temporary staffing trends, development and … › content › download › 161214...temporary...
TRANSCRIPT
Confidential Report – NOT for Distribution | ©2014 Crain Communications Inc. All rights reserved.
Europe
19 February 2013
3pm GMT/ 4pm CET
7am PST/ 10am EST
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 +44-
(0)203 478 5287 and using access code 667 443 492. Need further assistance? Contact SIA
customer service at 800-950-9496 for the US and +44 (0)207 194 7754 for Europe.
Temporary Staffing Trends, Development and ForecastsPresenters:
John Nurthen, Executive Director, Global Research
Adam Pode, Director Research International
David Papapostolou, Research Analyst
Matt Norton, Research Analyst
Agenda
©2014 by Crain Communications Inc. All rights reserved.
• 2014 Forecast Update John Nurthen
• Key Insights from Staffing Firm Survey Matt Norton
• Key Insights from Contingent Buyer David Papapostolou
Survey
• European IT Staffing Market David Papapostolou
• Online Staffing John Nurthen
• 2014 European Research Agenda Adam Pode
• Any Questions
Global Trend
Average Organic Revenue Trend: Adecco, ManpowerGroup, Randstad (unweighted)
-35
-25
-15
-5
5
15
25
Min a b c d Max Midline
©2014 by Crain Communications Inc. All rights reserved.
©2014 by Crain Communications Inc. All rights reserved.
Country 2013 GDP
Forecast*
2013 Staffing
Market Growth
Forecast
UK 1.5% 2%
Germany 0.5% 3%
France 0.2% -4%
Netherlands -1.2% -7%
Europe -0.1% -2%
Japan 1.8% -2%
Australia 2.5% 1%
Brazil 2.5% 4%
South Africa 2.0% 0%
USA 1.6% 5%
Global 2.1% 1%
*GDP as per SIA estimate based on IMF/Economist or EU/Economist, November 2013
Staffing Market Forecasts
2014 GDP
Forecast*
2014 Staffing
Market Growth
Forecast
1.9% 7%
1.4% 5%
0.9% 2%
0.4% 0%
1.4% 4%
1.7% 5%
2.8% 1%
2.6% 4%
3.1% 1%
2.6% 5%
2.9% 4%
2013 Staffing Company Survey
Priorities, attitudes and expansion plans
©2014 by Crain Communications Inc. All rights reserved.
Service with highest projected percentage-wise growth: HRO
What services do you offer?
©2014 by Crain Communications Inc. All rights reserved.
With regard to the following services, what is your company’s current status?
Source: Staffing Industry Analysts Staffing Company Survey 2013
Currently
Offer
Don't Currently
Offer, But Likely to
w/i 2 yrs
Implied 2 yr %
increase
Human Resources Outsourcing
(HRO) 37% 22% 58%
Vendor Management System
(VMS) 32% 17% 54%
Managed Service Provider (MSP) 42% 22% 51%
Independent Contractor
Compliance Services 35% 14% 41%
Human Resources Consulting
Services 51% 17% 33%
Recruitment Process
Outsourcing (RPO) 53% 14% 27%
Master Supplier 60% 14% 24%
Payroll Processing 65% 6% 9%
Staffing firms: With regard to the following services
what is your company's status?
*Calculation based on percent of firms ("Implied 2 yr increase")/("Likely to offer
w/I 2 years"). This calculation should be treated as an ordinal value, not as a
projection, as it may be assumed that not all firms will follow through with
plans to add services.
1%
1%
2%
2%
2%
4%
4%
8%
15%
24%
36%
Advertise your firm
E-newsletter to existing candidate list
Invest in look/usability of company
web site
Outsourced/offshore
sourcing/recruiting
University recruiting
List jobs on company web site
Pay referral bonuses
Other, please specify
Recruit from existing candidate list
Job boards
What are the most effective recruiting tactics?
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts Staffing Company Survey 2013
Of the following direct hire recruiting tactics, which one would
you say has the highest bang-to-buck return on spend/effort?
