Wednesday, July 28, 2010

The opportunity is becoming very clear!

So it might be a good time to start offering your clients temporary staffing services.

As we have documented in previous posts, companies are using more temporary employees. Obviously, we expect this trend to continue, and intensify, in the long term.

Paul Vigna and John Shipman of the The Wall Street Journal put together a great article this week, "Temp Jobs Gain as Uncertainty Reigns," in which they report on what a few of the very largest staffing firms are saying about this trend.

Despite rising profits, big businesses remain hesitant to hire permanent employees, a reluctance that is fueling demand and higher profits for the companies providing temporary staffing services.

Manpower, TrueBlue Inc. and Robert Half International reported second-quarter gains in their businesses as employers continue to prefer the flexibility that temporary workers provide while awaiting more tangible signs that the budding recovery won't stall.

TrueBlue, a Tacoma, Wash., blue-collar temporary staffer that operates Labor Ready, Spartan Staffing and other staffing outfits, last week said profits more than doubled, aided by a 15% rise in revenue and an income tax benefit.

Chief Executive Steven Cooper said manufacturers are hiring more temps now than during similar points in prior economic recoveries. "It feels like they're hiring back full shifts full of temps," he said during an call with analysts. There may be a point when businesses become more comfortable with hiring permanent workers, "but we don't see those conversions happening yet," Mr. Cooper said.

In fact, he suggested businesses are quite happy with the flexibility offered by hiring temps, and aren't in a hurry to give that up. "They don't have to deal with the out-placing on the downside and so as we've gone through a couple recessions in the 2000s and this [last] one being a big one, lots of lessons learned," he said.

So far this year, the private sector has added 593,000 jobs, according to the Bureau of Labor Statistics' establishment survey; a little more than a third of them, 218,000, have been temporary jobs.

Bigger rivals Robert Half and Manpower each posted a doubling of second-quarter income; Robert Half, which had a 10% first quarter drop, posted a sales gain of 2% over a year ago. "We believe there is greater acceptance by companies of flexible staffing models that include a mix of both full-time and temporary workers," Robert Half CEO Harold Messmer said last week.

Manpower's revenue jumped 21%, aided by an acquisition, and built on its 13% first quarter sales gain over a year ago. That first quarter gain ended a string of revenue declines that stretched back to 2008.

Manpower, of Milwaukee, Wis., forecast third-quarter revenue will rise between 20% and 22% over a year ago. Finance chief Mike Van Handel said demand for the company's services remains solid, with "very strong" long-term trends as companies address increased demand with flexible temp labor, "and remain cautious on permanent hiring."

CEO Jeffrey Joerres noted that while the company is seeing some strength in its permanent hiring business, it is off a low pace. The trends in temporary hiring, meanwhile, are accelerating. "We think this is a secular change," he said in an interview Monday. Companies remain reluctant to hire permanent staff given the uncertain economy.

"The environment is continually improving, it's just methodical and slow," he said. Companies remain unsure of the future, so they are more comfortable with using temporary workers, he added.

Still, Robert Half finance chief Keith Waddell noted the company is seeing strength in permanent hires. "We think people over-cutback and to some degree they're having to reinstate levels of cut backs, and they can do that at a time when the supply of labor has never been better," he said, "so it's a win-win."

Robert Half reported operating income from its permanent staffing services flipped to a profit of $5.5 million from a $1.97 million loss a year ago.


USA Staffing Services:

First, let's look at some figures:

Total Revenue (via
Yahoo Finance)
Manpower Inc. - $17.3 Billion
Trueblue Inc. - $1.1 Billion
Robert Half - $3.0 Billion

So, together, these three companies are billing their clients over $20 Billion a year, but do they really offer a better product to those clients than the entrepreneur making a couple placements per month? Are the candidates they recruit for clients somehow more qualified than the entrepreneur's candidates would be? I think the entrepreneur would say no. I think I would agree. I would bet we are not alone.

While some might argue that these companies must be delivering a product of superior quality or they wouldn't have clients paying them $20 Billion every year. That sounds great in theory, and it might be true, if the largest of those clients were NOT locked into exclusivity agreements as we noted in our post from a few weeks ago, Frustrations of a Hiring Company. Then perhaps, we could find out.

