keynote staffing communities and the future of the …...13 sfn group usa $2,100 14 capgemini france...

© 2012 Crain Communications Inc

KeynoteStaffing Communities and theFuture of the Industry

• Barry Asin, President, Staffing Industry Analysts

Wednesday, March 14 | 8:30 am | Summerlin Ballroom

Sponsored by:


Agenda• Critical trends• Opportunities and threats• Near term outlook


Turbulence


Critical Trends

• Revolutionary change in information technology• A secular shift in usage• The rise of Total Talent Management• Globalization 2.0• Increasingly complex legal environment• Continued talent and work mismatches


• ART: INSERT A PHOTO/GRAPHIC THAT ILLUSTRATES CHANGE AND REVOLUTION IN TECHNOLOGY

Revolutionary Change in Information Technology


Information Technology Change Indicators

• Massive increase in bandwidth/speed

• Cloud computing/SaaS• Social networking/social

media• Increasing penetration of

technology connection points

• Natural language processing• “Big data”• And, and, and…


Key Attributes of the DevelopingInformation Technology Infrastructure

Anyone, Anyplace, Anytime

PC’s, Phones, Tablets, etc.

Freemium ModelContinually Declining

Technology Costs

Rapid Growth of Connection Points

Extreme Interconnection!


The Result

• More and more powerful information technology in the hands of more and more people

• Radical change in human, behavioral and economic patterns

• Rapid shifts, disruptions and innovations• Cost not the gating factor• Constraints now

~ Ability to develop value adding solutions~ Capacity of people and organizations to

adapt


The View From Staffing

Automating existing processes

First WaveEmail, ATS, Front Office Automation

Second WaveJob Boards, VMS

Affecting all relationships among staffing communities

Connecting buyers and candidates

Third WaveSocial, Video, New Breed ATS, Massive Data and more…


The Old Interaction With Staffing Communities

Business and Legal Environment

Staffing Firms

Buyers

Temps

Perms

IC’s


Temps

Perms IC’s

Staffing Firms

Buyers

Business and Legal Environment

The New Interaction With Staffing Communities


What Will This Mean for Staffing Firms?

• Lots more technology to navigate• More information and data centric

~ Example: supply chain and logistics at WalMart

• A new world of recruiter skills• Shifting strategies for firms to adapt


Secular Shift in Usage


Buyers Now Positively Biased Towards Contingent Work

-21%

-25%

-20% -19%

-12%

-1%3%

18%

2004 2005 2006 2007 2008 2009 2010 2011

Trends in respondent net bias

Source: 2011 Contingent Workforce Buyers Survey


Buyers Using More Contingent Work

8%9%

10%

7%

10% 10% 10%11%

13%12%

13%12%

14%15%

2005 2006 2007 2008 2009 2010 2011Median Mean

Reported contingent share of workforce, 2005-2011


Projected medianshare in 2013=15% up from 10%


Recent Temp Help Growth Above the Historic Regression Line

Source: Bureau of Labor Statistics and Staffing Industry Analysts

2010

2011

2009


Rapid increase in Temp Help Penetration

Source: Bureau of Labor Statistics & Staffing Industry Analysts

1.86% = 1999


CEO Attitudes Suggest A Receptive Market for Staffing Offering

• 80% of CEO’s are concerned about uncertain or volatile economic growth

• 47% of CEO’s are confident of growing over 3 years, but only 30% think they will have the talent they need

Q: How concerned are you about the following potential threats to your business growth prospects?

