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© 2015 Crain Communications Inc.
John Nurthen
Executive Director Global Research
jnurthen@staffingindustry.com
Burning Priorities of the Employment and
Recruitment Industry in an Ever-Evolving
Competitive Landscape
© 2015 Crain Communications Inc.
© 2015 Crain Communications Inc.
Our Clients provide us with a Global
Perspective
• Suppliers to Staffing Firms
• Investment Banks & Consulting Firms
• Staffing Firms
• Clients of Staffing
Firms
© 2015 Crain Communications Inc.
Staffing Industry Analyst’s Clients
© 2015 Crain Communications Inc.
Burning Priorities
• Definition
• Reputation
• Privation
• Disintermediation
• Automation
• Sophistication
© 2015 Crain Communications Inc.
Source: Staffing Industry Analysts
Staffing
Industry
Temporary
Staffing
Place & Search
Extended Workforce Eco-System
© 2015 Crain Communications Inc.
Source: Staffing Industry Analysts
MSP
RPO
Payrolling
Online Staffing
PEO
Staffing
Industry
Talent
Engagement
Temporary
Staffing
Place & Search
Extended Workforce Eco-System
© 2015 Crain Communications Inc.
Extended Workforce Eco-System
Source: Staffing Industry Analysts
MSP
RPO
Payrolling
Online Staffing
PEO
Job
Boards
Outplacement
BPO
Consulting
Services
HR
Consulting
VMS
Training
IC
Compliance
Crowdsourcing
Online
Services
ATS
FMS
Staffing
Industry
Talent
Engagement
Other
Talent
Solutions
Temporary
Staffing
Place & Search
© 2015 Crain Communications Inc.
Extended Workforce Eco-System
Source: Staffing Industry Analysts
MSP
RPO
Payrolling
Online Staffing
PEO
Job
Boards
Outplacement
BPO
Consulting
Services
HR
Consulting
VMS
Training
IC
Compliance
Crowdsourcing
Online
Services
ATS
FMS
Staffing
Industry
Talent
Engagement
Other
Talent
Solutions
Temporary
Staffing
Place & Search
The
Human Cloud
© 2015 Crain Communications Inc.
Contingent Work by Value
Source: Staffing Industry Analysts
Total value globally in 2013
= €2.4 trillion
Agency Temps
€267bn
Other Temps
€507bn
Independent
Contractors
€794bn
SOW
€808bn
© 2015 Crain Communications Inc.
Burning Priorities
• Definition
• Reputation
• Privation
• Disintermediation
• Automation
• Sophistication
© 2015 Crain Communications Inc.
Restrictions on Temporary Agency Work
Restrictions Member States
Replacing striking workers Austria, Belgium, Bulgaria, Croatia, France,
Greece, Hungary, Italy, Poland, Slovenia,
Spain, UK
Sectoral bans re. Health & Safety grounds Belgium, Croatia, France, Greece, Poland,
Portugal, Slovenia, Spain
Public sector restrictions Belgium, Greece, Spain
Construction industry Belgium, Germany, Greece
Limited reasons for temporary agency
work
Belgium, Finland, France, Greece, Poland,
Portugal, Romania
Limited duration of assignments Belgium, France, Greece, Italy, Poland,
Portugal
Prohibition after dismissal of workers for
business reasons
Croatia, France, Greece, Italy, Poland,
Slovenia, Spain
Limitation of numbers/proportion Austria, Netherlands
Source: European Commission – Updated by Staffing Industry Analysts
© 2015 Crain Communications Inc.
ISRAEL SPAIN
SOUTH AFRICA POLAND
GERMANY
TAIWAN
Protests Against Temporary Work
INDIA NORWAY PAKISTAN
© 2015 Crain Communications Inc.
Burning Priorities
• Definition
• Reputation
• Privation
• Disintermediation
• Automation
• Sophistication
© 2015 Crain Communications Inc.
Ageing Population
Source: Ageing Societies, Steve Beales, Imperial College London
Number of People of Working Age (15-64) for Each Person Aged 65+
11.75 working people to one aged 65+
8.5 working people to one aged 65+
3.9 working people to one aged 65+
© 2015 Crain Communications Inc.
