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Global Daily News

  • IT staffing supply and demand drifting apart as market projected to reach $30.9 billion this year, SIA report says

    IT employment growth has outpaced that of the overall economy for the last 15 years, and the IT staffing segment has a relatively high temporary agency penetration rate in the US, according to the “IT Staffing Growth Assessment: 2018 Update” recently released by Staffing Industry Analysts. However, a supply constraint remains.About half of IT staffing revenue is derived from the US, where SIA forecasts revenue will maintain a 4% growth trajectory in 2018 to $30.9 billion, which would represent the eighth consecutive year of growth for the market and a new all-time high.“Despite stable market growth trends, the IT staffing landscape has become increasingly complex as supply and demand continue to drift further apart,” said Brian Wallins, senior research analyst at SIA and author of the report.“Digital business transformation is driving investment in IT projects and workers, particularly those with specialized IT skill sets,” Wallins said. “Temporary IT staffing is on a secular uptrend as buyers demand the flexibility to tap into these specialized skills, while managing costs. While a shortage of high-level IT talent enhances the value proposition of staffing services, it has also resulted in acute recruiting challenges.”The number of computer science grads in the US bottomed out between 2008 and 2009 and has increased each year since, providing a boost for IT labor supply. However, only 6% of the IT workforce in the US is between the ages of 20 and 24, compared to 9% for the overall economy.  Meanwhile, coding bootcamps are becoming an increasingly important resource in accelerating IT workforce development.However, training and education have not kept pace with technological change, resulting in a deepening skills mismatch in the IT sector. The annual cap on H-1B visas, an avenue for bringing IT talent into the US, is serving as a constraint on bringing in talent as well.The full report is available online to SIA corporate members. […]

  • Canadian staffing index suggests continued moderate growth

    The Canadian staffing index, which measures staffing activity in Canada, rose 6% in January on a year-over-year basis to a reading of 106.“Given that the index is up 6% with the same number of working days as in the prior-year month, the January index suggests a continuation of the trend of moderate growth for the overall industry that we observed throughout much of 2017,” said Timothy Landhuis, senior research manager at Staffing Industry Analysts.On a month-over-month basis, the index rose 4% in January.The Canadian Staffing Index measures the hours of labor performed by a sampling of temporary and contract staffing in the staffing industry. Staffing Industry Analysts produces the index on behalf of the Association of Canadian Search, Employment and Staffing Services. […]

  • CertaTech buys legal staffing provider Clearwater Legal

    CertaTech Solutions, a Chicago-based provider of eDiscovery and legal consulting, acquired Clearwater Legal, a provider of managed document review services and legal staffing, based in Washington DC.“Being able to offer CertaTech’s expansive suite of eDiscovery and consulting solutions to our growing law firm and corporate client base allows us to better serve their needs,” said Joe Kearney, executive FP of Clearwater Legal. “CertaTech and Clearwater are an ideal cultural fit, and we look forward to a smooth and seamless integration.”The acquisition was completed this month, and terms of the transaction were not announced. The company expects no immediate impact to clients, nor are any staff reductions anticipated. […]

  • Firms can be ‘clients of choice’ for independent professionals; valuing their work is one key

    For firms to attract and retain the top independent contractors, freelancers and other independent labor, it has become more important to be a “client of choice” — especially given the low unemployment rate in the US, according to a new report from MBO Partners. Some of the key attributes at clients of choice are valuing independent professionals’ work, letting them have control over their schedules and treating them as team members.“For businesses to effectively compete in the marketplace, it is critical to engage the best and the brightest independent professionals,” said Gene Zaino, CEO of MBO Partners. “To do so, they need to understand both how and why independent professionals choose their clients, and what clients can do to position themselves as a client of choice.”MBO Partners’ report is based on research that includes data from more than 17,000 in-depth surveys and hundreds of interviews over the past seven years.Among the top workplace attributes independent professionals cited as very important or somewhat important for firms to be a client of choice: 97% cited valuing their work. 95% cited having control over their work. 94% cited control over their schedules. 94% cited being able work on tasks they enjoy doing. 92% cited being treated as a team member. The report defined independent professionals as those who provide services to businesses rather than products. This population has risen to 7.3 million in 2017 from 4.5 million in 2011. It includes independent contractors, statement-of-work-based labor and freelancers.Among the report’s findings on who independent professionals are: 57% are male and 43% are female. Average age is 52. 83% have four years of college or more. 45% have graduate degrees. They had an average income of $98,000. The average independent has seven years of experience working independently. Works with two to four clients at a time. Their top reasons for going independent: 59% cite a desire for greater work/life flexibility. 57% cite a desire to control their schedule. 46% desire or need to earn more money. The report also found that female independent professionals emphasized different motivations than male independent professionals: 65% of women cited the ability to control schedule compared to 51% of men 68% cited more flexibility compared to 52% of men. Only 25% of women said they feel more secure working independently, compared to 32% of men. Women are less likely than men to go back to traditional jobs. In addition, the report looked at millennial independent professionals, and their motivations: Millennials are more likely to be reluctant independents: 40% would prefer a traditional job. Only 48% of millennials said they are highly satisfied compared with 73% of nonmillennials. 75% of millennials want clients to provide education and training versus 49% for nonmillennials. 19% of millennials listed social media in their top three sources of work compared with 8% of nonmillennials. […]