So why isn't the entrepreneur offering temporary recruiting services to other clients?

Realistically, it is a significant investment, in terms of both time and money, to even offer a client temporary staffing services. At USA Staffing Services, we make it possible for the right entrepreneur to compete with any of those giant staffing operations in three critical ways:

1. We fund the entire payroll
2. We manage the entire HR function (administration and compliance)
3. We assume ALL the risk for the entire operation

As a result, our Authorized Dealers have a very clear competitive advantage over the largest of staffing firms. They can devote their entire focus to developing relationships with clients and candidates -- you know, the activities that actually make money -- and they can completely eliminate any risk associated with a staffing operation in general (clients paying late, or worse, not paying at all!).

Check out our website today!

http://www.usastaffingservices.com/

Saturday, July 24, 2010

Small business hiring again!

Staffing Industry Analysts reports:

Thirty-two percent of small businesses plan to add staff in the second half of the year, according to a survey by CareerBuilder.com.

The survey of firms with 500 or fewer employees found that 21% plan to hire full time while 11% plan to hire for part-time positions. In addition, 6% plan to bring in contractors or temporary workers.

The survey took place between May 19 and June 3 and included 1,372 U.S. hiring managers at businesses with 500 or fewer employees.


USA Staffing Services:

Good news for staffing firms!

To gain a critical competitive advantage during this period of growth, check out our Web site today.

http://www.usastaffingservices.com/

Unemployment goes up again

Staffing Industry Analysts reports:

U.S. initial claims for unemployment insurance rose by 37,000, or 8.7%, to 464,000 in the week ended July 17, according to seasonally adjusted numbers released today by the U.S. Department of Labor.

Jobless claims for the previous week, ended July 10, were revised down by 2,000 to 427,000.

The four-week moving average of claims for the week ended July 17 rose by 1,250, or 0.3%, from the previous week's revised average of 454,750.

USA Staffing Services:

So the moving average is up a sliver. Fair enough! :)

One thing should be clear: In this business landscape, EVERY advantage is a CRITICAL advantage. To gain a critical competitive advantage, check out our Web site today.

http://www.usastaffingservices.com/

Profits Double at RHI (with full transcript)

Zachs Equity Research reports via Yahoo Finance:

Robert Half International Inc., a leading global staffing and risk consulting services provider, has reported solid second quarter 2010 results.

Robert Half registered net income of $12.2 million or 8 cent a share in the quarter, compared with $5.4 million or 3 cents a share in the earlier year quarter.

During the quarter, Robert Half’s total revenue advanced 2.5% to $769.1 million, compared with $749.9 million in year-ago period. The company projects revenues of $770 million−$820 million for the third quarter 2010.

Operating income jumped to $22.3 million in the quarter from $10.0 million in second quarter of 2009.

Companies that had rightsized their workforce during the recession have started recruiting again due to the revival of the economy, which benefits Robert Half.

USA Staffing Services:
Could be another good sign in terms of the general direction we are heading.

You can check out the full transcript of the conference call at Seeking Alpha.

To gain a competitive advantage over these huge staffing providers and to increase (or at least improve) your client services, check out our Web site today.

http://www.usastaffingservices.com/

Wednesday, July 21, 2010

Manpower Second Quarter Numbers Up

Manpower says 2Q profit nearly doubles, no slowing
Manpower reports 2Q profit nearly doubles on acquisition, global hiring trends, no slowdown

MILWAUKEE (AP) -- Staffing company Manpower Inc. said Wednesday that its second-quarter net income nearly doubled, helped by the effects of an acquisition and improvement in global employment markets.

Manpower, which does much of its business outside of the United States, said countries such as Germany, Sweden, the United Kingdom, Mexico and France and Italy all had extremely strong revenue growth throughout the quarter. It also saw revenue growth in the United States despite a difficult job market.

"We have not felt any slowdown as we enter the third quarter," said Jeffrey Joerres, Manpower's chairman and CEO.

The company said the second quarter also included the impact of its acquisition of Comsys, a company that provides temporary employees for information technology jobs. That deal closed April 5.

The company reported net income of $32.7 million, or 40 cents per share, up from $16.3 million, or 21 cents per share, a year ago. Revenue rose 21 percent to $4.59 billion from $3.79 billion, including a 5 percent bump from Comsys.

