Global Daily News

  • US leading index points to slow, but expanding, economy

    Consistent with a slow — but still expanding — economy, The Conference Board’s US Leading Economic Index held steady in August.“The US [Leading Economic Index] remained unchanged in August, following a large increase in July,” said Ataman Ozyildirim, senior director of economic research at The Conference Board. “The recent trends in the LEI are consistent with a slow but still expanding economy, which has been primarily driven by strong consumer spending and robust job growth.”August’s reading on the Leading Economic Index was 112.1, holding steady from July. However, the index had risen 0.4% in July following no change in June.Ozyildirim said housing permits and the Leading Credit Index offset the weakness in the index from the manufacturing sector and the interest rate spread. […]

  • California governor signs tough IC compliance law that alarmed gig economy

    California legislation designed to make it more difficult to classify workers as independent contractors was signed into law on Wednesday by Gov. Gavin Newsom. It’s a law that had drawn concern from human cloud firms, including Uber Technologies Inc. (NYSE: UBER).“Assembly Bill 5 is landmark legislation for workers and our economy,” Newsom wrote in a signing message.“It will help reduce worker misclassification — workers being wrongly classified as ‘independent contractors,’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits,” Newsom wrote.The law formally puts in place the “ABC” test for determining whether a worker is properly classified as an independent contractor. It takes effect in January.Uber said it still plans to classify its drivers as independent contractors in California, even with the new legislation in place.“Because we continue to believe drivers are properly classified as independent, and because we’ll continue to be responsive to what the vast majority of drivers tell us they want most — flexibility — drivers will not be automatically reclassified as employees, even after January of next year,” according to a statement by Tony West, chief legal officer at Uber.The backer of AB 5, state Rep. Lorena Gonzalez, D-San Diego, said more than 1 million people in California have been misclassified as independent contractors and that the state loses out on an estimated $7 billion in annual payroll tax revenue per year.The legislation exempted several occupations. However, Gonzalez noted that workers who will be covered by the bill include janitorial workers, construction workers, port truck drivers, home health aides, hotel and hospitality workers, and delivery and ride-hail drivers. […]

  • SolomonEdwardsGroup makes staffing acquisition

    SolomonEdwardsGroup LLC acquired QUAD656 — a staffing firm with offices in Wayne, Pennsylvania, and Mt. Laurel, New Jersey. The deal was finalized this week.The combined company will have annual revenue of between $90 million and $100 million.“I believe that ‘who’ you bring into your business is about having a common vision, a great cultural fit and business benefits for all involved parties,” said Ed Baumstein, founder, president and CEO of SolomonEdwards, also based in Wayne. “I am extremely confident that SolomonEdwards and QUAD656 align on all three areas and are equally focused on bringing exceptional talent to the marketplace.”QUAD656 provides finance/accounting staffing across industries. It also has a focus on the banking and financial services industries, providing a variety of positions such as lenders and underwrites.In the deal, QUAD656’s founding principals Randy Goltz, Lori Marcus, Sheila Matthews and Patti Zajick will join SolomonEdwardsGroup. Baumstein said all four worked with him previously at another firm before they struck out to form their own company.Nearly 95% of SolomonEdwardsGroup’s business is strategy execution consulting, and Baumstein said bringing QUAD656 into the fold will strengthen its staffing arm. […]

  • Gig economy background check firm Checkr raises $160 million, valued at $2.2 billion

    Checkr, a background check provider to staffing firms that uses artificial intelligence, announced a $160 million funding round that values the company at $2.2 billion, it reported. The round is in addition to $150 million previously raised.The company, based in San Francisco, was founded in 2014. It counts several gig economy and human cloud firms among its customers, including Uber Technologies Inc. (NYSE: UBER), Elwood Staffing, PrideStaff and Adecco.Plans for the funding include expansion of the platform’s functionality, improvement accuracy while creating new products and the development new international capabilities, according to the company.The equity round was led by funds and accounts advised by T. Rowe Price Associates Inc. They were joined by Bond, Coatue, Accel, Y Combinator and IVP.Forbes reported Checkr’s founders, Daniel Yanisse and Jonathon Perichon, developed an easy way to more quickly automate background checks and firms such as Uber, DoorDash and Instacart signed on. […]