Global Skills Index
Source: Hays & Oxford Economics, 2014
-1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00
Belgium
Italy
India
Netherlands
UK
France
Australia
Brazil
Canada
Mexico
Ireland
Japan
Russia
Germany
Spain
US
Sweden
3.3 4.0 4.5 5.0 5.5 6.0 6.5 7.0
Increasing pressureDecreasing pressure
Hays Skills Index data derived from:
• Education Flexibility
• Labour Market Participation
• Labour Market Flexibility
• Talent Mismatch
• Overall Wage Pressure
• Wage Pressure in High Skill Industries
• Wage Pressure in High Skill Occupations
© 2015 Crain Communications Inc.
EU27 Population with/without Immigration
Source: Eurostat
540m
520m
500m
480m
460m
440m
420m
400m
With migration Without migration
Decline starts 2012
Decline starts 2035
Without Immigration European Population
Would Already be in Decline
© 2015 Crain Communications Inc.
Burning Priorities
• Definition
• Reputation
• Privation
• Disintermediation
• Automation
• Sophistication
© 2015 Crain Communications Inc.
Online Staffing: The Same and Different
Temporary Staffing Online Staffing
Freelance
Worker
Freelance
Platform
Clients
Temporary
Worker
Private Employment
Agency
Clients
© 2015 Crain Communications Inc.
Online Staffing Platforms by Country Started
Online Staffing Dominated by China and US
Source: Staffing Industry Analysts
0 10 20 30 40 50 60 70 80
Other APAC
Africa & Middle East
LATAM
Other Europe
Israel
France
Spain
India
Canada
Japan
Australia
UK
US
China
196
Online Staffing
firms in operation
globally
© 2015 Crain Communications Inc.
Online Staffing Online
Services
Source: Staffing Industry Analysts “Online Staffing” Industry Segment Forecast Through 2020 – Jan. 2014
Fastest Growing Part of the Staffing Industry
• Online staffing estimated €1.5 billion in global
revenue in 2014
• Forecast growth to 2020
 Conservative
– €11 billion (CAGR of 40%)
 Quite plausible
– €14 billion (CAGR of 50%)
 Aggressive, but possible
– €32 billion (CAGR of 60%)
© 2015 Crain Communications Inc.
Burning Priorities
• Definition
• Reputation
• Privation
• Disintermediation
• Automation
• Sophistication
© 2015 Crain Communications Inc.
“The secular price decline in the real cost
of computing has created vast economic
incentives for employers to substitute
labour for computer capital.”
Carl Frey and Michael Osborne
Frey & Osborne
 47% of total US employment is at risk of replacement
through automation over next 10 to 20 years
– Predictions are based on current and near-term technological
breakthroughs and did not consider the impact of any future
technology inventions
 Given more recent advances in machine learning (data
mining, machine vision, computational statistics, etc) and
mobile robotics, the next technological wave will
increasingly hit higher-skilled white-collar jobs
© 2015 Crain Communications Inc.
Probability of Computerization Over Next
Two Decades
Job Probability of
Computerization
Recreational Therapists 0.003
Dentists 0.004
Athletic Trainers 0.007
Clergy 0.008
Chemical Engineers 0.02
Firefighters 0.17
Actors 0.37
Health Technologists 0.40
Economists 0.43
Commercial Pilots 0.55
Machinists 0.65
Word Processors & Typists 0.81
Real estate sales agents 0.86
Technical writers 0.89
Retail Salespersons 0.92
Accountants & Auditors 0.94
Telemarketers 0.99
Source: Frey &Osborne
+0.7 = High Risk
© 2015 Crain Communications Inc.
What Do We Mean by AI and Robotics?
 Software substitution
through cognitive
computing applications
 Drones
 Bots
 Robots
© 2015 Crain Communications Inc.© 2015 Crain Communications Inc.
© 2015 Crain Communications Inc.
Impact of Automation on the US Staffing
Industry
Staffing Segment Probability of
Computerization
Office/Clerical 0.814
Industrial 0.796
Commercial 0.802
Finance & Accounting 0.845
Clinical/Scientific 0.413
Marketing/Creative 0.364
Other Professional 0.346
IT 0.278
Legal 0.275
Education 0.252
Healthcare 0.242
Engineering/Design 0.233
Professional/Specialty 0.327
TOTAL TEMPORARY STAFFING 0.719
Source: Staffing Industry Analysts
63% of all temporary
agency jobs susceptible
to replacement over the
next 10 to 20 years
© 2015 Crain Communications Inc.