Top Ranked Concerns1. Uncertain or volatile

economic growth2. Public deficits3. Over-regulation4. Unstable capital markets5. Availability of key skills

Note: Rank of top threats by % somewhat or extremely concernedSource: PwC Global CEO Survey 2012


Shifting Attitudes on Use of Independent Contractors Likely to Benefit Temp Staffing


Net proportion: is defined as the percent planning to increase usage, minus the percent planning to decrease usage over the next two years


The Rise of Total Talent Management


CEOs See Talent Management as a Top Priority for Change

Source: PwC Global CEO Survey 2012


Some Components of Talent Management

• Talent strategy/business alignment• Workforce planning• Capability and competency

management• Talent acquisition

~ Sourcing~ Candidate pools~ Assessment~ Employer brand~ Recruiting~ Selection~ Onboarding ~ Talent mobility

• Employee engagement• Performance

management• Leadership

development• Succession

management• Career management• Talent infrastructure


Buyers Have a Broad Range of Solutions to Their Contingent Talent Problems


Question: Which solution is best in terms of (cost, legal liability, speed, etc.)


VMS and MSP Adoption Leveling Out With Large US Buyers

* Reported use among core buyers = spending a majority of their time on CW managementSource: 2011 Contingent Workforce Buyers Survey


Is Mid Market Next for VMS?

Source: 2007 U.S. Economic Census


Growth of RPO and HRO


Early Talent Management

Talent strategy and business alignment

Workforce planning

Traditional employees

Metrics and Analytics

- Learning and Development- Career and performance management

Talent Acquisition Modes

- Compensation/Benefits

RecruitersDirect HireRPO

“Outsiders:” Contingent Work/Outsourcing

Outsourced services

Contingent- Temps- IC- SOW- Internal stretch

AgenciesMSP/VMSDirect IC

Consulting &OutsourcingFirms

HR and Procurement


Workforce planning







Outsourced services

Contingent- Temps- IC- SOW- Internal stretch

AgenciesMSP/VMSDirect IC

Consulting &OutsourcingFirms

Evolving processes/practices to manage all forms of talent


Workforce planning







Total Talent Management


Globalization 2.0


Largest Global Staffing Firms

Rank Company HQ country

2010 global staffing revenue

(US$ millions)

1 Adecco Switzerland $24,0002 ManpowerGroup USA $18,8673 Randstad Holding Netherlands $18,7704 Allegis Group USA $6,4065 Kelly Services USA $4,9506 Recruit Staffing and Staff Service Japan $4,5007 USG People Netherlands $4,1158 Hays UK $4,1659 Robert Half International USA $2,789

10 Temp Holdings Japan $2,38411 Advantage Resourcing Japan,USA,UK $2,20012 Pasona Group Japan $2,19913 SFN Group USA $2,10014 Capgemini France $1,86215 Express Employment Prof. USA $1,76216 The Select Family USA $1,74817 Volt Information Sciences USA $1,72918 Insperity USA $1,72019 Impellam Group UK $1,71820 Synergie France $1,637

Largest staffing firms in the worldRanked by estimated 2010 global staffing revenue in U.S. dollars


Buyers Ongoing Interest in Global


75% of Firms are global or consideringIt within 2 years


Higher Potential

Lower Potential

Not Recorded

Global Staffing Market Hot Spots

Note: Countries in Green not included due to small market size or lack of data (for instance Columbia and South Korea)Source: Staffing Industry Analysts: Most Attractive Staffing Markets Globally Report – October 2011


Staffing Industry Analysts Goes Global

• In North America since 1989• Launched Europe in 2009• Adding Global coverage

during 2012


Increasingly Complex Legal Environment


Healthcare Reform Definitely on the Way…

…or Not!


Staffing Firms Still Largely in “Wait and See” Mode

Question:How do you plan to comply with rules associated with Healthcare Reform Legislation?(Select up to 3)



Firms Uncertain About Ability to Pass Costs on to Buyers


Question: What percent of the increased cost associated with Healthcare Reform do you expect to successfully pass on to your buyers?