  • Trump appointee ‘conflict’ throws Browning-Ferris ruling into doubt (Bloomberg)

    Bloomberg reported National Labor Relations Board Inspector General David Berry wrote in a Feb. 9 report to NLRB members that Republican board member William Emanuel “should have been recused from participation” in overturning the Browning-Ferris case. The decision restricted employees of contractors and franchisees from pursuing claims against big corporations. Emanuel is a former management-side attorney whose previous law firm, Littler Mendelson, had represented a contractor for Browning-Ferris, the waste company that lost the 2015 decision.&nbs […]

  • World – Hays turnover and net fees boosted by Germany and Australia while UK remains stable

    International recruitment firm Hays (LON: HAS) reported net fees for the six months ended 31 December 2017 with a 12% increase on a like-for-like basis compared to the previous year. The company also reported operating income increased by 14% on a like-for-like basis. (£ millions) H1 2018 H1 2017 Change Life-for-Like Turnover 2,828.9 2,484.5 14% 12% Net Fees 525.8 465.5 13% 12% Operating Profit 116.5 100.1 16% 14% Profit After Tax 78.0 65.4 19% N/A According to Hays, exchange rate movements increased net fees and operating profit by £5.9 million and £1.9 million, respectively. Operating profit increase was driven by strong growth in the group’s international markets, where 20 businesses delivered record net fees, and good cost control in the UK.In the UK & Ireland, which comprised 24% of net fees, Hays stated that market conditions remained subdued but stable with the private sector up 5% and public down 9%. Net fees were up 1% to £127.5 million for the period while operating profit increased by 24% to £22.6 million. Chief Executive, Alistair Cox, told Reuters this morning that there was “less appetite” for non-British workers to take jobs following the Brexit vote and some European Union citizens had quit jobs in Britain, with the immediate impact being felt on construction sites. “We are starting to see skill shortages in a number of areas there because of a lot of the traditional supply, much of which has come from Europe has dried up,” he said.In Germany, which comprised 26% of net fees, the group reported net fee growth of 17% to £134.8 million and an increase in operating profit of 2% to £41.1 million, despite the loss of three working days.In Australia and New Zealand, which comprised of 19% of net fees, the group reported strong, broad based growth across all markets and most specialisms in Australia. Net fees were up 15% to reach £99.8 million, up 15% on the year. Operating profit increased by 13% to £34.1 million.In the Rest of the World region, which comprised 31% of net fees, Hays reported strong, broad-based net fee growth and excellent profit leverage, especially in Europe and Asia. Furthermore, 19 of 28 markets reported record net fee performances. Net fees were up 15% to £163.7 million and operating profit climbed 39% to £18.7 million for the period.Hays’ Permanent Placement business recorded 15% net fee growth to £222.2 million for the period while the Temporary Placement business saw an increase of 9% to £303.6 million.Alistair Cox commented on the results, "We have delivered another strong first half with double-digit net fee and profit growth. Conditions were supportive in the vast majority of our markets, with 22 countries growing net fees by more than 10% and 20 countries delivering record performances. This is a clear sign of the strength of our diversified global portfolio, as we take advantage of our leading positions in key markets.”“Our largest business, Germany, delivered another all-time record performance and we accelerated investment there, increasing consultant headcount by 30% and opening three new offices,” Cox said. “Australia delivered strong broad-based growth and while the UK market remained subdued, it was stable overall.”"We continued to invest aggressively in our growth markets, increasing our International consultant headcount by 18%, while at the same time improving efficiency and thereby further increasing our sector-leading conversion rate. Underlying cash conversion remained good and we are pleased to increase our interim dividend by 10%,” Cox said."Looking ahead, the scale, balance and diversity of our businesses, combined with our strong balance sheet and highly experienced management teams, stand us in good stead. The outlook in the vast majority of our markets remains positive and we have made an encouraging start to our new five-year plan to broadly double our operating profits by 2022".Despite the positive performance, as of last trade Hays PLC (HAS:LSE) traded at £191.90, down 6.21% on the day and 6.94% below its 52-week high of £206.20, set on 29 January 2018. Based on its current share price the company has a market value of £2.97 billion. […]