  • Jobs website neuvoo reports C$53 million investment

    Jobs website neuvoo announced a C$53 million (US$39.9 million) investment today by Québec-based investment firm CDPQ. The funds will help neuvoo expand into new markets and optimize its artificial intelligence-based platform, the company said.“The investment will help us hire more than 100 people in North America within a year and more than double our current revenues,” neuvoo co-founder Lucas Martinez said.Montréal-based neuvoo reports annual revenue of more than C$75 million (US$56.5 million) and operates in 77 countries.It posts approximately 30 million jobs on its site and receives 70 million hits each month, according to the company. It expects to reach more than 100 million visitors by January 2020.“Through this transaction, CDPQ supports a new economy company which is growing at a rapid pace, and has distinguished itself and become an international leader thanks to the successful integration of artificial intelligence,” said Charles Émond, executive VP and head of Québec investments and global strategic planning at CDPQ, which has a formal name of Caisse de dépôt et placement du Québec. […]

  • UK – HMRC wins IR35 tribunal against BBC presenters

    HMRC has won an IR35 tribunal case at the High Court against three BBC presenters in a case that could have repercussions for contractors within the broadcasting industry.With the exception of a few engagements, BBC presenters David Eaves, Tim Wilcox and Joanna Gosling were all deemed within scope of IR35 during a series of contracts with the BBC.The trio were pursued for £920,000 in unpaid taxes as part of a crackdown on the use of personal service companies (PSCs).Gosling, Eades and Willcox had argued that they were self-employed, however, the BBC presenters failed in their appeal.According to The Telegraph, the judges found that the “imbalance of bargaining power” at the BBC was a significant factor in the case, saying: “The BBC were in a unique position and used it to force the presenters into contracting through personal service companies and to accept reductions in pay.”The judgement was a split decision as two tribunal judges took opposing views over the IR35 status of the presenters. The cases were decided on the casting vote of Judge Harriet Morgan, who concluded that there was: “sufficient mutuality and at least a sufficient framework of control to place the assumed relationships between the BBC and the presenters in the employment field.”The BBC said it has acknowledged responsibility for the contracts and said it will help to resolve the cases. Two-thirds of the bill is reported to have been settled already. Julia Kermode, Chief Executive of The Freelancer & Contractor Services Association, said, “We understand that the BBC advised their temporary workers to work through PSCs and now we are seeing the fallout.  I have some sympathy for the BBC presenters who did not get good advice and the cases illustrate that good advice on IR35 status is critical.  In the eyes of the current IR35 legislation, they are ultimately responsible for their own tax affairs, even if they were unfairly coerced into a certain arrangement.”“Employment status is complex and this case is further proof that the Government cannot reasonably expect businesses to be responsible for determining the IR35 status of the contingent workforce that they engage,” Kermode said. “And yet this is precisely what the government will be doing when they extend the off-payroll reforms to the private sector next year.”Qdos CEO Seb Maley also commented, ““It’s of real concern that at present, these individuals look like they will be made to pay vast sums to HMRC, despite the judges finding they were ‘forced’ into working as self-employed by the BBC. The onus should be on the engager to settle, not the presenters, who it's very difficult to label as guilty.“With around 100 other BBC presenters in the same boat, we could see similar verdicts in time. However, each case needs to be examined on its own merit. And if it’s decided The BBC left someone with no choice but to work outside IR35, then these individuals must be helped financially,” Maley said.Dave Chaplin, CEO of ContractorCalculator, also commented, “This should not be a story of well-paid presenters trading through companies to avoid tax but about the BBC and other broadcasters pressing hundreds of existing presenters to form companies because it continued to give the broadcaster the flexibility it desired whilst circumventing its own future tax risk by passing it to the presenters.&rdquo […]

  • UK – UK lags behind G7 competitors on adopting workplace automation

    UK government and businesses must step up efforts to manage the transition to automation or the country risks being left behind in the Fourth Industrial Revolution, the Business, Energy and Industrial Strategy (BEIS) Committee says.A report from the Committee, ‘The Automation and the Future of Work’, finds the UK’s slow place in moving to automation – the UK lags behind its G7 competitors in its adoption of robots – has allowed other countries “to steal a march in leading the Fourth Industrial Revolution and seizing upon the opportunities for economic growth and jobs.”To ramp up the leadership and coordination needed to enable the UK to capitalise on these new technologies, the report urges the government to come forward with a UK Robot and AI Strategy by the end of 2020. The report outlines a series of measures which could be introduced as part of this strategy, to help support businesses, industries, and universities and boost the adoption of automation.Rachel Reeves, Chair of the Business, Energy and Industrial Strategy, Committee, commented, “The switch to automation brings challenges for businesses and for workers, with fears for livelihoods or disruption to job roles coming to the fore. The real danger for the UK economy and for future jobs growth is, however, not that we have too many robots in the workplace but that we have too few.”“For all the potential of the UK, and despite our excellent tech and research base, the fact is that we are lagging behind our international competitors in our adoption of robot and automation technologies. Productivity, economic growth, and ultimately job-creation and higher earnings, will flow to those countries that capitalise on these technologies,” Reeves said.The report also finds against a ‘robot tax’, believing that such a tax would discourage take up of automation and that it would not be in the interest of businesses or workers in the UK. Rather, the report recommends the government brings forward proposals in the next budget for a new tax incentive designed to encourage investment in new technology, such as automation and robotics.“The government should come forward with a UK Robot and AI Strategy to support businesses and workers as they manage the transition to a more automated world of work. This new Strategy must seek to get the right support in place, on issues such as skills, investment and training, to ensure that all parts of the UK share in the jobs and growth benefits offered by automation,” Reeves concluded. […]

