SlideShare a Scribd company logo
1 of 68
Download to read offline
Staffing Industry Report Webinar                     Please note:

January 2011                                         This webinar is broadcast 
                                                     through your computer 
                                                     speakers via the audio 
                                                     broadcasting icon on 
                                                     your screen. You may 
                                                     adjust the sound volume 
                                                     by using the slide bar on 
                                                     the audio broadcasting 
                                                     icon.

                                                     If you continue to have 
 Jon Osborne     Sona Sharma                         trouble with the sound, 
 VP, Research    Sr. Research Analyst                you may dial into the call 
                                                     by dialing 1‐408‐600‐
                                                     3600 and using access 
                                                     code 660 325 851.  
Sponsored by:

                                                     For other assistance, 
                                                     contact SIA customer 
                                                     service at 800‐950‐9496.
                                                     ©2010 by Crain Communications Inc. All rights reserved.

                  © 2010 Crain Communications Inc.
Audio for this webinar
    • Listen through your computer by turning on your speakers after 
      you log into the event. Sound will be coming through this icon: 


    • Do not close this audio broadcast box. 

    • To increase the volume of sound coming 
      through your computer speakers adjust the sound bar on the 
      audio Broadcast box shown above.

    • If you continue to have trouble, please submit your need for 
      assistance in the Q&A section.




                                                           ©2010 by Crain Communications Inc. All rights reserved.
Submitting Questions
 • Questions may be submitted at any time 
   during the presentation. To submit a        Q&A icon
   question:
 • Click on the Question Mark icon (?) on 
   the floating toolbar (as shown at the 
   right).
 • This will open the Q&A window on your 
   system only.
 • Type your question into the small dialog 
   box and click the Send Button.



                                                 ©2010 by Crain Communications Inc. All rights reserved.
Thank You to Our Webinar and Executive 
Forum Optimum Sponsor…




                  Shane O’Donnell
                  Senior Sales Director


                                          ©2010 by Crain Communications Inc. All rights reserved.
February 28‐March 3, 2011
   Fontainebleau Resort
      Miami Beach, FL
www.SiExecutiveForum.com



                         ©2010 by Crain Communications Inc. All rights reserved.
©2010 by Crain Communications Inc. All rights reserved.
Keynotes

  • Barry Asin, President,    • Alan Beaulieu, 
    Staffing Industry           President, Institute for 
    Analysts                    Trend Research

  • John Kao, Chairman,       • Stephen Dubner, 
    World Economic              Award‐winning co‐
    Forum’s Global              author of 
    Advisory Council on         FREAKONOMICS and 
    Innovation                  SUPERFREAKONOMICS
                                             ©2010 by Crain Communications Inc. All rights reserved.
Win/Loss Analysis

  So, You Lost a Contract. Why 
    and What to Do About It?

  Speaker: Ken Allred, CEO, 
    Primary Intelligence



                                  ©2010 by Crain Communications Inc. All rights reserved.
Getting Staffing Salesforce Compensation Right

 SIA’s Sales Compensation & 
   Sales Job Practices 2011 
   Survey

 Speaker: Mark Donnolo, 
   Managing Partner, 
   SalesGlobe

                                      ©2010 by Crain Communications Inc. All rights reserved.
For The CFOs …

 The Role of Finance in a Staffing 
   Firm’s Strategic Planning

 Panelists:
 Julie Krey, VP Finance, the Americas, Manpower
 Jon Neff, CFO, Hire Dynamics
 Shawn Poole, EVP & CFO, Employbridge Holding Co.
 Mark Smith, EVP & CFO, SFN Group Inc.
                                         ©2010 by Crain Communications Inc. All rights reserved.
For The First Time Ever …

 CFO Networking Lunch

 Wednesday, March 2, 
  12:00 – 1:30 p.m.




                            ©2010 by Crain Communications Inc. All rights reserved.
For the CIOs …

Implementing Staffing Technology: 
  Best Practices from Experts

Panelists: 
David Buzzell, CIO, The Sedona Group
Martin Perry, CIO, Randstad Professionals
Rob Waddell, SVP and CIO, Apex Systems, Inc.

                                     ©2010 by Crain Communications Inc. All rights reserved.
Looking to Buy Support Technology or Service?

Be a secret shopper for…

(a) A job board
(b) Application tracking system
(c) Front or back office system

Email: memberservices@staffingindustry.com

                                     ©2010 by Crain Communications Inc. All rights reserved.
Two Major Awards

• Best Staffing       • Peter Yessne
  Firms to Work For     Staffing Innovator 
                        Award
  As determined by 
  a survey of           Top mover and 
  25,000+ staffing      shaker who has 
  firm employees        changed the 
                        industry


                            ©2010 by Crain Communications Inc. All rights reserved.
Executive Perspective

Industry leaders provide their
   insights on pressing issues

Speakers:
Carl Camden, CEO, Kelly Services
Cheryl Jones, Chairman, Impellam Group plc


                                     ©2010 by Crain Communications Inc. All rights reserved.
Voice of the Customer

Panelists:
Julia Braun, Group Manager, Contingent Staffing, 
  Microsoft Corp
Tony Marino, Manager, GSC Indirect Procurement, 
  Hess Company
Traci Ramsey, Global Contingent Labor Lead, 
  Monsanto
                                     ©2010 by Crain Communications Inc. All rights reserved.
Special offer exclusively for Webinar attendees

Register for the 2011 Executive Forum at 
www.siexecutiveforum.com or by calling 800‐950‐9496 and 
use promo code ‘webinar’ to save $300 on published rates!

Only valid through January 17.

Follow us on Twitter and get our updates: www.twitter.com/execforum




                                                         ©2010 by Crain Communications Inc. All rights reserved.
Agenda

  • Trends in economy & employment
  • Staffing trends by segment & sector
  • Buyer survey results, Part 1
  • Questions and answers



                                  ©2010 by Crain Communications Inc. All rights reserved.
ECRI gradually getting more optimistic

                                                                                                         150


                                                                                                         140




                                                                                                                                         ading Index
                                                                                                         130




                                                                                                                                 e kly Le
                                                                                                                        Le l of W e
                                                                                                         120




                                                                                                                          ve
                                                                                                         110


                                                                                                100
           Dec‐00           Dec‐02            Dec‐04           Dec‐06   Dec‐08             Dec‐10




                                                                                 ©2010 by Crain Communications Inc. All rights reserved.
Source: Economic Cycle Research Institute (ECRI) Weekly Leading Index
PM Manufacturing Index: still indicates 
  expansion, but at a slower rate

                                                                                                65

                                                                                                60

                                                                                                55

                                                                                                50




                                                                                                              dx
                                                                                                            In e
                                                                                                45

                                                                                                40

                                                                                                35
           Reces s i on
           PMI                                                                                  30
           EI
                                                                                       25
    Dec‐00                Dec‐02          Dec‐04   Dec‐06   Dec‐08                Dec‐10


                                                                     ©2010 by Crain Communications Inc. All rights reserved.
Source: Purchasing Manager’s Manufacturing Index
PM Non‐Manufacturing Index: accelerating 
  expansion but limited hiring
                                                                                              65

                                                                                              60

                                                                                              55

                                                                                              50




                                                                                                             dx
                                                                                                           In e
                                                                                              45

                                                                                              40
          Reces s i on
          PMI                                                                                 35

          EI
                                                                                              30

                                                                                      25
    Dec‐00            Dec‐02             Dec‐04       Dec‐06   Dec‐08            Dec‐10


                                                                        ©2010 by Crain Communications Inc. All rights reserved.
Source: Purchasing Manager’s Nonmanufacturing Index
Initial unemployment claims finally resume 
  downward progress




                                                                                                                             ent (4‐Week Average)
                                                                            700,000

                                                                            600,000

                                                                            500,000

                                                                            400,000




                                                                                                                        ploym
                                                                            300,000




                                                                                                              s for Unem
                                                                            200,000




                                                                                                 Initial Claim
                                                                            100,000

                                                                     0
   Dec‐00            Dec‐02        Dec‐04   Dec‐06   Dec‐08     Dec‐10


                                                              ©2010 by Crain Communications Inc. All rights reserved.
Source: U.S. Department of Labor
U.S. GDP projected growth, 2011‐2012
    U.S. GDP growth projections                                                        2011                2012
    The Conference Board
         Nov. 9, 2010                                                                      1.3%
         Dec. 7, 2010                                                                      1.7%             2.1%
               key drivers of upgrade:                                    
               stronger consumer and capital spending
         Post‐tax deal                                                                     2.3%              tbd
               key drivers of upgrade:                                                 
               1 year reduction in employee Social Security tax
    Goldman Sachs
         Before tax deal                                                                   2.7%             3.6%
         Dec. 17, 2010 (after tax deal)                                                    3.4%             3.8%
               tax deal accounts for roughly 2/3 of upgrade
    Morgan Stanley
         Dec. 2010  ‐ Projection without tax deal                                          3.0%
         Dec. 2010  ‐ Projection with tax deal                                          4.0%‐4.2%

                                                                                              ©2010 by Crain Communications Inc. All rights reserved.
Trends in total employment

               Change in Nonfarm Employment                            Change in Nonfarm Employment 
                   Versus Previous Month                                     Versus Year Earlier
               600
               400                                                 2%
               200                                                 1%
  Thousands




