Staffing Services

Staffing Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry act as intermediaries providing contract, temporary, and permanent staff to clients with specific employment needs. Major companies include ADP TotalSource, Insperity, Kelly Services, and Manpower (all based in the US), along with Adecco (headquartered in Switzerland) and Randstad (the Netherlands).

Large staffing services markets include the EU, the US, Japan, and the UK. The industry is growing fastest among nations in the Asia/Pacific region.

The US personnel staffing agencies industry includes about 32,000 companies with combined annual revenue of about $223 billion and is expected to grow at a moderate rate over the next two years. Growth drivers include outsourcing and leasing trends and technology solutions.

COMPETITIVE LANDSCAPE

Job growth drives demand for the personnel staffing industry. The profitability of individual companies depends on good marketing and availability of qualified employees. Large companies enjoy economies of scale in marketing and back-office operations. Small companies can compete successfully by specializing in an industry or a job function. The industry is fragmented: the 50 largest companies generate about 40 percent of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry is divided into three major segments: temporary help services (about 50 percent of industry revenue), professional employer organizations (about 45 percent), and placement agencies (about 5 percent). Temporary help services provide workers for customers for limited periods, often to substitute for absent permanent workers or to help during periods of peak demand. These workers, who are employees of the temporary...