Competing Against the Machines or Running
With Them?
 Can AI and automation be harnessed to develop broader and
better staffing services?
Source: www.workfusion.com
– Workfusion sources, trains and manages a
hybrid workforce of machines and people
to undertake repetitive data-driven tasks
 Leveraging three key resources:
automation tools, crowdsourced workers,
and so-called “employee experts”
– Is the human-machine hybrid the staffing
model of the future where machine
algorithms perform high-volume repetitive
tasks and freelance or temporary workers
perform tasks that require more judgment
and analysis?
© 2015 Crain Communications Inc.
Burning Priorities
• Definition
• Reputation
• Privation
• Disintermediation
• Automation
• Sophistication
© 2015 Crain Communications Inc.
The Inevitable Growth of MSP
2%
3%
8%
11%
19%
28%
32%
34%
40%
44%
86%
Australia
France
The Netherlands
UK
US
India
Spain
Japan
Canada
Belgium
Germany
Source: Staffing Industry Analysts – 2014 VMS and MSP Supplier Competitive Landscape
2012/2013 MSP Growth Spend by Country
131
100
190
(Number of Programmes)
51
93
59
1,674
148
63
113
277
© 2015 Crain Communications Inc.
• Employees
– Full time or part time
– Apprentices, trainees, and paid interns
• Non-Employees
– Temporary workers
– Independent contractors or consultants/freelancers
– Online workers (e.g. micro tasks, crowdsourced, etc.)
– Professional services (e.g. management consultants, lawyers)
– Outsourced services (e.g. security guards, maintenance)
– Partners (e.g. supply chain, partnerships, joint ventures)
– Formal and informal volunteers (e.g. self-service customers)
– Franchisees/affiliates/associates (e.g. marketing, sales activities, etc.)
– Robots/drones/cognitive computing applications
Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015
Work Undertaken by Employees and
Non-Employees
© 2015 Crain Communications Inc.
What is Total Talent Management?
Total Talent Management (TTM) refers to an employer’s
practice of routinely considering TOTAL TALENT when it comes
to talent acquisition or management. For example, when
there is a job to “fill”, an employer that practices TTM will
consider various options such as hiring an employee, using a
contingent worker, acquiring a robot, etc. And when thinking
about “engaging” talent, an employer that practices TTM will
design programs/approaches that engage ALL Talent, not just
employee talent.
Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015
© 2015 Crain Communications Inc.
Examples of Total Talent Initiatives
• Kelly Workforce Solutions
– KellyOCG service line
– “A Total Talent Approach”
– “A holistic approach to talent acquisition and management”
• Randstad Integrated Talent Solutions Group
– Launched in January 2015
– “A holistic capability offering…”
• Volt Consulting Group
– Total Talent Management Solutions
– Blending recruiting of both contingent and perm workers
• Peoplefluent
– A total workforce management solution that spans the acquisition
and management of your hourly, salaried, and contingent workers
• Tapfin
– Integrated Resource Fulfilment
© 2015 Crain Communications Inc.
Pricing Transparency Imminent
• The Talent Data Exchange is a suite of data aggregation and
analysis tools developed by Brightfield Strategies
– Ongoing, validated data and analysis related to the pricing,
performance and quality of suppliers and contingent
workers
– Direct relationships with VMS providers providing
transactional and aggregated programme performance
data from large, global users of contingent workers
– Unsurpassed by other data sources
– Only source of data that is independent of suppliers and is neutral
and representative of the market
– To incorporate FMS, ATS & HRIS data
providing a gateway to…….
Total Talent Management
© 2015 Crain Communications Inc.
Burning Priorities Summary
Acceleration Extinction
© 2015 Crain Communications Inc.
John Nurthen
Executive Director Global Research
jnurthen@staffingindustry.com
Any Questions?
© 2015 Crain Communications Inc.