100%

50%

0%


Many Significant Legal, Legislative and Regulatory Issues Around the World

• Healthcare reform• Immigration reform • Immigration enforcement: e-verify• Misclassification

~ Independent contractors~ Exempt vs. non-exempt ~ Other wage and hours issues

• Agency workers regulations – UK• Increased scrutiny of temporary work globally


Talent and Work Mismatches


While Overall Unemployment Remains Over 8%, Lower Skilled Occupations are Even Higher



High Skilled Occupations Still in Short Supply



Metro Market Hot Spots by Skill

US Temp Help by Market and Skill ($M)Office/ Clerical Industrial IT Healthcare

Finance/ Accounting

Engineering/ Design Total

Total US Market Size $15,600 $22,600 $17,900 $7,600 $5,100 $6,400 $78,700New York-White Plains-Wayne, NY-NJ $803 $898 $924 $253 $351 $135 $3,643Los Angeles-Long Beach-Glendale, CA $457 $521 $410 $690 $148 $187 $2,566Washington-Arlington-Alexandria, DC-VA-MD-WV $277 $315 $1,100 $237 $228 $175 $2,527Chicago-Naperville-Joliet, IL $450 $701 $510 $209 $196 $142 $2,316Atlanta-Sandy Springs-Marietta, GA $421 $732 $603 $112 $176 $130 $2,250Houston-Sugar Land-Baytown, TX $360 $598 $403 $184 $112 $326 $2,074Boston-Cambridge-Quincy, MA NECTA Division $251 $256 $585 $81 $122 $139 $1,530Dallas-Plano-Irving, TX $279 $307 $487 $121 $100 $123 $1,471Seattle-Bellevue-Everett, WA $173 $265 $561 $45 $84 $152 $1,337Minneapolis-St. Paul-Bloomington, MN-WI $223 $380 $390 $53 $101 $100 $1,303Philadelphia, PA $277 $324 $347 $57 $104 $92 $1,278San Jose-Sunnyvale-Santa Clara, CA $101 $131 $594 $172 $54 $166 $1,258Phoenix-Mesa-Scottsdale, AZ $239 $288 $246 $74 $72 $104 $1,060

Source: Top US Temporary Staffing Markets Report, Jan 2012,Based on Bureau of Labor Statistics and Staffing Industry Analysts for 2010/2011


Opportunities Abound for Staffing Firms…

• Riding secular and cyclical growth wave• Mastering the technology opportunities• Leveraging talent management and outsourcing trends• Capturing the independent workforce• Expanding categories – MSP, RPO, HRO, etc.• Solving skills shortages• Showing some self esteem• And more…


…And There are Plenty of Threats

• Increasing competition with traditional competitors• Regulatory environment changes• Disruptive technology change and new competitors• Quality of service – reality and perception• Global economic volatility• And more…


Job Creation Happening


+227,000


Economic Growth Forecast Ahead

Forecast Source Forecast Date 2012 2013The Conference Board 2/15/2012 2.00% 2.20%Philadelphia Fed Survey 2/10/2012 2.30% 2.70%IMF 1/24/2012 1.80% 2.20%WSJ Economic Survey Jan-12 2.40% 2.80%

U.S. GDP Growth Forecasts

Source: Conference Board, Philadelphia Fed Survey of Economic Forecasters, IMF, Wall Street Journal survey of economists


ECRI Sounds a Note of Caution

Source: Economic Cycle Research Institute


Pulse Survey Shows Temp Staffing Growth Ongoing

Source: Staffing Industry Pulse Survey, February 2012

In January 201214% weighted average growth61% seeing positive Y/Y growth50% see improving M/M growth


Direct Hire Growth Outpacing Temp Staffing

Source: Staffing Industry Pulse Survey, February 2012

In January 201238% weighted average growth80% seeing positive Y/Y growth65% see improving M/M growth


Our Forecast by Sector

Source: Staffing Industry Analysts Preliminary Forecast March 2012


Forecast by Segment

Source: Staffing Industry Analysts Preliminary Forecast March 2012


"The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.“

— Peter Drucker


Keynote: Staffing Communities and The Future of the Industry

Barry AsinPresident, Staffing Industry AnalystsMarch 14, [email protected]

keynote staffing communities and the future of the …...13 sfn group usa $2,100 14 capgemini france...

Documents