The results beat the average estimate of analysts polled by Thomson Reuters, who expected earnings of 22 cents per share on revenue of $4.41 billion.

For the third quarter, Manpower expects earnings to range between 41 cents to 51 cents per share, an estimate that includes an unfavorable currency impact of 4 cents per share.

Analyst foresee 41 cents per share of earnings, on average.

Manpower shares traded up $1.54, or 3.3 percent, to $47.98 in morning trading.


USA Staffing Services:

But does Manpower supply better candidates than your recruiting firm? To successfully compete for your share of this growing market, check out our Web site today.

http://www.usastaffingservices.com/

Tuesday, July 20, 2010

Nevada Still Trails Nation

As reported by Staffing Industry Analysts:

Nevada registered the highest jobless rate among all states in June at 14.2%, the U.S. Bureau of Labor Statistics reported today. It was the second month in a row Nevada posted the highest unemployment rate among states.

Michigan recorded the second-highest jobless rate among states in June at 13.2%. Michigan had posted the highest unemployment rate among states from April 2006 through April of this year before Nevada's jobless rate edged up.

Nevada's neighbor, California, registered the third-highest unemployment rate in June at 12.3%. It was followed by Rhode Island at 12.0%.

North Dakota posted the lowest jobless rate among states at 3.6% in June. South Dakota came next at 4.5% followed by Nebraska at 4.8%.


USA Staffing Services:
Hang in there Nevada!

www.usastaffingservices.com

Upcoming Quarterly Conference Calls

A short list of some upcoming quarterly conference calls from some of the staffing industries largest providers. Never hurts to listen in!

7/21/10 -- Robert Half International Inc. (RHI) Wednesday, July 21, 5 p.m. EST.
The dial-in number is 800-862-9098 (+1-785-424-1051 outside the United States). Please dial in five minutes before the call begins. A taped recording of this call will be available for replay beginning at approximately 8 p.m. EDT on July 21 and ending at 8 p.m. EDT on July 28. The dial-in number for the replay is 800-283-8486 (+1-402-220-0869 outside the United States). The conference call also will be archived in audio format on the company's website at http://www.rhi.com/.

Founded in 1948, Robert Half International Inc., the world's first and largest specialized staffing firm, is a recognized leader in professional consulting and staffing services. Robert Half International has staffing and consulting operations in more than 400 locations worldwide.

7/28/10 --
Barrett Business Services, Inc. (BBSI) Wednesday, July 28, 2010, at 9:00 a.m. PST.
The dial-in number for this conference call is (877) 356-3717 and the call identification number is 89607191.The conference call will also be webcast live at http://www.barrettbusiness.com/. To access the webcast, click on the investor relations section of the Web site and select webcasts.

A replay of the conference call will be available beginning at 12:00 p.m. PT on Wednesday, July 28, 2010 and ending on August 4, 2010. The access telephone number for the replay is (800) 642-1687 and the access code is 89607191.

BBSI provides a comprehensive range of human resource management solutions to large and small companies throughout many regions of the United States.

7/29/10 --
SFN Group, Inc. (SFN) Thursday, July 29, 2010, at 9:00 a.m. EST
Via the Telephone:
Please dial 1- (800) 230-1093
The conference call leader is Roy Krause
The passcode: SFN Group Second Quarter Earnings Call

Via the Internet:
You may access the call via the Internet through the Company's Web site: www.sfngroup.com.

Replay:
A replay of the call will be available one hour after the live call has ended. You may listen to the replay of the call over the Internet through http://www.sfngroup.com/.

SFN Group is a strategic workforce solutions company that provides professional services and general staffing to help businesses more effectively source, deploy and manage people and the work they do. As an industry pioneer, SFN Group has sourced, screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs for more than 60 years.

7/29/10 --
On Assignment, Inc. (ASGN) Thursday, July 29, 2010 at 1:30 p.m. PST
The dial-in number for this conference call is 877-805-4089 or 281-913-8521 for international callers. Please reference conference ID number 88146532.

A replay of the conference call will be available from approximately 5:30 p.m. Pacific Time on Thursday, July 29, 2010 and will run through Friday, August 6, 2010 until 11:59 p.m. Pacific Time. The dial-in number for the replay is 800-642-1687 or 706-645-9291 for international callers. The conference ID number 88146532.

