this staffing industry report webinar is › content › download › ... · sources: us bureau of...

This Staffing Industry Report webinar is graciously sponsored by…

Staffing Industry Report Webinar June 2017

Tony GregoireDirector of Research,The Americas

Timothy LandhuisResearch Manager

Brian WallinsSr. Research Analyst

David FrancisSr. Research Analyst

Fiona CoombeDirector, Legal & Regulatory Research

Please note:This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon.

If you continue to have trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.

For other assistance, contact SIA customer service at 800-950-9496.

Within 48 hours after the webinar, the slides for this presentation, the replay and relevant links to research will be emailed to you. Corporate members may access the research via these links; non-member attendees interested in the research should contact memberservices@staffingindustry.com for assistance with getting membership.

Staffing Industry Report Webinar June 2017

• Listen through your computer by turning on your speakers after you log into the event. Sound will be coming through this icon:

• Do not close this audio broadcast box.

• To increase the volume of sound coming through your computer speakers adjust the sound bar on the audio Broadcast box shown above.

• If you continue to have trouble, please submit your need for assistance in the Q&A section.

Audio for this webinar

• Questions may be submitted at any time during the presentation. To submit a question:

• Click on the Question Mark icon (?) on the floating toolbar (as shown at the right).

• This will open the Q&A window on your system only.

• Type your question into the small dialog box and click the Send Button.

Q&A icon

Submitting questions

Agenda

If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.

• Economic and Employment Trends

• M&A Database

• Legal Update

• Human Cloud

• A Tour of the Global Staffing Market

• IT Staffing Survey Results

• Q&A, etc.

Employment up 138K in May, up 1.6% y/y

Sources: US Bureau of Labor Statistics and Staffing Industry Analysts

May-2015

Aug-2015

Nov-2015

Feb-2016

May-2016

Aug-2016

Nov-2016

Feb-2017

May-2017

Total Nonfarm Employment Monthly Change

May-2015

Aug-2015

Nov-2015

Feb-2016

May-2016

Aug-2016

Nov-2016

Feb-2017

May-2017

Total Nonfarm EmploymentYear-Over-Year Change

Employment trends by industry

-1.0% 0.0% 1.0%

InformationGovernment

Retail TradeWholesale Trade

ManufacturingTransp. & Ware

Financial ActivitiesProf. Serv. (ex. temp help)

ConstructionHealth

Leisure and hospitalityOther Services

EducationTemporary Help

N. Resources/mining

Percent Change in Employment: May/April

-10.0% 0.0% 10.0%

InformationRetail Trade

ManufacturingGovernment

Wholesale TradeOther Services

Transp. & WareFinancial Activities

Leisure and hospitalityHealth

EducationProf. Serv. (ex. temp help)

ConstructionN. Resources/mining

Temporary Help

Percent Change in Employment:Year-over-Year

Temp help employment up 13K in May, up 4.9% y/y

May-2015

Aug-2015

Nov-2015

Feb-2016

May-2016

Aug-2016

Nov-2016

Feb-2017

May-2017

Temporary Help EmploymentMonthly Change

May-2015

Aug-2015

Nov-2015

Feb-2016

May-2016

Aug-2016

Nov-2016

Feb-2017

May-2017

Temporary Help EmploymentYear-Over-Year Change

Penetration rate at record 2.064% in May,but not even 2 basis points above 17 months ago

May-2015

Aug-2015

Nov-2015

Feb-2016

May-2016

Aug-2016

Nov-2016

Feb-2017

May-2017

Temp. Agency Penetration Rate

Temp. Agency Penetration Rate (Long-Term)

Unemployment at 4.3% in May

Source: US Bureau of Labor Statistics, National Bureau of Economic Research & Staffing Industry Analysts

National Unemployment Rate

Recession Unemployment Rate

Quit rate plateauing near pre-recession levels

National Quit RateTrailing 12 Months

Recession Quit Rate

More openings than hires

Recession Openings Hires

GDP growth of 1.2% in Q1 2017

Sources: Estimate: US Department of Commerce, May 26, 2017Recession Dates: National Bureau of Economic Research

US Real GDP Growth, Quarter-to-Quarter, Seasonally Adjusted

Recession GDP Growth

Expected to continue to muddle around 2%

Sources: Estimate: US Department of Commerce, May 26, 2017, Projection: The Conference Board, May 10, 2017 Recession Dates: National Bureau of Economic Research

US Real GDP Growth, Quarter-to-Quarter, Seasonally Adjusted

Recession GDP Growth Estimate GDP Growth Projection

Initial unemployment claims below 250,000

Sources: US Department of Labor and National Bureau of Economic Research

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Weekly Initial Unemployment Claims (Seasonally Adjusted, 4 week avg.)

