SIA_SampleAd

Global Daily News

  • Recruit revenue up 7% in Q2 with Indeed and Glassdoor leading growth

    Recruit Holdings Co. Ltd., one of the world’s largest staffing firms, reported revenue rose 7.3% in its fiscal second quarter ended Sept. 30. The fastest growth took place in the Tokyo-based company’s “HR Technology” segment, which includes job board Indeed and recently acquired Glassdoor. Revenue was up 56.4% in this segment during the quarter.However, the company reported overseas staffing revenue fell 3.7%. (¥millions) Q2 2018 Q2 2017 % change Q2 2018 (US$millions) Revenue ¥577,865 ¥538,698 7.3% $5,081.9 Gross profit ¥289,959 ¥249,785 16.1% $2,550.0 Gross margin 50.2% 46.4%     Profit for the period ¥45,604 ¥41,987 8.6% $401.1 Profits and losses from Glassdoor’s operations — which Recruit acquired in June for $1.2 billion — affected the company’s HR Technology segment for the first time. The segment’s growth during the second quarter was mainly due to increased sponsored job advertising revenue from new and existing clients at Indeed and the inclusion of Glassdoor. On a US-dollar basis, second-quarter growth in the segment was 55.1%.Indeed’s job seeker traffic continued to increase by double digits year on year during the quarter and its client base continued to expand, according to Recruit. Approximately 250 million unique users visit Indeed each month.Traffic to Glassdoor’s site increased as monthly unique visitors increased by double-digits year over year in the second quarter to approximately 60 million. Revenue growth was driven by its employer branding and job advertising products, as Glassdoor’s base of employer clients expanded. Revenue by segment (¥millions) Q2 2018 Q2 2017 % change Q2 2018 (US$millions) HR Technology (Indeed and Glassdoor) ¥82,409 ¥52,707 56.4% $724.7 Media & Solutions ¥175,897 ¥166,799 5.5% $1,546.9 Staffing ¥325,853 ¥324,614 0.4% $2,865.7 Media and solutions includes nonstaffing businesses such as Recruit’s publishing operations. In the company’s staffing segment, revenue edged up only 0.4%Recruit has staffing operations in the US, Europe and Australia as well as Japan. Examples of its overseas operations include Staffmark Holdings in North America, Recruit Global Staffing BV in Europe and Chandler Macleod Group Ltd. in Australia.Staffing revenue outside of Japan fell 3.7% to ¥193.2 billion (US$1.70 billion) in the second quarter. The company cited the negative impact of foreign exchange rate movements and the application of accounting rule IFRS 15; excluding these impacts, quarterly revenue was flat year on year. Japanese staffing revenue rose 7.0% to ¥132.5 billion (US$1.17 billion). GuidanceRecruit expects full-year revenue to rise 5.9%. Share price and market capRecruit shares closed down 2.33% to ¥2,9757.50 in Tokyo today; the company had a market cap of ¥5.14 trillion, according to FT.com. […]

  • More than half tech professionals in metro New York tri-state area plan to switch jobs: Benchmark IT

    Recruiting and retaining top talent is a constant challenge in the tri-state area of Metro New York, Connecticut, and New Jersey, according to the “Candidate Perspective Survey,” released today by Benchmark IT.More than half of the area IT professionals polled, 58%, reported they intend to switch jobs within the next year — nearly five times more than the national average.The research also found that salary isn’t always the driver when switching jobs. When asked what they consider the most important factor in accepting a job offer, 41% of respondents chose “skills growth and opportunity” compared to 12% who chose “salary.” Other top factors when considering a job change included “team environment and direct management” and “learning new skills and technologies” at 23% and 26% respectively.“Turnover rates among tech pros are always higher than other sectors, and when combined with an already tight labor market, IT executives can expect even more pressure to stay fully staffed and operational,” said John Bemis, president and founder of Benchmark IT. “Recruiting and retaining top talent is a constant challenge, especially against a backdrop of changing technologies and C-suite expectations.”Benchmark IT fielded questions to more than 1,300 area professionals currently employed in technology roles including project managers, software and infrastructure engineers and architects, and systems and business intelligence analysts, among others. […]

  • San Francisco Fed president: Full employment not ‘fixed target’ — Staffing quote of the week

    San Francisco Fed President Mary Daly said the central bank should not be pleased with “full employment,” Yahoo Finance reported. “We shouldn’t think of ‘full employment’ as a fixed target, but instead think of it as something that can be moved,” Daly said. “From that perspective, there appears to be quite a bit of upside potential for US workforce participation.&rdquo […]

  • Uber releases report categorizing sexual assault claims (Bloomberg)

    Uber yesterday released a new report, created in partnership with the National Sexual Violence Resource Center and the Urban Institute, that outlines how it will categorize incidents of sexual harassment, misconduct and assault. Bloomberg reported the taxonomy will help the human-cloud, ride-sharing company to clearly record reports of sexual misconduct. While the Uber document was written specifically for Uber, the authors hope other companies will adopt this or a similar framework.&nbs […]

  • Economists raise forecast for US job growth, outlook on unemployment rate mostly unchanged

    Economists raised their estimates for job gains this year and in 2019 but kept their outlook for the unemployment rate mostly unchanged, according to the fourth-quarter Survey of Professional Forecasters released today by the Federal Reserve Bank of Philadelphia.The economists expect the unemployment rate to average 3.7% in this quarter as well as the first quarter of next year, unchanged from the previous forecast.The jobless rate forecasts for the second and third quarters of next year are also unchanged at 3.6%; the new report forecasts the 3.6% unemployment rate to remain through the fourth quarter of 2019 as well.The projections for the annual-average level of nonfarm payroll employment now suggest job gains at a monthly rate of 198,500 in 2018, up from the previous estimate of 194,800. For 2019, the forecast now calls for 181,900 new jobs monthly, up from 167,800 estimated three months ago. The Survey of Professional Forecasters is based on a poll of 37 economists.Click on chart to enlarge. […]