  • Sweden – SJR in Scandinavia Q4 revenue up 10.2%, profits also rise

    Swedish staffing company SJR in Scandinavia (SJRB: SS) reported revenue for the fourth quarter ending 31 December 2017 of SEK 99.8 million (€9.9 million), an increase of 10.2% compared to the same period last year. (SEK millions) Q4 2017 Q4 2016 Change Q4 2017 (€ millions) Revenue 99.8 90.3 10.2% 9.9 Operating Profit 10.7 9.8 9.1% 1.0 Profit After Tax 7.8 7.3 6.8% 0.7 SJR in Scandinavia also reported full year revenue of SEK 385.4 million (€38.5 million), up 12.5% from the previous year.The company primarily focuses on the economic, banking, and financial sectors. The company, through its consulting business, works in cooperation with a number of banking and financial institutions in Sweden, as well as with the finance and accounting departments of a number of Swedish companies.“2017 has been a good year, there is a boom and demand for the SJR services,” Per Ogunro, CEO of SJR, said. “The market continues to change paths. New jobs change. SJR wants to be at the forefront of this change that happens in the market.”During the year, SJR merged with its subsidiary SW in Scandinavia AB, which provides consulting and recruitment services. The group stated that this merger resulted in a decrease in activity for administrative services and simpler consulting services within the group. The aim of the integration is that SJR will be even more specialized as before.In trading today, SJR in Scandinavia traded at SEK 46.40 (€4.64), down 0.64% on  the day and 6.83% below its 52-week high of SEK 49.80 (€4.98), set on 24 January 2018. Based on its current share price the company has a market value of SEK 448.32 million (€44.8 million). […]

  • France – Number of temporary workers up 6.6% in December

    At the end of December 2017, the number of temporary workers grew by 6.6% compared to the previous year, according to figures from Pôle Emploi.Data from Pôle Emploi showed that at the end of December 2017, the number of temporary workers stood at a seasonally adjusted 804,400.The industrial sector saw an increase of 5.7% in December when compared to the previous year. Meanwhile, construction increased by 11.8% and the tertiary sector saw an increase of 5.2% on the year.Over the year, temporary employment increased in all regions in December except the Center-Val-de-Loire region (-1.3%). The largest annual increase was seen in the Bourgogne-Franche-Comté region (+ 14.5%).Meanwhile, during the same period, the number of unskilled workers increased by 7.1% while managers and intermediate workers employees increased by 7.0%. Skilled workers and employees also showed growth of 6.1% and 8.5%, respectively.&nbs […]

  • UK – Number of EU nationals working in the UK on the rise

    The number of EU citizens working in the UK increased in the year after the EU Referendum vote but the pace of the growth is at its slowest in more than four years, according to data from the Office of National Statistics.Figures from ONS showed that there were an estimated 2.35 million overseas employees from the EU in the period from October to December 2017. This was an increase of 101,000 compared to the same period in 2016 and the smallest year-on-year rise recorded since July-September 2013.Jonathan Portes, Professor of Economics at King's College London, commented on the figures, "Since the EU referendum, the number of people from elsewhere in the EU working in the UK has been broadly flat. That doesn't suggest a 'Brexodus' but this is consistent with the immigration statistics which show that even before Brexit net migration from the EU has fallen sharply. And this in turn accounts for some of the growing pressures on NHS staffing, agriculture and other sectors that rely on migrant workers."Alp Mehmet, Vice Chairman of Migration Watch UK, said the figures show "yet another increase in the number of EU migrant workers in the UK"."There is no sign whatsoever of EU workers abandoning the UK. Indeed, this illustrates the need for a major decrease in immigration and Brexit is the opportunity to achieve it,” Mehmet said.Meanwhile, the number of Romanians and Bulgarians working in the UK has risen to the highest level on record. The number of workers from 14 long-term member states including Germany, Italy, Spain and France also went up, from 935,000 in October-December 2016 to 1,014,000 in the fourth quarter of last year.ONS figures also showed a decrease in the number of overseas workers from the rest of the world. Data showed there were 1.17 million non-EU nationals working in the UK in October to December, 68,000 fewer than a year earlier.“Today’s figures will be very worrying for businesses,” Tom Hadley, Director of Policy at the Recruitment and Employment Confederation, said. “This latest drop in the number of EU workers coming into the country will put a further strain on employers. We are already battling with skills shortages and this is a challenge for the whole labour market, at both graduate and non-graduate level. “Government can’t ignore any longer that Brexit is having an effect on the workforce,” Hadley said. “We urgently have to turn things around and make sure that EU workers still want to come to the UK. Employers need clarity so they can plan for the future and be able to invest in the growth of their businesses. We urge the government to come up with a post-Brexit immigration strategy that is based on evidence and will give businesses access to the workers they rely on. And this needs to include temporary and seasonal workers.”&nbs […]

  • Australia – CML Group revenue up 31%, announces acquisition

    Australian firm CML Group (CGR: ASX) reported group revenue for the six months ended 31 December 2017 of AUD 24.3 million (USD 19.0 million) an increase of 31% from the previous year. (AUD millions) H1 2018 H1 2017 Change H1 2018 (USD millions) Group Revenue 24.3 18.5 31% 19.0 Group EBITDA 7.8 5.9 31% 6.1 Net Profit After Tax  1.7 0.7 143% 1.3 CML Group delivers finance, payroll, and employment solutions. The Payroll & Employment division provides managed services to clients; including labour sourcing through recruitment agency panel management, project management, and a migration practice.According to the group, its financial performance in the first half was a result of increasing business volume from sales and marketing and improved margins compared to the prior corresponding period.CML launched an equipment finance division in July 2017 which is operating under the name Cashflow Equipment. The group added that the division is performing ahead of expectations and expects it to contribute to profit in the second half of 2018.The group also announced that it had acquired Thorn Group’s Trade & Debtor Finance division for approximately AUD 39 million (USD 30.5 million) in cash, which includes goodwill, and loan book funding of approximately 35 million (USD 27.3 million). As a result of the acquisition, CML provided an initial guidance for the full year of 2019 with EBITDA of approximately AUD 19.5 million (USD 15.2 million). “CML has simplified and improved its business over the last two years and with a committed and experienced team, strong sales momentum, institutional bank funding in place and new service offerings gaining momentum, we are highly confident in our ability to deliver on our clear growth plan that is focussed on scale and profitability,” CML Managing Director Daniel Riley, said. “We are confident, having made and successfully integrating acquisitions over the last few years that our strategy will be substantially bolstered by the acquisition announced today.”CML Group set a new 52-week high during today's trading session when it reached AUD 0.52 (USD 0.41). Over this period, the share price is up 106.38%. As of last trade shares were at AUD 0.48 (USD 0.38), up 7.78% on the day. Based on its current share price the company has a market value of AUD 78.70 million (USD 61.53 million). […]

