As reported by Staffing Industry Analysts:
"U.S. temporary help payrolls rose by 34,900 in October to approximately 2.18 million, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics. September's gain in temporary help payrolls was revised up to 23,800 from the initially reported 16,900. The temporary help penetration rate rose to 1.67% in October from 1.64% in September. Since its low in September 2009, the temporary help services category has added 451,000 jobs, according to the BLS.
The employment services category added a net 29,400 jobs in October for total employment of approximately 2.84 million. The employment services category includes temporary help services as well as employment placement agencies, executive search services and professional employer organizations."
USA Staffing Services:
Has a client ever asked you for a temporary employee? If you have operated within the recruiting space for more than a year, it is likely.
Compared to just 13 months ago, almost half a million more people are now temporary employees.
This trend will only continue and at an increased pace. Start offering your clients temporary employees now.
For a significant competitive advantage in this growing market -- complete elimination of the funding, administration AND RISK associated with a temporary staffing operation -- check out our Web site today.
www.usastaffingservices.com
Staffing Solutions for Staffing Companies - Analysis, Insight, Opportunity
Showing posts with label temps. Show all posts
Showing posts with label temps. Show all posts
Monday, November 8, 2010
Monday, October 11, 2010
Own a staffing firm? Well done!
This article from Sudeep Reddy of the Wall Street Journal continues to confirm that while unemployment rates remain high, many companies are adding staffing firms as permanent partners to avoid hiring permanent employees.
***
Companies are making do with a mix of more temporary and part-time workers at the expense of adding permanent jobs, a trend that suggests the U.S. labor market could stay stuck in neutral for months to come.
Temporary-help payrolls have risen for 11 of the past 12 months, with the sector adding 16,900 jobs in September, according to Labor Department data released Friday. The number of part-timers, meanwhile, surged 612,000 to 9.5 million, the highest on record—a combination of workers who saw their hours cut back and those who were unable to find a full-time position.
Employers typically hire more temp workers as they gear up for an economic expansion, eventually converting many of those workers to full-time jobs. But that has been slow to happen this time around.
"They want to be cautious," said Charles Sigrist, president and CEO of Stivers Staffing Services Inc., a Chicago-based staffing firm. "Clients aren't ready to make that move to hiring full-time. They really don't know what their bottom line is going to be."
The reliance on temps may reflect a longer-run trend toward companies leaning on temporary or contingent labor to fill more of their labor needs. Motorcycle manufacturer Harley-Davidson Inc., for instance, signed a new union contract last month that creates a tier of "casual workers" with no benefits and no minimum number of hours, allowing the company to call up workers when they're needed.
Employers' reluctance to make permanent hires reflects the continued uncertainty about the strength and durability of the recovery. "We're doing more work with less," said Eric Anderberg, vice president of Dial Machine Inc., a contract machining firm that saw sales drop by almost half last year. "You're apprehensive because of what took place last year and because of the uncertainty. We're busy right now but not as busy as 2008."
The Rockford, Ill., company has picked up half a dozen temps, supplementing its staff of 65, for entry-level work. Mr. Anderberg said he's relying on temps to keep costs down and guard against the risk of having to cut a permanent worker later. "It brings me a little more certainty, because I know some of the costs I'm not going to be paying," he said.
Many employers that instituted wrenching job cuts and cost reductions during the downturn are now leaning on temps and other types of contingent workers to fill gaps without creating new burdens on their payrolls.
"Times are tough," said Cynthia Vivian, director of human resources at the American Library Association, a nonprofit group. "We have held back on doing permanent, regular hires. How do we then support the staff in tough times? We go the temp route until we can make an assessment." The group, which has 285 employees on its payroll, now has about four temps and had more before its fiscal year turned on Sept. 1. The organization is doing "limited" hiring of full-time workers, Ms. Vivian said, "but it is not the way it used to be."
Chief financial officers say about 23% of recent hiring has been directed at contract and part-time employees, up from 17% prior to the recession, a recent Duke University/CFO Magazine survey found. Companies expect temp hiring to continue growing faster than overall hiring in the next year, the survey found.
Small businesses in particular reported a greater reliance on temporary and contract employees. "Smaller companies are a little more financially stressed right now," said Duke finance professor John Graham, who directs the survey. "They're having a harder time swallowing the fixed costs that come with hiring a full-time employee."