  • Russia – Most employers against shortened workweek

    The majority of employers in Russia, or 76%, said they do not support the switch to a shortened workweek, according to survey data from job board HeadHunter and local Russian newspaper Vedomosti.The survey comes as the government announced that it would discuss a transition into a four-day workweek.According to the survey, 12% of employers in Russia said that they may switch within the next two years, while 8% said they may start four-day workweeks in the “distant future”.Among the reasons for not supporting a shortened workweek, employers listed the necessity of lowering wages, possible increase in overtime work and work efficiency decrease for employers as concerns.Meanwhile, Russia’s lower house will soon discuss the proposals for switching to a four-day workweek and prepare draft laws accordingly, based on discussions with the government, trade unions and employers. […]

  • UK – More than half of women have never attempted to negotiate salary: Robert Walters

    More than half, or 57%, of female professionals in the UK have never attempted to negotiate a pay rise, according to a new report from Robert Walters in cooperation with TotalJobs.The report, which surveyed more than 9,000 professionals across the UK, also found that men are 23% more likely to negotiate a pay rise across all stages of their career.Robert Walters’ report also showed that the top three challenges to progression for women were lack of opportunities (41%), balancing work and family (35%) and lack of training (34%).Meanwhile, 54% of women were found to be unsatisfied with their pay while 21% said they want clearer routes to progression.In April 2017, the government made it mandatory for large organisations (over 250 employees) to report on their gender pay gap – the average difference between the salary of male and female employees.The most recent gender pay data showed that nearly eight in 10 firms (78%) with over 250 employees have a pay gap in favour of men, while 8% of companies reported no pay gap at all. Men are over-represented in higher paid jobs, while the proportion of women falls the further up the pay scale you go.Robert Walters found that among the sectors with the least equal representation were engineering (9% females), logistics (18%), and technology (21%).The report called on employers to do more to encourage more females into their sectors. Furthermore, it called on supportive management and clearer routes to progression, offering wider training opportunities and supporting work-life balance. […]

  • Japan – Will Group upgrades Q2 forecast

    Japanese HR firm Will Group (6089:TYO) upgraded its forecasts for the second quarter of the year ended 30 September 2019.The firm originally forecasted revenue of JPY 58 billion as well as operating income of JPY 1.4 billion (USD 12.9 million) and net income of JPY 650 million (USD 6.0 million).Will Group now forecasts revenue of JPY 61 billion (UDS 565.2 million), operating income of JPY 2.1 billion (USD 19.4 million) and net income of 1.1 billion (USD 10.1 million).The group said it expects to exceed initial expectations due to strong overseas demand for its HR business and start-up human resources support business.Will Group’s human resources business focuses on temporary staffing, business contracting and recruitment.In addition to human resources, the group has a sales outsourcing segment, call centre outsourcing segment, factory outsourcing segment as well as a nursing care support segment.In trading today, Will Group shares closed at JPY 864.00 (USD 8.01), down 0.46% on the day and 13.24% above the 52 week low of JPY 763.00 (USD 7.07) set on 4 January 2019. Based on its current share price the company has a market value of JPY 19.61 billion (USD 181.7 million). […]

  • Australia – Seasonally adjusted jobless rate stable in August

    Australia’s seasonally-adjusted unemployment rate in August 2019 stood at 5.3%, no change when compared to the same period the previous year, according to data from the Australian Bureau of Statistics.The data also showed that there were 716,800 unemployed persons in August, an increase of 2.2% compared to the same period last year.On a month-to-month basis, the unemployment rate increased by 0.1%.At the same time, the number of employed persons stood at 12.92 million in August, an increase of 2.5% compared to the same period last year.The labour force participation rate increased by 0.5% year-on-year to 66.2%.Monthly hours worked in all jobs increased by 2.0% to 1.78 billion hours. […]

