Global Daily News

  • Recruiting temps from existing candidate databases, direct hire from LinkedIn reap most ‘bang-to-buck’ – SIA

    Recruiting from an existing candidate database is the temporary worker recruiting tactic with the highest bang-to-buck return on spend/effort, according to the latest research from Staffing Industry Analysts. A significant portion of respondents also selected LinkedIn, other online job listings and referral bonuses.This year’s North America Staffing Company Survey asked staffing firms: “Of the following temporary worker recruiting tactics, which two would you say have the highest bang-to-buck return on spend/effort?” The top four most popular tactics were: Recruiting from existing candidate databases: 44% Online job advertising other than LinkedIn: 35% Paying referral bonuses: 32% LinkedIn: 25% For direct hire candidates, staffing firms cited LinkedIn as the recruiting tactic with the highest bang-to-buck return on spend/effort. The top four most popular tactics were: LinkedIn: 57% Recruiting from existing candidate databases: 39% Online job advertising other than LinkedIn: 25% Paying referral bonuses: 22% 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 tactic 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 the “top two tactics” by 32% for temp recruiting and by 22% for direct hire recruiting.SIA corporate members can download the report, “North America Staffing Company Survey 2019: Highest bang-to-buck temporary and direct hire recruiting tactics,” online. […]

  • Paramount Staffing acquires TalentForce, firm will post $200 million in revenue after deal

    Paramount Staffing announced today it acquired TalentForce, a provider of light industrial and office/clerical staffing based in Shelby, North Carolina.The deal will create a company with more than $200 million in annual revenue and nearly 250 full-time employees serving more than 800 clients with 55 offices in 12 states.“Our acquisition strategy has been to identify companies who focus on industrial staffing, operate in states which are rapidly growing, and most importantly match up with us culturally. We have found that partner with TalentForce,” Paramount President Matt Schubert said.The deal gives Paramount 31 additional offices and expands its presence in the Southeastern US.TalentForce Chief Operating Officer Bobby Walker will continue running TalentForce and all current team members will remain in place.“This partnership will provide more opportunities to build on established customer relationships and resources to create new ones,” Walker said.Paramount, based in Northbrook, Illinois, ranks as the 40th-largest industrial staffing firm in the US, according to Staffing Industry Analysts. Paramount was acquired in June 2018 by France-based staffing firm Proman. […]

  • New York City’s 1.3 million freelancers earn $31.4 billion

    In New York City, 1.3 million people freelanced in the past 12 months, and they had earnings of $31.4 billion, according to a study, “Freelancing in New York: 2019” released last week by the New York City Mayor’s Office of Media and Entertainment, Freelancers Union and Upwork Inc. (NASDAQ: UPWK).https://www1.nyc.gov/site/mome/news/09102019-freelancing-in-ny-report.pageLooking at just the media and entertainment sector, 61% of workers said they have freelanced in the past 12 months.“New York City may very well be the freelance capitol of the world, and this study shows the massive impact these creative workers have on our economy,” said New York City Council Member Robert Holden, chair of the Committee on Technology.A majority of freelancers (62%) were freelancing by choice.And 50% of freelancers did so part-time, 29% freelanced full-time and 20% did it to supplement traditional full-time work.Other findings in the study included:For New Yorkers engaged in freelance work, 45% of their income comes from freelancing on average on an individual level.73% of New York City freelancers use friends, family, clients or professional contacts as a means of finding work. That figure rises to 80% for media and entertainment freelancers.Freelancers’ primary concern is access to affordable health insurance. They also worry about managing their day-to-day finances and collecting payments for services as 74% have experienced nonpayment or late payment.The study included 5,000 working adults in New York City. Of those 1,728 had engaged in freelance work. […]

