68
Staffing Industry Report Webinar January 2011 © 2010 Crain Communications Inc. Sponsored by: Please note: 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 trouble with the sound, you may dial into the call by dialing 14086003600 and using access code 660 325 851. For other assistance , contact SIA customer service at 8009509496. Jon Osborne VP, Research Sona Sharma Sr. Research Analyst

SIA Webinar 1 11 11 Final (2)

Embed Size (px)

Citation preview

©2010 by Crain Communications Inc. All rights reserved.

Staffing Industry Report Webinar  January 2011

© 2010 Crain Communications Inc.

Sponsored by:

Please note:

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 

trouble with the sound, 

you may dial into the call 

by dialing 1‐408‐600‐

3600 and using access 

code

660 325 851.  

For other assistance, 

contact SIA customer 

service at 800‐950‐9496.

Jon Osborne

VP, Research

Sona

Sharma

Sr. Research Analyst

©2010 by Crain Communications Inc. All rights reserved.

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.

Audio for this webinar

©2010 by Crain Communications Inc. All rights reserved.

Questions may be submitted at any time 

during the presentation. To submit a 

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.

Q&A icon

Submitting Questions

©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, 2011Fontainebleau Resort

Miami Beach, FLwww.SiExecutiveForum.com

©2010 by Crain Communications Inc. All rights reserved.

©2010 by Crain Communications Inc. All rights reserved.

Barry Asin, President,  Staffing Industry 

Analysts

John Kao, Chairman,  World Economic 

Forum’s Global  Advisory Council on 

Innovation

Alan Beaulieu,  President, Institute for 

Trend Research

Stephen Dubner,  Award‐winning co‐

author of  FREAKONOMICS and 

SUPERFREAKONOMICS

Keynotes

©2010 by Crain Communications Inc. All rights reserved.

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

Speaker: Ken Allred, CEO,  Primary Intelligence

Win/Loss Analysis

©2010 by Crain Communications Inc. All rights reserved.

SIA’s

Sales Compensation &  Sales Job Practices 2011 

Survey

Speaker: Mark Donnolo,  Managing Partner, 

SalesGlobe

Getting Staffing Salesforce

Compensation Right

©2010 by Crain Communications Inc. All rights reserved.

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.

For The CFOs …

©2010 by Crain Communications Inc. All rights reserved.

CFO Networking Lunch

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

For The First Time Ever …

©2010 by Crain Communications Inc. All rights reserved.

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.

For the CIOs

©2010 by Crain Communications Inc. All rights reserved.

Be a secret shopper for…

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

Email: [email protected]

Looking to Buy Support Technology or Service?

©2010 by Crain Communications Inc. All rights reserved.

Best Staffing  Firms to Work For

As determined by  a survey of 

25,000+ staffing  firm employees

Peter Yessne Staffing Innovator 

Award Top mover and 

shaker who has  changed the 

industry

Two Major Awards

©2010 by Crain Communications Inc. All rights reserved.

Industry leaders provide their insights on pressing issues

Speakers:

Carl Camden, CEO, Kelly Services

Cheryl Jones, Chairman, Impellam

Group plc

Executive Perspective

©2010 by Crain Communications Inc. All rights reserved.

Panelists:

Julia Braun, Group Manager, Contingent Staffing,  Microsoft Corp

Tony Marino, Manager, GSC Indirect Procurement,  Hess Company

Traci Ramsey, Global Contingent Labor Lead,  Monsanto

Voice of the Customer

©2010 by Crain Communications Inc. All rights reserved.

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

Special offer exclusively for Webinar attendees

©2010 by Crain Communications Inc. All rights reserved.

Trends in economy & employment

Staffing trends by segment & sector

Buyer survey results, Part 1

Questions and answers

Agenda

©2010 by Crain Communications Inc. All rights reserved.

Source: Economic Cycle Research Institute (ECRI) Weekly Leading Index

ECRI gradually getting more optimistic

100

110

120

130

140

150

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

Level of W

eekly Leading Index

©2010 by Crain Communications Inc. All rights reserved.

PM Manufacturing

Index: still indicates  expansion, but at a slower rate

Source: Purchasing Manager’s Manufacturing Index

25

30

35

40

45

50

55

60

65

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

Index

Recession

PMI

EI

©2010 by Crain Communications Inc. All rights reserved.