  • Malaysia – Unemployment rate down slightly in July

    Malaysia’s jobless rate stood at 3.3% in July 2019, down 0.1% when compared to July 2018, according to data published by the Department of Statistics Malaysia.In July 2019 the number of unemployed accounted for 524,800 persons, an increase of 1.2% compared to the previous year and 0.7% compared to the previous month.At the same time the total number of employed persons in Malaysia stood at approximately 15.18 million, an increase of 2.0% compared to the previous year and up 0.3% compared to the previous month.Malaysia’s labour force participation rate in July 2019 recorded a decrease of 0.1% when compared to the same period last year and when compared to the previous month.A total of 31.5% of the working age population (15-64 years) were outside the labour force which comprised of housewives, students, retirees and those not interested in work. […]

  • World – Employees confident they can do a better job than their bosses

    The majority or 69%, of employees worldwide say they can do their boss’s job better, according to survey data from workforce management software firm Kronos.The survey examined how nearly 3,000 employees in Australia, Canada, France, Germany, India, Mexico, the UK and the US would grade their manager’s effectiveness across five factors: communication, competence, empowerment, professional development, and support.The study showed that younger millennials (73%) and Generation Z (70%) employees were the most confident that they could do a better job than their bosses.Despite the majority of employees saying they can do a better job than their bosses, employees said managers are good at their jobs, with the majority of employees grading bosses an A or B for competence (71%) – the highest grade given – and work ethic (70%).Based on grades given of a C, D, or F, at least one in three employees feel their manager could improve at modelling work-life balance (37%); their ability to coach for better job performance (37%); handling performance-related issues (33%); and communication (33%).According to the survey, employees in India are by far the most satisfied with their managers, with at least eight out of ten grading managers an A or B in every category. Conversely, French, German, and UK workers are by far the most pessimistic about manager performance, as those countries ranked in the bottom three in every category surveyed.“As the working world continues to evolve, and new generations enter the workforce, styles, preferences, and perceptions will continue to change. With the number of Millennial managers growing, attitudes toward aspects of management and working style will also change,” Joyce Maroney, executive director, The Workforce Institute at Kronos, said. “As the student becomes the teacher, organisations should have a clear lesson plan for leadership development and effectiveness in key areas to set tomorrow’s managers up for ongoing success.&rdquo […]

Latest Research

  • SI Report Webinar - September 2019

    In this webinar topics covered include: US Staffing Industry Forecast: September 2019 Update Staffing Company & Temp Survey: Insights on Recruiting The Gig Economy and Human Cloud Landscape Interactive M&A Database And of course the latest updates on the state of the economy, employment trends and developments in the US staffing industry.Download presentation slides 190917 SI Report Webinar Presentation Slides - You do not have permission to view this object.  Select the play button to begin viewing. […]

  • US Staffing Industry Forecast: September 2019 Update

    Key Findings Since our last published forecast update in April, we have downgraded our 2019 outlook for the US staffing industry to 3% growth down from 4%. Due to factors such as tariffs and trade uncertainty, slowing global growth, and business concerns about the late stage of the US economic expansion, we have downgraded our growth forecast for temporary staffing in industrial (1% from 4%), IT (3% from 4%), per diem nurse (3% from 4%), and for retained search (2% from 6%). We upgraded our forecast for growth in travel nurse (4% from 3%). Excluding the place and search sector, the US temporary staffing industry is forecast to grow 2% this year to reach $130.9 billion. This overall growth rate belies the difference in trends among the twelve occupational segments that we cover, which are discussed on pages 4 to 15. Scarcity of supply of candidates continues to be a major headwind for the industry across most occupational categories and client industries. Looking ahead to next year, we maintain our 3% growth forecast for the US staffing industry in 2020, with revenue growth in many segments led by expansion in bill rates and pay rates, rather than volume. We upgraded our forecast for travel nurse and locum tenens (both 4% from 3%), and downgraded our outlook for engineering (3% from 4%) and retained search (1% from 4%). US GDP growth in 2020 is currently forecast to be 1.9% (Philly Fed Survey) or 2.0% (Conference Board Survey), with projected monthly job gains slowing from 191 thousand/month in 2019 to 141 thousand/month in 2020 (Philly Fed). Fewer overall job additions suggest greater strategic importance for staffing firms to focus resources on growth niches. The biggest risk to our forecast is the possibility of a recession occurring during the forecast period—a risk that may be 40% or higher according to some surveys. Nevertheless, we believe the possibility of monetary and fiscal stimulus, as well as trade tension de-escalation, remain government levers for reducing the severity of recession risk. Summary tables of our industry market size and growth projections are on pages 21 to 23. Please select the following link to download the complete report:  US Staffing Industry Forecast 20190917 - You do not have permission to view this object. […]