                                                                   0%
                 0
                                                                  ‐1%
              ‐200
                                                                  ‐2%
              ‐400                                                ‐3%
              ‐600                             +103,000
                                                                  ‐4%
              ‐800                                                ‐5%
                 Dec‐08   Jun‐09   Dec‐09   Jun‐10   Dec‐10          Dec‐08   Jun‐09   Dec‐09            Jun‐10               Dec‐10




                                                                                        ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Trends in total private employment

                Change in Private Employment                            Change in Private Employment 
                   Versus Previous Month                                     Versus Year Earlier
              400
              200                                                  2%
                                                                   1%
  Thousands




                0                                                  0%
              ‐200                                                ‐1%
                                                                  ‐2%
              ‐400                                                ‐3%
                                                 +108,453         ‐4%
              ‐600
                                                                  ‐5%
              ‐800                                                ‐6%
                 Dec‐08   Jun‐09   Dec‐09   Jun‐10   Dec‐10          Dec‐08   Jun‐09   Dec‐09            Jun‐10               Dec‐10




                                                                                        ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
In December, which sectors gained/lost jobs?
                    Leisure and hospitality                                                                                            47
                      Education and health                                                                                           44
                           Temporary help                                                      16
                               Retail trade                                               12
                            Manufacturing                                                10
                 Transportation & utilities                                              10
                          Wholesale trade                                               9
                 Natural resources/mining                                           4
                       Financial activities                                         4
                             Information                                    ‐4
       Professional srs (excluding temp)                               ‐9
                             Government                              ‐10
                                   Other                           ‐14
                            Construction                          ‐16

                                                                         Thousands of Jobs
                                                                                             ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Best‐performing U.S. industry markets
                                                                                  Average Monthly Change in Jobs Over…

                                                                                   Last 12      Last 6              Last 3               Total Nonfarm 
          Industries                                           Job Growth Score    Months       Months              Months                Employment
        1 Temporary help services                                     94            22.0          26.2                 23.5                            2,219
        2 Food services and drinking places                           93            14.0          26.1                 20.5                            9,560
        3 Educational services                                        83             6.2           9.0                  8.5                            3,187
        4 Motor vehicle and parts dealers                             79             3.4          7.2                   7.5                            1,664
        5 Other social assistance (NAICS 6241, 6242, 6243)            79             5.9          6.4                   5.5                            1,809
        6 Hospitals                                                   79            3.5           6.3                  7.8                             4,745
        7 Support activities for mining                               78            6.3           5.7                   4.8                              333
        8 Other ambulatory health care (NAICS 6212, 6213, 6215        75             5.9           5.3                  3.8                            2,014
        9 Durable goods                                               75             3.2           5.0                  6.5                            2,801
       10 Computer systems design and related services                73             4.4           5.3                  3.7                            1,481
       11 Home health care services                                   71             3.7           4.3                  4.1                            1,092
       12 Clothing and clothing accessories stores                    71             3.8          6.3                   1.7                            1,419
       13 Fabricated metal products                                   70             5.7          2.5                   3.3                            1,329
       14 State government, education only                            70             4.5          4.8                   1.9                            2,431
       15 Couriers and messengers                                     68             1.0           3.1                  6.1                              536
                                                                                                          ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Employment trends in food/drinking places
         Food Services & Drinking Places Employment                        Food Services & Drinking Places Employment
                         1990‐2010                                                            2010

12,000                                                            9,600

10,000                                                            9,550

 8,000                                                            9,500

 6,000                                                            9,450

 4,000                                                            9,400

 2,000                                                            9,350

     0                                                            9,300
         1990
         1991
         1992
         1993
         1994
         1995
         1996
         1997
         1998
         1999
         2000
         2001
         2002
         2003
         2004
         2005
         2006
         2007
         2008
         2009
         2010




                                                                                      M ar



                                                                                                   M ay
                                                                                             Apr




                                                                                                                                             O ct
                                                                                                                 Ju l

                                                                                                                           Aug




                                                                                                                                                      N ov
                                                                          Jan




                                                                                                          Ju n




                                                                                                                                                                D ec
                                                                                Feb




                                                                                                                                    Sep
Employment in thousands.
                                                                                                           ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Employment trends in private educational svcs
         Private Educational Services Employment                                Private Educational Services Employment
                        1990‐2010                                                                 2010

3,500                                                             3,200

3,000                                                             3,180

2,500                                                             3,160

2,000                                                             3,140

1,500                                                             3,120

1,000                                                             3,100

  500                                                             3,080

    0                                                             3,060
        1990
        1991
        1992
        1993
        1994
        1995
        1996
        1997
        1998
        1999
        2000
        2001
        2002
        2003
        2004
        2005
        2006
        2007
        2008
        2009
        2010




                                                                                        M ar



                                                                                                     M ay
                                                                                               Apr




                                                                                                                                               O ct
                                                                                                                   Ju l

                                                                                                                             Aug




                                                                                                                                                        N ov
                                                                          Jan




                                                                                                            Ju n




                                                                                                                                                                  D ec
                                                                                 F eb




                                                                                                                                      S ep
Employment in thousands.
                                                                                                             ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Employment trends in hospitals
                    Hospital Employment                                                      Hospital Employment
                         1990‐2010                                                                   2010

5,000                                                             4,750
4,500
                                                                  4,740
4,000
3,500                                                             4,730
3,000
                                                                  4,720
2,500
2,000                                                             4,710
1,500                                                             4,700
1,000
  500                                                             4,690

    0                                                             4,680
        1990
        1991
        1992
        1993
        1994
        1995
        1996
        1997
        1998
        1999
        2000
        2001
        2002
        2003
        2004
        2005
        2006
        2007
        2008
        2009
        2010




                                                                                      M ar



                                                                                                   M ay
                                                                                             Apr




                                                                                                                                             O ct
                                                                                                                 Ju l

                                                                                                                           Aug




                                                                                                                                                      N ov
                                                                          Jan




                                                                                                          Ju n




                                                                                                                                                                Dec
                                                                                                                                    Sep
                                                                                Feb




Employment in thousands.
                                                                                                           ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Employment trends in mining/oil support activities
      Support Activities for Mining/Oil Employment                        Support Activities for Mining/Oil Employment
                        1990‐2010                                                              2010

400                                                               350
350                                                               300
300
                                                                  250
250
                                                                  200
200
                                                                  150
150

100                                                               100

 50                                                               50

  0                                                                0
      1990
      1991
      1992
      1993
      1994
      1995
      1996
      1997
      1998
      1999
      2000
      2001
      2002
      2003
      2004
      2005
      2006
      2007
      2008
      2009
      2010




                                                                                    M ar



                                                                                                 M ay
                                                                                           Apr




                                                                                                                                             O ct
                                                                                                                Ju l

                                                                                                                          Aug




                                                                                                                                                      N ov
                                                                        Jan




                                                                                                        Ju n




                                                                                                                                                                Dec
                                                                                                                                   Sep
                                                                              Feb




Employment in thousands.
                                                                                                           ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Employment trends in home healthcare
               Home Healthcare Employment                                             Home Healthcare Employment
                       1990‐2010                                                                 2010

1,200                                                             1,100

1,000                                                             1,090

                                                                  1,080
  800
                                                                  1,070
  600
                                                                  1,060
  400
                                                                  1,050
  200
                                                                  1,040

    0                                                             1,030
        1990
        1991
        1992
        1993
        1994
        1995
        1996
        1997
        1998
        1999
        2000
        2001
        2002
        2003
        2004
        2005
        2006
        2007
        2008
        2009
        2010




                                                                                      M ar



                                                                                                   M ay
                                                                                             Apr




                                                                                                                                             O ct
                                                                                                                 Ju l

                                                                                                                           Aug




                                                                                                                                                      N ov
                                                                          Jan




                                                                                                          Ju n




                                                                                                                                                                D ec
                                                                                Feb




                                                                                                                                    Sep
Employment in thousands.
                                                                                                           ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Employment trends in computer systems design
          Computer Systems Design Employment                                    Computer Systems Design Employment
                       1990‐2010                                                               2010

1,600                                                             1,490
1,400                                                             1,480

1,200                                                             1,470
                                                                  1,460
1,000
                                                                  1,450
  800
                                                                  1,440
  600
                                                                  1,430
  400
                                                                  1,420
  200                                                             1,410
    0                                                             1,400
        1990
        1991
        1992
        1993
        1994
        1995
        1996
        1997
        1998
        1999
        2000
        2001
        2002
        2003
        2004
        2005
        2006
        2007
        2008
        2009
        2010




                                                                                      M ar



                                                                                                   M ay
                                                                                             Apr




                                                                                                                                             O ct
                                                                                                                 Ju l

                                                                                                                           Aug




                                                                                                                                                      N ov
                                                                          Jan




                                                                                                          Ju n




                                                                                                                                                                D ec
                                                                                Feb




                                                                                                                                    Sep
Employment in thousands.
                                                                                                           ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Worst‐performing U.S. industry markets
                                                                               Average Monthly Change in Jobs Over…

