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©2015 by Crain Communications Inc. All rights reserved.

Staffing Industry Report Webinar September 2015


Jon OsborneVP, Strategic Research

Ziv TepmanResearch Analyst

Andrew BraswellSr. Research Analyst

Timothy LandhuisResearch Manager

David FrancisResearch Associate

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Staffing Industry Report Webinar September 2015


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Question:

For your staffing firm, do you expect business in 2016 to be…

(A) Much stronger than 2015(B) Stronger than 2015(C) About the same as 2015(D) Weaker than 2015(E) Much weaker than 2015

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 663 682 530.

• Economic & Employment Trends • 2015 Temporary Worker Survey—Who loves you, baby? Temps do.• Staffing Industry Forecast Update• 2015 Contingent Buyer Survey—Trends in contingent usage• 2015 Contingent Buyer Survey—Difficult‐to‐recruit skills• 2015 Largest Staffing Firms Lists & Market Share Analysis• Q&A, etc.

Employment up 173K in August, up 2.1% y/y

Source: Bureau of Labor Statistics and Staffing Industry Analysts

Two big sectors‐‐manufacturing & construction‐‐lose steam; but healthcare, in lead, still strong


Temporary jobs: +11K in August, +4.3% y/y


Recruiting getting more challenging…

Source: Bureau of Labor Statistics, Staffing Industry Analysts Pulse Survey


Agenda


Temps give staffing industry a net promoter score of 47%

Source: 2015 Temporary Worker Survey

Distribution of temporary workers' reported likelihood of recommending their staffing firm

Net promoter scores as a function of age and hourly wage


Net promoter scores as a function of age Net promoter scores as a function of wage

Adequacy of coaching/preparation highly correlated with temp satisfaction


Net promoter score as a function of temporary worker perceived adequacy of coaching/preparation

It pays to be nice: personal relationship/ treatment a key driver of temp satisfaction


Correlation of specific satisfaction measures with likelihood to recommend staffing firm


Agenda


1996 1997

199819992000

20012002

2003

2004200520062007

2008

2009

2010

2011

20122013

2014

‐30%

‐20%

‐10%

0%

10%

20%

‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0%Y/Y Ch

ange

in Staffing Indu

stry M

arket

Size

Y/Y Change in GDP

R2 = 0.75

The staffing industry and GDP

Staffing Industry Revenue Growth as Function of GDP growth, 1996‐2014

Source: Bureau of Economic Analysis & Staffing Industry Analysts

GDP outlook is 2.4% in 2015, 2.6% in 2016

US Real GDP Growth (%)

Source: US Bureau of Economic Analysis and Staffing Industry Analysts

Producer price index suggests significant growth in bill rates this year

Y/Y Growth in Producer Price Index for Temporary Help Services (3 mo. avg.)

Source: US Bureau of Labor Statistics

2012 2013 2014 2015P 2016P

Commercial 45.8 47.5 49.8 52.1 54.2Year‐over‐year chg. 6% 4% 5% 5% 4%Professional 53.5 56.2 59.4 64.2 68.8Year‐over‐year chg. 8% 5% 6% 8% 7%

Total Temporary 99.4 103.7 109.2 116.4 123.0Year‐over‐year chg. 7% 4% 5% 7% 6%

Industry Segment ($B)

U.S. Staffing industry forecastU.S. Temporary Staffing Revenue ‐ Estimated and Projected

Source: Staffing Industry Analysts

6% 6% 6%6%5% 5%

2014 2015 (P) 2016 (P)

April 2015 Sept. 2015

(P) Projected

Industrial staffing: y/y growth


3%4%

2%3%

4%

2%

2014 2015 (P) 2016 (P)


Office/clerical staffing: y/y growth

(P) Projected


6%7%

6%6% 6% 6%

2014 2015 (P) 2016 (P)


IT staffing: y/y growth

(P) Projected


5%7% 6%7%

17%

12%

2014 2015 (P) 2016 (P)


Healthcare staffing: y/y growth

(P) Projected


Industry Segment ($B) 2014 2015P 2016P

Travel nurse 2.5 3.0 3.5Year‐over‐year chg. 12% 23% 16%Per diem nurse 2.9 3.3 3.6Year‐over‐year chg. 8% 13% 10%Locum tenens 2.6 3.1 3.5Year‐over‐year chg. 8% 20% 14%Allied healthcare 2.9 3.2 3.5Year‐over‐year chg. 2% 12% 9%