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Burning Priorities of the Employment and Recruitment Industry in an Ever-Evolving Competitive Landscape by John Nurthen

  • 1. © 2015 Crain Communications Inc. John Nurthen Executive Director Global Research jnurthen@staffingindustry.com Burning Priorities of the Employment and Recruitment Industry in an Ever-Evolving Competitive Landscape © 2015 Crain Communications Inc.
  • 2. © 2015 Crain Communications Inc. Our Clients provide us with a Global Perspective • Suppliers to Staffing Firms • Investment Banks & Consulting Firms • Staffing Firms • Clients of Staffing Firms
  • 3. © 2015 Crain Communications Inc. Staffing Industry Analyst’s Clients
  • 4. © 2015 Crain Communications Inc. Burning Priorities • Definition • Reputation • Privation • Disintermediation • Automation • Sophistication
  • 5. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts Staffing Industry Temporary Staffing Place & Search Extended Workforce Eco-System
  • 6. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts MSP RPO Payrolling Online Staffing PEO Staffing Industry Talent Engagement Temporary Staffing Place & Search Extended Workforce Eco-System
  • 7. © 2015 Crain Communications Inc. Extended Workforce Eco-System Source: Staffing Industry Analysts MSP RPO Payrolling Online Staffing PEO Job Boards Outplacement BPO Consulting Services HR Consulting VMS Training IC Compliance Crowdsourcing Online Services ATS FMS Staffing Industry Talent Engagement Other Talent Solutions Temporary Staffing Place & Search
  • 8. © 2015 Crain Communications Inc. Extended Workforce Eco-System Source: Staffing Industry Analysts MSP RPO Payrolling Online Staffing PEO Job Boards Outplacement BPO Consulting Services HR Consulting VMS Training IC Compliance Crowdsourcing Online Services ATS FMS Staffing Industry Talent Engagement Other Talent Solutions Temporary Staffing Place & Search The Human Cloud
  • 9. © 2015 Crain Communications Inc. Contingent Work by Value Source: Staffing Industry Analysts Total value globally in 2013 = €2.4 trillion Agency Temps €267bn Other Temps €507bn Independent Contractors €794bn SOW €808bn
  • 10. © 2015 Crain Communications Inc. Burning Priorities • Definition • Reputation • Privation • Disintermediation • Automation • Sophistication
  • 11. © 2015 Crain Communications Inc. Restrictions on Temporary Agency Work Restrictions Member States Replacing striking workers Austria, Belgium, Bulgaria, Croatia, France, Greece, Hungary, Italy, Poland, Slovenia, Spain, UK Sectoral bans re. Health & Safety grounds Belgium, Croatia, France, Greece, Poland, Portugal, Slovenia, Spain Public sector restrictions Belgium, Greece, Spain Construction industry Belgium, Germany, Greece Limited reasons for temporary agency work Belgium, Finland, France, Greece, Poland, Portugal, Romania Limited duration of assignments Belgium, France, Greece, Italy, Poland, Portugal Prohibition after dismissal of workers for business reasons Croatia, France, Greece, Italy, Poland, Slovenia, Spain Limitation of numbers/proportion Austria, Netherlands Source: European Commission – Updated by Staffing Industry Analysts
  • 12. © 2015 Crain Communications Inc. ISRAEL SPAIN SOUTH AFRICA POLAND GERMANY TAIWAN Protests Against Temporary Work INDIA NORWAY PAKISTAN
  • 13. © 2015 Crain Communications Inc. Burning Priorities • Definition • Reputation • Privation • Disintermediation • Automation • Sophistication
  • 14. © 2015 Crain Communications Inc. Ageing Population Source: Ageing Societies, Steve Beales, Imperial College London Number of People of Working Age (15-64) for Each Person Aged 65+ 11.75 working people to one aged 65+ 8.5 working people to one aged 65+ 3.9 working people to one aged 65+
  • 15. © 2015 Crain Communications Inc. Global Skills Index Source: Hays & Oxford Economics, 2014 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 Belgium Italy India Netherlands UK France Australia Brazil Canada Mexico Ireland Japan Russia Germany Spain US Sweden 3.3 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Increasing pressureDecreasing pressure Hays Skills Index data derived from: • Education Flexibility • Labour Market Participation • Labour Market Flexibility • Talent Mismatch • Overall Wage Pressure • Wage Pressure in High Skill Industries • Wage Pressure in High Skill Occupations