  • UK – Number of temporary employees down 4.6%, unemployment falls to 4.1%

    The number of temporary employees in the UK decreased by 4.6% on a seasonally adjusted basis to a total of 1.53 million in the three-month period from July to September 2018 when compared to the same period a year ago, according to the Office for National Statistics.Temporary workers are self-identified when surveyed by the ONS, and they include those who are on fixed-period contracts, agency temp workers, casual workers, seasonal workers and others in temporary work.ONS figures also showed that the unemployment rate (the number of unemployed people as a proportion of all employed and unemployed people) was 4.1%; this was slightly higher than for the previous period from April to June 2018 but lower than for a year earlier (4.3%).During the period there were 1.38 million unemployed people (people not in work but seeking and available to work), 43,000 fewer than for a year earlier.Meanwhile, the employment rate was 75.5% during the period, higher than the 75.0% a year earlier.ONS data also covered wages for UK employees. The latest estimates show that average weekly earnings for employees in nominal terms (that is, not adjusted for price inflation) increased by 3.2% excluding bonuses, and by 3.0% including bonuses, compared with a year earlier. Meanwhile, in real terms (that is, adjusted for price inflation) average weekly earnings increased by 0.9% excluding bonuses, and by 0.8% including bonuses, compared with a year earlier.Turning to job vacancies, the ONS found that there were 845,000 job vacancies for the period from August to October 2018, this was 44,000 more than for a year earlier and the highest since comparable records began in 2001.Recruitment & Employment Confederation (REC) director of policy, Tom Hadley, commented,  “Although unemployment has slightly increased, employers across many sectors are continuing to experience fundamental challenges in finding the staff and skills that they need. We already have record numbers of vacancies, and the signs are that these skills shortages will further intensify over the next few months as EU workers no longer find the UK an attractive place to work.”“UK businesses will need to work with recruitment partners to innovate and review current hiring strategies – particularly, with regards to reaching out to under-represented groups,” Hadley said. “At the same time, the case for a pragmatic, evidence-based immigration strategy that reflects staffing needs across all sectors has never been clearer. It is critical that there is a comprehensive mobility deal with the EU post-Brexit, so firms have the capacity to invest and grow here in the UK.”ONS senior statistician Matt Hughes commented, “The labour market is little changed on the previous three months, though still stronger than it was at this time last year.”“With faster wage growth and more subdued inflation, real earnings have picked up noticeably in the last few months,” Hughes said. “However, real wage growth is below the level seen in 2015, and real wages have not yet returned to their 2008 levels. For the period from July to September 2018, 84,000 people had become redundant in the three months before the Labour Force Survey interviews. This was 18,000 fewer than for July to September 2017. […]

  • World – OECD unemployment rate falls slightly to 5.2% in September

    The OECD (Organisation for Economic Co-operation and Development) unemployment rate fell by 0.1% to 5.2% in September 2018 when compared to August. Across the OECD countries, 33.1 million people were unemployed.Harmonised unemployment rates define the unemployed as people of working age who are without work, are available for work, and have taken specific steps to find work.In the euro area, the unemployment rate was stable at 8.1% in September, with rates falling by 0.3% in Portugal (to 6.6%) and by 0.2% in Belgium (to 6.3%), Ireland (to 5.4%), Latvia (to 7.2%), Luxembourg (to 5.0%) and the Netherlands (to 3.7%).By contrast, the unemployment rate in Italy increased by 0.3%, to 10.1%, after having decreased by 0.4% in the previous month.In September, the unemployment rate fell by 0.3% in Australia (to 5.0%), by 0.2% in Korea (to 4.0%) and the United States (to 3.7%, the lowest level since December 1969), and by 0.1% in Canada (to 5.9%) and Japan (to 2.3%), while it was stable in Mexico (at 3.3%). More recent data for October show that the unemployment rate declined further, by 0.1%, in Canada (to 5.8%), while it was stable in the United States.The OECD unemployment rate for youth (people aged 15 to 24) remained stable at 11% in September, while the rate for people aged 25 and above declined by 0.1 percentage point, to 4.5%. The youth unemployment rate remained above 30% in Italy (31.6%), Spain (34.3%) and Greece (37.9% in July, the latest month available). […]

  • Middle East – UAE likely to see $50 billion skilled labour gap by 2030 – Staffing Quote of the Week

    By 2030, the UAE (United Arab Emirates) is likely to experience a skilled labour gap worth USD 50 billion, making up 5% of the economy, according to Jonathan Holmes, country chair and managing director of Korn Ferry Middle East.The Arabian Business reports that Holmes, who was speaking at the Arabian Business Forum, said the gap which constitutes 110,000 skilled labour, is a result of organisations focusing too heavily on technology as opposed to human labour.“That’s not a number to be ignored,” Holmes said. “We would have $50 billion extra in the economy if we filled the gap. Organisations have a blinded view of technology, where they have been focusing too heavily on technology as a solution for business, whereas people will become more important and costlier if organisations don’t change that.”While Holmes said businesses should not choose between technology and people, he emphasised that investing in human capital will continue to be as important as investing in technology. Holmes also added that businesses paying inflated salaries is not the ultimate solution.He added that it is up to organisations and governments to look at the development of talent and human labour. […]

  • UK – Nominations deadline for ‘Best Staffing Firms to Work For’ is 7 December

    Employee satisfaction is one of the key drivers of staffing firm success. Find out what your employees are thinking by participating in Staffing Industry Analysts’ annual “Best Staffing Firms to Work For” program. The deadline to participate is 7 December.Nominations are now being accepted for Staffing Industry Analysts’ Best Staffing Firms to Work For list. The program is open to staffing firms in the UK and North America. There is no cost charged and participants get the benefit of insights into the relative satisfaction of their employees and temporary workers compared to industry standards.Top firms will be profiled in Staffing Industry Review magazine as well as online. Winning companies will be identified based on the results of an employee engagement survey of staffing firm internal employees and a net promoter score survey of staffing firm temporary and contract employees. They will be announced at the Staffing Industry Executive Forum scheduled for Feb. 25 to 29, 2019, in Austin, Texas.Read about last year’s Best Staffing Firms to Work here. […]