  • San Diego’s City Attorney sues Instacart; 'shoppers' not ICs

    The San Diego City Attorney announced a lawsuit on Friday against human cloud, grocery delivery firm Instacart claiming the company is misclassifying its workers as independent contractors.Instacart launched its service in San Diego in 2016.San Diego City Attorney Mara Elliott said Instacart’s “shoppers” do not qualify as independent contractors under the Dynamex court case last year where California’s Supreme Court adopted the stricter “ABC” test for determining independent contractor misclassification. And last week, the state legislature approved a new law, AB 5, that codifies the court’s decision.“Companies like Instacart cannot deprive their employees of the basic job protections guaranteed under state law by calling them independent contractors,” Elliott said in a statement. “We are seeking restitution for the workers who’ve been exploited in the past, and we are also demanding that Instacart start legally classifying its workers.”Elliott said Instacart exercises control over the work done by its shoppers as they get items at supermarkets and deliver them to consumers, the shoppers’ work is within the course of Instacart’s business model and that gathering grocers is not a distinct trade that requires any special skill or licensing.In addition to lost wages for shoppers, the San Diego City Attorney is seeking an injunction that would require Instacart to classify shoppers as employees.The lawsuit was announced on Sept. 13. […]

  • Eastridge Workforce Solutions to become employee-owned

    Eastridge Workforce Solutions, a San Diego-based staffing firm, announced it is offering an employee stock ownership program to its internal and external workers.The announcement stems from an idea by the business partners and leaders of Eastridge — brothers CEO Adam Svet and President of Technology and Management Jason Svet — after the passing of their father Robert Svet, who had led the family company.“When we met as a family to discuss the path forward, we had one important question in mind: What would Dad have wanted? We knew the ESOP would be a fundamental way to preserve the culture we have all worked to create at Eastridge Workforce Solutions," Adam Svet said. “This is something he would have been proud of.”Some 6,600 companies in the US have become ESOP’s according to Eastridge.“We are incredibly proud of the sense of community we have built, and the announcement of the ESOP is our way of thanking our team for their hard work and dedication,” said Adam Svet.The ESOP features a three-year vesting schedule, and the employees’ shares will be fully vested by then with no cost to them.Eastridge has more than 300 internal workers and 18 offices across the globe. The company was founded in 1972. […]

  • France – Synergie revenue up 2.2% on like-for-like basis as domestic and international markets boost growth

    Synergie, the Paris-based staffing firm, reported revenue for the six months ended 30 June 2019 rose to €1.29 billion, up 4.6% from 2018, or 2.2% on a like-for-like basis.The firm ranks as one of the world’s largest staffing companies and the sixth-largest staffing firm in France.In July 2019 Synergie reported revenue for the second quarter of €674.2 million, an increase of 3.9% when compared to the same period in the previous year. (€ millions) H1 2019 H1 2018 Change Like-for-like Revenue 1,295.6 1,238.8 4.6% 2.2% EBITDA 64.8 61.5 5.3% N/A Current Operating Profit 52.1 53.6 -2.7% N/A Net Profit 27.2 36.6 -25.6% N/A In France, revenue reached €630.8 million, up 7.1% (or 4.1% on a like-for-like basis). Temporary employment was up 4.2% in a market down 0.3% at the end of July according to Prism’emploi, and was boosted by strong growth by DCS Easyware, the digital services company consolidated in June 2018, which generated turnover of €21.7 million (up 10.8%) over the half-year.International revenue totalled €664.8 million (51.3% of consolidated turnover), up 2.3% (or 0.5% on a like-for-like basis), with contrasting performances from region to region: Southern Europe was up 4.7% while Northern and Eastern Europe contracted by 3.3%.According to Synergie, France's conversion of the CICE (crédit d’impôt pour la compétitivité et l’emploi) competitiveness and jobs tax credit into lower social security contributions with effect from 1 January 2019 unfavourably impacted current operating profit by €2.3 million (employee profit-sharing impact) and tax expense by €6.7 million, for an overall negative impact on the group's net profit of €9 million.Synergie’s consolidated current operating profit came to €52.1 million, compared with €53.6 million in the first six months of 2018.Current operating profit for France came to €33.4 million, compared with €35.5 million in the first six months of 2018, reflecting a €2.3 million erosion of the favourable impact of turnover growth by the CICE tax credit's conversion.Current operating profit from International came to €18.8 million, compared with €18.2 million in the first six months of 2018, showing stout resilience in a tighter economic environment in Germany and the UK, which saw structural cost cutting in the first half.Financial expense excluding the €0.4 million impact of IRFS 16 came to €0.6 million, a similar level to 2018. Taking this into account as well as a €23.4 million tax expense (reflecting the impact of the CICE tax credit’s withdrawal for €6.7 million), net profit came to €27.2 million, compared with €36.6 million for the first six months of 2018.Synergie said the investments of recent years ‘bore fruit’, with the creation of specialised agencies and recruitment of consultants, digitisation and the development of IT tools and targeted training programmes.During the period, Synergie announced that it signed an agreement to acquire Australian temporary employment firm Entire Recruitment.Synergie Group stated that it intends to continue its development in the second half-year, targeting full-year 2019 turnover of nearly €2.7 billion and an increase in net profitability from the first six months of the year.In trading yesterday Synergie shares closed at €27.10, down 1.45% on the day. Based on its current share price the company has a market value of €661.42 million. […]