PM Non‐Manufacturing

Index: accelerating  expansion but limited hiring

Source: Purchasing Manager’s Nonmanufacturing Index

25

30

35

40

45

50

55

60

65

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

Index

Recession

PMI

EI

©2010 by Crain Communications Inc. All rights reserved.

Source: U.S. Department of Labor

Initial unemployment claims finally resume  downward progress

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Dec‐00 Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 Initial Claims for Unemployment (4‐Week Average)

©2010 by Crain Communications Inc. All rights reserved.

U.S. GDP projected growth, 2011‐2012U.S. GDP growth projections 2011 2012The Conference Board

Nov. 9, 2010 1.3%Dec. 7, 2010 1.7% 2.1%

Post‐tax deal 2.3% tbd

Goldman SachsBefore tax deal 2.7% 3.6%Dec. 17, 2010 (after tax deal) 3.4% 3.8%

tax deal accounts for roughly 2/3 of upgradeMorgan Stanley

Dec. 2010  ‐ Projection without tax deal 3.0%Dec. 2010  ‐ Projection with tax deal 4.0%‐4.2%

key drivers of upgrade:                                    stronger consumer and capital spending

key drivers of upgrade:                                                 1 year reduction in employee Social Security tax

©2010 by Crain Communications Inc. All rights reserved.

Trends in total employment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Change in Nonfarm Employment Versus Year Earlier

‐5%‐4%‐3%‐2%‐1%0%1%2%

Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10

Change in Nonfarm Employment Versus Previous Month

‐800

‐600‐400

‐200

0

200400

600

Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10

Thou

sand

s

+103,000

©2010 by Crain Communications Inc. All rights reserved.

Trends in total private employment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Change in Private Employment Versus Year Earlier

‐6%‐5%‐4%‐3%‐2%‐1%0%1%2%

Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10

Change in Private Employment Versus Previous Month

‐800

‐600

‐400

‐200

0

200

400

Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10

Thou

sand

s

+108,453

©2010 by Crain Communications Inc. All rights reserved.

In December, which sectors gained/lost jobs?

Source: Bureau of Labor Statistics & Staffing Industry Analysts

‐16

‐14

‐10

‐9

‐4

4

4

9

10

10

12

16

44

47

Construction

Other

Government

Professional  srs  (excluding temp)

Information

Financial  activities

Natural  resources/mining

Wholesale trade

Transportation & util ities

Manufacturing

Retail  trade

Temporary help

Education and health

Leisure and hospitality

Thousands  of Jobs

©2010 by Crain Communications Inc. All rights reserved.

Best‐performing U.S. industry markets

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Industries Job Growth ScoreLast 12 Months

Last 6 Months

Last 3 Months

Total Nonfarm 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

Average Monthly Change in Jobs Over…

©2010 by Crain Communications Inc. All rights reserved.

Employment trends in food/drinking places

Employment in thousands.

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Food Services & Drinking Places Employment1990‐2010

0

2,000

4,000

6,000

8,000

10,000

12,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Food Services & Drinking Places Employment2010

9,300

9,350

9,400

9,450

9,500

9,550

9,600

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

©2010 by Crain Communications Inc. All rights reserved.

Employment trends in private educational svcs

Private Educational Services Employment1990‐2010

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Private Educational Services Employment2010

3,060

3,080

3,100

3,120

3,140

3,160

3,180

3,200

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

Employment in thousands.

Source: Bureau of Labor Statistics & Staffing Industry Analysts

©2010 by Crain Communications Inc. All rights reserved.

Employment trends in hospitals

Hospital Employment1990‐2010

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Hospital Employment2010

4,680

4,690

4,700

4,710

4,720

4,730

4,740

4,750

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

Employment in thousands.

Source: Bureau of Labor Statistics & Staffing Industry Analysts

©2010 by Crain Communications Inc. All rights reserved.

Employment trends in mining/oil support activities

Support Activities for Mining/Oil Employment1990‐2010

0

50

100

150

200

250

300

350

400

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Support Activities for Mining/Oil Employment2010

0

50

100

150

200

250

300

350

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

Employment in thousands.

Source: Bureau of Labor Statistics & Staffing Industry Analysts

©2010 by Crain Communications Inc. All rights reserved.