  • Japan – Recruit Holdings Q2 revenue bolstered by growth in HR Technology

    Japanese staffing firm Recruit Holdings (6098: JP) reported revenue for the second quarter ended 30 September 2018. Revenue increased 7.3% compared to the same quarter in the prior year to JPY 577.8 billion (USD 5.06 billion). EBITDA grew by 13.6% to JPY 76.5 billion (USD 670.5 million) and the EBITDA margin was 13.2%.Revenue was boosted by strong growth in the group’s HR Technology segment.Recruit Holdings said the negative impact of foreign exchange rate movements on the consolidated revenue for Q2 2018 was JPY 2.9 billion (USD 25.4 million). (JPY billions) Q2 2018 Q2 2017 Change Q2 2018 (USD millions) Revenue 577.8 538.6 7.3% 5,064.4 EBITDA 76.5 67.3 13.6% 670.5 EBITDA Margin 13.2% 12.5% N/A N/A Operating Profit 58.7 52.0 12.8% 514.4 In June, Recruit Holdings completed the acquisition of Glassdoor, Inc. Recruit operates Glassdoor as a distinct and separate part of its HR Technology business segment, aligning Glassdoor and Indeed as sister companies and bringing changes to the job board landscape.Profits and losses from Glassdoor’s operations were included in the HR Technology segment's results during the period. The group added that the inclusion of Glassdoor in the consolidated results from July 2018 positively impacted the revenue growth rate.Due to the adoption of new accounting policy IFRS 15, Recruit Holdings revised revenue of the HR Technology segment for Q1 2018 retrospectively, resulting in a reduction of each of Indeed's revenue and cost of sales by the same amount of JPY 1.8 billion (USD 15.7 million).According to Recruit, after the change in accounting policy, “it was concluded that sales agents for some transactions should be defined as the customer, then requiring that the transaction net amount (equal to the gross amount less agency commissions earned) be recognised as revenue.”Revenue by segment was as follows. (JPY billions) Q2 2018 Q2 2017 Change Q2 2017 (USD millions) HR Technology 82.4 52.7 56.4% 722.1 Media & Solutions 175.8 166.7 5.5% 1,540.8 Staffing 325.8 324.6 0.4% 2,855.6 Eliminations and Adjustments -6.2 -5.4 N/A -54.3 To support future revenue growth, the HR Technology segment continued to make substantial investments in sales and marketing to drive user and customer acquisition, and in products and engineering to build enhanced functionality for job seekers and employers. These investments are expected to continue to fluctuate throughout the year.During the second quarter, Indeed gained scale in its sales, marketing and customer support functions, while continuing to invest aggressively in product and engineering to build enhanced functionality for job seekers and employers.EBITDA in the HR Technology segment grew by 69.9% and the quarterly EBITDA margin was 17.4%, an increase of 1.4 points year on year. In the Media & Solutions segment, revenue increased 5.5% year on year, EBITDA grew 12.9% and EBITDA margin was 25.0%. Revenue in the Beauty business, the fastest growing sub-segment in Marketing Solutions, increased 13.3% year on year.In HR Solutions, the Recruiting in Japan sub-segment, particularly the professional recruiting businesses, saw strong performance supported by the continued favorable business environment in the Japanese labour market. As a result, revenue increased 8.2% year on year, quarterly EBITDA increased 4.0%, and EBITDA margin was 24.4%. The Others sub-segment in HR Solutions increased 23.0% due to the transfer of the recruiting assessment business to this sub-segment.Staffing revenue in the second quarter was up marginally at 0.4% compared to the same quarter in the prior year.“The Japanese staffing market continued to expand as evidenced by the ongoing strong demand for agency workers while the number of active agency workers remained elevated,” the group stated. “In this environment, the Japanese operations invested in advertisement to attract new potential agency workers and also focused on extending existing staffing contracts.”Revenue for Japanese operations within Staffing increased 7.0% year on year. Meanwhile, in overseas operations, revenue decreased 3.7% year on-year. The company attributed this to the negative effect of foreign exchange rate movements and the application of new international accounting standards IFRS 15.Recruit Holdings also posted revenue of JPY 1.14 trillion (USD 9.99 billion) for the first half ended 30 September 2018.Looking ahead, the group forecasted revenue of JPY 2.30 trillion (USD 20.15 billion) for the full year.In trading today Recruit Holdings shares closed at JPY 2,957.50 (USD 25.92), down 2.33% on the day and 24.79% above the 52 week low of 2,370.00 (USD 20.77) set on 14 February 2018. Based on its current share price the company has a market value of JPY 5.14 trillion (USD 45.04 billion). […]

  • New Zealand – Study finds workers on non-standard jobs have a low likelihood of transitioning to standard job

    A new study from the University of Auckland found that people who started out in a non-standard work arrangement, such as temporary, casual, contract or part-time work, had a low likelihood of changing to standard job.The study also found that people who started in standard employment were more likely to be in this kind of job at any given point months or years later. It also suggests most people prefer a regular nine-to-five-style job.For the study, Professor Elizabeth George, from the Graduate School of Management in the Business School, University of Auckland, and her collaborators studied data from a long-range French survey that followed the work lives of 10,000 young people who finished their education in 1998.“We wanted to know if the gig economy delivered on its promise of choice and flexibility for workers,” George said. “Do individuals want ‘nonstandard’ gig-style jobs? And can they easily switch between standard and nonstandard jobs? We were also curious to see if educational levels shaped preferences and outcomes.”The study also found the difference was more dramatic for people with high and low levels of education compared to medium levels. For example, highly educated people who had a standard job at one point in time were nearly eight times more likely to also have a standard job at a later point than those who had had a non-standard job. For people with low levels of education, those who had non-standard employment at a given time were nearly three times more likely to have non-standard work at a later time compared to those who had had a standard job.“In other words, the stickiness of employment status was higher for high and low education levels,” George said.The possible reasons have to do with the investment businesses make in permanent staff, but not temporary or casual staff, George added.“When you’re in a temporary job the organisation has very little incentive to invest in you,” George said. “You probably don’t get the same training or opportunities for career development as you would in a permanent role, which means you come out of that job with fewer new skills. You may well also miss out on mentoring and professional networking via workmates. Also, having lots of nonstandard jobs on your CV is still perceived by some employers as signalling a lack of commitment.”The University of Auckland researchers also found that compared to those in non-standard jobs, people in standard employment were more satisfied with their pay, reported a greater sense of professional accomplishment, and had greater optimism about the future. They were also less likely to be searching for a new job.People with high and low levels of education and in standard jobs were even more optimistic than those with medium levels, while people with low education levels in standard jobs were least likely to be job-hunting.George suggested that people with low education levels in permanent work are happier because their expectations of getting a regular job at all are lower. She concluded, “For a long time there’s been this belief that people, especially young people, prefer the freedom, and lack of office politics, of non-standard work. But our study shows that most young people, like older people, actually want regular jobs.&rdquo […]

  • India – IT recruitment spree drives growth in online hiring for October

    Online hiring activity in India recorded a 21% increase in October when compared to the same period last year according to the latest data from the Naukri JobSpeak Index.The Naukri JobSpeak Index for October 2018 stood at 2,088, up by 21% when compared to the same period last year.Growth in online hiring activity was driven by confident recruitment trends in the IT industry as the industry was on a hiring spree this month. Naukri added that the outlook looks positive.“After the slowdown due to the proposed visa restrictions in the US, the industry has picked up the pace in hiring in the past couple of months and this pace is to continue in the upcoming months,” the Naukri report said. “The increase in demand for hiring in IT industry was due to domestic and global IT software companies’ upbeat plans to hire.”According to Naukri, start-ups have also contributed to the IT employment by their growing numbers as well as them working on niche technologies like robotics, AI, blockchain, etc.The Naukri index found that the demand for fresh graduates with experience of 0-3 years grew 24% in October, while the index for trained professionals (experience of 4-7 years) saw an increased demand of 22%.Mid-management roles with an experience of 8-12 years saw a growth of 18% year-on-year in hiring activity while senior management roles with an experience of 13-16 years saw a growth of 7%.In terms of cities, hiring activity in metropolitan cities saw positive growth with both Chennai and Delhi registering an increase of 23%. […]

  • Malaysia – Unemployment rate remains stable in September

    The jobless rate in Malaysia declined slightly to 3.3% in September from 3.4% during the same period last year, according to data from Statistics Malaysia.Data showed that the number of unemployed in Malaysia stood at 516,400, up from 514,000 during the same period last year.Meanwhile, the number of employed stood at 14.92 million, up from 14.54 million during the same period last year.The labour force participation rate in September 2018 increased 0.6% to 68.5%, from 67.9% the year before.Separately today, the Malay Mail reported that Malaysia’s Youth and Sports Ministry will focus on youths who are risk factors for criminal activities due to social conditions, by helping them gain employment skills.Minister Syed Saddiq Syed Abdul Rahman, said this was to ensure that the country’s social agenda could be met and delinquent youths were given the same opportunities as other individuals, especially their right to work.“Troubled youths are often associated with social stigma on the streets and they have problems in getting a job. As such the government will find a way to help them out,” Abdul Rahman said. He added that the government will take into consideration the views of all parties including private companies and government agencies in resolving the issue. […]