1%
1%
1%
2%
2%
5%
5%
12%
13%
27%
29%
E-newsletter to existing candidate list
University recruiting
List jobs on company web site
Outsourced/offshore
sourcing/recruiting
Invest in look/usability of company
web site
Pay referral bonuses
Other, please specify
Job boards
Recruit from existing candidate list
What are the most effective recruiting tactics?
©2014 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Analysts Staffing Company Survey 2013
Of the following temporary worker recruiting tactics, which one
would you say has the highest bang-to-buck return on spend/effort?
Growth is top priority— growing revenue, growing market share, expanding clients
1%
1%
1%
6%
9%
9%
9%
10%
16%
17%
21%
Dealing with regulatory issues
Retaining existing clients
Training internal employees
Reducing/controlling costs
Providing excellent customer service
Recruiting quality candidates to place
Recruiting quality internal staff
Expanding number of clients
Growing market share
Improving gross margins
Growing revenue
What is your company’s single top priority?
©2014 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Analysts Staffing Company Survey 2013
Top priorities in 2013
Staffing firms’ top priorities– breadth versus intensity
Retaining
existing clients
Training
internal
employees
Reduce costs
Provide
excellent
customer
service
Recruit quality
candidates
Recruit quality
internal staff
Expand clients
Growing
market share
Improving
gross margins
Growing
revenue
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0% 5% 10% 15% 20% 25%
Sta
ffin
g f
irm
pri
ori
tie
s (m
ult
iple
ch
oic
e)
Staffing firms' single top priority
What is your company’s single top priority?
©2014 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Analysts Staffing Company Survey 2013
Breadth vs intensity: Staffing firms’ top priorities
Legal Environment 2012 2013
Net positive 8% 9%
Neutral 58% 53%
Net negative 35% 38%
Net (Positive-Negative) -27% -29%
Immigration issues/visas 2012 2013
Net positive 9% 17%
Neutral 61% 48%
Net negative 30% 35%
Net (Positive-Negative) -21% -18%
Government regulation 2012 2013
Net positive 6% 6%
Neutral 38% 39%
Net negative 56% 55%
Net (Positive-Negative) -50% -49%
Net positive, net negative, or neutral?
Attitudes towards legal regulatory/environment
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts Staffing Company Survey 2013
VMS 2012 2013
Net positive 5% 22%
Neutral 64% 53%
Net negative 31% 25%
Net (Positive-Negative) -27% -3%
Recruitment process outsourcing (RPO) 2012 2013
Net positive 25% 32%
Neutral 42% 55%
Net negative 33% 14%
Net (Positive-Negative) -8% 18%
HR outsourcing (HRO) 2012 2013
Net positive 20% 32%
Neutral 58% 55%
Net negative 23% 12%
Net (Positive-Negative) -3% 20%
Influence of procurement departments 2012 2013
Net positive 8% 9%
Neutral 32% 38%
Net negative 60% 53%
Net (Positive-Negative) -52% -44%
Gross margin trends 2012 2013
Net positive 5% 16%
Neutral 49% 33%
Net negative 46% 51%
Net (Positive-Negative) -42% -34%
Net positive, net negative, or neutral?
Attitudes toward selected staffing-related issues
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts Staffing Company Survey 2013
Trends in staffing firm
attitudes toward wider
issues
©2014 by Crain Communications Inc. All rights reserved.
What are the best and worst decisions a staffing firm
can make?
• Staffing execs cited as their best decisions:
– staying segment/niche focused,
– adopting more efficient technology,
– focusing on a growing industry,
– and focusing on VMS/MSP
• The worst decisions cited were:
– hiring and appointing the wrong people
– bad acquisition and expansion attempts,
– adding too much complexity to the organization,
– and not re-investing, acquiring, and growing.
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts Staffing Company Survey 2013
European Contingent Buyer Survey 2013
©2014 by Crain Communications Inc. All rights reserved.
Introducing the respondents
©2014 by Crain Communications Inc. All rights reserved.
Technology/Telecom, 27%
Manufacturing (non-
automotive), 14%
Pharma/Biotech, 11%
Finance/Insurance, 15%
Manufacturing,
automotive, 4%
Oil & Gas, 4%
Business services
Public sector (excl. Edu.)