  • 16. © 2015 Crain Communications Inc. EU27 Population with/without Immigration Source: Eurostat 540m 520m 500m 480m 460m 440m 420m 400m With migration Without migration Decline starts 2012 Decline starts 2035 Without Immigration European Population Would Already be in Decline
  • 17. © 2015 Crain Communications Inc. Burning Priorities • Definition • Reputation • Privation • Disintermediation • Automation • Sophistication
  • 18. © 2015 Crain Communications Inc. Online Staffing: The Same and Different Temporary Staffing Online Staffing Freelance Worker Freelance Platform Clients Temporary Worker Private Employment Agency Clients
  • 19. © 2015 Crain Communications Inc. Online Staffing Platforms by Country Started Online Staffing Dominated by China and US Source: Staffing Industry Analysts 0 10 20 30 40 50 60 70 80 Other APAC Africa & Middle East LATAM Other Europe Israel France Spain India Canada Japan Australia UK US China 196 Online Staffing firms in operation globally
  • 20. © 2015 Crain Communications Inc. Online Staffing Online Services Source: Staffing Industry Analysts “Online Staffing” Industry Segment Forecast Through 2020 – Jan. 2014 Fastest Growing Part of the Staffing Industry • Online staffing estimated €1.5 billion in global revenue in 2014 • Forecast growth to 2020  Conservative – €11 billion (CAGR of 40%)  Quite plausible – €14 billion (CAGR of 50%)  Aggressive, but possible – €32 billion (CAGR of 60%)
  • 21. © 2015 Crain Communications Inc. Burning Priorities • Definition • Reputation • Privation • Disintermediation • Automation • Sophistication
  • 22. © 2015 Crain Communications Inc. “The secular price decline in the real cost of computing has created vast economic incentives for employers to substitute labour for computer capital.” Carl Frey and Michael Osborne Frey & Osborne  47% of total US employment is at risk of replacement through automation over next 10 to 20 years – Predictions are based on current and near-term technological breakthroughs and did not consider the impact of any future technology inventions  Given more recent advances in machine learning (data mining, machine vision, computational statistics, etc) and mobile robotics, the next technological wave will increasingly hit higher-skilled white-collar jobs
  • 23. © 2015 Crain Communications Inc. Probability of Computerization Over Next Two Decades Job Probability of Computerization Recreational Therapists 0.003 Dentists 0.004 Athletic Trainers 0.007 Clergy 0.008 Chemical Engineers 0.02 Firefighters 0.17 Actors 0.37 Health Technologists 0.40 Economists 0.43 Commercial Pilots 0.55 Machinists 0.65 Word Processors & Typists 0.81 Real estate sales agents 0.86 Technical writers 0.89 Retail Salespersons 0.92 Accountants & Auditors 0.94 Telemarketers 0.99 Source: Frey &Osborne +0.7 = High Risk
  • 24. © 2015 Crain Communications Inc. What Do We Mean by AI and Robotics?  Software substitution through cognitive computing applications  Drones  Bots  Robots
  • 25. © 2015 Crain Communications Inc.© 2015 Crain Communications Inc.
  • 26. © 2015 Crain Communications Inc. Impact of Automation on the US Staffing Industry Staffing Segment Probability of Computerization Office/Clerical 0.814 Industrial 0.796 Commercial 0.802 Finance & Accounting 0.845 Clinical/Scientific 0.413 Marketing/Creative 0.364 Other Professional 0.346 IT 0.278 Legal 0.275 Education 0.252 Healthcare 0.242 Engineering/Design 0.233 Professional/Specialty 0.327 TOTAL TEMPORARY STAFFING 0.719 Source: Staffing Industry Analysts 63% of all temporary agency jobs susceptible to replacement over the next 10 to 20 years
  • 27. © 2015 Crain Communications Inc. Competing Against the Machines or Running With Them?  Can AI and automation be harnessed to develop broader and better staffing services? Source: www.workfusion.com – Workfusion sources, trains and manages a hybrid workforce of machines and people to undertake repetitive data-driven tasks  Leveraging three key resources: automation tools, crowdsourced workers, and so-called “employee experts” – Is the human-machine hybrid the staffing model of the future where machine algorithms perform high-volume repetitive tasks and freelance or temporary workers perform tasks that require more judgment and analysis?