  • UK – Nakama revenue and NFI down but shows signs of recovery

    UK-based specialist recruitment services provider Nakama Group (NAK:LSE) announced today its final results for the year ended 31 March 2019. Group revenue decreased by 20.2% when compared to the prior year, to £13.4 million.“After a difficult period for the company, over the past year, the business has undergone further change and transformation,” Nakama stated. (£ millions) FY 2019 FY 2018 Change Revenue 13.4 16.8 20.2% Net Fee Income 4.1 5.3 -22.6% EBITDA 0.4 -0.8 N/A Operating Profit 0.0 -1.4 N/A The reduction in revenue was a result of APAC revenue decreasing to £3.0 million from £5.3 million last year, as well as the closure of the group’s activities in Australia. UK revenue also decreased to £10.4 million from £11.5 million in FY 2018.The decrease in both markets was predominantly due to a slowdown in the contractor market.“Although we are disappointed not to increase revenues, the significant improvement in EBITDA to £424,000 (2018: Loss £845,000) is in line with our turnaround strategy and provides a stronger base to begin the next financial year,” Nakama stated.The EBITDA recovery was mainly as a result of good performance at Highams Recruitment and Nakama Hong Kong in addition to general cost reductions.Operating profit increased to £91,000 (2018: loss £1,480,000).In March 2019 Nakama announced that it had appointed Robert Thesiger as CEO.Looking ahead, Chairman Tim Sheffield commented, “Trading so far this year has been in line with expectations, however, exceptional costs will be incurred as we continue the restructuring of some local offices.”“Our objective is to continue to focus on financial discipline and improving revenues and profit margins over the year ahead,” Sheffield said.In trading today Nakama shares closed at £0.90, up 2.2% on the day. Based on its current share price the company has a market value of £1.03 million. […]

  • Netherlands – Trade unions want more permanent jobs, a 5% wage hike and the abolition of self-employed tax breaks

    Dutch trade union CNV announced its goals for 2020’s collective labour agreement and said it is aiming for more permanent jobs and less short-term and zero-hours contracts.The union also targeted a 5% wage rise in 2020 and said, within three years, everyone should earn at least €14 per hour.The Dutch government recently announced that collectively agreed wages will grow by 2.5% in 2019 and 2020.“Everyone seems to agree: there is too much uncertain work and wages are lagging behind corporate profits,” FNV stated. It added that much of the economic growth has ended up with companies and shareholders rather than with employees and that the gap between poorly paid flexible work and well-paid jobs has widened.“In the coming collective labor agreement year FNV will focus on more permanent jobs, a good salary increase of 5% with a minimum income of €14 euros in the long term,” it stated. “The trade union also focuses on agreements that ensure that workers can continue to do their job in good quality and healthily until their retirement.”Meanwhile, Dutch trade union CNV announced that it wants the government to abolish the self-employed deduction.The government announced this week that the tax break is being gradually reduced to €5,000.“The deduction for self-employed people was once intended, among other things, to arrange pension accrual and disability insurance. However, most self-employed persons do not accrue pension and do not take out occupational disability insurance. This means that the self-employed deduction has missed its target for years, "said Arend van Wijngaarden, CNV chairman.CNV stated that in addition, the deduction has for years led to “perverse incentives” adding that self-employed people compete with employees. “After all, they are a lot cheaper than employees, for which payroll tax and premiums have to be paid,” CNV stated. “This leads to companies where cheap freelancers have become a nice revenue model.”CNV is also arguing for a minimum rate of €25 for self-employed instead of €16. The union says with a rate of at least €25, the self-employed can also take out a decent occupational disability insurance policy and build up a pension. […]