***
USA Staffing Services:
Clearly, a great time to be in this industry! To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
***
Companies are making do with a mix of more temporary and part-time workers at the expense of adding permanent jobs, a trend that suggests the U.S. labor market could stay stuck in neutral for months to come.
Temporary-help payrolls have risen for 11 of the past 12 months, with the sector adding 16,900 jobs in September, according to Labor Department data released Friday. The number of part-timers, meanwhile, surged 612,000 to 9.5 million, the highest on record—a combination of workers who saw their hours cut back and those who were unable to find a full-time position.
Employers typically hire more temp workers as they gear up for an economic expansion, eventually converting many of those workers to full-time jobs. But that has been slow to happen this time around.
"They want to be cautious," said Charles Sigrist, president and CEO of Stivers Staffing Services Inc., a Chicago-based staffing firm. "Clients aren't ready to make that move to hiring full-time. They really don't know what their bottom line is going to be."
The reliance on temps may reflect a longer-run trend toward companies leaning on temporary or contingent labor to fill more of their labor needs. Motorcycle manufacturer Harley-Davidson Inc., for instance, signed a new union contract last month that creates a tier of "casual workers" with no benefits and no minimum number of hours, allowing the company to call up workers when they're needed.
Employers' reluctance to make permanent hires reflects the continued uncertainty about the strength and durability of the recovery. "We're doing more work with less," said Eric Anderberg, vice president of Dial Machine Inc., a contract machining firm that saw sales drop by almost half last year. "You're apprehensive because of what took place last year and because of the uncertainty. We're busy right now but not as busy as 2008."
The Rockford, Ill., company has picked up half a dozen temps, supplementing its staff of 65, for entry-level work. Mr. Anderberg said he's relying on temps to keep costs down and guard against the risk of having to cut a permanent worker later. "It brings me a little more certainty, because I know some of the costs I'm not going to be paying," he said.
Many employers that instituted wrenching job cuts and cost reductions during the downturn are now leaning on temps and other types of contingent workers to fill gaps without creating new burdens on their payrolls.
"Times are tough," said Cynthia Vivian, director of human resources at the American Library Association, a nonprofit group. "We have held back on doing permanent, regular hires. How do we then support the staff in tough times? We go the temp route until we can make an assessment." The group, which has 285 employees on its payroll, now has about four temps and had more before its fiscal year turned on Sept. 1. The organization is doing "limited" hiring of full-time workers, Ms. Vivian said, "but it is not the way it used to be."
Chief financial officers say about 23% of recent hiring has been directed at contract and part-time employees, up from 17% prior to the recession, a recent Duke University/CFO Magazine survey found. Companies expect temp hiring to continue growing faster than overall hiring in the next year, the survey found.
Small businesses in particular reported a greater reliance on temporary and contract employees. "Smaller companies are a little more financially stressed right now," said Duke finance professor John Graham, who directs the survey. "They're having a harder time swallowing the fixed costs that come with hiring a full-time employee."
***
USA Staffing Services:
Clearly, a great time to be in this industry! To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
Another good sign for the industry!
As reported Friday by Staffing Industry Analysts:
"U.S. temporary help payrolls rose by 16,900 in September to approximately 2.1 million, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics. In addition, August's change in temporary employment was revised up to a gain of 17,700 jobs from the initially reported gain of 16,800.
The temporary help penetration rate rose to 1.63% in September from 1.62% in August. Since its low in September 2009, temporary help has added approximately 404,200 jobs.
The employment services category added 28,200 jobs in September to reach employment of approximately 2.8 million. The employment services category includes temporary help services as well as employment placement agencies, executive search services and professional employer organizations."
USA Staffing Services:
To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
"U.S. temporary help payrolls rose by 16,900 in September to approximately 2.1 million, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics. In addition, August's change in temporary employment was revised up to a gain of 17,700 jobs from the initially reported gain of 16,800.
The temporary help penetration rate rose to 1.63% in September from 1.62% in August. Since its low in September 2009, temporary help has added approximately 404,200 jobs.
The employment services category added 28,200 jobs in September to reach employment of approximately 2.8 million. The employment services category includes temporary help services as well as employment placement agencies, executive search services and professional employer organizations."
USA Staffing Services:
To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
Sunday, October 3, 2010
GDP estimate up!
Another quick report from Staffing Industry Analysts:
"The U.S. Department of Commerce raised its growth estimate of real gross domestic product in the second quarter.
Real GDP increased at an annual rate of 1.7% in the second quarter, according to a third estimate released today by the Department of Commerce. An estimate released last month had growth at 1.6%.