  • 28. © 2015 Crain Communications Inc. Burning Priorities • Definition • Reputation • Privation • Disintermediation • Automation • Sophistication
  • 29. © 2015 Crain Communications Inc. The Inevitable Growth of MSP 2% 3% 8% 11% 19% 28% 32% 34% 40% 44% 86% Australia France The Netherlands UK US India Spain Japan Canada Belgium Germany Source: Staffing Industry Analysts – 2014 VMS and MSP Supplier Competitive Landscape 2012/2013 MSP Growth Spend by Country 131 100 190 (Number of Programmes) 51 93 59 1,674 148 63 113 277
  • 30. © 2015 Crain Communications Inc. • Employees – Full time or part time – Apprentices, trainees, and paid interns • Non-Employees – Temporary workers – Independent contractors or consultants/freelancers – Online workers (e.g. micro tasks, crowdsourced, etc.) – Professional services (e.g. management consultants, lawyers) – Outsourced services (e.g. security guards, maintenance) – Partners (e.g. supply chain, partnerships, joint ventures) – Formal and informal volunteers (e.g. self-service customers) – Franchisees/affiliates/associates (e.g. marketing, sales activities, etc.) – Robots/drones/cognitive computing applications Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015 Work Undertaken by Employees and Non-Employees
  • 31. © 2015 Crain Communications Inc. What is Total Talent Management? Total Talent Management (TTM) refers to an employer’s practice of routinely considering TOTAL TALENT when it comes to talent acquisition or management. For example, when there is a job to “fill”, an employer that practices TTM will consider various options such as hiring an employee, using a contingent worker, acquiring a robot, etc. And when thinking about “engaging” talent, an employer that practices TTM will design programs/approaches that engage ALL Talent, not just employee talent. Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015
  • 32. © 2015 Crain Communications Inc. Examples of Total Talent Initiatives • Kelly Workforce Solutions – KellyOCG service line – “A Total Talent Approach” – “A holistic approach to talent acquisition and management” • Randstad Integrated Talent Solutions Group – Launched in January 2015 – “A holistic capability offering…” • Volt Consulting Group – Total Talent Management Solutions – Blending recruiting of both contingent and perm workers • Peoplefluent – A total workforce management solution that spans the acquisition and management of your hourly, salaried, and contingent workers • Tapfin – Integrated Resource Fulfilment
  • 33. © 2015 Crain Communications Inc. Pricing Transparency Imminent • The Talent Data Exchange is a suite of data aggregation and analysis tools developed by Brightfield Strategies – Ongoing, validated data and analysis related to the pricing, performance and quality of suppliers and contingent workers – Direct relationships with VMS providers providing transactional and aggregated programme performance data from large, global users of contingent workers – Unsurpassed by other data sources – Only source of data that is independent of suppliers and is neutral and representative of the market – To incorporate FMS, ATS & HRIS data providing a gateway to……. Total Talent Management
  • 34. © 2015 Crain Communications Inc. Burning Priorities Summary Acceleration Extinction
  • 35. © 2015 Crain Communications Inc. John Nurthen Executive Director Global Research jnurthen@staffingindustry.com Any Questions? © 2015 Crain Communications Inc.

Editor's Notes

  1. One of the things that can make a market difficult is cultural attitudes to temporary work. Coming from the west, it may be easy to forget how hostile some people are towards the concept of temporary work. On this slide are illustrations of industrial action and protest marches involving temporary work that have taken place this year. Two of these examples actually escalated into national strikes – South Africa and Israel – which is why Ben Gurion Airport in Tel Aviv looks rather empty. Admittedly the mass protest in Spain which bought half a million people out onto the streets of Madrid was over a package of employment measures but these did include the lifting of restrictions on temporary agencies. The protests in Germany are ongoing as unions, employers and politicians equal pay for temporary workers and restrictions on the number of temporaries that employers should be allowed to use.