Logistics, transports
Utilities
Other, 17%
What is your company's primary industry?
Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Introducing the respondents
©2014 by Crain Communications Inc. All rights reserved.
What is your approximate total annual spend for your organisation's contingent workforce?
8%10%
6%
23%25%
23%
4%
< €10
million
€10 -
€49.9
million
€50 -
€149.9
million
€150 -
€449.9
million
€450 -
€749.9
million
€750 -
€999.9
million
> €1 billion
Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
IT skills on top of wish list
©2014 by Crain Communications Inc. All rights reserved.
What is the skill set for which your organization spends the most amount of money on contingent workers
"Other" includes:
Healthcare, Education/Training/Library,
Finance/Accounting, Marketing/Creative
and Legal
49%
17%
15%
8%
5%
4%
1%
1%
Information Technology
Engineering/Design
Industrial/Logistics/ Transportation
Other
Office/Clerical
Clinical/scientific
Legal
Don't know/not sure
Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Supplier Management Models & Strategies
Primary model used to manage your CW programme
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
MSP, 49%
Master supplier, 23%
Internally
with a VMS, 14%
Internally
no VMS, 14%
Supplier Management Models & Strategies
Percent of buyers primarily using selected primary model, as a function of buyer CW spend
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Internally, VMS
< €150
million
€150-
€349.9
million
> €350
million
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MSP
Master supplier
Internally, no VMS
Controlling Costs still tops Buyers’ priorities
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
MSP
Globally
CW
IC compliance
CW in strategic planning
Controlling costs
Consolidating suppliers
VMS
Diversify suppliers
0%
10%
20%
30%
40%
50%
60%
70%
80%
0% 5% 10% 15% 20% 25%
Buyers' single top priority
Bu
ye
rs' p
rio
riti
es
(mu
ltip
le c
ho
ice
)
integrating
Service to stakeholders
Supplier management strategies
©2014 by Crain Communications Inc. All rights reserved.
Which of the following are in place in your organisation?
36%
36%
43%
46%
63%
67%
60%
77%
59%
71%
48%
50%
39%
69%
92%
79%
17%
22%
21%
33%
18%
13%
24%
7%
30%
19%
43%
43%
56%
26%
6%
21%
Human resource outsourcing
Recruitment process outsourcing
Master supplier
Trying out new staffing suppliers
Offshoring
Use vendor for IC screening/compliance
Managed service provider
Domestic outsourcing
Encourage diversity suppliers
Supplier tiering
Global management of CW program
SOW incorporated into CW program
CW in corporate strategic planning
Vendor management system
Approved list of staffing suppliers
Consolidating suppliers
In Place Today Likely to be Seriously Explored within 2 years
Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Supplier management strategies
©2014 by Crain Communications Inc. All rights reserved.
Which of the following are Likely to be Seriously Explored within 2 years?
36%
36%
43%
46%
63%
67%
60%
77%
59%
71%
48%
50%
39%
69%
92%
79%
17%
22%
21%
33%
18%
13%
24%
7%
30%
19%
43%
43%
56%
26%
6%
21%
Human resource outsourcing
Recruitment process outsourcing
Master supplier
Trying out new staffing suppliers
Offshoring
Use vendor for IC screening/compliance
Managed service provider
Domestic outsourcing
Encourage diversity suppliers
Supplier tiering
Global management of CW program
SOW incorporated into CW program
CW in corporate strategic planning
Vendor management system
Approved list of staffing suppliers
Consolidating suppliers
In Place Today Likely to be Seriously Explored within 2 years
Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Most buyers plan to increase their workforce over next
two years
©2014 by Crain Communications Inc. All rights reserved.
72%62%62%
10%11%9%
17%27%29%
201320122011
Increase Stay the same Decrease
Increase, 72%Decrease,
17%
Stay the same, 10%
How will your total workforce change over the next two years?
Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Employment expectations over next 2 years?
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts European Contingent Buyers Survey 2013
Proportion of companies using more or less
European IT Staffing Market in 2012
©2014 by Crain Communications Inc. All rights reserved.
IT Staffing Market in Europe
©2014 by Crain Communications Inc. All rights reserved.