  • Highest-Return Recruiting Tactics

    Key Findings: Temporary worker recruiting tactics. Staffing firms reported the temporary worker recruiting tactic with the highest bang-to-buck return on spend/effort to be recruiting from their existing candidate databases (44% reported it among top two tactics). A significant portion of respondents also selected: LinkedIn, other online job listings, and referral bonuses. Direct hire recruiting tactics. Staffing firms reported the direct hire recruiting tactic with the highest bang-to-buck return on spend/effort to be Linkedin (57% reported it among top two tactics). A significant portion of respondents also selected: recruit from existing candidate list, other online job listings, and referral bonuses. Changes since 2013. Comparisons between the current survey results and those of a similar survey in 2013 are slightly obscured by a change in the wording of the question, from (single) “top tactic” in 2013 to “top two tactics” in 2019. Nonetheless a change in relative values for one recruiting tactics was apparent. In 2013, referral bonuses were cited by just 7% as a top temp recruiting tactic and by just 3% as a top direct hire recruiting tactic. In 2019, referral bonuses were cited as among “top two tactics” by 32% for temp recruiting and by 22% for direct hire recruiting. To access the complete report, please select the link below: North America Staffing Company Survey 2019 Highest bang-to-buck temporary and direct hire 20190906 - You do not have permission to view this object. […]

  • Staffing Firm Survey 2019: Initial Results

    Key Findings: This report contains the initial findings of the 2019 Staffing Company Survey for staffing firms primarily operating in North America. It includes the complete survey questions and summary statistics. Additional detailed reports will follow this summary report. The survey was conducted in the summer of 2019 and reflects the opinions of 441 staffing firms. This sample is disproportionately composed of firms with greater than $10 million in revenue, so aggregate results reported are more reflective of these larger staffing firms. Where responses vary significantly by size, such differences will be noted in the analysis. Data includes: client contract terms; staffing company participation in online staffing; web and app enabled technology; internal staff benefits; sources of revenue; priorities and investments; referral bonuses; wages paid to temporary workers; and recruiting tactics. To access the complete report, please select the link below: North America Staffing Company Survey 2019 Initial Findings 20190906 - You do not have permission to view this object. […]

  • Largest Staffing Firms in Italy

    We estimate that the Italian staffing market was worth €12.9 billion in 2018 and increased by +13% compared with 2017. Italy although not a particularly long established staffing market, due to periods of high sustained growth is now fifth largest national market in Europe and seventh globally. The market is highly consolidated, with Adecco as leader with a market share of 15%. Following their acquisition of Obiettivo Lavoro in 2016, Randstad is now the second largest staffing firm in Italy (13% of the market), followed by Manpower (11%) and GI Group in fourth with 9% of the market. The top three account for 39% of the market, however, the market share of this leading group has decreased slightly from 2017. Please note that 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 a better service or more value to its shareholders. All currency amounts are in Euro (€). To download a full copy of this report, click below: Largest Staffing Firms in Italy - You do not have permission to view this object. […]

  • European Employment Barometer Q1 2019

       SIA is delighted to provide this interactive research tool in collaboration with the World Employment Confederation. Our European Employment Barometer provides users with the capability to interactively drill through various levels of data – filter, sort, and download.This tool provides an overview of key labour market indicators relevant to the staffing, recruitment and workforce solutions industry in Europe. The dashboard shows labour quarterly market trends in 33 different countries, from Q2 2016 until the latest data release.Data Sources and AnalysesData collated from Eurostat’s most recent labour market survey findings on Total Employment provide us with insights into various areas such as: Y/Y change in total employment Part-time workers as a percentage of total employment Employment rate Unemployment-to-employment transition We review Temporary Employment metrics by looking at the number of temporary employees per country and compared to a European average. Other areas we focus on are: Temporary employees as a percentage of total employees Temporary employees by length of contracts Temporary employees by education Temporary employees by occupation, and Temporary employees by economic activity The data in the Agency Work tab is provided directly by European staffing associations as part of our partnership with the World Employment Confederation. This data shows business trends in the temporary agency work sector in 12 countries, from Q2 2016 to the latest data release. We also provide a unique set of correlations between temporary agency work indicators and other economic factors to illustrate the impact, or not, of wider economic trends on temporary agency work.With the Gig economy and human cloud landscape playing an ever-increasing role in the workforce solutions ecosystem, new to this quarter, our Barometer will now include statistics regarding online freelance labour. The Online Labour Index (OLI) from the Oxford Internet Institute is the first economic indicator that provides an online gig economy equivalent of conventional labour market statistics. It measures the supply and demand of online freelance labour across countries and occupations by tracking the number of projects and tasks across platforms in real time.European Employment Barometer Interactive Too […]