Employment trends in home healthcare

Home Healthcare Employment1990‐2010

0

200

400

600

800

1,000

1,200

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Home Healthcare Employment2010

1,030

1,040

1,050

1,060

1,070

1,080

1,090

1,100

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

Employment in thousands.

Source: Bureau of Labor Statistics & Staffing Industry Analysts

©2010 by Crain Communications Inc. All rights reserved.

Employment trends in computer systems design

Computer Systems Design Employment1990‐2010

0

200

400

600

800

1,000

1,200

1,400

1,600

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Computer Systems Design Employment2010

1,400

1,410

1,420

1,430

1,440

1,450

1,460

1,470

1,480

1,490

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

Employment in thousands.

Source: Bureau of Labor Statistics & Staffing Industry Analysts

©2010 by Crain Communications Inc. All rights reserved.

Worst‐performing U.S. industry markets

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Industries Job Growth ScoreLast 12 Months

Last 6 Months

Last 3 Months

Total Nonfarm 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

Average Monthly Change in Jobs Over…

©2010 by Crain Communications Inc. All rights reserved.

Manufacturing sectors with high overtime hours

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Tools & vehicles Energy Food Basic materials

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

©2010 by Crain Communications Inc. All rights reserved.

Manufacturing sectors with high overtime hours

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Tools & vehicles Energy Food Basic materials

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

©2010 by Crain Communications Inc. All rights reserved.

Trends in hours worked

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Average Weekly Hours of All Employees

33.2

33.4

33.6

33.8

34.0

34.2

34.4

34.6

34.8

Jun‐08

Sep‐08

Dec‐08

Mar‐09

Jun‐09

Sep‐09

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Hou

rs

Average Weekly Overtime of Production & Non‐Supervisory Employees

0.00.51.01.52.02.53.03.54.04.5

Jun‐08

Sep‐08

Dec‐08

Mar‐09

Jun‐09

Sep‐09

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Hou

rs

©2010 by Crain Communications Inc. All rights reserved.

Jan Feb Mar Apr May Jun

Accounting/

Bookkeeping

Accounting/

Bookkeeping

Building material 

and garden 

supply stores

Scenic and 

sightseeing 

transportation

Scenic and 

sightseeing 

transportation

Scenic and 

sightseeing 

transportation

State government 

educationPerforming arts 

and spectator 

sports

Amusements, 

gambling, and 

recreation

Educational 

servicesServices to 

buildings and 

dwellings

Heavy and civil 

engineering 

construction

Seasonal Peaks in Hiring—Who Hires When

Bureau of Labor Statistics & Staffing Industry Analysts

©2010 by Crain Communications Inc. All rights reserved.

Trend in total unemployment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

U.S. Total Unemployment RateRate down 35 basis points in Dec, to 9.42%

5%

6%

7%

8%

9%

10%

11%

Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐10

U.S. Total Unemployed

8,000

10,000

12,000

14,000

16,000

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.

Trend in college‐graduate unemployment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

U.S. College‐Graduate Unemployment RateRate down 33 basis points in Dec, to 4.79%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐09 Jul‐10 Oct‐10

U.S. College‐Graduate Unemployed

1,000

1,500

2,000

2,500

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.

Trends in economy & employment

Staffing trends by segment & sector

Buyer survey results, Part 1

Questions and answers

Agenda

©2010 by Crain Communications Inc. All rights reserved.

Trends in staffing employment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Change in Temp Employment Versus Previous Month

‐100

‐50

0

50

100

Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10

Thou

sand

s

+15,900

Percent Change in Temp Employment Versus Year Earlier

‐30%

‐20%

‐10%

0%

10%

20%

30%

Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10

©2010 by Crain Communications Inc. All rights reserved.

Temp Employment Penetration Rate

1.2%

1.4%

1.6%

1.8%

2.0%

Dec‐07

Jun‐08

Dec‐08

Jun‐09

Dec‐09

Jun‐10

Dec‐10

Temp Employment Penetration Rate

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

1990

1992

1994

1996

1998

2000

2003

2005

2007

2009

Trends in staffing employment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

1.70% = 1997

©2010 by Crain Communications Inc. All rights reserved.

Trends in staffing employment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Percent Change in Exec Search Internal Employment Vs. Year Earlier

‐16%

‐10%

‐4%

2%

8%

14%

Nov‐08 May‐09 Nov‐09 May‐10 Nov‐10

Percent Change in Direct Hire Internal Employment Versus Year Earlier

‐25%‐20%‐15%‐10%

‐5%0%5%

10%

Nov‐08 May‐09 Nov‐09 May‐10 Nov‐10

©2010 by Crain Communications Inc. All rights reserved.

