R. A. Cohen Consulting Newsletter

Conference theme: It's Time to Innovate!

We thoroughly enjoyed this years' Executive Forum and wanted to share some of the highlights we took away with us.  

This was the 20^th Anniversary for the Executive Forum and Barry Asin their President introduced his remarks by saying how much has changed for the staffing industry over the past 20 years.

At the time of the first Executive Forum there were:

·        A total of 130 attendees, compared to over 800 this week

·        Few if any National Contracts

·        No Internet

·        Much less technology

·        Mobile technology meant a phone at best

·        Automation was just starting for our industry

·        We lived in a different world

The Economic Story

2010 was a great year of recovery for the Staffing Industry!

·      Growth increased over a very poor 2009 by 20%

·      Direct Hire (Placement and Search) growth was up 15% over

    2009

·      Light Industrial was up 25% and

·      Office Services were up 8%.

However, even though the penetration rate of temporary staff was up a bit to 1.70, this was at the same level as it was in 1997, so we still have much room for growth.

2011 is projected for more healthy growth!

·        In 2011 the predictions are for a 12% growth level over all

     sectors.

·        Direct Hire is projected to increase by 16%

·        Light Industrial is expected to rise by 15%

·        Legal Staffing is expected to increase by 13%

·        IT is projected to increase by 12%

IT staff Aug and IT Solutions have been the growth leaders from 2008 through 2010.

Recruiting remains a greater challenge for most staffing firms than sales, so temporary and contract workers remain in great demand.

The US Unemployment rate is finally below 9% and we hope it is headed lower due to increased economic activity rather than the unemployed just dropping out of trying to find employment.

The unemployment rate for College and University grads is dropping which bodes well for our industry and even better for the next generation as they begin their careers.

There continues to be great uncertainty in the marketplace!

• The combination of the earthquake, tsunami and possibly fatal nuclear reactor leaks in Japan create much concern about the impact on the world's 3^rd largest economy.
• Political unrest in many Middle East countries adds to global uncertainty.
•  Increased globalization-opportunities for staffing and solutions firms abound for digital work which can be completed anywhere in the world.
•  Continued worldwide uncertainty increases the need for flexibility in deploying labor when and where it is needed.
• Market volatility has become a continuous issue in our industry.

Key Trends for the Staffing Industry

• Customer sophistication continues to increase; we need to provide higher real and perceived value to our customers, not just excellent people but ideas, knowledge and expertise as the usage among large users (1,000 employees or more) of VMS and MSP increases.
• Workforce imbalances need to be addressed with creativity and innovation; how can we recruit more high tech talent from abroad and create more at home.
• There is an ongoing technology revolution -can we tap in to social media, mobile technology and virtual technology to increase our efficiency.
• Evolving regulation with Heath Care Reform, the crackdown on Independent Contractors, SUTA increases and other rising costs--are you passing these increases along to your customers or just eroding your shrinking margins.
• As mentioned the theme of this years conference was Innovation -- defined as creativity applied to a purpose to realize value. Without value, innovation is just change.
• Innovation is about disruption; love it or hate it--VMS and MSP are here to stay for large users and we expect its usage to trickle down to smaller companies in future.
• Social Media -- most effective applications to date are for recruiting. LinkedIn is king for recruiting professionals. Facebook-- 75% of job seekers are looking there. Building followers takes time and is worthwhile. Social Media has not waned, it has grown. Few companies have social media plans and even more astounding is that even fewer companies have Marketing plans.
•  Make your Brand Matter-- starting with the culture of your team live who you are and show it to your audiences; you can build trust in your brand by providing a continual flow of useful information; Create, check on and enforce brand standards to create trust and continuity.
• RPO is picking up, as is offshore and near shore recruiting. 

• Remember its time to innovate!

   

  Many of these comments 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

   

     

  If you would like to discuss your M&A strategy contact us for a confidential conversation.

   

  Contact Sam, Bob or Mike, who have successfully completed over 125 staffing industry transactions, if you'd like to discuss M&A matters related to your staffing firm.    

   

   

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