  • MSP Part 1 EMEA 2019

    Executive SummaryIn the period January - December 2018, the Managed Service Provider (MSP) market represented $141 billion of spend under management, with slower growth, estimated at 8% compared to 12% in 2017. The US continues to dominate the global MSP market, with 50% market share, although growth remains higher outside the US, with the EMEA region showing the greatest increase at 19%. Spend on global contracts covering three or more geographical regions continues to grow, as organizations expand program coverage, with approximately 30% of reported spend associated with global contracts. Market growth can be attributed to organic growth within programs, service expansion and net new clients, with 68% of reported net new clients adopting MSP for the first time. Financial Services endures as the dominant consumer of MSP, with a 21% share of spend, followed by Pharma/Biotech which, at 16%, has overtaken Technology/Telecom as the second largest client group. IT remains the most widely sourced occupational skill within MSP programs, with a 29% share of spend, up 4% from 2017.The largest MSPs globally (each with more than $6 billion of spend under management and unchanged from the previous year) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN. Together they represent over 50% of the spend reported by the 26 participants in this study.Although the vendor-neutral model for sourcing temporary workers and independent contractors remains the most prevalent when measured by spend, the number of individual clients adopting alternative models is more evenly balanced, with only 33% of programs adopting a vendor-neutral model and a similar percentage adopting a master-supplier model.Proving that 2017’s blip was not the start of a reversal of the trend of previous years, there is once again more growth in SOW than temp/contract spend, with SOW/outsourcing spend representing 22% of reported spend under management.Although 23% of spend is attributed to programs with a value of $1 billion or more, 52% of individual programs manage spend of $10 million or less demonstrating that contrary to popular belief, the MSP model is not only the preserve of the large enterprise.There is emerging evidence that despite a slow start, ‘Total Talent’ solutions are finally beginning to gain traction, with 15% of MSP spend associated with a blended MSP/RPO service, (a y/y increase of 10%) and more providers actively promoting total talent services. Additionally, 19% of programs now include the provision of strategic workforce planning services.MSP providers are reporting a growth in the provision (and client adoption) of more sophisticated services beyond the core supplier management and billing proposition; direct sourcing services are provided in 31% of programs (up 25% y/y) and 12% offer a white-labeled service utilizing the client brand (up 4% y/y). MSP Landscape 2019 - You do not have permission to view this object. […]

  • MSP Part 1 Americas 2019

    Executive SummaryIn the period January - December 2018, the Managed Service Provider (MSP) market represented $141 billion of spend under management, with slower growth, estimated at 8% compared to 12% in 2017. The US continues to dominate the global MSP market, with 50% market share, although growth remains higher outside the US, with the EMEA region showing the greatest increase at 19%. Spend on global contracts covering three or more geographical regions continues to grow, as organizations expand program coverage, with approximately 30% of reported spend associated with global contracts. Market growth can be attributed to organic growth within programs, service expansion and net new clients, with 68% of reported net new clients adopting MSP for the first time. Financial Services endures as the dominant consumer of MSP, with a 21% share of spend, followed by Pharma/Biotech which, at 16%, has overtaken Technology/Telecom as the second largest client group. IT remains the most widely sourced occupational skill within MSP programs, with a 29% share of spend, up 4% from 2017.The largest MSPs globally (each with more than $6 billion of spend under management and unchanged from the previous year) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN. Together they represent over 50% of the spend reported by the 26 participants in this study.Although the vendor-neutral model for sourcing temporary workers and independent contractors remains the most prevalent when measured by spend, the number of individual clients adopting alternative models is more evenly balanced, with only 33% of programs adopting a vendor-neutral model and a similar percentage adopting a master-supplier model.Proving that 2017’s blip was not the start of a reversal of the trend of previous years, there is once again more growth in SOW than temp/contract spend, with SOW/outsourcing spend representing 22% of reported spend under management.Although 23% of spend is attributed to programs with a value of $1 billion or more, 52% of individual programs manage spend of $10 million or less demonstrating that contrary to popular belief, the MSP model is not only the preserve of the large enterprise.There is emerging evidence that despite a slow start, ‘Total Talent’ solutions are finally beginning to gain traction, with 15% of MSP spend associated with a blended MSP/RPO service, (a y/y increase of 10%) and more providers actively promoting total talent services. Additionally, 19% of programs now include the provision of strategic workforce planning services.MSP providers are reporting a growth in the provision (and client adoption) of more sophisticated services beyond the core supplier management and billing proposition; direct sourcing services are provided in 31% of programs (up 25% y/y) and 12% offer a white-labeled service utilizing the client brand (up 4% y/y). MSP Landscape 2019 - You do not have permission to view this object. […]

