Firms share opinions on staffing platforms
As part of a recent SIA Pulse survey, staffing firms were asked for their perspective on staffing platforms — internet-enabled platforms that allow clients to post jobs and select candidates in a fashion that is more self-service and less reliant on a traditional recruiter.
While 41% indicated such platforms are the future of staffing and as such, they will consider using them in the near future, 34% noted such platforms cannot replace the value of the human element/relationships inherent in staffing. Eight percent have no interest in using a staffing platform.
Source: “US Staffing Industry Pulse Survey Report: February 2021 Selected Highlights”
The 20 largest industrial temporary staffing metro area markets in the US together accounted for $14.5 billion, or 41% of the total market of $34.9 billion in 2018. Chicago topped the list with a size of $1.8 billion, accounting for 5% of the national market. The Los Angeles-Long Beach-Anaheim metro area, considered the largest manufacturing center in the US, was the second-largest market at $1.6 billion.
Source: “Industrial Staffing Growth Assessment: December 2020 Update”
Among 16 publicly traded staffing companies that do business in the US, average gross margins have remained mostly stable since SIA started tracking this data, expanding just 80 basis points from 2004 to 2019. However, gross margins of staffing firms are sensitive to the economic cycle. None of the staffing firms tracked had achieved a peak following the Great Recession from 2011 to 2018, but 2019 saw six companies (38% of the group) achieve gross margin highs for the 16-year period.
Source: “Gross Margin and Bill Rate Trends: December 2020 Update”