  2. There are currently 800 million people aged 60 years and up, making up 11% of the world’s population. By 2030 they will number 1.4 billion and make up 17%. In 2047, for the first time in human history, a higher proportion of people in the world will be aged 60 and over (21.0%) than under 15 (20.8%).1 Ageing is affecting all countries, both high and low-income. Lower life expectancy disguises the fact that there are many older people in developing countries, and by 2050, 68% of the world’s over-80 population will be living in Asia or Latin America and the Caribbean.
  3. Not all bad. Will likely have higher volumes - think about the past decade in terms of growth in revenue – US temp industry has grown from 85B in 2000 to 111 Billion today for temp staffing. Over 30% larger today than in 2000. Through two significant recessions, including the great recession. Now have highest penetration rate ever for temp staff in the US. Profits another question! Many new models for staffing players Options Low cost provider – maximum efficiency Highly centralized recruiting Or highly distributed recruiting Offshore recruiting Significant automation integrated into the process Payroll only option – legal compliance/employer of record Coach and Guide – advising clients on how best to operate in the new world to maximize talent value Niche recruiters – in a specific skill, industry or geography MSP model everywhere - managing the process and program Innovative MSP variations - Larger firms must deliver MSP as a very mature model – will need to continue to innovate in what those models deliver and how they can bring value to client. Answer the question “why outsource this program vs. do it myself?” and once answered, then answer “why me vs someone else?” For some staffing firms will manage for small clients – perhaps in more of a master supplier model Bring an off the shelf VMS solutions to your clients
  4. Not all bad. Will likely have higher volumes - think about the past decade in terms of growth in revenue – US temp industry has grown from 85B in 2000 to 111 Billion today for temp staffing. Over 30% larger today than in 2000. Through two significant recessions, including the great recession. Now have highest penetration rate ever for temp staff in the US. Profits another question! Many new models for staffing players Options Low cost provider – maximum efficiency Highly centralized recruiting Or highly distributed recruiting Offshore recruiting Significant automation integrated into the process Payroll only option – legal compliance/employer of record Coach and Guide – advising clients on how best to operate in the new world to maximize talent value Niche recruiters – in a specific skill, industry or geography MSP model everywhere - managing the process and program Innovative MSP variations - Larger firms must deliver MSP as a very mature model – will need to continue to innovate in what those models deliver and how they can bring value to client. Answer the question “why outsource this program vs. do it myself?” and once answered, then answer “why me vs someone else?” For some staffing firms will manage for small clients – perhaps in more of a master supplier model Bring an off the shelf VMS solutions to your clients
  5. Kelly example Randstad example Most just focused on talent acquisition – staffing firms only thinking of this on a more narrow basis Much broader than that potentially Other examples? Research these – could use logos
  6. Big Data market - $30 Billion and growing at 17% CAGR over the next 6 years Go through the bullet points – the world will have complete visibility to contingent workforce data Talent availability – who is out there, what are their skills Ratings and reviews Fit and success in a role Ratings and reviews – and not just on the talent, but on you as an employer – glassdoor is just the beginning! Costs and rates Speed and efficiiency Sources of talent – rated and understood And really will know everything – will know how what they had for breakfast correlates with how productive! Discuss the SIA partnership with Brightfield – Announced on Monday the Talent Data Exchange partnering with Brightfield Strategies
  7. Not all bad. Will likely have higher volumes - think about the past decade in terms of growth in revenue – US temp industry has grown from 85B in 2000 to 111 Billion today for temp staffing. Over 30% larger today than in 2000. Through two significant recessions, including the great recession. Now have highest penetration rate ever for temp staff in the US. Profits another question! Many new models for staffing players Options Low cost provider – maximum efficiency Highly centralized recruiting Or highly distributed recruiting Offshore recruiting Significant automation integrated into the process Payroll only option – legal compliance/employer of record Coach and Guide – advising clients on how best to operate in the new world to maximize talent value Niche recruiters – in a specific skill, industry or geography MSP model everywhere - managing the process and program Innovative MSP variations - Larger firms must deliver MSP as a very mature model – will need to continue to innovate in what those models deliver and how they can bring value to client. Answer the question “why outsource this program vs. do it myself?” and once answered, then answer “why me vs someone else?” For some staffing firms will manage for small clients – perhaps in more of a master supplier model Bring an off the shelf VMS solutions to your clients