Latest Research

  • VMS Market Developments Part 2

    Executive SummaryIn 2017, the contingent workforce Vendor Management System (VMS) market represented $154 billion of spend under management, an 11% from the prior year. Although growth continues to decelerate, it is still in the double digits, evidence of the appetite for managing contingent workforce programs through a VMS. North America continues to dominate the market with a 66% share, still growing robustly at 10%. EMEA is growing at 14% as it has more untapped terrain in terms of penetration of the staffing and SOW market. The APAC market is growing the fastest of the three regions at 15%, but the growth is from a low base, and it continues to experience challenges in gaining traction in several markets.There is considerable room in the SOW market for more penetration of VMS, and while some providers are reporting 30%+ growth in SOW (and over large numbers), the robust growth is not universal among participants; for some, growth was less than that of temp/contract. Anecdotally, many enterprise buyers continue to struggle to clearly define the role of VMS in managing SOW versus traditional procurement software suites such as Ariba or Coupa.Nearly one third of programs cover three or more regions as vendors continue to roll out capability to new countries, driven by customers that want to gain visibility and centralize control of workers globally.A large share of the market (75%) is represented by client organizations of more than 10,000 employees (FTE), although buyers across all sizes of organizations are represented.As in previous years, the prevalent pricing method is percentage of spend through the program, typically funded by the supplier. However, Europe has a higher adoption of client funded programs due to a number of factors, which include nascent adoption of MSP models leading to supplier resistance in paying the incremental cost versus unproved value. Also, European staffing suppliers often have lower gross margins than most staffing suppliers in North America, making fee absorption a difficult proposition and hindering adoption.The three largest providers globally, each with spend under management above $10 billion, are Beeline, DCR Workforce and SAP Fieldglass. While there are providers that are focused on a given country (US, France, the Netherlands), the majority of providers in our study service multiple regions. VMS providers typically support a wide range of industries, apart from those that are focused on the healthcare market.The full report can be downloaded by clicking the link below: VMS Market Developments - Part 2 20181111 - You do not have permission to view this object. […]

  • This directory provides full records for over 26 companies operating in the M&A space around the world. Some firms provide services in just one market while others provide international and cross border M&A advice and services in up to 40+ countries. They are listed in alphabetical order, and an index is provided at the rear of this document. An additional 115+ firms who have been identified as providing M&A services are also shown. We have tried to make this report as exhaustive as possible, but if there are additional companies you believe should be listed, or if you would like to contribute a “full” entry within this directory, please contact the author. Please note that the information included herein is self-reported and then edited for consistency sake by SIA. If pronouns such as we are used these have been left as they are. We cannot vouch for the accuracy of each record, nor should inclusion in this directory be taken to imply any endorsement of the companies’ services. This copy of the report has been completed in November 2018. If you have any corrections or changes, please contact author listed on the right. To download the full report, please click below: M&A Funders and Advisors 20181112 - You do not have permission to view this object. […]

  • US Jobs Report: November 2018

    Event- On a seasonally adjusted basis, total nonfarm employment rose by 250,000 in October, according to the US Bureau of Labor Statistics (BLS) in its monthly jobs report. The gain of 250,000 exceeds the median projection of 200,000 jobs from the Bloomberg survey. Temporary help services employment rose by 0.1% from the prior month, adding 3,300 jobs, and the temporary penetration rate remained roughly flat at 2.04%. The national unemployment rate remained at 3.7%.Background and Analysis- On a year-over-year (y/y) basis (October 2018 over October 2017), total nonfarm employment was up 1.7%, and monthly job gains have averaged approximately 210,000 over the past 12 months. Temporary help employment was up 2.2% y/y, with monthly job gains averaging approximately 5,500 over the past 12 months.Of the 15 major industry groups, the three that most drove total nonfarm employment growth in October (on a seasonally adjusted basis) include healthcare and social assistance (+46,700), leisure and hospitality (+42,000), and manufacturing (+32,000). Gains were broad across industries, as there was only one decliner, education (-2,500). On a year-over-year basis, natural resources/mining continued to lead all industry groups in terms of percentage growth, with 9.4%, once again followed by construction and transportation/warehousing, with 4.7% and 3.5% growth, respectively. Information was the one decliner on a y/y basis, down 0.5%.Wages appear to be gaining traction at last, with y/y growth in average hourly earnings accelerating to 3.1% in October.BLS Revisions- The change in total nonfarm payroll employment for September was revised from +134,000 to +118,000, and the change for August was revised from +270,000 to +286,000. With these revisions, total nonfarm employment gains during the two-month period were unchanged.The change in temporary help services employment for September was revised from +10,600 to +7,600, and the change for August was revised from +12,400 to +10,800. With these revisions, temporary help employment growth was less than previously reported by 4,600 jobs.Staffing Industry Analysts’ Perspective- Regarding total nonfarm employment, this was a favorable jobs report. Even if you take the average of the last two months (to account for the recovery from the impact of Hurricane Florence in the prior month), the employment gain is a moderate 184,000. Moreover, wage growth, the one area that had not been as strong for so many years in this expansion period, appears to be gaining traction at last.Temporary help employment growth, however, has become increasingly mild, with the temporary penetration rate remaining roughly flat throughout most of this year. Temporary staffing may be reaching a plateau, which would be normal if we are approaching the tail end of an expansion in the business cycle.Members may download our jobs report tool by selecting the link below. Monthly Employment Situation November 2018 - You do not have permission to view this object. […]

  • Largest and Fastest-Growing Staffing Firms in the US: Late Additions and Updates 2018