• Total annual revenue of
€13.8 billion • 14% of the total European
staffing market
• This compares with the
IT segment in the US which
represents 23% of the total
Source: Staffing Industry Analysts European IT Staffing Market in 2012
IT Staffing in Europe by Country
UK
37%
DE
21%
NL
12%
Rest of
Europe
19%
FR 5%
CH 3%
IT 3%
IT Staffing Growth drivers
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts European IT Staffing Market in 2012
• e- and m-commerce, expansion of the IT services industry
and related skills shortages
• New technologies + new markets = demand for new skill
sets
• Need for senior IT professionals with business/sales
awareness
• Other skill sets trending up: social media architects, IT
security, cloud computing experts,
Largest IT Staffing Suppliers in Europe 2012
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts European IT Staffing Market in 2012
No Company Country HQ
1 Adecco CH
2 Hays UK
3 Experis (ManpowerGroup) USA
4 Randstad NL
5 Allegis USA
6 SThree UK
7 IT-Staffing NL
8 Lorien Resourcing UK
9 Alexander Mann UK
10 Resource Solutions Group UK
11 Reutax DE
12 Allgeier DE
13 Interquest UK
14 Rullion UK
15 Steria Recruitment UK
No Company Country HQ
16 Harvey Nash UK
17 Emagine DE
18 Matchtech UK
19 Parity Resources UK
20 Networkers International UK
21 Square One Resources UK
22 Jenrick UK
23 Red Commerce UK
24 ReThink Group UK
25 PageGroup UK
26 Volt USA
27 Solcom DE
28 Proffice SE
29 Quest DE
30 Cititec UK
IT Workforce by Job Category
©2014 by Crain Communications Inc. All rights reserved.
Region / Country
Total IT workers
(thousands)
Soft. and app.
developers and
analysts (%)
Database and
network
professionals (%)
ICT support
technicians (%)
EU-27 4,187 62% 11% 27%
UK 786 52% 17% 31%
Germany 756 77% 14% 9%
France 417 71% 3% 26%
Italy 330 23% 5% 71%
Netherlands 210 45% 50% 5%
Spain 180 35% 8% 56%
Poland 171 63% 22% 16%
Sweden 161 64% 12% 24%
Belgium 88 65% 16% 19%
Denmark 85 58% 10% 32%
Austria 73 51% 21% 28%
Switzerland 70 89% 3% 8%
Turkey 68 52% 6% 42%
Czech Rep. 62 37% 11% 52%
Source: Staffing Industry Analysts European IT Staffing Market in 2012
©2014 by Crain Communications Inc. All rights reserved.
Online Staffing
A Specific Segment of Online Platform-
intermediated Work Arrangements
An online platform model that
enables specific hirers and specific
(typically contingent) workers to
enter into, complete, and transact
work arrangements, is the oldest
“human cloud” model (arising in the
early 2000s). There is a direct,
specific relationship between hirer
and worker, which the platform
enables.
What is Online Staffing?
Source: Staffing Industry Analysts Online Staffing Forecast Through 2020
Online Staffing Drivers
©2014 by Crain Communications Inc. All rights reserved.
• Cross-border labour arbitrage
• Demand from both small and large business
• Demand outside the US
• Ongoing platform innovation
• Staffing firm hybridization
Source: Staffing Industry Analysts Online Staffing Forecast Through 2020
Regulation/Compliance Issues
©2012 by Crain Communications Inc. All rights reserved.
• Legislation is still catching up in areas where commercial
transactions have been altered by new digital methods
– Labour is a heavily regulated form of commerce and contingent
labour, in particular, faces quite burdensome legislation in many
countries
• Responsibility for employment taxes and social insurances?
– Labour intermediaries (such as traditional staffing companies) are
strictly regulated and held accountable in this regard
– If online staffing is perceived as a vehicle through which individuals
can avoid paying their correct taxes and social charges, it is an area
that may well come under increasing scrutiny from legislators
Source: Staffing Industry Analysts Online Staffing Forecast Through 2020
©2014 by Crain Communications Inc. All rights reserved.