                                                                                Last 12      Last 6              Last 3               Total Nonfarm 
          Industries                                        Job Growth Score    Months       Months              Months                Employment
       91 Chemicals                                               35              ‐1.3         ‐1.3                 ‐1.2                              773
       92 Sporting goods, hobby, book, and music stores           35              ‐1.0         ‐2.0                 ‐0.8                              601
       93 Services to buildings and dwellings                     34               1.2         ‐1.9                 ‐3.5                            1,724
       94 General merchandise stores                              33               2.4         ‐2.1                 ‐4.8                            2,945
       95 Rental and leasing services                             33              ‐0.8         ‐1.7                 ‐2.2                              526
       96 State government, excluding education                   33              ‐3.4         ‐0.9                 ‐0.5                            2,753
       97 Printing and related support activities                 33              ‐1.3         ‐1.9                 ‐1.8                              485
       98 U.S. Postal Service                                     31              ‐2.7         ‐1.8                 ‐1.6                              644
       99 Building material and garden supply stores              29              ‐3.3         ‐2.4                 ‐1.3                            1,135
      100 Telecommunications                                      28              ‐3.5         ‐1.8                 ‐2.4                              912
      101 Residential building                                    27              ‐2.5         ‐2.5                 ‐3.3                              563
      102 Health and personal care store                          27              ‐1.2         ‐2.0                 ‐5.1                              961
      103 Insurance carriers and related activities               25              ‐3.9         ‐2.5                 ‐3.0                            2,166
      104 Local government, excluding education                   12              ‐9.8         ‐9.1                 ‐9.3                            6,324
      105 Local government, education only                        10             ‐12.8        ‐13.2                 ‐7.4                            7,900
                                                                                                       ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Manufacturing sectors with high overtime hours
  Rank  NAICS          Description                                Jun‐10   Jul‐10   Aug‐10   Sep‐10             Oct‐10            Nov‐10
  1      3231120009 Grain and oilseed milling                        7.3     8.2       6.6          7.1                8.4                9.2
  2      3232411009 Petroleum refineries                             7.6     7.8       8.6          8.2                9.1                9.1
  3      3133110009 Iron and steel mills and ferroalloy              7.1     6.7       7.6          7.9                7.9                8.6
  4      3133635009 Motor vehicle power train components             8.9     6.9       8.9          7.9                8.1                8.2
  5      3133310009 Agricultural                                     5.7     5.6       5.9          5.9                7.3                7.4     *
  6      3133140009 Other nonferrous metal production                6.2     6.0       7.2          6.2                6.3                7.2
  7      3231141209 Frozen specialty food                            5.5     5.7       6.4          7.3                7.1                7.2     *
  8      3133272209 Bolts                                            7.2     6.0       7.7          6.8                6.7                7.0
  9      3232210009 Pulp                                             5.6     6.1       6.2          6.8                6.2                7.0
  10     3132732009 Ready‐mix concrete                               6.4     7.7       7.4          6.7                7.9                6.6
  11     3133240009 Boilers                                          5.2     5.9       6.3          6.0                5.9                6.4
  12     3231141009 Frozen food                                      5.6     5.9       6.4          7.5                7.6                6.4
  13     3232400009 Petroleum and coal products                      6.4     6.1       6.7          6.6                7.0                6.4
  14     3231110009 Animal food                                      4.2     4.3       5.7          5.5                5.8                6.2     *
  15     3231140009 Fruit and vegetable preserving                   5.2     5.6       7.6          8.3                7.1                6.2

                                       Tools & vehicles Energy Food Basic materials
                                                                                             ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Manufacturing sectors with high overtime hours
   Rank  NAICS          Description                               Jun‐10   Jul‐10   Aug‐10   Sep‐10            Oct‐10           Nov‐10
   16     3133100009 Primary metals                                  5.6     5.5       5.7         5.5               5.9                6.1
   17     3133351309 Metal cutting and forming machine tools         3.5     3.1       3.1         4.7               5.7                6.0     *
   18     3133610009 Motor vehicles                                  4.9     4.5       5.2         6.0               5.7                6.0
   19     3133641109 Aircraft                                        4.9     5.5       5.7         5.6               5.9                6.0
   20     3231142009 Fruit and vegetable canning and drying          4.9     5.3       8.5         8.9               6.7                6.0
   21     3133351109 Industrial molds                                5.5     5.4       5.5         4.8               6.2                5.9
   22     3231190009 Other food products                             4.2     4.0       4.6         4.2               5.7                5.9     *
   23     3232521109 Plastics material and resin                     5.7     6.1       5.5         5.7               5.8                5.9
   24     3132730009 Cement and concrete products                    5.7     6.8       6.6         5.5               6.4                5.8
   25     3133351409 Special tools                                   4.6     4.7       4.8         5.6               5.8                5.8
   26     3231161109 Animal slaughtering and processing              6.3     5.0       6.0         6.3               6.1                5.8
   27     3133231009 Plate work and fabricated structural            3.7     3.7       4.7         5.0               5.7                5.7     *
   28     3133272009 Turned products and screws                      5.3     4.8       5.4         5.3               5.5                5.7
   29     3133360009 Turbine and power transmission equip            5.8     5.3       5.1         5.1               4.2                5.7
   30     3232510009 Basic chemicals                                 5.6     5.4       5.2         5.1               5.7                5.7

                                       Tools & vehicles Energy Food Basic materials
                                                                                             ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Trends in hours worked

                 Average Weekly Hours of All Employees                              Average Weekly Overtime of Production & 
                                                                                          Non‐Supervisory Employees
          34.8                                                                    4.5
          34.6                                                                    4.0
          34.4                                                                    3.5
          34.2                                                                    3.0
  Hours




                                                                          Hours
                                                                                  2.5
          34.0
                                                                                  2.0
          33.8
                                                                                  1.5
          33.6
                                                                                  1.0
          33.4                                                                    0.5
          33.2                                                                    0.0
                 Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐                 Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐
                  08   08 08     09 09     09 09     10 10     10 10                     08   08 08     09 09     09 09     10 10     10 10




                                                                                                               ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Seasonal Peaks in Hiring—Who Hires When
          Jan                 Feb                 Mar                  Apr              May                      Jun

          Accounting/         Accounting/         Building material    Scenic and       Scenic and               Scenic and 
          Bookkeeping         Bookkeeping         and garden           sightseeing      sightseeing              sightseeing 
                                                  supply stores        transportation   transportation           transportation




                              State government                                          Performing arts          Amusements, 
                              education                                                 and spectator            gambling, and 
                                                                                        sports                   recreation




                              Educational                                               Services to              Heavy and civil 
                              services                                                  buildings and            engineering 
                                                                                        dwellings                construction




                                                                                                     ©2010 by Crain Communications Inc. All rights reserved.
Bureau of Labor Statistics & Staffing Industry Analysts
Trend in total unemployment
              U.S. Total Unemployment Rate                                                       U.S. Total Unemployed
        Rate down 35 basis points in Dec, to 9.42%                         16,000

11%

10%                                                                        14,000

 9%
                                                                           12,000
 8%

 7%
                                                                           10,000
 6%

 5%                                                                         8,000
   Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐10        Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐10



                                                                                                                  ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Trend in college‐graduate unemployment
             U.S. College‐Graduate Unemployment Rate                                       U.S. College‐Graduate Unemployed
             Rate down 33 basis points in Dec, to 4.79%                       2,500
   5.5%

   5.0%

   4.5%                                                                       2,000

   4.0%

   3.5%
                                                                              1,500
   3.0%

   2.5%

   2.0%                                                                       1,000
      Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐09 Jul‐10 Oct‐10       Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐09 Jul‐10 Oct‐10



                                                                                                                    ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Agenda

  • Trends in economy & employment
  • Staffing trends by segment & sector
  • Buyer survey results, Part 1
  • Questions and answers



                                  ©2010 by Crain Communications Inc. All rights reserved.
Trends in staffing employment

                 Change in Temp Employment                                  Percent Change in Temp 
                   Versus Previous Month                                 Employment Versus Year Earlier
               100                                                30%
                                                                  20%
                50
   Thousands




                                                                  10%
                 0                                                 0%
                                                                  ‐10%
                ‐50
                                                                  ‐20%
                                                    +15,900
               ‐100                                               ‐30%
                  Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10                 Dec‐08    Jun‐09   Dec‐09           Jun‐10               Dec‐10




                                                                                         ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Trends in staffing employment

       Temp Employment Penetration Rate                              Temp Employment Penetration Rate

  2.0%                                                            2.0%

  1.8%                                                            1.8%
                                                                  1.6%
  1.6%
                                                                  1.4%                                      1.70% = 1997
  1.4%
                                                                  1.2%
  1.2%
                                                                  1.0%
         Dec‐ Jun‐ Dec‐ Jun‐ Dec‐ Jun‐ Dec‐
                                                                         1990
                                                                                1992
                                                                                       1994
                                                                                              1996
                                                                                                     1998
                                                                                                                2000
                                                                                                                         2003
                                                                                                                                   2005
                                                                                                                                             2007
                                                                                                                                                      2009
          07   08   08   09   09   10   10




                                                                                                            ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Trends in staffing employment

      Percent Change in Direct Hire Internal                            Percent Change in Exec Search 
        Employment Versus Year Earlier                               Internal Employment Vs. Year Earlier
   10%
                                                                  14%
    5%
    0%                                                             8%
   ‐5%                                                             2%
  ‐10%
                                                                   ‐4%
  ‐15%
  ‐20%                                                            ‐10%
  ‐25%                                                            ‐16%
      Nov‐08      May‐09      Nov‐09 May‐10            Nov‐10       Nov‐08   May‐09   Nov‐09           May‐10                Nov‐10




                                                                                       ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Trends in staffing employment

