Report explores trends over time in IT temp staffing

The median gross margin for US IT temporary staffing expanded 715 bps over 11 years, reaching 25.6% in 2021, according to SIA research. While results may be influenced by the composition of survey respondents, gross margin for the sector has typically ranged from 23% to 25% since 2012. Meanwhile, the 11 publicly traded firms that do business in the IT staffing segment averaged gross margin of 22.5% in 2021; their gross margin has contracted 497 bps from 2004 to 2021.

Source: “IT Staffing Gross Margin Trends: 2022 Update


 

Confidence Boost

Temps feel better about staffing firms amid Covid-19

Staffing firms’ actions during the pandemic have increased temp workers’ optimism about them and temp work in general, according to SIA research. More than half of respondents said their experience has made them “more convinced than ever that my staffing agency/ temporary work is right for me.” For those who felt the opposite, just 8% lost confidence in temp work and fewer still, 5%, were left with serious doubts about their staffing firm.

Source: “North America Temporary Worker Survey 2022: Covid-19: Effect on attitudes, concerns about mandatory vaccination


The MSP Contract

Five years is the charm for partnership length

According to SIA research, the median MSP partnership length for enterprise buyer organizations is five years, with the most common lengths being 10-plus years, indicated by 21% of responses, and three years, cited by 15% of respondents. Meanwhile, more buyers, 45%, realized cost savings of greater than 5% in year one of their contract than in subsequent years.

Source: “Workforce Solutions Buyer Survey: 2022 Americas Results


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