Trends in staffing employment

Source: Bureau of Labor Statistics & Staffing Industry Analysts

Layoffs as a Percent of Total Employment

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

Oct‐07

Apr‐08

Oct‐08

Apr‐09

Oct‐09

Apr‐10

Oct‐10

Percent Change in PEO Covered Employees Versus Year Earlier

‐30%‐25%‐20%‐15%‐10%‐5%0%5%

10%

Nov‐07

May‐08

Nov‐08

May‐09

Nov‐09

May‐10

Nov‐10

©2010 by Crain Communications Inc. All rights reserved.

Revenue trends by segment & sector

↑ Widespread Improvement

↗ Mild Improvement

‐‐ Flat ↘ Mild Deterioration

↓ Widepsread Deterioration

Source: Staffing Industry Monthly Pulse Survey

Apr to May

May to Jun

Jun to Jul

July to Aug

Aug to Sep

Sept to Oct

Oct to Nov

Nov to Dec

Dec to Jan

Jan10 to Feb

Feb to Mar

Mar to Apr

Apr to May

May to Jun

Jun to Jul

Jul  to Aug

Aug to Sept

Sept to Oct

Oct to Nov

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

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

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

Retained Search↘ ↓ ↘ ↘

↗ ‐‐↘

‐‐ ↑ ↑ ↑ ↑ ↑ ‐‐ ↗ ↑

PEO ↑ ↗ ‐‐ ‐‐ ‐‐ ‐‐↘

↑ ↑ ↑ ↗ ↗ ‐‐

Outplacement ‐‐ ‐‐↘ ↘ ↘

‐‐↘ ↓

‐‐ ‐‐↓

Staffing sectors month‐to‐month sequential revenue trends

©2010 by Crain Communications Inc. All rights reserved.

Revenue trends by segment & sector

↑ Widespread Improvement

↗ Mild Improvement

‐‐ Flat ↘ Mild Deterioration

↓ Widepsread Deterioration

Source: Staffing Industry Monthly Pulse Survey

Apr to May

May to Jun

Jun to Jul

July to Aug

Aug to Sep

Sept to Oct

Oct to Nov

Nov to Dec

Dec to Jan

Jan10 to Feb

Feb to Mar

Mar to Apr

Apr to May

May to Jun

Jun to Jul

Jul  to Aug

Aug to Sept

Sept to Oct

Oct to Nov

Industrial ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑

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

Office/Clerical ↗ ↗ ↗ ↗ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑

Engineering ↑ ↗ ↗ ‐‐ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗ ↗ ↑ ↑ ↑ ↑ ↑

Fin./Accounting ‐‐ ↗ ‐‐ ‐‐ ↑ ↑ ↗ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗ ↑ ↑ ↑ ↑

Allied/other ↘ ↗ ↑ ‐‐ ↗ ↗ ↗ ‐‐ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ↗

Clincial/scientific ↗ ‐‐ ↗ ‐‐ ↗ ↗ ↗ ↑ ↗ ↗ ↑ ↑ ‐‐ ↗ ↑

Travel  nurse ↘ ↘ ‐‐ ↘ ‐‐ ↗ ‐‐ ↘ ↑ ‐‐ ↑ ↘ ↗ ↑ ↑ ↑ ↑ ↑ ↑

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

Locum tenens ‐‐ ↗ ↗ ‐‐ ‐‐ ‐‐ ↗ ‐‐ ↑ ‐‐ ↑ ↗ ↑

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

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

Temp staffing segments month‐to‐month sequential revenue trends

©2010 by Crain Communications Inc. All rights reserved.

Which is greater challenge—selling or recruiting?

Source: Staffing Industry Monthly Pulse Survey

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐10 Aug‐10

Sep‐10

Oct‐10

Nov‐10

0%

20%

40%

60%

80%

100%

Selling

Recruiting 

©2010 by Crain Communications Inc. All rights reserved.

Staffing industry balance sheet

+  ‐ •BLS reports temp gain of 15.9K

•Weak employment report, just 103K jobs

•Economic indicators trending better•Unemployment likely to stay high for 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

+  ‐ •BLS reports temp gain of 15.9K

•Weak employment report, just 103K jobs

•Economic indicators trending better•Unemployment likely to stay high for 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.