         Percent Change in PEO Covered                                   Layoffs as a Percent of Total 
          Employees Versus Year Earlier                                          Employment
   10%                                                            2.0%
    5%
    0%                                                            1.8%
   ‐5%                                                            1.6%
  ‐10%
  ‐15%                                                            1.4%
  ‐20%                                                            1.2%
  ‐25%
  ‐30%                                                            1.0%
        Nov‐ May‐ Nov‐ May‐ Nov‐ May‐ Nov‐                           Oct‐ Apr‐ Oct‐ Apr‐ Oct‐ Apr‐ Oct‐
         07   08   08   09   09   10   10                             07   08   08   09   09   10   10




                                                                                       ©2010 by Crain Communications Inc. All rights reserved.
Source: Bureau of Labor Statistics & Staffing Industry Analysts
Revenue trends by segment & sector
                                               Staffing sectors month‐to‐month sequential revenue trends
                       Apr to  May  Jun to  July to  Aug to  Sept  Oct to  Nov to  Dec to  Jan10  Feb to  Mar  Apr to  May  Jun to  Jul to  Aug to  Sept  Oct to 
                        May to Jun Jul        Aug Sep to Oct Nov Dec Jan to Feb Mar to Apr May to Jun Jul                            Aug Sept to Oct Nov

  Temporary Staffing    ↗       ↗      ↑      ↑       ↑      ↑      ↑      ↑       ↑        ↑      ↑     ↑      ↑      ↑          ↑          ↑         ↑          ↑          ↑


     Temp‐to‐Hire        ‐‐     ‐‐     ↗      ↗       ↑      ↑      ↑      ↑       ↑        ↑      ↑     ↑      ↑      ↑          ↗          ↑         ↑          ↑          ↑


      Direct Hire        ‐‐     ‐‐     ‐‐      ‐‐     ↗      ↗      ↗       ↗      ↑        ↑      ↑     ↑      ↑      ↑          ↑          ↑         ↑          ↑          ↑


    Retained Search                                   ↗      ‐‐             ‐‐     ↑        ↑      ↑     ↑      ↑       ‐‐                              ↗         ↑
                         ↘      ↓      ↘      ↘                     ↘

         PEO            ↑       ↗      ‐‐      ‐‐     ‐‐     ‐‐            ↑       ↑        ↑      ↗     ↗              ‐‐
                                                                    ↘

     Outplacement        ‐‐     ‐‐                                   ‐‐                             ‐‐   ‐‐
                                       ↘      ↘              ↘              ↘               ↓                          ↓
                                            ↑ Widespread  ↗ Mild                                   ↘ Mild     ↓ Widepsread 
                                                                                  ‐‐ Flat
                                            Improvement Improvement                             Deterioration Deterioration



                                                                                                                             ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Monthly Pulse Survey
Revenue trends by segment & sector
                                             Temp staffing segments month‐to‐month sequential revenue trends
                        Apr to  May  Jun to  July to  Aug to  Sept  Oct to  Nov to  Dec to  Jan10  Feb to  Mar  Apr to  May  Jun to  Jul to  Aug to  Sept  Oct to 
                         May to Jun Jul        Aug Sep to Oct Nov Dec                Jan to Feb Mar to Apr May to Jun Jul             Aug Sept to Oct Nov
      Industrial          ↗      ↗      ↑       ↑      ↑      ↑      ↑      ↑       ↑        ↑       ↑     ↑     ↑      ↑         ↑          ↑          ↑          ↑          ↑

          IT              ↗      ↑      ↑       ↗      ↑      ↑      ↑      ↑       ↑        ↑       ↑     ↑     ↑      ↑         ↑          ↑          ↑          ↑          ↑

   Office/Clerical        ↗      ↗      ↗       ↗      ↗      ↑      ↑      ↑       ↑        ↑       ↑     ↑     ↑      ↑         ↑          ↑          ↑          ↑          ↑
     Engineering         ↑       ↗      ↗       ‐‐     ↑      ↑      ↑      ↑       ↑        ↑       ↑     ↑     ↗      ↗         ↑          ↑          ↑          ↑          ↑

   Fin./Accounting        ‐‐     ↗      ‐‐      ‐‐     ↑      ↑      ↗      ↑       ↑        ↑       ↑     ↑     ↑      ↑         ↗          ↑          ↑          ↑          ↑
     Allied/other         ↘      ↗      ↑       ‐‐     ↗      ↗      ↗       ‐‐     ↑        ↑       ↑     ↑     ↑      ↑         ↑          ↑          ↑          ↑          ↗

  Clincial/scientific     ↗      ‐‐     ↗       ‐‐     ↗      ↗      ↗      ↑       ↗        ↗       ↑     ↑     ‐‐     ↗                               ↑
    Travel nurse          ↘      ↘      ‐‐      ↘      ‐‐     ↗       ‐‐     ↘      ↑        ‐‐      ↑     ↘     ↗      ↑         ↑          ↑          ↑          ↑          ↑

        Legal             ‐‐     ‐‐     ‐‐      ‐‐     ↑      ↗       ‐‐     ‐‐     ‐‐       ↗       ↑     ↑     ↑      ↗          ‐‐                   ↑

    Locum tenens          ‐‐     ↗      ↗       ‐‐     ‐‐     ‐‐     ↗       ‐‐     ↑        ‐‐      ↑     ↗            ↑
   Per diem nurse         ‐‐     ↓      ↗       ‐‐     ↗      ↗       ‐‐     ↘      ↗        ↗       ↑     ↗     ↗      ↑         ↘          ↑          ↑          ↑

 Marketing/creative       ↘      ‐‐     ↗       ↗      ‐‐     ‐‐     ↘       ‐‐     ‐‐       ↗       ↗     ↗     ↗      ↗

                                             ↑ Widespread  ↗ Mild                                    ↘ Mild     ↓ Widepsread 
                                                                                   ‐‐ Flat
                                             Improvement Improvement                              Deterioration Deterioration
                                                                                                                            ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Monthly Pulse Survey
Which is greater challenge—selling or recruiting?
                  100%

                    80%

                    60%

                    40%                          Selling
                     20%

                      0%
                                                  Recruiting 
                       Jan‐ Feb‐
                                 Mar‐ Apr‐
                        10   10            May‐ Jun‐
                                  10   10            Jul‐10 Aug‐
                                            10   10                Sep‐   Oct‐        Nov‐
                                                             10     10     10          10

                                                                                 ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Monthly Pulse Survey
Staffing industry balance sheet

                  +                                      ‐ 
                                        •Weak employment report, just 103K 
•BLS reports temp gain of 15.9K
                                        jobs
                                        •Unemployment likely to stay high for 
•Economic indicators trending better
                                        forseeable future
•Pulse: Most staffing firms still 
reporting sequential  improvement 
•Selling/recruiting difficulty ratio 
improving over last nine months


                                                           ©2010 by Crain Communications Inc. All rights reserved.
Staffing industry balance sheet

                  +                                      ‐ 
                                        •Weak employment report, just 103K 
•BLS reports temp gain of 15.9K
                                        jobs
                                        •Unemployment likely to stay high for 
•Economic indicators trending better
                                        forseeable future
•Pulse: Most staffing firms still 
reporting sequential  improvement 
•Selling/recruiting difficulty ratio 
improving over last nine months


                                                           ©2010 by Crain Communications Inc. All rights reserved.
Agenda

  • Trends in economy & employment
  • Staffing trends by segment & sector
  • Buyer survey results, Part 1
  • Questions and answers



                                  ©2010 by Crain Communications Inc. All rights reserved.
How much expense does contingent labor save?

                                 Median Reported Total Expense 
                                 Savings Due to Use of Contingent 
                                         Labor, 2008‐2010
                                  17%
                                                              13%
                                                    9%




                                 2008               2009      2010


                                                                     ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
Reported savings as a function of buyer industry
                                      Median Reported Expense Savings, 
                                       2008‐2010, by Industry of Buyer

                         Energy/Chemi ca l                                                  17%


                     Technol ogy/Tel ecom                                13%


                           Ma nufa cturi ng                          13%


                       Fi na nce/Ins ura nce                       12%


                    Pha rma /Bi otech/Med                     8%


                               Hea l thca re             7%


                                                                           ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
Polling question:
About what portion of contingent buyers are 
confident they are completely IC compliant?
A) Pretty much all of them
B) Most of them 
C) About half of them
D) About a quarter of them 
E) Around one in ten
F) None of them
                                     ©2010 by Crain Communications Inc. All rights reserved.
Only 1/8 buyers believe they are 100% compliant
                                 In your best estimate, what percent of your 
                            1099/independent contractors are properly classified?