Recession Unemployment Claims

S&P 500 at record levels

Source: Yahoo Finance and National Bureau of Economic Research

S&P 500 Closing Price

Recession Price

Agenda

• M&A Database

• Legal Update

• Human Cloud

• Q&A, etc.

Mergers and acquisitions database

Source: SIA Mergers and Acquisitions Database 2017

M&A database: dashboard

M&A database: sort & filter raw data

Agenda

• M&A Database

• Legal Update

• Human Cloud

• Q&A, etc.

The Compliance Landscape: US 2017

• Immigration: H-1B visa program

• Healthcare reform: AHCA

• FLSA Overtime Rule

• Misclassification

• Background Checks

• Paid Leave

• US Citizenship and Immigration Services (USCIS) reached the FY 2018 cap 85,000 cap within four days in April 2017

• USCIS announced entry-level computer programming will no longer qualify as a “specialty occupation”

• Executive Order “Buy American and Hire American” April 18, 2017 ordered a multi-agency review of the program with proposals for reform

• Four bipartisan reform bills: proposing an increase to the salary threshold; giving preference to US-educated foreign students, and start-ups etc.

Immigration

Healthcare Reform

• House passed H.R. 1628 American Health Care Act (AHCA) to repeal core components of the Patient Protection and Affordable Care Act (ACA) May 4, 2017 under budget reconciliation process

• To qualify for this expedited process, which removes the opportunity of a filibuster, any legislation re. tax, spending and public debt must slice $2 billion off the federal deficit

• Congressional Budget Office estimated it would reduce the deficit by $119bn

• Bill now moves to the Senate but likely to be amended or replaced

• FLSA Overtime Rule Changes due Dec. 1, 2016 blocked by injunction Nov. 22, 2016

• Increase in minimum salary level for “white collar” exemptions: From $23,660 to $47,476 i.e. $913pw

• 5th Circuit Court of Appeals to hear appeal brought by Department of Labor under previous administration

• Department of Justice requested an extension of time to file a brief until June 30, 2017

• New York State and California have set their own increases

FLSA Overtime Rule Changes

• Gig economy cases provide no certainty on employment status

• Florida state legislation seeks to provide certainty

• Position of Wage & Hour Division Administrator still vacant; Administrator’s Interpretation 2015-1 still stands – “most workers are employees”

• Department of Labor (DOL), IRS and 37 state authorities pledged to combat misclassification

Misclassification

• 150 cities and 27 states have adopted “ban the box” laws

• California requires employers to justify a policy that creates an adverse impact on a protected class (race, gender etc.)

• New York City forbids salary history inquiry of any applicant – to close the “gender pay gap”

Background checks

• President Trump’s first budget for 2018 proposes six weeks of paid family leave for new parents

• 39 laws on paid sick leave across U.S.

• Paid sick leave for federal contractors –effective Nov. 29, 2016 – up to 56 hours, incl. family care

Paid leave

Links to Reports• The Compliance Landscape: U.S. 2017:

http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/The-Compliance-Landscape-U.S.-2017

• North America Legal Update Q1 2017: http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/North-America-Legal-Update-Q1-2017

• 2017 Legal Calendar: North America 2017: http://www2.staffingindustry.com/site/Research/Research-Topics-Reports/North-America/2017-Legal-Calendar-North-America

• Paid Sick Leave Laws 2016:http://www2.staffingindustry.com/site/Research/Research-Topics-Reports/North-America/Paid-Sick-Leave-Laws-2016

Agenda

• M&A Database

• Legal Update

• Human Cloud

• Q&A, etc.

Human cloud companies

Companies that connect workers to work through an online or digital platform, and facilitate the transaction from sourcing through payment.

Workforce solutions ecosystem

Source: Workforce Solutions Ecosystem: 2016 Update, SIA

Workforce solutions ecosystem

Three business models inside the human cloud:

• Online Staffing: (Upwork, Shiftgig, Freelancer, Catalant)

• Crowdsourcing: (Mechanical Turk, microtasks, contests)

• Online Work Services: (Uber, Instacart, Soothe)