  • New Zealand – Employment forecast to grow by 2% per year over next three years

    Employment across sectors and regions in New Zealand is expected to grow by 2% per year, or 153,000, over the next three years to March 2020, according to a report from the Ministry of Business, Innovation and Employment.The report, ‘Short-term Employment Forecasts: 2017-2020’,  also showed that highly skilled occupations such as managers and professionals are predicted to grow faster than overall employment growth, at 2.9% or 31,600 per year. By 2020, the demand for highly skilled workers is forecast to increase by nearly 95,000. Meanwhile, low skilled workers will account for 29% of the overall employment growth by 2020, while the unemployment rate is forecast to decline to 4.1% by 2020.Business services is forecast to make the largest contribution to employment growth, up 33,300, with construction and utilities following at 19,400, and health care and social assistance up 15,500.Among the regions, all regions are predicted to grow over the next three years. Growth is expected to be strongest in the Auckland and Waikato regions.&nbs […]

  • Hong Kong – Unemployment rate remains steady in January period

    The jobless rate in Hong Kong stood at 2.9% for the period from November 2017 to January 2018, steady from the previous period of October to December 2017, according to figures from the Hong Kong Statistics Department.The underemployment rate decreased from 1.1% to 1.0% over the same period.Total employment increased by approximately 11,500 from 3.85 million in October - December 2017 to 3.86 million in November 2017 - January 2018. Over the same period, the labour force also increased by approximately 8,300.Secretary for Labour and Welfare, Law Chi-kwong, commented on the results, "The labour market remained in a state of full employment. The seasonally adjusted unemployment rate stayed low at 2.9% in November 2017 to January 2018, while the underemployment rate edged down by 0.1 percentage point to 1.0%, a low level last seen in the second half of 1997. Meanwhile, total employment continued to show appreciable year-on-year growth.”“Analysed by sector, the changes in individual jobless rates were minimal when compared to the preceding three-month period,” Chi-kwong said. “Nevertheless, unemployment situation improved notably across many major service sectors on a year-on-year comparison, led by tourism-related industries such as retail and accommodation services amid the further recovery in inbound tourism, as well as the financing, and professional and business services (excluding cleaning and similar activities) sectors on the back of strong economic conditions.""In view of the confident economic situation on entering 2018, the labour market is expected to remain tight in the near term,” Chi-kwong said. “Yet the employment outlook for the rest of the year will continue to hinge on how various external uncertainties evolve. We will stay vigilant and monitor the situation closely." […]

  • Japan – Government considers delaying labour reform after admitting to flaws in work hours survey (Japan Today)

    Japan’s government is considering postponing the implementation of parts of a labour reform bill after it admitted to flaws in its work hours survey, reports Japan Today.  Opposition parties have accused the government of deliberately designing the survey to make it look like expanding the "discretionary labour" system would help lessen Japan's chronic overwork problem and argue it could have the opposite effect. Under the system employees are given a fixed number of overtime hours and are paid on the assumption they worked those hours, meaning any further overtime goes unpaid. The survey on working hours concluded that the average worker on a discretionary labor contract generally works shorter hours than one on a conventional contract. But the Labour Ministry said this week that it used two different methods to collect the respective data, making the survey statistically unsound. […]

Latest Research

  • Top Social Media Groups for Internal Staff

    Key Findings: This report is based on responses to the following survey question: “Which Linkedin or other social media professional groups, if any, do you subscribe to or participate in? (e.g., ‘Recruiters Network,’ ‘Marketing MBAs,’ etc.)?” The purpose of the question was to identify social networks useful for sourcing candidates for internal staff positions. Recruiters Network was the social media group most frequently cited by respondents, though that could reflect in part that it was one of the examples in the original question. The next three most often cited groups were those associated with the Society for Human Resource Management (SHRM), the American Staffing Association (ASA), and Staffing Industry Analysts (SIA). Local Young Professionals groups (e.g., Boston Young Professionals, Chicago Young Professionals, etc.) were, in aggregate, the next most often cited by respondents. For the most part, the popularity of social media groups did not vary in a discernable way by job title. However, in two cases specific social media groups were cited disproportionately. In particular, HR specialists and managers were more likely to join the SHRM and HR Professionals groups, and marketing/PR specialists and managers were more likely to join the Digital Marketing and Social Media Marketing groups. To access the complete report, please select the link below: Internal Staff Survey 2018 Social media groups most frequently joined by staffing firm internal staff 20180217 - You do not have permission to view this object. […]

