Companies in this industry provide temporary staffing; outsourced HR management, and employee placement services. Major companies include Allegis, Kelly Services, ManpowerGroup, and Robert Half International (all based in the US), along with Adecco (headquartered in Switzerland) and Randstad (the Netherlands).
Global revenue for staffing services was about $410 billion in 2015, according to Staffing Industry Analysts. The three largest markets include the US, Japan, and the UK. Prospects for industry growth are particularly strong in the Asia/Pacific region, where the number of professionals seeking new jobs is increasing.
The US staffing services industry includes about 48,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $320 billion. The industry includes executive search services and professional employer organizations (PEOs), which are also covered in separate industry profiles.
Employment growth drives demand for staffing services. 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 a little less than half of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
The US industry is divided into three major segments: temporary help services (about 50% of industry revenue), professional employer organizations (about 45%), and placement agencies (about 5%).
Temporary help services provide workers for customers for limited periods, often to substitute for...