U.S. real GDP grew 3.7% in the first quarter after declining at a rate of 2.6% for full year 2009.
Staffing industry growth, with the exception of healthcare staffing, strongly correlates with growth in GDP, according to research from Staffing Industry Analysts. Staffing industry revenue tends to grow faster as GDP improves."
http://www.usastaffingservices.com/
"The U.S. Department of Commerce raised its growth estimate of real gross domestic product in the second quarter.
Real GDP increased at an annual rate of 1.7% in the second quarter, according to a third estimate released today by the Department of Commerce. An estimate released last month had growth at 1.6%.
U.S. real GDP grew 3.7% in the first quarter after declining at a rate of 2.6% for full year 2009.
Staffing industry growth, with the exception of healthcare staffing, strongly correlates with growth in GDP, according to research from Staffing Industry Analysts. Staffing industry revenue tends to grow faster as GDP improves."
http://www.usastaffingservices.com/
Initial unemployment claims drop
Quick report from Staffing Industry Analysts:
"The number of U.S. initial claims for unemployment insurance filed in the week ended Sept. 25 fell by 16,000 from the previous week, according to seasonally adjusted numbers released today by the U.S. Department of Labor.
Initial claims for the week ended Sept. 25 totaled 453,000, down 3.4% from the previous week's number of 469,000 -- which had been revised up by 4,000.
The four-week moving average of claims for the week ended Sept. 25 fell to 458,000, down 6,250, or 1.4%, from the previous week's revised average of 464,250."
http://www.usastaffingservices.com/
"The number of U.S. initial claims for unemployment insurance filed in the week ended Sept. 25 fell by 16,000 from the previous week, according to seasonally adjusted numbers released today by the U.S. Department of Labor.
Initial claims for the week ended Sept. 25 totaled 453,000, down 3.4% from the previous week's number of 469,000 -- which had been revised up by 4,000.
The four-week moving average of claims for the week ended Sept. 25 fell to 458,000, down 6,250, or 1.4%, from the previous week's revised average of 464,250."
http://www.usastaffingservices.com/
Saturday, September 11, 2010
Trend toward temps continues!
More good news ... if you are a part of this growing industry. This time our continued optimism is the result of the Federal Reserve's Beige Book report as covered by Staffing Industry Analysts:
Demand for temporary staffing "remained on an upward trend" from mid-July through the end of August, according to the Federal Reserve Beige Book report released Wednesday. Federal Reserve Districts in Boston, Philadelphia, Richmond VA and Minneapolis noted increases in temporary staffing. However, the Chicago district reported a slight softening in demand for the period.
Wage pressure remained modest, according to the report.
"Dallas reported that wage pressures were 'generally nonexistent,' with the exceptions of some airline and temporary workers," according to the report. "Hiring of permanent employees was held down in part by employers' reliance on temporary and contract workers, as reported by Philadelphia and Atlanta, although Boston noted that conversions from temporary to permanent staff picked up."
Overall, the Beige Book reported growth in economic activity from mid-July through the end of August. However, there were widespread signs of economic deceleration.
USA Staffing Service:
Regardless of possible economic deceleration through the end of the year, in any market, competitive advantages set leaders apart; competitive advantages separate the elite from the average. To secure a clear, competitive advantage for your recruiting operation, check out our Web site today:
http://www.usastaffingservices.com/
Demand for temporary staffing "remained on an upward trend" from mid-July through the end of August, according to the Federal Reserve Beige Book report released Wednesday. Federal Reserve Districts in Boston, Philadelphia, Richmond VA and Minneapolis noted increases in temporary staffing. However, the Chicago district reported a slight softening in demand for the period.
Wage pressure remained modest, according to the report.
"Dallas reported that wage pressures were 'generally nonexistent,' with the exceptions of some airline and temporary workers," according to the report. "Hiring of permanent employees was held down in part by employers' reliance on temporary and contract workers, as reported by Philadelphia and Atlanta, although Boston noted that conversions from temporary to permanent staff picked up."
Overall, the Beige Book reported growth in economic activity from mid-July through the end of August. However, there were widespread signs of economic deceleration.
USA Staffing Service:
Regardless of possible economic deceleration through the end of the year, in any market, competitive advantages set leaders apart; competitive advantages separate the elite from the average. To secure a clear, competitive advantage for your recruiting operation, check out our Web site today:
http://www.usastaffingservices.com/
Tuesday, August 24, 2010
What a difference a year can make!