Trends in economy & employment

Staffing trends by segment & sector

Buyer survey results, Part 1

Questions and answers

Agenda

©2010 by Crain Communications Inc. All rights reserved.

How much expense does contingent labor save?

Source: Staffing Industry Contingent Buyer Survey

Median Reported Total Expense Savings Due to Use of Contingent 

Labor, 2008‐2010

17%

9%

13%

2008 2009 2010

©2010 by Crain Communications Inc. All rights reserved.

Reported savings as a function of buyer industry

Source: Staffing Industry Contingent Buyer Survey

Median Reported Expense Savings, 2008‐2010, by Industry of Buyer

7%

8%

12%

13%

13%

17%

Healthcare

Pharma/Biotech/Med

Finance/Insurance

Manufacturing

Technology/Telecom

Energy/Chemica l

©2010 by Crain Communications Inc. All rights reserved.

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

Source: Staffing Industry Contingent Buyer Survey

In your best estimate, what percent of your 1099/independent contractors are properly classified?

<90%, 41%

Don't know, 26%

100%, 12%

95‐99%, 15%

90%‐94%, 6%

©2010 by Crain Communications Inc. All rights reserved.

Large buyers project yet more contingent usage

Source: Staffing Industry Contingent Buyer Survey

Respondent Estimates of CW Usage Rates

8% 9%7%

11%13% 12% 13% 12%

15%17%

10% 10% 10%

15%

2005 2006 2007 2008 2009 2010 2012

Median Mean

©2010 by Crain Communications Inc. All rights reserved.

How much do large buyers typically spend?

Source: Staffing Industry Contingent Buyer Survey

Industry Median

Energy/Chemcal$90‐$99.9 million

Finance/Insurance $70‐$79.9 million

Technology/Telecom $70‐$79.9 million

Manufacturing $50‐$59.9 million

Pharma/Biotech/ Medical Equipment

$50‐$59.9 million

Retail/Consumer $40‐$49.9 million

Healthcare $30‐$39.9 million

Size (employees) Median

1,000 ‐ 1,999 <$10 million

2,000 ‐ 4,999 $10‐$19.9 million

5,000 ‐ 9,999 $30‐$39.9 million

10,000 or more $100‐$149.9 million

©2010 by Crain Communications Inc. All rights reserved.

HRO, RPO usage gradually increasing

Source: Staffing Industry Contingent Buyer Survey

Trend in Percent of Buyers Using RPO

17%

22%

14%

21%

2007 2008 2009 2010

Trend in Percent of Buyers Using HRO

14%

18%

13%

16%

2007 2008 2009 2010

©2010 by Crain Communications Inc. All rights reserved.

IC compliance screening trending up

Source: Staffing Industry Contingent Buyer Survey

Do You Use a Vendor for Independent Contractor Screening/Compliance?

No, 21%

Yes, 41%

Maybe Over Next 2 Years, 

34%

Don't know, 4% Trend in Percent of Buyers Using IC Screening Vendor

37%41%

2009 2010

©2010 by Crain Communications Inc. All rights reserved.

Offshore outsourcing also on the rise

Source: Staffing Industry Contingent Buyer Survey

Do You Use a Significant Amount of Offshore Outsourcing?

38%42%

34%

2008 2009 2010

©2010 by Crain Communications Inc. All rights reserved.

CW increasingly managed on a global basis

Source: Staffing Industry Contingent Buyer Survey

Trend in Percent of Buyers Managing on a Global Basis

21%24%

16%

2008 2009 2010

©2010 by Crain Communications Inc. All rights reserved.

Trends in economy & employment

Staffing trends by segment & sector

Buyer survey results, Part 1

Questions and answers

Agenda

©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 [email protected].

©2010 by Crain Communications Inc. All rights reserved.

Staffing Industry Monthly Pulse Survey. It’s open now! Go to www.staffingindustry.com.

Please fill out the Pulse

survey!

©2010 by Crain Communications Inc. All rights reserved.

Next corporate member webinar: Tuesday, Feb. 8th, 10AM Pacific/1PM Eastern

To register: [email protected]

Send us your news: M&A, contract wins, C‐level  people news (not ads, awards) 

Got news? Email [email protected]

©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…