  • UK – Asda workers stage protests against new work contracts (The Guardian)

    Workers from UK-based supermarket retailer Asda have staged protests at stores across the country against a new “flexible” contract they say will leave about 3,000 shop-floor staff worse off, reports The Guardian. The new contracts, ‘Contract Six’, will see workers no longer paid for any breaks and forced to work bank holidays in return for £9.00 per hour pay rates. The GMB union said members would face the sack on 2 November 2019 if they did not sign the contract.  The supermarket chain, which is owned by the American retailer Walmart, said the overwhelming majority of its staff had signed the contract but appreciated some employees found the changes “unsettling”. An Asda spokeswoman said the contract was about “increasing the take-home pay of more than 100,000 retail colleagues” and ensuring everyone doing the same job was on the same terms and conditions. She said: “We understand colleagues have commitments outside of work and will not be asking them to constantly move the time they work, their days or departments.&rdquo […]

  • India – Tata Consultancy Services signs deal with General Motors

    IT solutions provider Tata Consultancy Services announced that it struck an engineering design services partnership with American car manufacturer General Motors.Under the terms of the agreement signed earlier this week, TCS will acquire certain assets at the GM Technical Center-India in Bengaluru, and will partner with GM, supporting its global vehicle programs with engineering design services over the next five years. Over 1,300 employees of GM Technical Center-India will transfer to TCS, including teams focused on propulsion systems, vehicle engineering, controls development, testing, creative design and special projects.Further financial details of the transaction were not disclosed, however the transaction and handover are expected to be completed by the end of September.GM VP, electrification, controls, software & electronics, Dan Nicholson, commented, “TCS has been an outstanding partner for 16 years. We are pleased to evolve our partnership even further, as we work to deliver on our commitment to create a world with zero crashes, zero emissions and zero congestion.”Regu Ayyaswamy, Global Head, Engineering and Industrial Services Practice, TCS, also commented, “We are delighted to elevate our long-standing relationship with GM to a strategic partnership. TCS is excited to be part of GM’s efforts in next generation mobility, helping them design and engineer world class vehicles that set new benchmarks in driving experience, safety and emissions.”GMTC-I vice president engineering and operations, Brian McMurray, said, “This partnership will make both companies stronger: GM will benefit from the scale and cross-sectoral knowledge of TCS, while TCS will benefit from the influx of world-class engineering talent.”In July 2019 TCS reported revenue rose 10.6% in constant currency in its first quarter ended 30 June 2019. […]

  • Hong Kong – Unemployment rate stable in August quarter

    The seasonally adjusted unemployment rate in Hong Kong stood at 2.9% for the period from June to August 2019, same as that of the previous period from May to July 2019, according to figures from the Census and Statistics Department.The number of unemployed persons (not seasonally adjusted) in the June to August 2019 period increased by 2,100 to 120,600.At the same time, total employment decreased by around 3,600 to 3.86 million in June to August 2019. Over the same period, the labour force also decreased by around 1,500 to 3.98 million.Secretary for Labour and Welfare, Dr Law Chi-kwong, commented, “The seasonally adjusted unemployment rate held steady at 2.9% in June to August 2019. The underemployment rate was also unchanged at 1.0%. However, total employment was slightly lower than the level a year ago." “Analysed by major sector, the unemployment rate of the retail, accommodation and food services sectors taken together increased further over the preceding three-month period, amid weak local consumption and plunging visitor arrivals caused by the recent social incidents,” Chi-kwong said. “The unemployment rate of the construction sector went down from the preceding three-month period, but employment of the sector continued to show a year-on-year decline due to subdued construction activities."Looking ahead, Law said, "As economic conditions have deteriorated further lately, the local labour market will unavoidably be subject to increasing pressure in the near term. The government will monitor the labour market closely." […]