                                                                   100%, 12%


                                                    Don't know, 
                                                       26%
                                                                         95‐99%, 15%


                                                                         90%‐94%, 6%


                                                          <90%, 41%




                                                                                       ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
Large buyers project yet more contingent usage

                           Respondent Estimates of CW Usage Rates
                                                                                                                    17%
                                                                                             15%          15%
                                   13%                             13%
                    11%                             12%                          12%
                                            10%                            10%         10%
               8%             9%
                                                             7%




                2005           2006           2007            2008          2009        2010                   2012

                                                          Median         Mean



                                                                                              ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
How much do large buyers typically spend?
   Industry                                   Median
                                        $90‐$99.9 million
   Energy/Chemcal                                           Size (employees)                         Median
   Finance/Insurance                    $70‐$79.9 million
                                                            1,000 ‐ 1,999                       <$10 million
   Technology/Telecom                   $70‐$79.9 million
                                                            2,000 ‐ 4,999                 $10‐$19.9 million
   Manufacturing                        $50‐$59.9 million
   Pharma/Biotech/ Medical 
                                                            5,000 ‐ 9,999                 $30‐$39.9 million
                                        $50‐$59.9 million
   Equipment
                                                            10,000 or more             $100‐$149.9 million
   Retail/Consumer                      $40‐$49.9 million

   Healthcare                           $30‐$39.9 million

                                                                               ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
HRO, RPO usage gradually increasing

          Trend in Percent of Buyers Using HRO          Trend in Percent of Buyers Using RPO
                                                  18%
                           16%                                                                          22%
                                                                        21%
                                     14%
             13%
                                                                                   17%
                                                           14%




                    2007     2008   2009   2010                  2007     2008   2009       2010




                                                                                 ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
IC compliance screening trending up

          Do You Use a Vendor for Independent Contractor 
                      Screening/Compliance?
                             Don't know, 4%
                                                               Trend in Percent of Buyers Using IC 
                                                                        Screening Vendor
                   No, 21%
                                                                                                41%
                                                    Yes, 41%            37%




           Maybe Over 
           Next 2 Years, 
               34%
                                                                              2009      2010




                                                                                     ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
Offshore outsourcing also on the rise

                                 Do You Use a Significant Amount of 
                                      Offshore Outsourcing?
                                                                         42%
                                                           38%
                                          34%




                                                    2008   2009   2010
                                                                               ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
CW increasingly managed on a global basis

                                Trend in Percent of Buyers Managing on a 
                                               Global Basis
                                                                         24%
                                                           21%

                                          16%




                                                    2008   2009   2010


                                                                               ©2010 by Crain Communications Inc. All rights reserved.
Source: Staffing Industry Contingent Buyer Survey
Agenda

  • Trends in economy & employment
  • Staffing trends by segment & sector
  • Buyer survey results, Part 1
  • Questions and answers



                                  ©2010 by Crain Communications Inc. All rights reserved.
Where to find latest research: staffingindustry.com




                                       ©2010 by Crain Communications Inc. All rights reserved.
Staffing Industry Monthly Pulse Survey




Want report? Go to www.staffingindustry.com or email 
Noël Calvi at ncalvi@staffingindustry.com.
                                          ©2010 by Crain Communications Inc. All rights reserved.
Please fill
 out the Pulse
   survey!




Staffing Industry Monthly Pulse Survey. It’s open now! 
Go to www.staffingindustry.com.
                                            ©2010 by Crain Communications Inc. All rights reserved.
Next corporate member webinar:
Tuesday, Feb. 8th, 10AM Pacific/1PM Eastern
To register: memberservices@staffingindustry.com


Send us your news: M&A, contract wins, C‐level 
people news (not ads, awards) 
Got news? Email cjohnson@staffingindustry.com


                                          ©2010 by Crain Communications Inc. All rights reserved.
Questions and Answers




                        ©2010 by Crain Communications Inc. All rights reserved.
Thank You to Our Webinar and Executive 
Forum Optimum Sponsor…




                                   ©2010 by Crain Communications Inc. All rights reserved.

More Related Content

Viewers also liked (13)

Rothman
RothmanRothman
Rothman
 
Energy Team
Energy TeamEnergy Team
Energy Team
 
Ashlyn Furr
Ashlyn FurrAshlyn Furr
Ashlyn Furr
 
Id
IdId
Id
 
Khung thép tiền chế
Khung thép tiền chếKhung thép tiền chế
Khung thép tiền chế
 
Beginning Scala Svcc 2009
Beginning Scala Svcc 2009Beginning Scala Svcc 2009
Beginning Scala Svcc 2009
 
Bien phap thi cong
Bien phap thi congBien phap thi cong
Bien phap thi cong
 
Design of Experiment
Design of ExperimentDesign of Experiment
Design of Experiment
 
Op09 Cv03 (1)
Op09 Cv03 (1)Op09 Cv03 (1)
Op09 Cv03 (1)
 
Cọc Khoan Nhồi
Cọc Khoan NhồiCọc Khoan Nhồi
Cọc Khoan Nhồi
 
Giam Sat Vat Lieu 23 March 2006
Giam Sat Vat Lieu 23 March 2006Giam Sat Vat Lieu 23 March 2006
Giam Sat Vat Lieu 23 March 2006
 
Mobilinker Affiliate Program
Mobilinker Affiliate ProgramMobilinker Affiliate Program
Mobilinker Affiliate Program
 
Cách đo máy kinh vĩ
Cách đo máy kinh vĩCách đo máy kinh vĩ
Cách đo máy kinh vĩ
 

Similar to SIA Webinar 1 11 11 Final (2)

Social Media ROI Series - Social Media B2B
Social Media ROI Series - Social Media B2BSocial Media ROI Series - Social Media B2B
Social Media ROI Series - Social Media B2BZuberance
 
AdoTube Format Index Q2 2011
AdoTube Format Index Q2 2011AdoTube Format Index Q2 2011
AdoTube Format Index Q2 2011AdoTube
 
Ado Tube Format Index Q2 2011
Ado Tube Format Index Q2 2011Ado Tube Format Index Q2 2011
Ado Tube Format Index Q2 2011Steven B. Jones
 
What is
What is What is
What is HubSpot
 
Adyen - NOAH12 San Francisco
Adyen - NOAH12 San FranciscoAdyen - NOAH12 San Francisco
Adyen - NOAH12 San FranciscoNOAH Advisors
 
Avi corporate brochure
Avi corporate brochureAvi corporate brochure
Avi corporate brochurebdrudnicki
 
Building Multicountry Contingent workforce stragety in APAC - Buyer Webinar
Building Multicountry Contingent workforce stragety in APAC - Buyer WebinarBuilding Multicountry Contingent workforce stragety in APAC - Buyer Webinar
Building Multicountry Contingent workforce stragety in APAC - Buyer Webinarvinos samuel
 
Pinas presentation
Pinas presentationPinas presentation
Pinas presentationBhoy Carpio
 
왜 마이크로블로그 인가?
왜 마이크로블로그 인가?왜 마이크로블로그 인가?
왜 마이크로블로그 인가?harris hwang
 
Avnet Analyst Day 2010 Presentation 1 Opening Remarks
Avnet Analyst Day 2010 Presentation 1 Opening RemarksAvnet Analyst Day 2010 Presentation 1 Opening Remarks
Avnet Analyst Day 2010 Presentation 1 Opening RemarksAvnet Electronics Marketing
 
Seven Philosophies to build a great customer experience
Seven Philosophies to build a great customer experienceSeven Philosophies to build a great customer experience
Seven Philosophies to build a great customer experienceBeyond Philosophy
 
External E-Newsletter Sample
External E-Newsletter SampleExternal E-Newsletter Sample
External E-Newsletter SampleSteven S. Altiner
 
Business wire 2010 rate highlights
Business wire 2010 rate highlightsBusiness wire 2010 rate highlights
Business wire 2010 rate highlightshCentive, Inc
 

Similar to SIA Webinar 1 11 11 Final (2) (20)

Social Media ROI Series - Social Media B2B
Social Media ROI Series - Social Media B2BSocial Media ROI Series - Social Media B2B
Social Media ROI Series - Social Media B2B
 
Challenges with technologies in the contact centre
Challenges with technologies in the contact centreChallenges with technologies in the contact centre
Challenges with technologies in the contact centre
 
AdoTube Format Index Q2 2011
AdoTube Format Index Q2 2011AdoTube Format Index Q2 2011
AdoTube Format Index Q2 2011
 
Ado Tube Format Index Q2 2011
Ado Tube Format Index Q2 2011Ado Tube Format Index Q2 2011
Ado Tube Format Index Q2 2011
 
International ppt
International pptInternational ppt
International ppt
 
What is
What is What is
What is
 
Adyen - NOAH12 San Francisco
Adyen - NOAH12 San FranciscoAdyen - NOAH12 San Francisco
Adyen - NOAH12 San Francisco
 
Avi corporate brochure
Avi corporate brochureAvi corporate brochure
Avi corporate brochure
 
Building Multicountry Contingent workforce stragety in APAC - Buyer Webinar
Building Multicountry Contingent workforce stragety in APAC - Buyer WebinarBuilding Multicountry Contingent workforce stragety in APAC - Buyer Webinar
Building Multicountry Contingent workforce stragety in APAC - Buyer Webinar
 
Pinas presentation
Pinas presentationPinas presentation
Pinas presentation
 
Pinas presentation
Pinas presentationPinas presentation
Pinas presentation
 
왜 마이크로블로그 인가?
왜 마이크로블로그 인가?왜 마이크로블로그 인가?
왜 마이크로블로그 인가?
 