This call is being webcast and can be accessed through On Assignment's website.


8/3/10 -- Hudson Highland Group, Inc. (HHGP) Wednesday, August 4, 2010 at 9:00 a.m. EST The call will be webcast live on the company's investor relations Web site: www.hudson.com.

Hudson Highland Group, Inc. is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 2,000 professionals serving clients and candidates in approximately 20 countries.


USA Staffing Services:
To gain a competitive advantage over these companies, check out our Web site today -- http://www.usastaffingservices.com/

Thursday, July 15, 2010

Initial claims for unemployment drop

As reported by Staffing Industry Analysts, the most recent numbers from Bureau of Labor Statistics are still ... not bad.

"U.S. initial claims for unemployment insurance fell to 429,000 in the week ended July 10 on a seasonally adjusted basis, down 29,000 from the previous week's revised figure of 458,000, the U.S. Department of Labor reported today.
Reuters reported that analyst had anticipated claims would fall only to 450,000.

The four-week moving average of claims for the week ended July 10 fell to 455,250, down 11,750 from the previous week's revised average of 467,000.

Jobless claims for the week ended July 3 were revised up to 458,000, an increase of 4,000 from last week's initially reported number. Initial unemployment for the week ended July 3 were still down 17,000 from the prior week.

Florida posted the largest decline in jobless claims in the week ended July 3, down 3,586, amid fewer layoffs in the construction, trade, service and manufacturing industries as well as agriculture, according to new data from the Department of Labor."


USA Staffing Services:
Feeling like a bit of a broken record, repeating the mantra: going in the right direction. But eventually going in the right direction long enough can be a very good thing.

Over the coming months and years, more and more companies will rely on staffing firms to provide payrolling and other HR services, including recruiting. To gain a strategic advantage over your competitors, check out our Web site.

www.usastaffingservices.com

Wednesday, July 7, 2010

Frustrations of a Hiring Company

Hardly breaking news: A hiring company is unhappy with their staffing provider, but Hinda Chalew's Marketing Blog, "What do you do when the staffing company doesnt listen?" is very insightful.

"If we are a subset of the market, hiring a contingent worker is a pain. We are just trying to hire one, I could imagine if we needed to hire 20, or 100 or thousands how the problem would be compounded.

If you read my blog, you know we use contingent workers to help us make telemarketing calls for conferences. We are facing the challenge of bringing in someone who doesn't meet our qualifications - again. Why is it so hard to get a telemarketer who has 2-3 years experience in making outbound sales calls? You would think that staffing companies would know hundreds of these people, but alas, it appears not.

It is very frustrating to write job descriptions for the staffing companies and have the job descriptions completely ignored. We are not looking for a receptionist, nor are we looking for a customer service person, nor are we looking for an admin. We are looking for a telemarketing person -- hello, is there anyone on the other end of the phone?

Here is the sad truth; we went on Craig's List to see if we could find candidates. Of course there were numerous, we sent those ads to the staffing company and still came up with the wrong candidate. I know that we don't hire a lot of temps, but staffing companies, we write about you, listen to us! We need a telemarketer, go find one, let me give you a tip, there are many who are advertising their services on Craig's List.

Small companies need temps just like large companies do. I might suggest that given most small companies are small, they don't have a bench like a larger company does and a contingent worker is likely to be more highly valued in a small organization. Listen to the needs of smaller organizations; they might help you build a larger business.

So if anyone out there has a telemarketing person with a couple of years of experience who can make outbound calls and work independently, call us. Of course I will have to get around that our corporate parent has a contract with certain staffing companies and I don't think I am allowed to use other companies, but I believe in begging for forgiveness!"


USA Staffing Services:
Out of curiosity, I would love to know which provider they are working with right now. My guess, based on the presence of exclusivity agreements, a BIG ONE! And what do you know, they are not providing their client with a quality service/product, and yet they managed to gain a monopoly on the supply of that service/product. Multiple Authorized Dealers of USA Staffing Services have brought up this very same point over the last couple months. In fact, this was a primary factor in their decision to become Authorized Dealers in the first place. They new they could provide their clients with a better service/product than the BIG competitors, but needed the infrastructure in place to proceed efficiently and effectively. Obviously, they are very happy with their decision!

