PEO). This evolution allowed them to offer a wider array of services, including payroll administration, human resource management, risk mitigation, and workers' compensation insurance. The company's enduring vision has been to empower small and medium-sized businesses (SMBs) by enabling them to streamline operations and focus on growth. As of 2024, BBSI reported revenues exceeding $1.14 billion, with projections for 2025 anticipating gross billings growth between 7% and 9%. This sustained growth highlights BBSI's strong market presence and its effective BBSI BCG Matrix strategy.

The BBSI company history traces its origins back to 1951 with the Barrett family. However, the company as it is known today was formally incorporated in 1965 after William W. Sherertz acquired it in 1963. Sherertz, a native of Portland, established the company’s initial operations on the West Coast, focusing on staffing services.

BBSI Company Founding Story

The BBSI company history began with a focus on staffing solutions, addressing the growing need for businesses to manage their workforces efficiently. William W. Sherertz acquired the company in 1963, leading to its formal incorporation in 1965. The early operations were centered in Portland, Oregon, with a strong emphasis on providing staffing services to businesses.

• The company's roots trace back to 1951 with the Barrett family.
• Formal incorporation occurred in 1965 under William W. Sherertz.
• Initial operations focused on staffing services on the West Coast.
• The business model addressed the need for efficient workforce management.

The initial funding for BBSI was private, typical for businesses of that era, likely relying on personal investments and early revenue rather than external venture capital. While specific details regarding the naming of the company are not extensively documented, the name 'Barrett Business Services' suggests a broad commitment to supporting various business needs. The economic climate of the mid-20th century, marked by expanding businesses seeking streamlined human resource management, provided a fertile ground for the company's inception and its initial specialization in staffing.

The early history of BBSI payroll services and its subsequent evolution into a Professional Employer Organization (PEO) is a key aspect of the BBSI company timeline history. Understanding the Growth Strategy of BBSI helps illustrate its development from a regional staffing firm to a significant player in the HR outsourcing market.

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The BBSI company history began with its incorporation in 1965, initially focusing on staffing services. A pivotal moment arrived in 1993 with its Initial Public Offering on the NASDAQ, providing access to capital for significant expansion and development.

BBSI Company Origins and IPO Milestone

Founded in 1965, BBSI's early years were dedicated to staffing solutions. The company's trajectory shifted significantly in 1993 when it successfully completed its Initial Public Offering on the NASDAQ, a key event in the BBSI company history.

Strategic Expansion and PEO Model Evolution

Following its IPO, BBSI strategically acquired staffing agencies across states like California, Utah, and Idaho. This period marked a transition towards the Professional Employer Organization (PEO) model, integrating payroll, HR, and risk management into its offerings.

Market Entry and Client Focus

BBSI's growth strategy includes expanding into new markets, with plans for physical locations in Chicago, Dallas, and Nashville by early 2025 using an asset-light approach. The company consistently serves small and medium-sized businesses (SMBs), with an average client size of approximately 26 employees.

Recent Financial Performance and Growth Indicators

In the first quarter of 2025, BBSI reported a 10% revenue increase to $292.6 million and a 9% rise in gross billings to $2.09 billion compared to Q1 2024. The average number of worksite employees grew by 8% to 132,459, reflecting strong market reception and effective growth strategies in the Brief History of BBSI.

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The BBSI company history is marked by significant growth and strategic shifts, evolving from its early days to become a comprehensive business solutions provider. Key milestones include its public debut and a crucial transformation into a Professional Employer Organization (PEO).

BBSI has consistently focused on innovation to better serve its clients. The transition to a PEO model integrated payroll, HR, risk management, and staffing into a unified platform, a significant innovation that allows BBSI to advocate for business owners. The recent launch of an Applicant Tracking System (ATS) in March 2025 further exemplifies this commitment by centralizing and simplifying the hiring workflow for businesses.

PEO Service Integration

The evolution into a Professional Employer Organization (PEO) marked a major innovation, consolidating essential business services into a single, comprehensive platform.

Kaiser Permanente Partnership

In 2024, a strategic partnership with Kaiser Permanente was established to broaden health plan options for clients, enhancing employee benefits.

Applicant Tracking System (ATS)

The March 2025 launch of an ATS aims to revolutionize hiring by centralizing job postings, interviews, and onboarding, reducing manual effort and errors.

Despite its advancements, the company has encountered challenges. The first quarter of 2025 saw a 10% year-over-year decline in staffing operations, influenced by broader economic conditions and regional labor market dynamics. Furthermore, the company reported a net loss of $1.0 million in Q1 2025, an increase from the $0.1 million net loss in Q1 2024, partly due to elevated payroll tax expenses early in the year.

Staffing Operations Decline

Macroeconomic headwinds and supply-demand imbalances contributed to a 10% year-over-year decrease in staffing operations during Q1 2025.

Increased Net Loss

Higher payroll tax costs at the start of the year impacted profitability, leading to a net loss of $1.0 million in Q1 2025, compared to a $0.1 million loss in Q1 2024.

Navigating Economic Headwinds

The company continues to address these challenges through consistent execution and its distinct service model, as noted by CEO Gary Kramer. This approach, combined with its commitment to a positive workplace culture, evidenced by its Great Place To Work® Certification for four consecutive years through 2025, helps it manage internal and external pressures effectively.

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The BBSI company history is a narrative of consistent evolution, beginning with its origins in 1951 and progressing through significant leadership changes and strategic public market entries. This journey has established a foundation for its current operations and future aspirations.

Projected Growth for 2025

For 2025, the company anticipates gross billings to grow between 7% and 9%. The average number of worksite employees (WSEs) is expected to increase by 4% to 6%.

Financial Projections

The gross margin is projected to be between 2.85% and 3.10% of gross billings. The effective annual tax rate is expected to remain stable at 26% to 27%.

Strategic Expansion and Innovation

Future strategies include expanding into new markets using an asset-light approach. The development of technology solutions, such as the new Applicant Tracking System, is also a key focus.

Client Focus and Service Model

The company's BBSI Benefits offering covers over 17,500 participants as of Q1 2025. CEO Gary Kramer emphasizes strong client relationships and a differentiated service model as drivers for sustained growth.

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