  • Workforce Solutions Webinar – Integrating SOW in Your CW Program

    Sponsored by Beeline Understanding the complexity of one’s SOW spend landscape is a key to designing an appropriate strategy for adding milestone-based services spend management to your CW program’s portfolio. Driven by this strategy, your VMS solution becomes the critical point of SOW integration.How do you incorporate this spend category in the most efficient and cost-effective way? In this webinar, we explored how some very complex extended workforce programs have added SOW management to their scope utilizing their VMS.Moderator: Dawn McCartney, Sr. Director, Contingent Workforce Strategies & Research (The Americas), CCWP, Staffing Industry Analysts Panelists:Joshua Combs, Category Manager, Contingent Labor, American Family InsuranceJennifer Joppa, Contingent Labor Sourcing Consultant, American Family InsuranceDavid Scagell, Director – Client Relationship Management, BeelineDownload presentation (PDF)Watch webinar video below. […]

  • Talent Acquisition Technology Ecosystem

    Talent acquisition technology can be grouped into five broad functions that mirror the candidate hiring lifecycle. These functions are: Systems of Record Candidate Discovery Candidate Assessment Candidate Engagement Candidate Verification There are thousands of talent acquisition technology companies. Many are focused on a particular point solution or niche, while others combine a variety of solutions and may operate across multiple categories. This report is meant to be a holistic overview of the landscape, and not a detailed analysis of the providers in each space.This report is focused on talent acquisition technologies used directly by firms to source talent, and not on technologies that are primarily designed for workers or by intermediaries as defined in SIA’s broader Workforce Solutions Ecosystem (such as staffing firms), though some technologies are used by both firms as well as their intermediaries to source talent.This report does not separately categorize technologies such as artificial intelligence, blockchain or mobile technology (as these can be broadly applied to many industries and applications), though these technologies are often embedded to some degree in the solutions discussed in this report. The application of these types of technology will, however, likely have a profound impact on the talent acquisition landscape for years to come.The talent acquisition ecosystem, like any biological ecosystem, is continuously evolving. More importantly, the rate at which technology is changing is faster today than it has ever been, which means that firms must constantly innovate to keep pace, and that the dominant players of today could very well become the disrupted and forgotten of tomorrow. For all stakeholders in the ecosystem, staying ahead of changes -- technological, regulatory, and societal – is paramount, and the firms that will succeed are likely not the largest, but those which adapt the fastest.The full report is available below.  Talent Acquisition Technology Ecosystem - You do not have permission to view this object. […]

  • Adecco in their recent Capital Markets Day highlighted six megatrends which they believe are re-shaping the world of work and support their future growth. These are: Automation, AI & machine learning Digitization, big data and analytics Geopolitical & economic uncertainty New demographic mix Skill imbalances. The Gig economy A separate piece of work by the publishers Pearson, in partnership with the charity Nesta, and in collaboration with the Oxford Martin School, has been looking at the Future of Skills. According to the report the key trends influencing US and UK labour markets are: Demographic Change Environmental Sustainability Globalisation Increasing Inequality Political Uncertainty Technological Change Urbanisation The Pearson study provides grounds for optimism. Far from being doomed by technology and other trends, they forecast that only one in five workers are in occupations that will shrink, a figure that is much lower than recent studies of automation have suggested. One in ten workers are in occupations that are likely to grow. In sectors such as education and healthcare, the overriding effect of technology is likely to be a positive influencer.There are 90 “minor-level” occupation group classifications in the UK, and 97 in the US, as tracked by those respective governments. The study assesses the probability of each of the occupations experiencing increased demand in 2030. Below are the top ten most likely occupations to experience increased demand in 2030. Although there is a broad understanding that “21st-century skills” will be in demand the report highlights the top skills, abilities, and knowledge areas that are most likely to growth and decline. The implication of this report for employers is that they will need to think about redesigning roles to balance technology and human resources. The path to maximizing productivity will be through the effective use of technology to supplement uniquely human skills. For staffing firms, the report helps spot those occupations that are likely to grow in importance over the next few years and understand the skills that will be in demand.To view a short video on the report, click here.The Glossary of Skills provides precise definitions as to what is meant by each of the skills, abilities, and knowledge features mentioned in the report.To download the full report, click here: The Future of Skills - You do not have permission to view this object. […]

  • Workforce Solutions Webinar – Integrating SOW in Your CW Program

    Sponsored by Beeline Understanding the complexity of one’s SOW spend landscape is a key to designing an appropriate strategy for adding milestone-based services spend management to your CW program’s portfolio. Driven by this strategy, your VMS solution becomes the critical point of SOW integration.How do you incorporate this spend category in the most efficient and cost-effective way? In this webinar, we explored how some very complex extended workforce programs have added SOW management to their scope utilizing their VMS.Moderator: Dawn McCartney, Sr. Director, Contingent Workforce Strategies & Research (The Americas), CCWP, Staffing Industry Analysts Panelists:Joshua Combs, Category Manager, Contingent Labor, American Family InsuranceJennifer Joppa, Contingent Labor Sourcing Consultant, American Family InsuranceDavid Scagell, Director – Client Relationship Management, BeelineDownload presentation (PDF)Watch webinar video below. […]