Source: Workforce Solutions Ecosystem: 2016 Update, SIA

Human cloud summary stats

2016 Total Human Cloud Revenue: $47 billion - $51 billion

2016 B2C Revenue: $42 billion - $45 billion~2x growth y/y

2016 B2B Revenue: $5.7 billion – $6.5 billion~20% growth y/y

Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA

Human cloud summary stats

2016 Total Human Cloud Revenue: $47 billion - $51 billion

2016 B2C Revenue: $42 billion - $45 billion~2x growth y/y

2016 B2B Revenue: $5.7 billion – $6.5 billion~20% growth y/y

Relevant to staffing

2016 market size and features of the global gig economy

Independent contractors/self-employed individuals are the largest component of the gig economy, generating $2,039 billion in revenue*

Temporary workers sourced directly (e.g. seasonal workers): $611 billion*

Workers under a Statement-of-work arrangement: $458 billion*

Temporary agency workers: $382 billion

Uber: $20 billion Didi Chuxing: $14.2 billion

All B2B-focused human cloud companies: $5.7 billion

Lyft: $2.3 billion

Human cloud: $47 billion**

Market size and features of the Gig Economy

Market size and features of the Human Cloud

Market size and features of B2B Human Cloud Companies

350+ identified B2B-focused human cloud platforms (other than those to the right): $1.4 billion

Zhubajie (Witmart):$1.3 billion

Upwork: $1.2 billion

MBO Partners$404 million

Axiom: $250 million

GLG: $320 million

Sources: 1) The Global Gig Economy: Market Estimates and Features, SIA, 2) Global Staffing Industry Market Estimates and Forecast, SIA3) The Gig Economy and Human Cloud Landscape, SIA *2015 revenue used as proxy for 2016, **Uses minimum of estimated range

IT, marketing/creative highly represented in B2B human cloud spend

Occupational skill segment

Percent of human cloud revenue

Percent of temporary staffing revenue Delta

Industrial 1% 36% -35%

Office/clerical 6% 21% -16%

IT 44% 15% 29%

Healthcare 2% 7% -5%

Engineering 2% 7% -5%

Finance/accounting 7% 5% 1%

Legal 11% 1% 11%

Clinical/scientific 1% 1% 0%

Marketing/creative 19% 1% 18%

Education 1% 1% 0%

Other (sales, consulting, etc.) 10% 3% 7%

Sources: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIAThe Gig Economy and Human Cloud Landscape: 2017 Update, SIA

B2B human cloud revenue by region (based on where client is located), 2016

United States Asia Pacific Europe Rest of the World

Who is buying what the human cloud is selling? Distribution of B2B human cloud revenue by client size, 2016

$0-$10 million $11-$50 million $51-$100 million

$101-$500 million $500 million +

Percent of 2016 B2B human cloud revenue generated from remote versus onsite work

Onsite Remote

Company Year founded HQ (country)

2016 gross revenue ($millions)

Staffing company affiliation

Adia 2017 Switzerland <5 AdeccoApli 2016 Mexico <5Cerebro 2015 USA <5Coople1 2010 Switzerland 35Erandoo 2017 USA <5 IntegrityGoWorkaBit 2013 Estonia <5Helpster 2016 Indonesia <5Inploi.me 2015 UK <5Jitjatjo 2015 USA <5Jobble 2014 USA <5JobStack 2017 USA <5 TrueBlueMister Temp 2015 France <15 ZephyrNvoi 2012 Australia <5Pared 2015 USA <5Shiftgig 2012 USA 27Werkly 2013 USA <1Wonolo 2013 USA <15Work Llama 2016 USA <5Sidekicker 2012 Australia <5

Agenda

• M&A Database

• Legal Update

• Human Cloud

• Q&A, etc.

Ten countries make up 83% of market

Japan13%

Germany7%

France6%

Netherlands, 5%

Australia, 4%

China, 2%

Italy, 2%

Switzerland, 2%

Other17%

2016 Global Staffing Revenue: USD 428 Billion

Source: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA

Wide variety in GDP penetration

2016 Staffing Revenue 2016 Rank

CountryUSD

(Billions)% of 2016

GDPStaffing Revenue

United States 136.8 0.7% 1 1

Japan 56.7 1.1% 2 3

United Kingdom 44.1 1.7% 3 5

Germany 27.7 0.8% 4 4

France 25.0 1.0% 5 6

Netherlands 19.9 2.6% 6 18

Australia 14.6 1.2% 7 13

China 10.1 0.1% 8 2

Italy 10.0 0.5% 9 8

Switzerland 8.1 1.2% 10 19

Global 427.6 0.6%

Staffing revenue projections by country

Staffing RevenueY/Y Change

(National Currency)Real GDP Growth

2016 2017P 2018P 2016 2017P 2018P

United States 3% 3% 4% 1.6% 2.3% 2.5%

Japan 4% 5% 4% 1.0% 1.2% 0.6%

United Kingdom 4% 3% 1% 1.8% 2.0% 1.5%

Germany 6% 7% 7% 1.8% 1.6% 1.5%

France 7% 8% 7% 1.2% 1.4% 1.6%

Netherlands 9% 7% 6% 2.1% 2.1% 1.8%

Australia 3% 2% 2% 1.2% 1.6% 1.5%

China 18% 16% 16% 6.7% 6.6% 6.2%

Italy 9% 14% 15% 0.9% 0.8% 0.8%

Switzerland 1% 2% 4% 1.3% 1.4% 1.6%

Sources: 1) Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA 2) World Economic Outlook: May 2017, International Monetary Fund