    EventSince the publication earlier this year of the 2018 reports on the Largest Staffing Firms in the US, Fastest-Growing Staffing Firms in the US, and largest staffing firms by skill segment, new information has come to light. This briefing provides details on several companies that would have qualified for inclusion had information been known by us at the time, as well as updated information on companies that were included in the reports.Largest Staffing Firms in the US, and Largest Staffing Firms by skill segment reportsAquent generated $350 million in marketing/creative temporary staffing revenue in 2017, according to our revised estimate, an update to the $314 million estimate in our report on the Largest Marketing/Creative Staffing Firms. Aquent generated $356 million in US staffing revenue in 2017, according to our revised estimate, an update to the $320 million estimate in our Largest Staffing Firms in the US report.CareerStaff Unlimited (Genesis HealthCare) generated $101 million in US staffing revenue in 2017, according to our estimates, and would have qualified for inclusion in our report on the Largest US Staffing Firms.InGenesis generated $175 million in US staffing revenue in 2017, according to our revised estimates, an update to the $147 million figure in our report on the Largest Staffing Firms in the US.Integrity Locums generated $32 million in locum tenens staffing revenue in 2017, according to our estimates, and would have qualified for inclusion in our report on the Largest Locum Tenens Firms in the US.Fastest-Growing Staffing Firms in the USWe estimate the following firms achieved a staffing revenue compound annual growth rate of more than 15% from 2013 to 2017 after removing the impact of acquisitions, and each generated at least $1 million in staffing revenue in 2013. These were the criteria for qualifying for inclusion in our 2018 report on the Fastest-Growing Staffing Firms in the US. The firms are listed in alphabetical order.blueStone Staffing generated $17 million in staffing revenue in 2017, according to our estimates, which represented a compound annual growth rate of 40.1% from 2013 to 2017.Integrity Locums generated $33 million in staffing revenue in 2017, according to our estimates, which represented a compound annual growth rate of 76.9% from 2013 to 2017.Kavaliro generated $36 million in staffing revenue in 2017, according to our revised estimate, which represented a compound annual growth rate of 19.8% from 2013 to 2017.Travel Nurse Across America generated $175 million in staffing revenue in 2017, according to our estimates, which represented a compound annual growth rate of 30.1% from 2013 to 2017 (after adjusting for the impact of acquisitions.)Triage Staffing generated $67 million in staffing revenue in 2017, according to our estimates, which represented a compound annual growth rate of 26.6% from 2013 to 2017.VDart generated $86 million in staffing revenue in 2017, according to our estimates, which represented a compound annual growth rate of 28.0% from 2013 to 2017.Staffing Industry Analysts' reports on the largest and fastest-growing staffing firms are generated annually, based on survey application responses as well as our own industry research. Staffing firms that believe they would have qualified for inclusion in one or more of our reports are encouraged to contact us. Please direct inquiries to Timothy Landhuis, Research Director, North America, at tlandhuis@staffingindustry.com.Links to the reports mentioned above:Largest Staffing Firms in the USFastest Growing Staffing Firms in the USLargest Marketing/Creative Staffing Firms in the USLargest Healthcare Staffing Firms in the US […]

  • The Structure of the UK Staffing Market

    Key Findings There were 28,220 staffing firms in the UK in March 2018 compared with 25,775 in March 2017, a rise of 2,445 (+9%). This figure is broken down between 16,650 employment placement and 11,570 temporary employment agencies. The vast majority of companies (81%) had revenues of less than £1 million, although 165 firms in the UK had revenue of more than £50 million. The Greater London region accounted for the largest number of businesses in March 2018, with 34% of the UK total. The region with the next largest share of businesses was the South East at 16% (see pages 6 and 7). By city or town, London is also largest by far with 9,465 enterprises. Ten London boroughs account for 67% of all these firms. In 2018, the vast majority of staffing companies (80%)  were micro business employing between 1-9 people; while 480 firms employed over 250 staff. The market is split by legal status between companies (81%), sole proprietors and partnerships (9%) and public sector and non-profit making bodies. To download the full report, please click below: UK Structure 20181113 - You do not have permission to view this object. […]

  • VMS Market Developments Part 2

    In 2017, the contingent workforce Vendor Management System (VMS) market represented $154 billion of spend under management, an 11% from the prior year. Although growth continues to decelerate, it is still in the double digits, evidence of the appetite for managing contingent workforce programs through a VMS. North America continues to dominate the market with a 66% share, still growing robustly at 10%. EMEA is growing at 14% as it has more untapped terrain in terms of penetration of the staffing and SOW market. The APAC market is growing the fastest of the three regions at 15%, but the growth is from a low base, and it continues to experience challenges in gaining traction in several markets.There is considerable room in the SOW market for more penetration of VMS, and while some providers are reporting 30%+ growth in SOW (and over large numbers), the robust growth is not universal among participants; for some, growth was less than that of temp/contract. Anecdotally, many enterprise buyers continue to struggle to clearly define the role of VMS in managing SOW versus traditional procurement software suites such as Ariba or Coupa.Nearly one third of programs cover three or more regions as vendors continue to roll out capability to new countries, driven by customers that want to gain visibility and centralize control of workers globally.A large share of the market (75%) is represented by client organizations of more than 10,000 employees (FTE), although buyers across all sizes of organizations are represented.As in previous years, the prevalent pricing method is percentage of spend through the program, typically funded by the supplier. However, Europe has a higher adoption of client funded programs due to a number of factors, which include nascent adoption of MSP models leading to supplier resistance in paying the incremental cost versus unproved value. Also, European staffing suppliers often have lower gross margins than most staffing suppliers in North America, making fee absorption a difficult proposition and hindering adoption.The three largest providers globally, each with spend under management above $10 billion, are Beeline, DCR Workforce and SAP Fieldglass. While there are providers that are focused on a given country (US, France, the Netherlands), the majority of providers in our study service multiple regions. VMS providers typically support a wide range of industries, apart from those that are focused on the healthcare market.The full report can be downloaded by clicking the link below: VMS Market Developments - Part 2 20181111 - You do not have permission to view this object. […]

  • This directory provides full records for over 26 companies operating in the M&A space around the world. Some firms provide services in just one market while others provide international and cross border M&A advice and services in up to 40+ countries. They are listed in alphabetical order, and an index is provided at the rear of this document. An additional 115+ firms who have been identified as providing M&A services are also shown. We have tried to make this report as exhaustive as possible, but if there are additional companies you believe should be listed, or if you would like to contribute a “full” entry within this directory, please contact the author. Please note that the information included herein is self-reported and then edited for consistency sake by SIA. If pronouns such as we are used these have been left as they are. We cannot vouch for the accuracy of each record, nor should inclusion in this directory be taken to imply any endorsement of the companies’ services. This copy of the report has been completed in November 2018. If you have any corrections or changes, please contact author listed on the right. To download the full report, please click below: M&A Funders and Advisors 20181112 - You do not have permission to view this object. […]

  • Largest healthcare staffing firms in the UK

    The Healthcare staffing market in the UK was worth £2.3 billion in 2017. The 30 largest staffing firms operating in the UK healthcare segment accounted for 88% of total sales in 2017. The aggregated revenue of the Top 30 fell by 7% in 2017, while the whole of the UK healthcare staffing market declined by 18%. NHS rate caps and the implementation of IR35 rules created a challenging business environment for staffing companies. As a result, the supplier consolidation has increased markedly, as companies with the financial strength to acquire competitors gained market share. An overview of the UK healthcare staffing market can be found on page 3. The full list of the Top 30 firms is displayed on pages 5-6, ranked by market share. The fastest growing firms are highlighted on page 7. Company websites, country HQ and types of roles filled are presented in the tables on pages 8-9. We have ranked companies by revenue, according to industry custom, but this ranking should not be taken to imply that a firm with a higher rank provides better service or more value to its shareholders. Staffing firms varied in degree of financial transparency, and even when forthcoming with information, in some cases data provided was adjusted for greater accuracy and consistency. Therefore, for all firms in this report, revenue shown should be considered an estimation by Staffing Industry Analysts. To download a copy of the report, click below: Largest Healthcare staffing Firms in the UK 20181102 - You do not have permission to view this object. […]