  • MSP Part 1 APAC 2019

    Executive SummaryIn the period January - December 2018, the Managed Service Provider (MSP) market represented $141 billion of spend under management, with slower growth, estimated at 8% compared to 12% in 2017. The US continues to dominate the global MSP market, with 50% market share, although growth remains higher outside the US, with the EMEA region showing the greatest increase at 19%. Spend on global contracts covering three or more geographical regions continues to grow, as organizations expand program coverage, with approximately 30% of reported spend associated with global contracts. Market growth can be attributed to organic growth within programs, service expansion and net new clients, with 68% of reported net new clients adopting MSP for the first time. Financial Services endures as the dominant consumer of MSP, with a 21% share of spend, followed by Pharma/Biotech which, at 16%, has overtaken Technology/Telecom as the second largest client group. IT remains the most widely sourced occupational skill within MSP programs, with a 29% share of spend, up 4% from 2017.The largest MSPs globally (each with more than $6 billion of spend under management and unchanged from the previous year) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN. Together they represent over 50% of the spend reported by the 26 participants in this study.Although the vendor-neutral model for sourcing temporary workers and independent contractors remains the most prevalent when measured by spend, the number of individual clients adopting alternative models is more evenly balanced, with only 33% of programs adopting a vendor-neutral model and a similar percentage adopting a master-supplier model.Proving that 2017’s blip was not the start of a reversal of the trend of previous years, there is once again more growth in SOW than temp/contract spend, with SOW/outsourcing spend representing 22% of reported spend under management.Although 23% of spend is attributed to programs with a value of $1 billion or more, 52% of individual programs manage spend of $10 million or less demonstrating that contrary to popular belief, the MSP model is not only the preserve of the large enterprise.There is emerging evidence that despite a slow start, ‘Total Talent’ solutions are finally beginning to gain traction, with 15% of MSP spend associated with a blended MSP/RPO service, (a y/y increase of 10%) and more providers actively promoting total talent services. Additionally, 19% of programs now include the provision of strategic workforce planning services.MSP providers are reporting a growth in the provision (and client adoption) of more sophisticated services beyond the core supplier management and billing proposition; direct sourcing services are provided in 31% of programs (up 25% y/y) and 12% offer a white-labeled service utilizing the client brand (up 4% y/y). MSP Landscape 2019 - You do not have permission to view this object. […]

  • MSP Part 1 Americas 2019

    Executive SummaryIn the period January - December 2018, the Managed Service Provider (MSP) market represented $141 billion of spend under management, with slower growth, estimated at 8% compared to 12% in 2017. The US continues to dominate the global MSP market, with 50% market share, although growth remains higher outside the US, with the EMEA region showing the greatest increase at 19%. Spend on global contracts covering three or more geographical regions continues to grow, as organizations expand program coverage, with approximately 30% of reported spend associated with global contracts. Market growth can be attributed to organic growth within programs, service expansion and net new clients, with 68% of reported net new clients adopting MSP for the first time. Financial Services endures as the dominant consumer of MSP, with a 21% share of spend, followed by Pharma/Biotech which, at 16%, has overtaken Technology/Telecom as the second largest client group. IT remains the most widely sourced occupational skill within MSP programs, with a 29% share of spend, up 4% from 2017.The largest MSPs globally (each with more than $6 billion of spend under management and unchanged from the previous year) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN. Together they represent over 50% of the spend reported by the 26 participants in this study.Although the vendor-neutral model for sourcing temporary workers and independent contractors remains the most prevalent when measured by spend, the number of individual clients adopting alternative models is more evenly balanced, with only 33% of programs adopting a vendor-neutral model and a similar percentage adopting a master-supplier model.Proving that 2017’s blip was not the start of a reversal of the trend of previous years, there is once again more growth in SOW than temp/contract spend, with SOW/outsourcing spend representing 22% of reported spend under management.Although 23% of spend is attributed to programs with a value of $1 billion or more, 52% of individual programs manage spend of $10 million or less demonstrating that contrary to popular belief, the MSP model is not only the preserve of the large enterprise.There is emerging evidence that despite a slow start, ‘Total Talent’ solutions are finally beginning to gain traction, with 15% of MSP spend associated with a blended MSP/RPO service, (a y/y increase of 10%) and more providers actively promoting total talent services. Additionally, 19% of programs now include the provision of strategic workforce planning services.MSP providers are reporting a growth in the provision (and client adoption) of more sophisticated services beyond the core supplier management and billing proposition; direct sourcing services are provided in 31% of programs (up 25% y/y) and 12% offer a white-labeled service utilizing the client brand (up 4% y/y). MSP Landscape 2019 - You do not have permission to view this object. […]