Kulsoom
KulsoomKulsoom
Kulsoom
 
Video script
Video scriptVideo script
Video script
 
Hulu PowerPoint Presentation
Hulu PowerPoint PresentationHulu PowerPoint Presentation
Hulu PowerPoint Presentation
 
Avnet Analyst Day 2010 Presentation 1 Opening Remarks
Avnet Analyst Day 2010 Presentation 1 Opening RemarksAvnet Analyst Day 2010 Presentation 1 Opening Remarks
Avnet Analyst Day 2010 Presentation 1 Opening Remarks
 
Seven Philosophies to build a great customer experience
Seven Philosophies to build a great customer experienceSeven Philosophies to build a great customer experience
Seven Philosophies to build a great customer experience
 
External E-Newsletter Sample
External E-Newsletter SampleExternal E-Newsletter Sample
External E-Newsletter Sample
 
Business wire 2010 rate highlights
Business wire 2010 rate highlightsBusiness wire 2010 rate highlights
Business wire 2010 rate highlights
 
True Move iPhone Care Center
True Move iPhone Care Center True Move iPhone Care Center
True Move iPhone Care Center
 

SIA Webinar 1 11 11 Final (2)

  • 1. Staffing Industry Report Webinar  Please note: January 2011 This webinar is broadcast  through your computer  speakers via the audio  broadcasting icon on  your screen. You may  adjust the sound volume  by using the slide bar on  the audio broadcasting  icon. If you continue to have  Jon Osborne Sona Sharma trouble with the sound,  VP, Research Sr. Research Analyst you may dial into the call  by dialing 1‐408‐600‐ 3600 and using access  code 660 325 851.   Sponsored by: For other assistance,  contact SIA customer  service at 800‐950‐9496. ©2010 by Crain Communications Inc. All rights reserved. © 2010 Crain Communications Inc.
  • 2. Audio for this webinar • Listen through your computer by turning on your speakers after  you log into the event. Sound will be coming through this icon:  • Do not close this audio broadcast box.  • To increase the volume of sound coming  through your computer speakers adjust the sound bar on the  audio Broadcast box shown above. • If you continue to have trouble, please submit your need for  assistance in the Q&A section. ©2010 by Crain Communications Inc. All rights reserved.
  • 3. Submitting Questions • Questions may be submitted at any time  during the presentation. To submit a  Q&A icon question: • Click on the Question Mark icon (?) on  the floating toolbar (as shown at the  right). • This will open the Q&A window on your  system only. • Type your question into the small dialog  box and click the Send Button. ©2010 by Crain Communications Inc. All rights reserved.
  • 4. Thank You to Our Webinar and Executive  Forum Optimum Sponsor… Shane O’Donnell Senior Sales Director ©2010 by Crain Communications Inc. All rights reserved.
  • 5. February 28‐March 3, 2011 Fontainebleau Resort Miami Beach, FL www.SiExecutiveForum.com ©2010 by Crain Communications Inc. All rights reserved.
  • 7. Keynotes • Barry Asin, President,  • Alan Beaulieu,  Staffing Industry  President, Institute for  Analysts Trend Research • John Kao, Chairman,  • Stephen Dubner,  World Economic  Award‐winning co‐ Forum’s Global  author of  Advisory Council on  FREAKONOMICS and  Innovation SUPERFREAKONOMICS ©2010 by Crain Communications Inc. All rights reserved.
  • 8. Win/Loss Analysis So, You Lost a Contract. Why  and What to Do About It? Speaker: Ken Allred, CEO,  Primary Intelligence ©2010 by Crain Communications Inc. All rights reserved.
  • 9. Getting Staffing Salesforce Compensation Right SIA’s Sales Compensation &  Sales Job Practices 2011  Survey Speaker: Mark Donnolo,  Managing Partner,  SalesGlobe ©2010 by Crain Communications Inc. All rights reserved.
  • 10. For The CFOs … The Role of Finance in a Staffing  Firm’s Strategic Planning Panelists: Julie Krey, VP Finance, the Americas, Manpower Jon Neff, CFO, Hire Dynamics Shawn Poole, EVP & CFO, Employbridge Holding Co. Mark Smith, EVP & CFO, SFN Group Inc. ©2010 by Crain Communications Inc. All rights reserved.
  • 11. For The First Time Ever … CFO Networking Lunch Wednesday, March 2,  12:00 – 1:30 p.m. ©2010 by Crain Communications Inc. All rights reserved.
  • 12. For the CIOs … Implementing Staffing Technology:  Best Practices from Experts Panelists:  David Buzzell, CIO, The Sedona Group Martin Perry, CIO, Randstad Professionals Rob Waddell, SVP and CIO, Apex Systems, Inc. ©2010 by Crain Communications Inc. All rights reserved.
  • 14. Two Major Awards • Best Staffing  • Peter Yessne Firms to Work For Staffing Innovator  Award As determined by  a survey of  Top mover and  25,000+ staffing  shaker who has  firm employees changed the  industry ©2010 by Crain Communications Inc. All rights reserved.
  • 15. Executive Perspective Industry leaders provide their insights on pressing issues Speakers: Carl Camden, CEO, Kelly Services Cheryl Jones, Chairman, Impellam Group plc ©2010 by Crain Communications Inc. All rights reserved.
  • 16. Voice of the Customer Panelists: Julia Braun, Group Manager, Contingent Staffing,  Microsoft Corp Tony Marino, Manager, GSC Indirect Procurement,  Hess Company Traci Ramsey, Global Contingent Labor Lead,  Monsanto ©2010 by Crain Communications Inc. All rights reserved.
  • 17. Special offer exclusively for Webinar attendees Register for the 2011 Executive Forum at  www.siexecutiveforum.com or by calling 800‐950‐9496 and  use promo code ‘webinar’ to save $300 on published rates! Only valid through January 17. Follow us on Twitter and get our updates: www.twitter.com/execforum ©2010 by Crain Communications Inc. All rights reserved.
  • 18. Agenda • Trends in economy & employment • Staffing trends by segment & sector • Buyer survey results, Part 1 • Questions and answers ©2010 by Crain Communications Inc. All rights reserved.
  • 19. ECRI gradually getting more optimistic 150 140 ading Index 130 e kly Le Le l of W e 120 ve 110 100 Dec‐00 Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Economic Cycle Research Institute (ECRI) Weekly Leading Index
  • 20. PM Manufacturing Index: still indicates  expansion, but at a slower rate 65 60 55 50 dx In e 45 40 35 Reces s i on PMI 30 EI 25 Dec‐00 Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Purchasing Manager’s Manufacturing Index
  • 21. PM Non‐Manufacturing Index: accelerating  expansion but limited hiring 65 60 55 50 dx In e 45 40 Reces s i on PMI 35 EI 30 25 Dec‐00 Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Purchasing Manager’s Nonmanufacturing Index
  • 22. Initial unemployment claims finally resume  downward progress ent (4‐Week Average) 700,000 600,000 500,000 400,000 ploym 300,000 s for Unem 200,000 Initial Claim 100,000 0 Dec‐00 Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: U.S. Department of Labor
  • 23. U.S. GDP projected growth, 2011‐2012 U.S. GDP growth projections 2011 2012 The Conference Board Nov. 9, 2010 1.3% Dec. 7, 2010 1.7% 2.1% key drivers of upgrade:                                     stronger consumer and capital spending Post‐tax deal 2.3% tbd key drivers of upgrade:                                                  1 year reduction in employee Social Security tax Goldman Sachs Before tax deal 2.7% 3.6% Dec. 17, 2010 (after tax deal) 3.4% 3.8% tax deal accounts for roughly 2/3 of upgrade Morgan Stanley Dec. 2010  ‐ Projection without tax deal 3.0% Dec. 2010  ‐ Projection with tax deal 4.0%‐4.2% ©2010 by Crain Communications Inc. All rights reserved.