  • Australia – Nearly a quarter of firms using temp staff at senior level: Hays

    More than one in five, or 22%, of organisations in Australia have employed temporary or contract staff at a senior level over the past year, with another 6% using executive or c-suite candidates for short-term needs, according to data from Hays.Of the more than 3,400 organisations surveyed by Hays, 58% also utilise temporary and contract staff at the entry-level and 59% do so at the mid-level.“Temporary candidates at the senior and executive levels are typically called upon to run a project, manage transformations or provide non-core skills that are only required for a short period of time,” Nick Deligiannis, Managing Director of Hays in Australia & New Zealand, said. “The lengthy nature of senior and executive recruitment processes also leads many employers to call in a candidate who can ensure business as usual until a new permanent employee can commence.”“At the executive level, people looking to advance their career find that the exposure and real-life experience gained in temporary assignments helps them transition up into their first c-suite role,” Deligiannis said. “Those executives who are looking to transition down into retirement value the opportunity to work on a few select assignments each year.”Data from the recruiter shows that 48% of employers look for temporary candidates who can bring problem solving skills to a team. This is followed by communication skills (43%), technology and digital and trade-specific skills (both 40%), critical thinking skills (33%), project management skills (28%) and stakeholder engagement skills (21%). […]

  • China – Job market remains stable (China.org.cn)

    China's job market remained generally stable in the first eight months of the year, with the number of newly created jobs achieving 89.5% of this year's target, reports China.org.cn, citing data from the National Bureau of Statistics. A total of 9.84 million new urban jobs were created during the January-August period.  At the same time, the surveyed urban unemployment rate dropped 0.1% to 5.2% in August. Among those aged between 25 and 59, who represent the majority of the labor market, the urban unemployment rate stood at 4.5% in August, down from 4.6% in July. Meanwhile, the surveyed unemployment rate in 31 major cities was 5.2%. […]

Latest Research

  • 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. […]

  • US Jobs Report: September 2019

    Event- On a seasonally adjusted basis, total nonfarm employment rose by 130,000 in August, according to the US Bureau of Labor Statistics (BLS) in its monthly jobs report. Temporary help services gained 15,000 jobs for the month. The temporary staffing penetration rate remained at 2.00%. The national unemployment rate remained at 3.7%, as the labor force rose by over 500,000 over a record level in July.Background and Analysis- On a year-over-year (y/y) basis (August 2019 over August 2018), total nonfarm employment was up 1.4%, and monthly job gains have averaged approximately 173,000 over the past 12 months. Temporary help employment was up 0.7% y/y, with mild monthly job gains of approximately 1,700 over the past 12 months.Of the 15 major industry groups, 9 added jobs in August. The three that most drove total nonfarm employment growth (on a seasonally adjusted basis) were health & social assistance (+36,800), government (+34,000), and professional services excluding temporary help (+21,600). The three biggest decliners for the month were retail trade (-11,100), education (-5,400), and natural resources and mining (-5,000). The three biggest gainers in terms of y/y percentage growth were health & social assistance, construction, and professional services excluding temporary help (2.6%, 2.4% and 2.4%, respectively). Retail trade is the only category declining on a y/y basis (-0.5%).Y/y growth in average weekly earnings bounced back to 2.9% for August, from 2.7% in July, though still below the average of 3.2% from the prior twelve months.BLS Revisions- The change in total nonfarm payroll employment for July was revised from +164,000 to +159,000, and the change for June was revised from +193,000 to +178,000. With these revisions, total nonfarm employment gains were 20,000 lower than previously reported.The change in temporary help services employment for July was revised from +2,200 to -7,900 and the change for June was revised from -900 to -2,900. With these revisions, temporary help employment growth was lower than previously reported by 12,100 jobs. These downward revisions nearly offset the growth of 15,000 jobs for August (after three months in which downward revisions more than offset any growth in the current month).Staffing Industry Analysts’ Perspective- As the economic backdrop cools, we typically first see trends weaken among industrial jobs. After seeing weaker manufacturing trends from the Institute of Supply Management, it’s notable that industries heavy in industrial jobs such as natural resources/mining and transportation and warehousing declined for the month and have fallen out of the top 3 percentage gainers on a y/y basis, though construction seems to be holding up.We also typically see trends first weaken in temporary staffing. Despite the attractive headline of gaining 15,000 jobs in August, the rise was nearly offset by downward revisions, and the industry is still down year-to-date in terms of jobs.Members may download our jobs report tool by selecting the link below. Monthly Employment Situation September 2019 - 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 Global 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 Global 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 Global 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 Global 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. […]