  • Talent Acquisition Technology Ecosystem

    Talent acquisition technology can be grouped into five broad functions that mirror the candidate hiring lifecycle. These functions are: Systems of Record Candidate Discovery Candidate Assessment Candidate Engagement Candidate Verification There are thousands of talent acquisition technology companies. Many are focused on a particular point solution or niche, while others combine a variety of solutions and may operate across multiple categories. This report is meant to be a holistic overview of the landscape, and not a detailed analysis of the providers in each space.This report is focused on talent acquisition technologies used directly by firms to source talent, and not on technologies that are primarily designed for workers or by intermediaries as defined in SIA’s broader Workforce Solutions Ecosystem (such as staffing firms), though some technologies are used by both firms as well as their intermediaries to source talent.This report does not separately categorize technologies such as artificial intelligence, blockchain or mobile technology (as these can be broadly applied to many industries and applications), though these technologies are often embedded to some degree in the solutions discussed in this report. The application of these types of technology will, however, likely have a profound impact on the talent acquisition landscape for years to come.The talent acquisition ecosystem, like any biological ecosystem, is continuously evolving. More importantly, the rate at which technology is changing is faster today than it has ever been, which means that firms must constantly innovate to keep pace, and that the dominant players of today could very well become the disrupted and forgotten of tomorrow. For all stakeholders in the ecosystem, staying ahead of changes -- technological, regulatory, and societal – is paramount, and the firms that will succeed are likely not the largest, but those which adapt the fastest.The full report is available below.  Talent Acquisition Technology Ecosystem - You do not have permission to view this object. […]

  • VMS/MSP Program Participation Pt 1 How staffing suppliers can get on the list

    Key recommendations for staffing suppliers who are looking to engage with an MSP or VMS solution are: Focus on Worker Quality Differentiate Look before you leap Determine your limits Determine appropriate timing Get on the MSP/VMS provider’s list Prepare your business Comply with CW Program policies Prepare net-pricing (don’t count on volume rebates) Avoid talking about options to increase pricing Prepare for growth through performance Prepare elevator pitch Click the link below to download the report: VMSMSP Program Participation Pt 1 How staffing suppliers can get on the list 20180213 - You do not have permission to view this object. […]

  • IT Staffing Growth Assessment

    Global IT staffing generated $59 billion in revenue in 2016, based on SIA estimates, representing more than 15% of the total global temporary staffing market. About half of IT staffing is derived from the US, where we forecast revenue to maintain a 4% growth trajectory in 2018. Despite the stable growth forecast, a host of underlying trends are shifting in a market that has become increasingly complex.The secular trend of an increasing contingent share of the workforce remains intact, driven by buyer demand for flexibility, scalability, and reduced risk. Digital disruption has intensified the flexibility factor, specifically for IT talent, as an accelerating pace of technological innovation and a more rapidly evolving business environment have fueled demand for shorter-term projects requiring more specific IT skill sets.The same demand drivers mentioned above have also sparked an increase in demand for the provision of projects and managed services under statement of work (SOW), which are becoming an increasingly prevalent supplemental layer of service offerings within traditional staffing firms, particularly among the larger IT staffing operators. The development of corresponding subject matter expertise may provide the foundation for a push up the value curve, which can offer more predictable revenue (e.g. typically less cyclical model than temporary staffing) and deliver higher-margin business in an environment where staffing margins have been eroded by VMS and MSP.As the IT services field was early to embrace the use of contingent labor, its temporary agency penetration rate remains high relative to other occupational segments. Thus, IT staffing should benefit all the more from the long-term growth in overall IT employment (projected to exceed all areas of the economy aside from healthcare). However, the 800-pound gorilla currently obstructing employment growth is a constrained labor supply. While the shortage of high-level IT talent has the benefit of enhancing the value of staffing services, it also creates recruiting challenges. As unemployment rates for IT occupations continued to tighten in 2017, we believe the labor shortage pendulum has swung to a point where the challenges outweigh the benefits. Despite growth in the number of new computer science graduates (both undergraduate and post-graduate) entering the labor force, the supply has been unable to keep pace with rapid shifts in IT skill demand. As a result, coding bootcamps have quickly emerged as a vital resource in accelerating IT workforce development. Immigration of foreign workers provides a boost, yet, the current structure of the H-1B visa program, such as its annual caps on visas, does not sufficiently bridge the demand gap. Should current efforts in Congress to raise the annual cap come to fruition, they would clearly aid supply to some degree. Additionally, there appears to be bipartisan support for changing the visa lottery system to a more merit-based selection process, which may lead to greater use of visas where talent shortages are most acute.In the near term, economic trends serve as a general tailwind to our growth forecast. After a prolonged period of plodding US GDP growth, economic activity has recently displayed signs of gaining steam and is forecasted to accelerate in 2018, partially aided by the recent passing of the Tax Cuts and Jobs Act, which the Tax Policy Center estimated would pad GDP by 0.8% this year. An acceleration in GDP may trigger wage increases in the US, which could spur bill rate growth, which has been sluggish in recent years. Rising GDP growth may also reflect increased IT investment. Gartner projects growth in global IT spend to accelerate to 4.3% in 2018, from 3.3% growth in 2017 and 0.3% in 2016, and forecasts growth in US IT spend to accelerate from approximately 3.1% in 2017 to 5.5% in 2018. Technologies with significant runway for enterprise adoption include: cloud computing, cybersecurity, data analytics, digital marketing and artificial intelligence (AI).In addition to the broader benefits of an accelerating economy, IT staffing is a highly fragmented market offering significant mobility for top performers to gain share. Relatively low barriers to entry stress the importance of differentiation and innovation in eluding competitive pricing pressures. Specialization has been a common thread among many of the fastest growers in the space. Large players with a heavy emphasis on STEM skill sets, such as On Assignment (planning to be renamed ASGN) and Insight Global have enjoyed consistent above-market growth rates, as have many of the mid-tier specialized firms in our fastest-growing list. Among smaller firms, modes of specialization include concentration in industries served, specific occupations/IT skill sets, and technology platforms. Specifically, as it relates to industries served, tech/telecom, banking/financial services/insurance, and healthcare are the three largest verticals in IT staffing, together comprising approximately 60% of the market, based on SIA benchmarking data.We have also seen consolidation in the form of M&A where firms seek synergies, access to strategic clients, geographies, or subject matter expertise, for example. Yet, the number of IT staffing firms continues to grow. In fact, over the 2009-2016 period, IT temporary staffing was listed as the most common primary staffing segment of new entrants, according to SIA survey data. Encroachment into IT staffing from consulting firms, outsourcing firms, system integrators, and human cloud vendors have also further muddled the competitive landscape. While the numbers are still relatively small in volume, nearly half of B2B human cloud spend is attributed to the IT occupational segment.This report explores dynamics in IT staffing and workforce solutions, to inform industry stakeholders and support their strategic planning initiatives.To download the complete report, please click the link below: IT Staffing Growth Assessment 20180212 - You do not have permission to view this object. […]