  • 24. Trends in total employment Change in Nonfarm Employment  Change in Nonfarm Employment  Versus Previous Month Versus Year Earlier 600 400 2% 200 1% Thousands 0% 0 ‐1% ‐200 ‐2% ‐400 ‐3% ‐600 +103,000 ‐4% ‐800 ‐5% Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 25. Trends in total private employment Change in Private Employment  Change in Private Employment  Versus Previous Month Versus Year Earlier 400 200 2% 1% Thousands 0 0% ‐200 ‐1% ‐2% ‐400 ‐3% +108,453 ‐4% ‐600 ‐5% ‐800 ‐6% Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 26. In December, which sectors gained/lost jobs? Leisure and hospitality 47 Education and health 44 Temporary help 16 Retail trade 12 Manufacturing 10 Transportation & utilities 10 Wholesale trade 9 Natural resources/mining 4 Financial activities 4 Information ‐4 Professional srs (excluding temp) ‐9 Government ‐10 Other ‐14 Construction ‐16 Thousands of Jobs ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 27. Best‐performing U.S. industry markets Average Monthly Change in Jobs Over… Last 12 Last 6  Last 3  Total Nonfarm  Industries Job Growth Score  Months Months Months Employment 1 Temporary help services 94 22.0 26.2 23.5 2,219 2 Food services and drinking places 93 14.0 26.1 20.5 9,560 3 Educational services 83 6.2 9.0 8.5 3,187 4 Motor vehicle and parts dealers 79 3.4 7.2 7.5 1,664 5 Other social assistance (NAICS 6241, 6242, 6243) 79 5.9 6.4 5.5 1,809 6 Hospitals 79 3.5 6.3 7.8 4,745 7 Support activities for mining 78 6.3 5.7 4.8 333 8 Other ambulatory health care (NAICS 6212, 6213, 6215 75 5.9 5.3 3.8 2,014 9 Durable goods 75 3.2 5.0 6.5 2,801 10 Computer systems design and related services 73 4.4 5.3 3.7 1,481 11 Home health care services 71 3.7 4.3 4.1 1,092 12 Clothing and clothing accessories stores 71 3.8 6.3 1.7 1,419 13 Fabricated metal products 70 5.7 2.5 3.3 1,329 14 State government, education only 70 4.5 4.8 1.9 2,431 15 Couriers and messengers 68 1.0 3.1 6.1 536 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 28. Employment trends in food/drinking places Food Services & Drinking Places Employment Food Services & Drinking Places Employment 1990‐2010 2010 12,000 9,600 10,000 9,550 8,000 9,500 6,000 9,450 4,000 9,400 2,000 9,350 0 9,300 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 M ar M ay Apr O ct Ju l Aug N ov Jan Ju n D ec Feb Sep Employment in thousands. ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 29. Employment trends in private educational svcs Private Educational Services Employment Private Educational Services Employment 1990‐2010 2010 3,500 3,200 3,000 3,180 2,500 3,160 2,000 3,140 1,500 3,120 1,000 3,100 500 3,080 0 3,060 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 M ar M ay Apr O ct Ju l Aug N ov Jan Ju n D ec F eb S ep Employment in thousands. ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 30. Employment trends in hospitals Hospital Employment Hospital Employment 1990‐2010 2010 5,000 4,750 4,500 4,740 4,000 3,500 4,730 3,000 4,720 2,500 2,000 4,710 1,500 4,700 1,000 500 4,690 0 4,680 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 M ar M ay Apr O ct Ju l Aug N ov Jan Ju n Dec Sep Feb Employment in thousands. ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 31. Employment trends in mining/oil support activities Support Activities for Mining/Oil Employment Support Activities for Mining/Oil Employment 1990‐2010 2010 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 M ar M ay Apr O ct Ju l Aug N ov Jan Ju n Dec Sep Feb Employment in thousands. ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 32. Employment trends in home healthcare Home Healthcare Employment Home Healthcare Employment 1990‐2010 2010 1,200 1,100 1,000 1,090 1,080 800 1,070 600 1,060 400 1,050 200 1,040 0 1,030 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 M ar M ay Apr O ct Ju l Aug N ov Jan Ju n D ec Feb Sep Employment in thousands. ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 33. Employment trends in computer systems design Computer Systems Design Employment Computer Systems Design Employment 1990‐2010 2010 1,600 1,490 1,400 1,480 1,200 1,470 1,460 1,000 1,450 800 1,440 600 1,430 400 1,420 200 1,410 0 1,400 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 M ar M ay Apr O ct Ju l Aug N ov Jan Ju n D ec Feb Sep Employment in thousands. ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 34. Worst‐performing U.S. industry markets Average Monthly Change in Jobs Over… Last 12 Last 6  Last 3  Total Nonfarm  Industries Job Growth Score  Months Months Months Employment 91 Chemicals 35 ‐1.3 ‐1.3 ‐1.2 773 92 Sporting goods, hobby, book, and music stores 35 ‐1.0 ‐2.0 ‐0.8 601 93 Services to buildings and dwellings 34 1.2 ‐1.9 ‐3.5 1,724 94 General merchandise stores 33 2.4 ‐2.1 ‐4.8 2,945 95 Rental and leasing services 33 ‐0.8 ‐1.7 ‐2.2 526 96 State government, excluding education 33 ‐3.4 ‐0.9 ‐0.5 2,753 97 Printing and related support activities 33 ‐1.3 ‐1.9 ‐1.8 485 98 U.S. Postal Service 31 ‐2.7 ‐1.8 ‐1.6 644 99 Building material and garden supply stores 29 ‐3.3 ‐2.4 ‐1.3 1,135 100 Telecommunications 28 ‐3.5 ‐1.8 ‐2.4 912 101 Residential building 27 ‐2.5 ‐2.5 ‐3.3 563 102 Health and personal care store 27 ‐1.2 ‐2.0 ‐5.1 961 103 Insurance carriers and related activities 25 ‐3.9 ‐2.5 ‐3.0 2,166 104 Local government, excluding education 12 ‐9.8 ‐9.1 ‐9.3 6,324 105 Local government, education only 10 ‐12.8 ‐13.2 ‐7.4 7,900 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 35. Manufacturing sectors with high overtime hours Rank  NAICS Description Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 1 3231120009 Grain and oilseed milling 7.3 8.2 6.6 7.1 8.4 9.2 2 3232411009 Petroleum refineries 7.6 7.8 8.6 8.2 9.1 9.1 3 3133110009 Iron and steel mills and ferroalloy 7.1 6.7 7.6 7.9 7.9 8.6 4 3133635009 Motor vehicle power train components 8.9 6.9 8.9 7.9 8.1 8.2 5 3133310009 Agricultural 5.7 5.6 5.9 5.9 7.3 7.4 * 6 3133140009 Other nonferrous metal production 6.2 6.0 7.2 6.2 6.3 7.2 7 3231141209 Frozen specialty food 5.5 5.7 6.4 7.3 7.1 7.2 * 8 3133272209 Bolts 7.2 6.0 7.7 6.8 6.7 7.0 9 3232210009 Pulp 5.6 6.1 6.2 6.8 6.2 7.0 10 3132732009 Ready‐mix concrete 6.4 7.7 7.4 6.7 7.9 6.6 11 3133240009 Boilers 5.2 5.9 6.3 6.0 5.9 6.4 12 3231141009 Frozen food 5.6 5.9 6.4 7.5 7.6 6.4 13 3232400009 Petroleum and coal products 6.4 6.1 6.7 6.6 7.0 6.4 14 3231110009 Animal food 4.2 4.3 5.7 5.5 5.8 6.2 * 15 3231140009 Fruit and vegetable preserving 5.2 5.6 7.6 8.3 7.1 6.2 Tools & vehicles Energy Food Basic materials ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 36. Manufacturing sectors with high overtime hours Rank  NAICS Description Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 16 3133100009 Primary metals 5.6 5.5 5.7 5.5 5.9 6.1 17 3133351309 Metal cutting and forming machine tools 3.5 3.1 3.1 4.7 5.7 6.0 * 18 3133610009 Motor vehicles 4.9 4.5 5.2 6.0 5.7 6.0 19 3133641109 Aircraft 4.9 5.5 5.7 5.6 5.9 6.0 20 3231142009 Fruit and vegetable canning and drying 4.9 5.3 8.5 8.9 6.7 6.0 21 3133351109 Industrial molds 5.5 5.4 5.5 4.8 6.2 5.9 22 3231190009 Other food products 4.2 4.0 4.6 4.2 5.7 5.9 * 23 3232521109 Plastics material and resin 5.7 6.1 5.5 5.7 5.8 5.9 24 3132730009 Cement and concrete products 5.7 6.8 6.6 5.5 6.4 5.8 25 3133351409 Special tools 4.6 4.7 4.8 5.6 5.8 5.8 26 3231161109 Animal slaughtering and processing 6.3 5.0 6.0 6.3 6.1 5.8 27 3133231009 Plate work and fabricated structural 3.7 3.7 4.7 5.0 5.7 5.7 * 28 3133272009 Turned products and screws 5.3 4.8 5.4 5.3 5.5 5.7 29 3133360009 Turbine and power transmission equip 5.8 5.3 5.1 5.1 4.2 5.7 30 3232510009 Basic chemicals 5.6 5.4 5.2 5.1 5.7 5.7 Tools & vehicles Energy Food Basic materials ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 37. Trends in hours worked Average Weekly Hours of All Employees Average Weekly Overtime of Production &  Non‐Supervisory Employees 34.8 4.5 34.6 4.0 34.4 3.5 34.2 3.0 Hours Hours 2.5 34.0 2.0 33.8 1.5 33.6 1.0 33.4 0.5 33.2 0.0 Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ 08 08 08 09 09 09 09 10 10 10 10 08 08 08 09 09 09 09 10 10 10 10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 38. Seasonal Peaks in Hiring—Who Hires When Jan Feb Mar Apr May Jun Accounting/ Accounting/ Building material  Scenic and  Scenic and  Scenic and  Bookkeeping Bookkeeping and garden  sightseeing  sightseeing  sightseeing  supply stores transportation transportation transportation State government  Performing arts  Amusements,  education and spectator  gambling, and  sports recreation Educational  Services to  Heavy and civil  services buildings and  engineering  dwellings construction ©2010 by Crain Communications Inc. All rights reserved. Bureau of Labor Statistics & Staffing Industry Analysts
  • 39. Trend in total unemployment U.S. Total Unemployment Rate U.S. Total Unemployed Rate down 35 basis points in Dec, to 9.42% 16,000 11% 10% 14,000 9% 12,000 8% 7% 10,000 6% 5% 8,000 Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐10 Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 40. Trend in college‐graduate unemployment U.S. College‐Graduate Unemployment Rate U.S. College‐Graduate Unemployed Rate down 33 basis points in Dec, to 4.79% 2,500 5.5% 5.0% 4.5% 2,000 4.0% 3.5% 1,500 3.0% 2.5% 2.0% 1,000 Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐09 Jul‐10 Oct‐10 Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐09 Jul‐10 Oct‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 41. Agenda • Trends in economy & employment • Staffing trends by segment & sector • Buyer survey results, Part 1 • Questions and answers ©2010 by Crain Communications Inc. All rights reserved.