  • VMS Market Developments Part 2

    In 2017, the contingent workforce Vendor Management System (VMS) market represented $154 billion of spend under management, an 11% from the prior year. Although growth continues to decelerate, it is still in the double digits, evidence of the appetite for managing contingent workforce programs through a VMS. North America continues to dominate the market with a 66% share, still growing robustly at 10%. EMEA is growing at 14% as it has more untapped terrain in terms of penetration of the staffing and SOW market. The APAC market is growing the fastest of the three regions at 15%, but the growth is from a low base, and it continues to experience challenges in gaining traction in several markets.There is considerable room in the SOW market for more penetration of VMS, and while some providers are reporting 30%+ growth in SOW (and over large numbers), the robust growth is not universal among participants; for some, growth was less than that of temp/contract. Anecdotally, many enterprise buyers continue to struggle to clearly define the role of VMS in managing SOW versus traditional procurement software suites such as Ariba or Coupa.Nearly one third of programs cover three or more regions as vendors continue to roll out capability to new countries, driven by customers that want to gain visibility and centralize control of workers globally.A large share of the market (75%) is represented by client organizations of more than 10,000 employees (FTE), although buyers across all sizes of organizations are represented.As in previous years, the prevalent pricing method is percentage of spend through the program, typically funded by the supplier. However, Europe has a higher adoption of client funded programs due to a number of factors, which include nascent adoption of MSP models leading to supplier resistance in paying the incremental cost versus unproved value. Also, European staffing suppliers often have lower gross margins than most staffing suppliers in North America, making fee absorption a difficult proposition and hindering adoption.The three largest providers globally, each with spend under management above $10 billion, are Beeline, DCR Workforce and SAP Fieldglass. While there are providers that are focused on a given country (US, France, the Netherlands), the majority of providers in our study service multiple regions. VMS providers typically support a wide range of industries, apart from those that are focused on the healthcare market.The full report can be downloaded by clicking the link below: VMS Market Developments - Part 2 20181111 - You do not have permission to view this object. […]

  • This directory provides full records for over 26 companies operating in the M&A space around the world. Some firms provide services in just one market while others provide international and cross border M&A advice and services in up to 40+ countries. They are listed in alphabetical order, and an index is provided at the rear of this document. An additional 115+ firms who have been identified as providing M&A services are also shown. We have tried to make this report as exhaustive as possible, but if there are additional companies you believe should be listed, or if you would like to contribute a “full” entry within this directory, please contact the author. Please note that the information included herein is self-reported and then edited for consistency sake by SIA. If pronouns such as we are used these have been left as they are. We cannot vouch for the accuracy of each record, nor should inclusion in this directory be taken to imply any endorsement of the companies’ services. This copy of the report has been completed in November 2018. If you have any corrections or changes, please contact author listed on the right. To download the full report, please click below: M&A Funders and Advisors 20181112 - You do not have permission to view this object. […]