  • Workforce Solutions Webinar – Integrating SOW in Your CW Program

    Sponsored by Beeline Understanding the complexity of one’s SOW spend landscape is a key to designing an appropriate strategy for adding milestone-based services spend management to your CW program’s portfolio. Driven by this strategy, your VMS solution becomes the critical point of SOW integration.How do you incorporate this spend category in the most efficient and cost-effective way? In this webinar, we explored how some very complex extended workforce programs have added SOW management to their scope utilizing their VMS.Moderator: Dawn McCartney, Sr. Director, Contingent Workforce Strategies & Research (The Americas), CCWP, Staffing Industry Analysts Panelists:Joshua Combs, Category Manager, Contingent Labor, American Family InsuranceJennifer Joppa, Contingent Labor Sourcing Consultant, American Family InsuranceDavid Scagell, Director – Client Relationship Management, BeelineDownload presentation (PDF)Watch webinar video below. […]

  • Talent Acquisition Technology Ecosystem

    Talent acquisition technology can be grouped into five broad functions that mirror the candidate hiring lifecycle. These functions are: Systems of Record Candidate Discovery Candidate Assessment Candidate Engagement Candidate Verification There are thousands of talent acquisition technology companies. Many are focused on a particular point solution or niche, while others combine a variety of solutions and may operate across multiple categories. This report is meant to be a holistic overview of the landscape, and not a detailed analysis of the providers in each space.This report is focused on talent acquisition technologies used directly by firms to source talent, and not on technologies that are primarily designed for workers or by intermediaries as defined in SIA’s broader Workforce Solutions Ecosystem (such as staffing firms), though some technologies are used by both firms as well as their intermediaries to source talent.This report does not separately categorize technologies such as artificial intelligence, blockchain or mobile technology (as these can be broadly applied to many industries and applications), though these technologies are often embedded to some degree in the solutions discussed in this report. The application of these types of technology will, however, likely have a profound impact on the talent acquisition landscape for years to come.The talent acquisition ecosystem, like any biological ecosystem, is continuously evolving. More importantly, the rate at which technology is changing is faster today than it has ever been, which means that firms must constantly innovate to keep pace, and that the dominant players of today could very well become the disrupted and forgotten of tomorrow. For all stakeholders in the ecosystem, staying ahead of changes -- technological, regulatory, and societal – is paramount, and the firms that will succeed are likely not the largest, but those which adapt the fastest.The full report is available below.  Talent Acquisition Technology Ecosystem - You do not have permission to view this object. […]

  • VMS/MSP Program Participation Pt 1 How staffing suppliers can get on the list

    Key recommendations for staffing suppliers who are looking to engage with an MSP or VMS solution are: Focus on Worker Quality Differentiate Look before you leap Determine your limits Determine appropriate timing Get on the MSP/VMS provider’s list Prepare your business Comply with CW Program policies Prepare net-pricing (don’t count on volume rebates) Avoid talking about options to increase pricing Prepare for growth through performance Prepare elevator pitch Click the link below to download the report: VMSMSP Program Participation Pt 1 How staffing suppliers can get on the list 20180213 - You do not have permission to view this object. […]