Global staffing revenue projections

Staffing RevenueY/Y Change

(National Currency)Real GDP Growth

2016 2017P 2018P 2016 2017P 2018P

United States 3% 3% 4% 1.6% 2.3% 2.5%

Japan 4% 5% 4% 1.0% 1.2% 0.6%

United Kingdom 4% 3% 1% 1.8% 2.0% 1.5%

Germany 6% 7% 7% 1.8% 1.6% 1.5%

France 7% 8% 7% 1.2% 1.4% 1.6%

Netherlands 9% 7% 6% 2.1% 2.1% 1.8%

Australia 3% 2% 2% 1.2% 1.6% 1.5%

China 18% 16% 16% 6.7% 6.6% 6.2%

Italy 9% 14% 15% 0.9% 0.8% 0.8%

Switzerland 1% 2% 4% 1.3% 1.4% 1.6%

Global Staffing Revenue:2016: $428 billion (4% growth in US dollars, 5% in constant currency)2017P: $441 billion (3% growth in US dollars, 5% in constant currency)2018P: $464 billion (5% growth in constant currency)

Sources: 1) Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA 2) World Economic Outlook: May 2017, International Monetary Fund

Changes in rank from 2013 to 2016

2016 Rank Country2016 Staffing Revenue

($ Billions)2013 Rank

1 United States 136.8 1

2 Japan 56.7 2

3 United Kingdom 44.1 3

4 Germany 27.7 4

5 France 25.0 5

6 Netherlands 19.9 6

7 Australia 14.6 7

8 China 10.1 12

9 Italy 10.0 10

10 Switzerland 8.1 11

Changes in rank from 2013 to 2016

2016 Rank Country2016 Staffing Revenue

($ Billions)2013 Rank

1 United States 136.8 1

2 Japan 56.7 2

3 United Kingdom 44.1 3

4 Germany 27.7 4

5 France 25.0 5

6 Netherlands 19.9 6

7 Australia 14.6 7

8 China 10.1 12

9 Italy 10.0 10

10 Switzerland 8.1 11

11 Canada 6.5 9

Canadian temp staffing returns to growth

Source: SIA Canadian Staffing Industry Outlook: 2017 Update

2016 2017P 2018P

Commercial 1% 4% 3%

Office/Clerical 0% 3% 2%

Industrial 2% 4% 3%

Professional -1% 4% 4%

IT Staffing 2% 4% 4%

Healthcare 1% 2% 2%

Finance/Acct. 1% 4% 3%

Engineering -7% 4% 4%

Other Prof. 1% 4% 3%

Total Temporary Staffing 0% 4% 3%

2016 2017P 2018P

Commercial 4.1 4.2 4.3

Office/Clerical 1.6 1.7 1.7

Industrial 2.4 2.5 2.6

Professional 4.1 4.2 4.4

IT Staffing 2.1 2.2 2.3

Healthcare 0.2 0.2 0.2

Finance/Acct. 0.4 0.4 0.5

Engineering 1.1 1.1 1.1

Other Prof. 0.3 0.4 0.4Total Temporary

Staffing 8.1 8.5 8.7

Temp. staffing revenue (CAD billion)Y/Y Change in temp. staffing revenue (CAD)

Oil price stabilization and strong US dollar driving growth

Sources: US Energy Information Agency; OFX

CAD dollar to US dollar exchange rateOil price (WTI benchmark) in US dollars

2014 2015 2016 2017

Immigration also driving growth in Canada

Sources: Statistics Canada; US Census Bureau; US Dept. of Homeland Security

Annual number of immigrants as percentage of population, 2012-2016

Population growth, 2012-2016(annual average)

Canada US

Agenda

• M&A Database

• Legal Update

• Human Cloud

• Q&A, etc.

