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Staffing Services

10 Pages First Research, Inc. July 20, 2015 SKU: FRRS5633516

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 Allegis, Insperity, Kelly Services, and ManpowerGroup (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. Companies in Brazil and Mexico also employ large numbers of people through staffing agencies. The industry is growing fastest in the Asia/Pacific region.

The US personnel staffing agencies industry includes about 32,000 companies with combined annual revenue of about $260 billion.

COMPETITIVE LANDSCAPE

Employment 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 US industry is fragmented: the 50 largest companies generate about 40 percent of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

The US 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 help agency, will generally fill clerical, technical, or industrial positions. Professional employer...

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Staffing Services

First Research, Inc.
July 20, 2015

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