Total Healthcare 10.9 12.7 14.2Year‐over‐year chg. 7% 17% 12%

Detailed healthcare staffing forecast


7% 7% 6%7%

10%

6%

2014 2015 (P) 2016 (P)


Finance/accounting staffing: y/y growth

(P) Projected


2%3%

5%

2% 2%

5%

2014 2015 (P) 2016 (P)


Engineering/design staffing: y/y growth

(P) Projected


3%

5%4%

3%2%

3%

2014 2015 (P) 2016 (P)


Legal staffing: y/y growth

(P) Projected


3%4%

3%3%

6%

4%

2014 2015 (P) 2016 (P)


Clinical/scientific staffing: y/y growth

(P) Projected


5%7%

5%

8%10%

6%

2014 2015 (P) 2016 (P)


Marketing/creative staffing: y/y growth

(P) Projected


20%15%

10%

20% 20%15%

2014 2015 (P) 2016 (P)


Education staffing: y/y growth

(P) Projected


8%10%

8%8%

15%12%

2014 2015 (P) 2016 (P)


Direct hire: y/y growth

(P) Projected


5%

8%6%7%

10% 10%

2014 2015 (P) 2016 (P)


Retained search: y/y growth

(P) Projected



Agenda


Growth in contingent share of workforce…stalls

Source: 2015 Contingent Buyer Survey

Reported contingent share of workforce, 2009‐2015

Deceleration in contingent share growth parallels trend in temp penetration rate

Source: 2015 Contingent Buyer Survey & U.S. Bureau of Labor Statistics

Buyers’ average contingent share of workforce vs. U.S. temporary penetration rate

10‐year plans: Projected contingent share of workforce


Contingent share of workforce (median)

Overall workforce expansion plans still bullish


How will your total workforce change over the next two years? Answers from 2005‐2015


Agenda


Difficult‐to‐recruit IT skills


Most commonly mentioned difficult‐to‐recruit skills among buyers of IT staffing

Difficult‐to‐recruit engineering & industrial skills


Most commonly mentioned difficult‐to‐recruit skills among buyers of engineering staffing

Most commonly mentioned difficult‐to‐recruit skills among buyers of industrial staffing


Agenda


SIA’s annual staffing firm list output


Regions U.S. Temp Segments U.S. Other Staffing U.S. Opportunity ListsU.S. Largest Office/clerical Direct Hire Fastest‐GrowingCanada Largest Industrial Retained Search DiversityMexico Largest Information technology Mentor/Proteges

Healthcare AcquirersTravel NursingPer Diem NursingLocum TenensAllied Healthcare

EngineeringFinance/accountingClinical/scientificLegalMarketing/creativeEducation

Changes in segment concentration—industrial and office/clerical staffing

Combined market share of 5 largest and 15 largest industrialstaffing firms, 2007 to 2014

Combined market share of 5 largest and 10 largest office/clericalstaffing firms, 2007 to 2014


Changes in segment concentration—IT and healthcare staffing

Combined market share of 5 largest and 15 largest IT staffing firms, 2007 to 2014

Combined market share of 5 largest and 10 largest healthcarestaffing firms, 2007 to 2014


Changes in segment concentration—finance/accounting and engineering staffing

Combined market share of the five largest finance/accountingstaffing firms, 2007 to 2014

Combined market share of 5 largest and 10 largest engineeringstaffing firms, 2007 to 2014



Largest & fastest‐growing U.S. staffing firms

Which firms are the super‐stars of organic growth?

Which firms are the super‐stars of organic growth?


Largest & fastest‐growing U.S. staffing firms


Agenda


Staffing Industry Analysts Webinar:Tuesday, Oct. 6th, 10AM Pacific/1PM Eastern

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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 [email protected].


Questions for the analysts?

Jon OsborneVP, Strategic Research

Ziv TepmanResearch Analyst

Andrew BraswellSr. Research Analyst

Timothy LandhuisResearch Manager

David FrancisResearch Associate

Thank you to our sponsor…


staffing industry report webinar is sponsored by… · within 48 hours after the webinar, the...

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