  • Asia Pacific Legal Update Q3 2018

    In this report, we round up the legal developments affecting the workforce solutions ecosystem across the Asia Pacific region in Q3 2018:Australia  Labour Hire Licensing Update  New South Wales Introduces Law Requiring Companies to Report on Modern Slavery Payroll Tax Can Apply to Service Contracts  Employee with Fixed or Guaranteed Hours is not Casual New Rights for Casual Employees CambodiaNew Guidelines on Payment of WagesJapanCap on OvertimeSouth KoreaRecent Overhaul of Employment Law Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice. It is always recommended to seek the advice of qualified legal counsel before taking action.To download a pdf copy of this update click below: Asia Pacific_LegalUpdate_Q3_20181031 - You do not have permission to view this object. Australia 1.  Labour Hire Licensing UpdateOn 20 June 2018, the Victorian government passed its Labour Hire Licensing Act. Meanwhile, before it had even come into full effect, the South Australian government has announced that it is scrapping its Labour Hire Licensing Act passed in 2017.The legislation in Victoria mirrors the laws in Queensland imposing an obligation on labour hire firms to be licensed, with online registers to be available for public inspection. Both States make it an offence to trade without a licence or to engage the services of an unlicensed labour hire firm. However, there are slight differences between the State laws such as the definition of a ‘fit and proper’ person to be the licensee. In both regimes, the main focus is on financial viability, and corporate and safety compliance.The problem for labour hire firms, and employers using labour hire firms, in both Victoria and Queensland is that the schemes also adopt different definitions as to the scope of operations which are covered. Hall & Wilcox provide a useful comparison of the laws in Queensland and Victoria (and South Australia, before the announcement that the scheme and law would be repealed).The commencement date of the scheme in Victoria is yet to be advised but is expected to become effective no later than 1 November 2019 with a transition period of six months.In South Australia, the Labour Hire Licensing Act came into effect on 1 March 2018, with organisations required to become licensed within six months. However, in March 2018, the Labour Government was replaced by a Liberal Government following the State election. On 21 September 2018, the Attorney General announced that they would introduce legislation to repeal the Act by the end of this year.  Consumer and Business Services have informed the public that they will cease accepting applications for licenses and will refund any application fees that had already been paid upon the Act becoming repealed.The Government announced that instead of a licensing scheme, a taskforce would be established to consider whether existing laws are sufficient to protect labour hire workers. While a bill to repeal the Act has not yet been introduced into Parliament, the South Australian Labour Hire Licensing Act is formally still in force. However, according to the Attorney General, the licensing scheme it introduced will not be enforced. Labour hire firms in Victoria and Queensland should comply with the schemes introduced in those States, but those operating in South Australia will no longer need to apply for a licence.There are calls for a federal scheme from the Labour opposition. The Federal Government has previously said it was awaiting the outcomes of its Migrant Worker Taskforce, headed by Allan Fels and due to report back by the end of the year. However, the Coalition government has also publicly stated that the issue of regulation is one for the individual states and territories. This could change as the next election is due in May 2019. Meanwhile, the Labour opposition in New South Wales have stated they will introduce a licensing scheme if they get elected in March 2019; and the Australian Capital Territory has also announced its intention to introduce legislation. 2.  New South Wales Introduces Law Requiring Companies to Report on Modern SlaveryWhile a federal law is going through Parliament, New South Wales (NSW) recently passed the Modern Slavery Act of 2018 (the “NSW Act”), which requires companies with employees in NSW and with an annual turnover of over AUD 50 million (USD 35.4 million) to release an annual statement that details the steps taken to ensure their operations and suppliers do not engage in modern slavery. The federal Commonwealth bill applies to companies with over AUD 100 million (USD 70.8 million) turnover.The NSW Act defines ‘modern slavery’ as committing, attempting to commit or inciting a range of offences in the Crimes Act 1900 (Cth), Human Tissue Act 1983 (NSW) and Criminal Code Act 1995 (Cth), including slavery, servitude, forced labour, human trafficking, debt bondage and sexual servitude. Regulations will prescribe the content to be included in modern slavery statements, and the method of publication. However, organisations should be prepared to include information on the following: structure, business and supply chains; due diligence processes in relation to modern slavery in the organisation’s business and its supply chains; the parts of the organisation’s business and supply chains where there is a risk of modern slavery taking place, and the steps taken to assess and manage that risk; and training available to employees regarding modern slavery. A penalty of up to AUD 1.1 million (USD 780 million) applies for failing to prepare or publish a modern slavery statement; or providing false or misleading information in connection with a modern slavery statement.The NSW Act has no effective date yet and implementing regulations are expected to define further the parameters of this new law. The federal Modern Slavery Bill 2018 had its second reading in the Senate on 18 September 2018.Neither the NSW Act nor the federal bill requires any direct action on modern slavery, other than the creation and publication of such a statement, but the intention is to ensure there is accurate information available to consumers, customers and suppliers to assess, make decisions and participate in a debate about ethical supply chains.  3.  Payroll Tax Can Apply to Service ContractsIn the recent case of HRC Hotel Services Pty Ltd v Chief Commissioner of NSW Revenue [2018] NSWSC 820 the Supreme Court of New South Wales has ruled that some outsourced or sub-contracted service contracts are caught by the rules requiring an “employment agency” to account for payroll tax on payments made to sub-contractors to produce an agreed result or deliverable.Section 37 of the Payroll Act 2007 states that “an employment agency contract is a contract, whether formal or informal and whether express or implied, under which a person (an employment agent) procures the services of another person (a service provider) for a client of the employment agent”.HRC contracted with a number of hotels to clean their hotel rooms and was paid by its hotel clients for each room cleaned and made up. During the relevant period, most (around 60%) of the staff whose services HRC used in order to produce the cleaned hotel rooms were employees or contractors of HRC. From time to time, however, additional staff were sourced by HRC from third party sub-contractors. The dispute related to whether the arrangements between HRC and their hotel clients are “employment agency contracts” for the purposes of s 37(1) of the Payroll Tax Act 2007 (NSW), namely contracts “under which” HRC procured the services of housekeeping staff “for” their respective hotel clients. The Chief Commissioner of State Revenue (NSW) assessed HRC to payroll tax for the financial years ended 30 June 2010 to 30 June 2014 in respect of the payments they had made to sub-contractors for the provision of the additional housekeeping staff. The Court found that the fact that services were procured to perform the obligations under the hotel client contracts, and without which services those obligations could not be fulfilled, meant that the hotel contracts were ones “under which” the services were procured for the performance of those contracts. In the Chief Justice’s opinion, the evidence also led to the conclusion that the services were procured “in and for the conduct of those [hotel client’s] businesses”. Although the hotel clients paid HRC by reference to room “credits”, she held that the housekeeping staff formed an addition to the hotel’s workforce. They not only wore the hotel branded uniform, but also liaised with guests and hotel staff in the servicing and cleaning of hotel rooms, and they were entitled to use the hotel staff dining room during lunch breaks.On the evidence, the judge found it difficult to see how it would be apparent to the ordinary hotel guest that there was any distinction between a hotel employee responsible for the stocking of items in the hotel room, and a member of the additional staff sourced from a third party sub-contractor cleaning the guest rooms on the hotel premises.This case illustrates the broad interpretation of the definition of an “employment agency” for the purposes of the Payroll Taxes Act. If suppliers are entering into outsourced service contracts to provide services carried out by individual workers on a client’s premises in a role that is core to the client’s business, they should take advice on the potential impact of this decision. 4.  An employee with Fixed or Guaranteed Hours is not CasualIn a significant case, WorkPac Pty Ltd v Skene [2018] FCAFC 131, for employers of casual workers, the Full Federal Court of Australia found that if an employee engaged as a 'casual' has advance commitment as to the duration of his or her employment or the days (or hours) the employee will work, the employee is not a casual employee. The Court rejected the commonly applied position that an employee described as a casual under an award or enterprise agreement is a casual for all purposes. Adopting this approach, the Full Court found that Mr Skene was entitled to annual leave entitlements on termination of his employment, notwithstanding that he had signed a casual employment contract and was treated as a casual by his employer.WorkPac, a labour hire business, employed Paul Skene in 2010 and deployed him to work as a truck driver at various mines in Queensland operated by Anglo Coal and Rio Tinto. Mr Skene was given a "Notice of Offer of Casual Employment" and executed a document entitled "Casual or Fixed Term Employee Terms & Conditions of Employment". WorkPac paid him weekly, at a fixed hourly rate for the hours worked as stated in a weekly time-sheet which he completed. Mr Skene’s contract did not allocate any part of the rate of pay to a casual loading or as monies in lieu of paid annual leave.For the entire period of his employment at Rio Tinto’s mine, Mr Skene performed the duties of a dump-truck operator working a pattern of seven shifts of 12.5 hours per shift, followed by seven days off in accordance with a pre-set roster provided by Rio Tinto. The rosters were set 12 months in advance. Mr Skene did not work any other shifts apart from those provided for by his rosters.Based on the common law multi-factor test, the Court found the essence of casual employment was missing in relation to Mr Skene's employment. There was an expectation that Mr Skene would be available, on an ongoing basis, to perform the duties required of him in accordance with his roster, set 12 months in advance. The prevailing nature of the employment, where his pattern of work was regular and predictable, continuous and not subject to significant fluctuation, as well as the employer’s right to control the work, and how the employee was being paid amounted to full employment.The Full Court also found that employees can be genuinely engaged as casuals, to begin with, but ‘may become full-time or part-time because its characteristics have come to reflect those of an ongoing part-time or full-time employment’.Staffing firms or other organisations that employ casual employees should review all their employment arrangements, including their contracts and assignment details in light of the decision in this case. Employers should also take note of the model casual conversion clause introduced into many Modern Awards allowing casuals to request permanent employment (see next section 5.) 5.  New Rights for Casual EmployeesFrom 1 October 2018, the Fair Work Commission has introduced a model term providing certain casuals with a right to request conversion to permanent employment. The model casual conversion term has been inserted into approximately 85 Awards that don’t already contain a casual conversion clause. Those that do already contain such a clause remain unchanged. This follows the FWC's ruling in July 2017 in which it determined to provide casuals with a right to request conversion to permanent employment.Under the Model Term, casual employees who have worked a regular pattern of hours for at least 12 months, without significant adjustment, have the right to request their employment be converted to permanent full-time or part-time employment from 1 October 2018.The Model Term requires the request be made in writing, and employers must respond within 21 days of the request being made. Where granted, the conversion must be recorded in writing and will take effect from the next pay cycle (unless otherwise agreed). Employers can only refuse a request on reasonable grounds, for example, if it is known or reasonably foreseeable that the hours of work of the casual employee will significantly change in the next 12 months. An employee has the right to challenge any refusal using the dispute resolution provisions in the relevant Award.Employers also have an obligation to provide new casual employees with a copy of the Model Term within 12 months of employment, and for existing casual employees, employers have until 1 January 2019 to provide them with a copy of the Model Term.Employers should review the Awards which apply to their workplace and ensure compliance with the obligation to provide casuals with a copy of the Model Term within 12 months of employment and any minimum engagement periods. Employers will also need to put in place a process for considering and responding to any request by a casual employee to convert to permanent employment. Cambodia New Guidelines on Payment of WagesIn September 2018, Cambodia's Ministry of Labor and Vocational Training (MLVT) introduced two new implementing guidelines or Prakas, regarding Labour Law.Prakas No. 443 on Seniority Payments provides implementing guidelines for the recent amendment to the Labour Law which eliminated the "indemnity for dismissal" on termination of open-ended contracts and replaced it with an ongoing requirement for employers to pay a new "seniority payment." An employee with a fixed-term contract is not entitled to a seniority payment but is entitled to a severance payment at the end of their contract pursuant to Article 73 of the Labour Law. Article 73 provides that the severance payments must be in accordance with a collective bargaining agreement, if any, and must be at least 5 per cent of all wages that the employee received during his/her employment period.Starting in 2019, a permanent employee is entitled to an annual seniority payment of 15 days of wages and other fringe benefits. The employer must pay each annual seniority payment in two instalments, with half of the seniority payment being paid in June and the remaining half being paid in December of each year.Under Prakas No. 442 on the Payment of Wages, all employers are required to pay salaries to all employees twice per month starting from January 2019. The first half of the salary payment must be made in the second week of the month, and the second half of the salary payment must be made in the fourth week of the month. Any remaining amounts and other benefits owed to employees (such as overtime) should be paid at the time of the second half of the salary payment.Tilleke & Gibbins provide further details of these guidelines. Japan Cap on OvertimeOn July 6, 2018, various amendments to existing employment laws were enacted to reform working time which will be phased in between 1 April 2019 and April 2023.The amendments include: capping the maximum overtime working hours up to 45 hours per month and 360 hours per year (and up to 100 hours per month and 720 hours per year under special circumstances); abolishing the exemption from payment of the increased premium of 150% for overtime work exceeding 60 hours per month, for small to mid-sized employers; designating five days of annual leave on specific dates if employees who have more than ten days of annual leave fail to take the leave, or the company does not on its own schedule the annual leave; creating an exemption for “highly-skilled professionals”; and providing equal pay for equal work for regular and irregular employees. Ius Laboris provide further details of the amendments. South Korea Recent Overhaul of Employment LawFollowing changes to working time in the Labour Standards Act which we reported on in our Q1 2018 Asia Pacific Legal Update, further amendments to the Labour Standards Act came into effect on 29 May 2018.These include: Greater paid annual leave: Previously, during the first year of service, employees were entitled to one day of paid annual leave per completed month of service. Starting from the second year of service, employees were entitled to at least 15 days of paid annual leave, minus any paid annual leave accrued and used during the first year of service. Under the amended Labour Standards Act, employers may no longer deduct leave accrued and used during the first year of service from employees' second-year entitlement. New fertility treatment leave: If an employee requests leave to undergo artificial insemination, in-vitro fertilisation or other such pregnancy-related treatments, the employer must provide up to three days' leave per year. The first day must be paid. However, if the requested days would cause significant disruptions to the business, the employer may discuss alternative days with the employee. Expanded eligibility for childcare leave: Eligible employees are entitled to childcare leave of up to one year, or they may request a reduction in working hours in accordance with the law. Childcare leave is unpaid. To be eligible for childcare leave or a work hour reduction, employees must have been employed for at least six months and have a child eight years old or under. Previously employees were only eligible after one year’s service. Greater protection for workplace sexual harassment victims: In addition to existing obligations to take appropriate measures against a harasser, the amendments impose greater and more specific obligations on employers, including as follows: Employers must investigate reported incidents of workplace sexual harassment without delay, while ensuring confidentiality and that the victims or alleged victims suffer no further sexual humiliation due to the investigation process. Employers must take all necessary measures (e.g. relocation, reassignment and paid leave) to protect the victim during the investigation process. Employers must take the measure that is requested by the victim (e.g. relocation, reassignment or paid leave) on confirmation that workplace sexual harassment has occurred. Additional prohibited acts by employers against complainants include termination, disciplinary action, negative evaluations, unjust HR orders and exclusion. Introduction of mandatory disability awareness training: To enhance the effectiveness of disability awareness training at the workplace, the Disability Employment Act has been amended to provide specific guidelines on the method, frequency and content of mandatory training. Under the amended law, all employers must provide mandatory disability awareness training at least once a year for at least one hour. In addition to the above amendments which have already come into effect, from 1 January 2019 the scope of anti-discrimination statutes will be expanded. The anti-discrimination statutes under the Equal Employment Act (Articles 8 to 11) prohibit various forms of gender-based discrimination in employment (e.g. wages, non-wage financial support, promotion, job assignment, retirement and termination). From 1 January 2019, the statutes will be enforced equally for all businesses, including those with fewer than five employees.Employers will need to review and amend HR policies and procedures to reflect these changes if they have not done so already.Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice. It is always recommended to seek the advice of qualified legal counsel before taking action. […]