  • IT Staffing Growth Assessment

    Global IT staffing generated $59 billion in revenue in 2016, based on SIA estimates, representing more than 15% of the total global temporary staffing market. About half of IT staffing is derived from the US, where we forecast revenue to maintain a 4% growth trajectory in 2018. Despite the stable growth forecast, a host of underlying trends are shifting in a market that has become increasingly complex.The secular trend of an increasing contingent share of the workforce remains intact, driven by buyer demand for flexibility, scalability, and reduced risk. Digital disruption has intensified the flexibility factor, specifically for IT talent, as an accelerating pace of technological innovation and a more rapidly evolving business environment have fueled demand for shorter-term projects requiring more specific IT skill sets.The same demand drivers mentioned above have also sparked an increase in demand for the provision of projects and managed services under statement of work (SOW), which are becoming an increasingly prevalent supplemental layer of service offerings within traditional staffing firms, particularly among the larger IT staffing operators. The development of corresponding subject matter expertise may provide the foundation for a push up the value curve, which can offer more predictable revenue (e.g. typically less cyclical model than temporary staffing) and deliver higher-margin business in an environment where staffing margins have been eroded by VMS and MSP.As the IT services field was early to embrace the use of contingent labor, its temporary agency penetration rate remains high relative to other occupational segments. Thus, IT staffing should benefit all the more from the long-term growth in overall IT employment (projected to exceed all areas of the economy aside from healthcare). However, the 800-pound gorilla currently obstructing employment growth is a constrained labor supply. While the shortage of high-level IT talent has the benefit of enhancing the value of staffing services, it also creates recruiting challenges. As unemployment rates for IT occupations continued to tighten in 2017, we believe the labor shortage pendulum has swung to a point where the challenges outweigh the benefits. Despite growth in the number of new computer science graduates (both undergraduate and post-graduate) entering the labor force, the supply has been unable to keep pace with rapid shifts in IT skill demand. As a result, coding bootcamps have quickly emerged as a vital resource in accelerating IT workforce development. Immigration of foreign workers provides a boost, yet, the current structure of the H-1B visa program, such as its annual caps on visas, does not sufficiently bridge the demand gap. Should current efforts in Congress to raise the annual cap come to fruition, they would clearly aid supply to some degree. Additionally, there appears to be bipartisan support for changing the visa lottery system to a more merit-based selection process, which may lead to greater use of visas where talent shortages are most acute.In the near term, economic trends serve as a general tailwind to our growth forecast. After a prolonged period of plodding US GDP growth, economic activity has recently displayed signs of gaining steam and is forecasted to accelerate in 2018, partially aided by the recent passing of the Tax Cuts and Jobs Act, which the Tax Policy Center estimated would pad GDP by 0.8% this year. An acceleration in GDP may trigger wage increases in the US, which could spur bill rate growth, which has been sluggish in recent years. Rising GDP growth may also reflect increased IT investment. Gartner projects growth in global IT spend to accelerate to 4.3% in 2018, from 3.3% growth in 2017 and 0.3% in 2016, and forecasts growth in US IT spend to accelerate from approximately 3.1% in 2017 to 5.5% in 2018. Technologies with significant runway for enterprise adoption include: cloud computing, cybersecurity, data analytics, digital marketing and artificial intelligence (AI).In addition to the broader benefits of an accelerating economy, IT staffing is a highly fragmented market offering significant mobility for top performers to gain share. Relatively low barriers to entry stress the importance of differentiation and innovation in eluding competitive pricing pressures. Specialization has been a common thread among many of the fastest growers in the space. Large players with a heavy emphasis on STEM skill sets, such as On Assignment (planning to be renamed ASGN) and Insight Global have enjoyed consistent above-market growth rates, as have many of the mid-tier specialized firms in our fastest-growing list. Among smaller firms, modes of specialization include concentration in industries served, specific occupations/IT skill sets, and technology platforms. Specifically, as it relates to industries served, tech/telecom, banking/financial services/insurance, and healthcare are the three largest verticals in IT staffing, together comprising approximately 60% of the market, based on SIA benchmarking data.We have also seen consolidation in the form of M&A where firms seek synergies, access to strategic clients, geographies, or subject matter expertise, for example. Yet, the number of IT staffing firms continues to grow. In fact, over the 2009-2016 period, IT temporary staffing was listed as the most common primary staffing segment of new entrants, according to SIA survey data. Encroachment into IT staffing from consulting firms, outsourcing firms, system integrators, and human cloud vendors have also further muddled the competitive landscape. While the numbers are still relatively small in volume, nearly half of B2B human cloud spend is attributed to the IT occupational segment.This report explores dynamics in IT staffing and workforce solutions, to inform industry stakeholders and support their strategic planning initiatives.To download the complete report, please click the link below: IT Staffing Growth Assessment 20180212 - You do not have permission to view this object. […]