Online Staffing Platform Worldwide Market Size/Spend
(2012 Estimated and 2013-20 Forecasted in USD B)
40%
40%
40%
50% 60%
75%
CAGR ~ 40% CAGR ~ 50% CAGR ~ 60%
Online Staffing Forecast
• Conservative Forecast
(very likely to be met or
exceeded by 2020)
= +40% CAGR
• Quite Plausible Forecast
(well within reach by 2020)
= +50% CAGR
• Aggressive Forecast (a
stretch, but cannot be
ruled out)
= +60% CAGR
Source: Staffing Industry Analysts Online Staffing Forecast Through 2020
The Future
of Work
Staffing and
Recruiting
Technology
Core Skill
Sectors and
Industry
Segments
Operational
Best
Practices for
Providers
and Buyers
Legal and
Legislative
Information
SIAResearch Pillars
Surveys, Focus groups, interviews and other primary research sources
Government and industry data, published studies and other secondary research sources
Reports, Webinars, Presentations, Podcasts, Blogs, and other modes
Topics
Sources
Delivery
Channels
MethodsQuantitative analysis, qualitative analysis, survey findings, rankings, forecasts, best practices,
landscape findings, benchmark studies, SIA quadrant analysis, and more
Market
Information
and
Forecasts
©2014 by Crain Communications Inc. All rights reserved.
• Largest Staffing Company Lists– By Region: Global, Europe, Eastern Europe, Scandinavia
– By Country: France, Germany, UK
• Surveys– Contingent Workforce Buyer Survey
– Staffing Company Survey
– Contingent Worker/Best Places to Work Survey
• Staffing Forecasts 2015
• M&A Report
• Listed Staffing Company Analysis (SISI)
• Monthly News Roundup
• UK Monthly Trends Report©2014 by Crain Communications Inc. All rights reserved.
Market Information and Forecasts
The Future of Work
• Introduction to Labour Arbitrage
• The Future of Workforce Flexibility
• Total Talent Management
©2014 by Crain Communications Inc. All rights reserved.
Total Talent Management (aka Total Workforce Management) — An emerging
model of talent or workforce management that includes an organization’s
management of “permanently hired” workers as well as “contingent” workers.
Staffing and Recruiting Technology
• CIO Survey
• Technology and RPO (ATS)
• List of Suppliers to Staffing Firms
©2014 by Crain Communications Inc. All rights reserved.
Core Skill Sectors & Industry Segments
• Largest Staffing Companies in Europe by sector
– Engineering, Finance & Accounting, Legal, Office/Clerical,
Marketing, Light Industrial, Healthcare, Clinical Scientific and IT
• Independent Contractors by country
– France, Germany, the Netherlands and UK
• 2014 Online Staffing Landscape (plus other reports)
• Payrolling/Compliance Report
• VMS/MSP Landscape
• RPO Landscape
©2014 by Crain Communications Inc. All rights reserved.
Operational Best Practices
• Contingent Workforce Programme
– Business Case Template
– Sourcing Models
– Draft CW Policy
– Cost Savings Methodologies
– Best practices in internally run MSP/VMS programmes
• SOW
– Incorporating SOW consulting into
your programme
– Pricing Strategies & Tactics
©2014 by Crain Communications Inc. All rights reserved.
Operational Best Practices (continued)
• A Look At the Norwegian Staffing Market
• IC Qualification & Compliance Best Practices
• Alumni Retiree Programmes
• RPO
– Engagement Governance Strategies
– Pricing Models, Strategies and
Tactics
©2014 by Crain Communications Inc. All rights reserved.
Legal and Legislative Information
• Legs & Regs Europe
• The Global Legal Landscape
• Summary of Changes to UK
Staffing Legislation
• Agency Licenses
• National Minimum Wage
• Legal Risk Framework
©2014 by Crain Communications Inc. All rights reserved.
Next Webinar
The New Competitive Advantage
Organisational Readiness Enabled by Talent
Monday 31 March 2014
7am PST/ 10am EST/ 3pm GMT/ 4pm CET
Sponsored by
Contingent Workforce Strategies Summit
13-14 May 2014 | Lancaster Hotel | London
www.cwssummitwe.eu