  • MSP Part 2 APAC: 2018

    Executive SummaryIn 2017, the Managed Service Provider (MSP) market represented $131 billion of spend under management, a 12% increase over the prior year. The US dominates the global MSP market, representing a majority of spend by our estimates. Growth is higher outside the US where markets are less developed. Approximately 29% of MSP spend reported among respondents to our survey is associated with global contracts covering three or more geographical regions, an increase from 25% in 2016 as organizations expand program coverage beyond single country scope. Market growth can be attributed to both ongoing program expansions as well as net new clients. The market is represented by a range of client industries, with Financial Services being the largest (with a 21% share) followed by Technology/Telecom (19%) and Manufacturing (14%). IT remains the largest occupational skill represented in the market with 23% of the spend reported in our study, even though the industrial segment is the largest in terms of staffing revenue, both in the US and globally.The largest MSPs globally (each with more than $6 billion in 2017 spend under management) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN.The vendor-neutral model for sourcing temporary employees and independent contractors continues to be the most prevalent sourcing model, with a majority of temp/contract spend.Notably, this was the first year that we have seen more growth in temp/contract spend than in SOW. It could be a one-year blip in the data, or perhaps the trend of SOW gaining share has plateaued. Anecdotally, successful MSP providers have found that managing SOW spend for clients requires a completely different skill set than is usually found in most program offices. This year’s data could represent an industry retrenchment.Despite the professed interest in blended ‘Total Talent’ solutions, only 5% of MSP spend was associated with a blended MSP/RPO service, underlining the difficulty in implementing a combined solution for contingent and non-contingent labor.On average, MSPs reported that only 15% of their workers are supported by programs in which the MSP uses its own proprietary VMS; most depend on several vendor management systems to support services. The most prevalent VMSs (by MSP worker headcount) were SAP Fieldglass (33%), Beeline (23%) and IQN (14%). Beeline and IQN merged in 2016 giving the combined company a 37% share.Not surprisingly, MSP providers offer the lion’s share of the load when it comes to implementation (configuration/data conversion/interface development/testing, measured in days), with 80% of effort delivered by the MSP. In fact, many providers are expanding their service offering to implementation only services in exchange for a fee, as opposed to always being a component of a longer-term relationship.MSP service delivery is relatively balanced in the number of employees working onsite vs. offsite. Of the 46% of employees working offsite, 80% work from onshore service locations, and 12% work nearshore (located in a different country to the client they are serving but in the same general region).The full report can be downloaded by clicking the link below: MSP Market Developments Part 2 2018 20181026 - You do not have permission to view this object. […]