  • 42. Trends in staffing employment Change in Temp Employment  Percent Change in Temp  Versus Previous Month Employment Versus Year Earlier 100 30% 20% 50 Thousands 10% 0 0% ‐10% ‐50 ‐20% +15,900 ‐100 ‐30% Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 43. Trends in staffing employment Temp Employment Penetration Rate Temp Employment Penetration Rate 2.0% 2.0% 1.8% 1.8% 1.6% 1.6% 1.4% 1.70% = 1997 1.4% 1.2% 1.2% 1.0% Dec‐ Jun‐ Dec‐ Jun‐ Dec‐ Jun‐ Dec‐ 1990 1992 1994 1996 1998 2000 2003 2005 2007 2009 07 08 08 09 09 10 10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 44. Trends in staffing employment Percent Change in Direct Hire Internal  Percent Change in Exec Search  Employment Versus Year Earlier Internal Employment Vs. Year Earlier 10% 14% 5% 0% 8% ‐5% 2% ‐10% ‐4% ‐15% ‐20% ‐10% ‐25% ‐16% Nov‐08 May‐09 Nov‐09 May‐10 Nov‐10 Nov‐08 May‐09 Nov‐09 May‐10 Nov‐10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 45. Trends in staffing employment Percent Change in PEO Covered  Layoffs as a Percent of Total  Employees Versus Year Earlier Employment 10% 2.0% 5% 0% 1.8% ‐5% 1.6% ‐10% ‐15% 1.4% ‐20% 1.2% ‐25% ‐30% 1.0% Nov‐ May‐ Nov‐ May‐ Nov‐ May‐ Nov‐ Oct‐ Apr‐ Oct‐ Apr‐ Oct‐ Apr‐ Oct‐ 07 08 08 09 09 10 10 07 08 08 09 09 10 10 ©2010 by Crain Communications Inc. All rights reserved. Source: Bureau of Labor Statistics & Staffing Industry Analysts
  • 46. Revenue trends by segment & sector Staffing sectors month‐to‐month sequential revenue trends Apr to  May  Jun to  July to  Aug to  Sept  Oct to  Nov to  Dec to  Jan10  Feb to  Mar  Apr to  May  Jun to  Jul to  Aug to  Sept  Oct to  May to Jun Jul Aug Sep to Oct Nov Dec Jan to Feb Mar to Apr May to Jun Jul Aug Sept to Oct Nov Temporary Staffing ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ Temp‐to‐Hire ‐‐ ‐‐ ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗ ↑ ↑ ↑ ↑ Direct Hire ‐‐ ‐‐ ‐‐ ‐‐ ↗ ↗ ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ Retained Search ↗ ‐‐ ‐‐ ↑ ↑ ↑ ↑ ↑ ‐‐ ↗ ↑ ↘ ↓ ↘ ↘ ↘ PEO ↑ ↗ ‐‐ ‐‐ ‐‐ ‐‐ ↑ ↑ ↑ ↗ ↗ ‐‐ ↘ Outplacement ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ↘ ↘ ↘ ↘ ↓ ↓ ↑ Widespread  ↗ Mild  ↘ Mild  ↓ Widepsread  ‐‐ Flat Improvement Improvement Deterioration Deterioration ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Monthly Pulse Survey
  • 47. Revenue trends by segment & sector Temp staffing segments month‐to‐month sequential revenue trends Apr to  May  Jun to  July to  Aug to  Sept  Oct to  Nov to  Dec to  Jan10  Feb to  Mar  Apr to  May  Jun to  Jul to  Aug to  Sept  Oct to  May to Jun Jul Aug Sep to Oct Nov Dec Jan to Feb Mar to Apr May to Jun Jul Aug Sept to Oct Nov Industrial ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ IT ↗ ↑ ↑ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ Office/Clerical ↗ ↗ ↗ ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ Engineering ↑ ↗ ↗ ‐‐ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗ ↗ ↑ ↑ ↑ ↑ ↑ Fin./Accounting ‐‐ ↗ ‐‐ ‐‐ ↑ ↑ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗ ↑ ↑ ↑ ↑ Allied/other ↘ ↗ ↑ ‐‐ ↗ ↗ ↗ ‐‐ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗ Clincial/scientific ↗ ‐‐ ↗ ‐‐ ↗ ↗ ↗ ↑ ↗ ↗ ↑ ↑ ‐‐ ↗ ↑ Travel nurse ↘ ↘ ‐‐ ↘ ‐‐ ↗ ‐‐ ↘ ↑ ‐‐ ↑ ↘ ↗ ↑ ↑ ↑ ↑ ↑ ↑ Legal ‐‐ ‐‐ ‐‐ ‐‐ ↑ ↗ ‐‐ ‐‐ ‐‐ ↗ ↑ ↑ ↑ ↗ ‐‐ ↑ Locum tenens ‐‐ ↗ ↗ ‐‐ ‐‐ ‐‐ ↗ ‐‐ ↑ ‐‐ ↑ ↗ ↑ Per diem nurse ‐‐ ↓ ↗ ‐‐ ↗ ↗ ‐‐ ↘ ↗ ↗ ↑ ↗ ↗ ↑ ↘ ↑ ↑ ↑ Marketing/creative ↘ ‐‐ ↗ ↗ ‐‐ ‐‐ ↘ ‐‐ ‐‐ ↗ ↗ ↗ ↗ ↗ ↑ Widespread  ↗ Mild  ↘ Mild  ↓ Widepsread  ‐‐ Flat Improvement Improvement Deterioration Deterioration ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Monthly Pulse Survey
  • 48. Which is greater challenge—selling or recruiting? 100% 80% 60% 40% Selling 20% 0% Recruiting  Jan‐ Feb‐ Mar‐ Apr‐ 10 10 May‐ Jun‐ 10 10 Jul‐10 Aug‐ 10 10 Sep‐ Oct‐ Nov‐ 10 10 10 10 ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Monthly Pulse Survey
  • 49. Staffing industry balance sheet +  ‐  •Weak employment report, just 103K  •BLS reports temp gain of 15.9K jobs •Unemployment likely to stay high for  •Economic indicators trending better forseeable future •Pulse: Most staffing firms still  reporting sequential  improvement  •Selling/recruiting difficulty ratio  improving over last nine months ©2010 by Crain Communications Inc. All rights reserved.
  • 50. Staffing industry balance sheet +  ‐  •Weak employment report, just 103K  •BLS reports temp gain of 15.9K jobs •Unemployment likely to stay high for  •Economic indicators trending better forseeable future •Pulse: Most staffing firms still  reporting sequential  improvement  •Selling/recruiting difficulty ratio  improving over last nine months ©2010 by Crain Communications Inc. All rights reserved.
  • 51. Agenda • Trends in economy & employment • Staffing trends by segment & sector • Buyer survey results, Part 1 • Questions and answers ©2010 by Crain Communications Inc. All rights reserved.
  • 52. How much expense does contingent labor save? Median Reported Total Expense  Savings Due to Use of Contingent  Labor, 2008‐2010 17% 13% 9% 2008 2009 2010 ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 53. Reported savings as a function of buyer industry Median Reported Expense Savings,  2008‐2010, by Industry of Buyer Energy/Chemi ca l 17% Technol ogy/Tel ecom 13% Ma nufa cturi ng 13% Fi na nce/Ins ura nce 12% Pha rma /Bi otech/Med 8% Hea l thca re 7% ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 55. Only 1/8 buyers believe they are 100% compliant In your best estimate, what percent of your  1099/independent contractors are properly classified? 100%, 12% Don't know,  26% 95‐99%, 15% 90%‐94%, 6% <90%, 41% ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 56. Large buyers project yet more contingent usage Respondent Estimates of CW Usage Rates 17% 15% 15% 13% 13% 11% 12% 12% 10% 10% 10% 8% 9% 7% 2005 2006 2007 2008 2009 2010 2012 Median Mean ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 57. How much do large buyers typically spend? Industry Median $90‐$99.9 million Energy/Chemcal Size (employees) Median Finance/Insurance $70‐$79.9 million 1,000 ‐ 1,999 <$10 million Technology/Telecom $70‐$79.9 million 2,000 ‐ 4,999 $10‐$19.9 million Manufacturing $50‐$59.9 million Pharma/Biotech/ Medical  5,000 ‐ 9,999 $30‐$39.9 million $50‐$59.9 million Equipment 10,000 or more $100‐$149.9 million Retail/Consumer $40‐$49.9 million Healthcare $30‐$39.9 million ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 58. HRO, RPO usage gradually increasing Trend in Percent of Buyers Using HRO Trend in Percent of Buyers Using RPO 18% 16% 22% 21% 14% 13% 17% 14% 2007 2008 2009 2010 2007 2008 2009 2010 ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 59. IC compliance screening trending up Do You Use a Vendor for Independent Contractor  Screening/Compliance? Don't know, 4% Trend in Percent of Buyers Using IC  Screening Vendor No, 21% 41% Yes, 41% 37% Maybe Over  Next 2 Years,  34% 2009 2010 ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 60. Offshore outsourcing also on the rise Do You Use a Significant Amount of  Offshore Outsourcing? 42% 38% 34% 2008 2009 2010 ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 61. CW increasingly managed on a global basis Trend in Percent of Buyers Managing on a  Global Basis 24% 21% 16% 2008 2009 2010 ©2010 by Crain Communications Inc. All rights reserved. Source: Staffing Industry Contingent Buyer Survey
  • 62. Agenda • Trends in economy & employment • Staffing trends by segment & sector • Buyer survey results, Part 1 • Questions and answers ©2010 by Crain Communications Inc. All rights reserved.
  • 63. Where to find latest research: staffingindustry.com ©2010 by Crain Communications Inc. All rights reserved.
  • 65. Please fill out the Pulse survey! Staffing Industry Monthly Pulse Survey. It’s open now!  Go to www.staffingindustry.com. ©2010 by Crain Communications Inc. All rights reserved.
  • 67. Questions and Answers ©2010 by Crain Communications Inc. All rights reserved.
  • 68. Thank You to Our Webinar and Executive  Forum Optimum Sponsor… ©2010 by Crain Communications Inc. All rights reserved.