  • The Human Cloud Landscape: 2019 Update

    The “human cloud” is an emerging group of technology companies that connect workers to (typically contingent) work through a website or some other digital platform. SIA has defined three human cloud business models: online staffing, crowdsourcing and online work services. In 2018, firms processed $126.3 billion in global human cloud spend. Human cloud companies that primarily sell to consumers (B2C), such as Uber, Lyft, Postmates, or Instacart, accounted for the vast majority of human cloud spend, generating $118.6 billion in spend, by our estimates. Human cloud companies selling primarily to businesses (B2B) generated $7.8 billion. Total global human cloud revenue grew approximately 43% in 2018, driven primarily by the B2C segment (+45% y/y), which makes up well over 90% of human cloud spend. The B2B segment of the human cloud accelerated to 22% y/y growth, up from 19% y/y in 2017. About 75% of B2B human cloud transactions entail IT and creative job categories. Most B2B human cloud companies, while clearly internet-based technology companies, are also talent suppliers, many of which are increasingly adding more services layers. Other hybrid models, such as just-in-time staffing, have also thinned the line between online staffing and traditional temporary staffing. At the same time, more staffing firms are introducing technology platforms. Small to medium-sized businesses comprise the most demand in the B2B segment today, however the enterprise segment represents a significant growth opportunity. Vendor management systems are deepening more integrations with human cloud vendors as a competitive differentiator. Also, “direct sourcing” platforms are moving up the priority list for clients. A broad range of secular tailwinds are conducive for sustained double-digit growth for the B2B human cloud. However, we do not envision a rising tide raising all ships scenario to continue to persist, due in part to strong network effects of top performing platforms. The full report is available below: The Gig Economy and Human Cloud Landscape 2019 Update 20190903 - You do not have permission to view this object. […]

  • Performance of the Largest Staffing Firms in Australia

    • We estimate the Australian Staffing Market was worth AUD 20.4 billion in 2018 (USD 15.3 billion). This represents 3% of the global market and makes Australia the 8th largest market globally.• According to the IMF, the Australian economy grew by 2.8% in 2018, up from 2.4% in 2017. However, the rate of growth has slowed in Q1 2019 and was lower than forecast. The 1.8% annual expansion in Q1 2019 (vs Q1 2018) was the weakest since the global financial crisis.•The unemployment rate declined during 2018 reaching a low of 5.0% in the second half of the year. Despite this, there are signs of stress in the retail sector, residential building and motor vehicle sales.• The 26 staffing companies analysed in this report have combined revenues of AUD 13.4bn (USD 10.0 billion) and account for 66% of total market revenue.•Global players operating in the Australian market include Recruit, Persol, Manpower, Hays, Adecco, Randstad, Robert Walters, Robert Half, Michael Page, Brunel and Fircroft.• The local Australian companies covered in the report include Ignite, Finite, People Infrastructure (previously AWX), Rubicor, Ambition and Workpac.• The largest company in the Australian market is Hays with revenue of AUD 2.29 billion (USD 1.7 billion). Recruit (Chandler MacLeod plus Peoplebank) is second largest with revenue of AUD 1.78 billion (USD 1.3 billion). Revenue growth of the largest 26 firms for the latest year was 10.5%, above the previous year’s growth of 5.1%, and well above market growth. • Gross margin averaged 16.5% for the latest year, a reduction from the 16.8% achieved a year earlier. Gross margin ranged from a low of 6.1% for Fircroft to a high of 37.3% for Ambition.• The measure of profitability used in the review is EBITDA. The ratio of EBITDA to revenue averaged 2.4% in the latest year, the same as the previous year.To download a copy of the report please click below: Performance of the Largest Staffing Firms in Australia 20190830 - You do not have permission to view this object. […]