Thriving in a Brave New World of Staffing
Our industry has undergone many changes from 2000-2009, it has been a turbulent decade that has further proven the creativity and resiliency of our industry.
The Staffing Industry just keeps re-inventing itself to remain relevant.
Some of the changes*:
The numbers tell part of the story
- Market penetration of temps in the workforce has declined from about 2% to about 1.57%
- The number of temps working has remained flat
- Industry revenues that peaked at $132B in 2007 were $106B in 2000 and declined to $93B in 2009
Technology's Impact
- Vendor management Systems (VMS) usage has grown from 24% to 63% among large employers (not defined)
- Managed Services Programs (MSP) has grown over the past three years from 34% to 48%
Professional Services are growing, clerical shrinking
- In 2000, 54% of temps working were in professional categories and 20% were clerical workers
- In 2009 58% of temps working were in professional categories and 16% were clerical workers
Buyers are more sophisticated
- In 2004 only 16% of Buyers spent more than half their time on staffing, by 2009 that number was up to 57%
2009 was a rough year for many
- In 2009, the industry reported a 26% decrease in revenues over 2008
- Fully 2/3 of staffing firms reported revenue declines
- 42% had a net loss for the year and surprisingly for 30% it was the first time they had a losing year
The look ahead
- In 2010 the industry has shown increased revenues for each of the past six months (Q4 2009 and Q1 of 2010)
- According to the Bureau of Labor Statistics (BLS) temporary staffing has led the growth in jobs created
- SUTA rates have increased 35% since 2008, with no relief in sight
- Staffing Industry projected to grow by 5% in 2010
- Temp penetration expected to grow dramatically in the next decade
Keys to Success in the New World of Staffing-Differentiate
· Operational Excellence
· Customer contact and Intimacy
· Innovation and creativity
· Have a clear M & A Strategy-a Keynote Speaker at the Executive Forum suggested that this was an excellent time to grow through acquisitions
· Utilize technology to improve efficiency.
There are many thoughts and trends here that are worth examining and determining what is relevant and useful for your staffing firm.
*Many of these changes were compiled by The Haley Marketing Group from the Staffing Industry Executive Forum, hosted by Staffing Industry Analysts.
For more information: http://www.haleymarketing.com/ or
http://www.staffingindustry.com