To learn more, check out our Web site today.

http://www.usastaffingservices.com/

Still heading in the right direction!

A nice little summary by Staffing Industry Analysts of the June employment data from the US Bureau of Labor Statistics.

"U.S. temporary help payrolls rose by 20,500 in June, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics.

Total nonfarm payrolls fell by 125,000 to 137.5 million as the number of U.S. Census workers dropped by 225,000. However, the private sector added 83,000 jobs.

The unemployment rate fell to 9.5% in June from 9.7% in May.

U.S. temporary help payrolls totaled 2.1 million jobs in June with the increase of 20,500, according to the BLS. Temporary help payrolls had risen by 31,000 jobs in May and 23,300 in April based on revised numbers. The temporary help services category has added 379,000 jobs since the low of September 2009.

The temporary penetration rate rose to 1.61% in June from 1.59% in May. The number of temporary jobs in May was adjusted down by 3,200.

In June, the employment services category overall added 35,800 jobs for total employment of 2.8 million. The employment services category includes employment placement agencies, temporary help services, executive search services and professional employer organizations.

Healthcare added 9,000 jobs in June. It has gained 217,000 jobs over the past 12 months.

The transportation and warehousing category added 15,000 jobs in June, and is up by 44,000 since its low in February. Manufacturing added 9,000 jobs in June; it has gained 136,000 jobs since December 2009.

Construction employment fell by 22,000 jobs in June.

While employment in the private sector rose by 83,000 jobs in June to 107.7 million, it remained 7.9 million jobs below its December 2007 level."


USA Staffing Services:
Another positive month for the staffing industry. To gain a competitive advantage in this growing market, check out our Web site today.

http://www.usastaffingservices.com/

Friday, July 2, 2010

Analysis - June Employment Report

Dirk van Dijk wrote a great analysis of the June employment report for Yahoo! FINANCE.

A couple interesting quotes:

"With total employment now 7.311 million below where it was when the recession started, even if we were to add 250,000 jobs per month (which is better than was averaged in the Clinton second term, one of the best periods for job creation in recent history) it would still take us more than 29 months to get back to the December 2007 level of jobs, or not until November 2012. It is far more likely that we will not see a new employment peak until 2014."

"Manufacturing employment had been in a secular decline for about the last 30 year or so. We have now seen manufacturing employment expand for six straight months. The last time the economy could make that claim was in March of 1998."

"Of particular interest is temporary employees. They are an important leading indicator of where the job market is going. After a recession when demand starts to pick up, employers are not really sure if it is going to last. Thus they are reluctant to bring on new full-time employees. The first thing they will do is work the remaining employees harder, particularly if they had previously cut back on the hours. The next step is to call up ... [a staffing firm] and bring on a temp. Only after the employer is more confident that the upturn is for real will he bring on a full-time permanent employee. In May, temporary workers rose by 20,500, on top of gains of 31,100 in May and 23,300 in April."

USA Staffing Services:
To gain a clear competitive advantage and start offering your clients a valuable temporary staffing service with no administration and NO RISK, check out our Website today:

http://www.usastaffingservices.com/

Listening to Giants: Valuable Indicators?

Seeking Alpha contributer Mariusz Skonieczny put together a very illuminating (well, at least, interesting) article this week. Illuminating, if his conclusions are true; interesting, if like listening to giants.

Working under the assumtion that if you analyze the quarterly investment reports of a the two largest conglamerates within the staffing industry, because they are hiring ALOT of temporary employees, you are going to get a good indication of the direction of the overall economy. So Skonieczny gathered the statements from both companies for the last couple years.

If these reports do indicate the direction of the overall economy, then we are going in the right direction -things are improving. Of course, only time will tell.

Still, always interesting to get a little insight from these two giants. And I do mean GIANTS; collectively these two companies have $20 billion annual revenue!

Really, you have to ask yourself: does your recruiting firm offer a better service then these two GIANTS? In other words, are they better recruiters than you are? Doubtful.

To gain a competitive advantage and start offering your clients a valuable temporary staffing service (with no administration and NO RISK), check out our Web site today:

http://www.usastaffingservices.com/