IT Staffing Benchmarking Survey

• 22 participating firms

• Over $5.2 billion in temporary IT staffing revenue (US only)

• Participants received full report of results

– Volume and rate trends by occupation

– Revenue breakout by client industry

– Statement-of-work (SOW) engagements

– Implied contract duration by occupation

– Bill-pay rates by firm size

• Summary report available now to corporate members

• For 2018 invitation: bwallins@staffingindustry.com

IT temp. staffing revenue growth in 2016

Aggregate 25th Quartile Median 75th Quartile

Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA

Revenue by occupation – 2016

1% 1%1%

Software developer/engineer/DevOps

Project manager

Business/systems analyst

IT infrastructure

Help desk/PC support

Software QA/testing

Data architect/data scientist/big data/BI

Cyber/data security

Programmer/coder

Enterprise implementation/maintenance

Web developer/digital/UI/UX

Technical writer

Cloud architect

Other IT staffing

2016/2015 revenue growth by occupation

Cyber/data security

Programmer/coder

Cloud architect

Project manager

Technical writer

IT infrastructure

Software QA/testing

Other IT staffing

Total IT staffing

A majority of survey revenue did not pass through a VMS

Direct, no VMS, 57%

Direct order, with VMS,

Order through VMS, 21%

Revenue by client industry – 2016

Tech/Telecom, 24%

Banking/Fin Serv/Insurance, 23%

Healthcare, 13%

7%Tech/Telecom

Banking/Fin Serv/Insurance

Healthcare

Manufacturing

Pharma/Biotech/Med Device

Retail

Government

Energy & Mining

Transport/Warehousing

Utilities

Restaurant/Hospitality

Which skills are IT staffing firms having the most difficulty recruiting? (5 = most difficult)

Cyber/data security

Cloud architect

Other IT staffing

Programmer/coder

Project manager

Software QA/testing

IT infrastructure

Technical writer

Agenda

• M&A Database

• Legal Update

• Human Cloud

• Q&A, etc.

Staffing Industry Analysts Webinar:Tuesday, August 8th, 10AM Pacific/1PM Eastern

Want to see your name in print? Staffing Stream is looking for thought leaders. (Original content only.)

Email ssriram@staffingindustry.com

Look for invitations in your email!

Reminders…

Two ways to submit questions:1) To submit a question now, just click on the Question Mark icon (?) on the floating toolbar.2) To submit one later, email memberservices@staffingindustry.com.

Questions for the analysts?

Tony GregoireDirector of Research,The Americas

Timothy LandhuisResearch Manager

Brian WallinsSr. Research Analyst

David FrancisSr. Research Analyst

Fiona CoombeDirector, Legal & Regulatory Research

Thank you to our sponsor…

Links to research discussed in today’s webinar:

June US Jobs Reporthttp://www2.staffingindustry.com/site/Research/Research-Topics-Reports/Americas/June-US-Jobs-Report2

M&A Databasehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/Mergers-and-Acquisitions-Database-2017

The Compliance Landscape US 2017http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/The-Compliance-Landscape-U.S.-2017

The Gig Economy and Human Cloud Landscape: 2017 Updatehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/The-Gig-Economy-and-Human-Cloud-Landscape-2017-Update

Global Staffing Industry Market Estimates and Forecast: May 2017 Updatehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/Global-Staffing-Forecast-May-2017

Canadian Staffing Industry Outlook: 2017 Updatehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/Canadian-Staffing-Industry-Outlook-2017-Update

IT Staffing Benchmarking Survey Results: 2017 Summary Reporthttp://www2.staffingindustry.com/site/Research/Research-Topics-Reports/Americas/IT-Staffing-Survey-2017

this staffing industry report webinar is › content › download › ... · sources: us bureau of...

Documents

jointemploymentforstaffing: how(to(navigate(compliance...

concurrent session: and trends and opportunities in...

united states2010/04/19 · the staffing industry analysts...

september 2017 good hires, strong support fuel...

staffing industry analysts - from easy to hard - a look at...

2017, lessons for cw managers - staffing industry...

industry insights: staffing industry m&a landscape ·...

concurrent session: digital transformation for …...future...

staffing industry analysts certification program · 2020....

global staffing industry sample.ppt

edition: may 2020 · 2020-05-27 · 154 firms over $100m...

global rpo directory - staffing industry analysts€¦ ·...

staffing industry analysts - benchmarking 101 an …...-...

beyond the numbers - staffing industry analysts · left a...

with her mba, she founded ingenesis. with her phd, she’s...

new technology and the bleeding edge of talent · sia |...

vms / msp landscape 2016: the state of the art...staffing...

industry insights: staffing industry m&a insights€¦ ·...

2017 summary report - staffing industry analysts€¦ ·...

tom peters’ re-imagine! business excellence in a...