Another very good sign for the industry from the American Staffing Association as reported by Staffing Industry Analysts:
“The American Staffing Association's staffing index rose to a reading of 95 in August, up four points from July's reading of 91. The reading is up 27% from the August 2009 reading.
The index measures changes in the number of temporary and contract workers, both weekly and monthly. The monthly measure is taken from the week containing the 12th of the month. Its baseline value of 100 was set in June 2006.”
USA Staffing Services:
To gain that crucial, competitive advantage in a growing market, visit our Web site today.
http://www.usastaffingservices.com/
“The American Staffing Association's staffing index rose to a reading of 95 in August, up four points from July's reading of 91. The reading is up 27% from the August 2009 reading.
The index measures changes in the number of temporary and contract workers, both weekly and monthly. The monthly measure is taken from the week containing the 12th of the month. Its baseline value of 100 was set in June 2006.”
USA Staffing Services:
To gain that crucial, competitive advantage in a growing market, visit our Web site today.
http://www.usastaffingservices.com/
2.4 Million Temps Per Day!
And a little more good news from the American Staffing Association as reported by Staffing Industry Analysts:
"Staffing industry employment rose 23.3% on a year-over-year basis in the second quarter of 2010 to an average of 2.4 million temporary and contract workers per day, according to the American Staffing Association's quarterly employment and sales survey. Compared to the first quarter, the number of workers employed is up 18.0%.
‘Even as the pace of economic growth slowed, staffing firms added 360,000 new jobs during the second quarter,’ said ASA president and CEO Richard Wahlquist. ‘This is an encouraging sign that there is still some juice left in this recovery and that businesses across a wide spectrum of sectors continue to experience a slow but sustained uptick in demand for their products and services.’"
USA Staffing Services:
As we have continued to note these past few months, staffing is good business! To gain a crucial competitive advantage is this hot market, check out our Web site today.
http://www.usastaffingservices.com/
"Staffing industry employment rose 23.3% on a year-over-year basis in the second quarter of 2010 to an average of 2.4 million temporary and contract workers per day, according to the American Staffing Association's quarterly employment and sales survey. Compared to the first quarter, the number of workers employed is up 18.0%.
‘Even as the pace of economic growth slowed, staffing firms added 360,000 new jobs during the second quarter,’ said ASA president and CEO Richard Wahlquist. ‘This is an encouraging sign that there is still some juice left in this recovery and that businesses across a wide spectrum of sectors continue to experience a slow but sustained uptick in demand for their products and services.’"
USA Staffing Services:
As we have continued to note these past few months, staffing is good business! To gain a crucial competitive advantage is this hot market, check out our Web site today.
http://www.usastaffingservices.com/
Staffing buyers/providers ... going steady?
Once again, Jon Osborne at SAI gives his entertaining, but quite relevant, perspective on the relationship between staffing firms and staffing buyers:
"I happened to be going through some of our survey data from 2009, and noticed an interesting coincidence.
When buyers were asked what advice they would give to staffing firms, their number one response was that staffing firms should be "more of a real business partner." Strangely enough, in a separate survey, when we asked staffing firms what advice they would give to buyers, their number one response was exactly the same--buyers should be "more of a real business partner."
So if everyone wants the other side to be a real business partner, why do both sides feel the other doesn't want it and isn't doing it? Reading the details of their comments reveals the answer--the two sides are worlds apart in terms of expectations and priorities.
Staffing buyers want a lot--quality, speed, cost control, shared knowledge, creativity and ever-improving performance. Staffing firms, presumably doing at least some of that, feel their profits are excessively squeezed and that buyers should be helping them stay in business instead of treating them as a commodity.
Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually.
But that common ground doesn't lend itself to terribly serious partnership; it's less like marriage and more like high school, because ultimately everyone is still open to a better deal. That instability can be tough at times, but in business it makes for progress.
A more marriage-like partnership might seem attractive, but my recommendation for the contingent world is--be happy with just going steady."
USA Staffing Services:
Not including Osborne's sharp wit, there is an incredibly important note to consider for a moment. He asks:
"Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually."
Probably a good time to add a crucial, competitive advantage in such a hot market. Check out our Web site today.
http://www.usastaffingservices.com/
"I happened to be going through some of our survey data from 2009, and noticed an interesting coincidence.
When buyers were asked what advice they would give to staffing firms, their number one response was that staffing firms should be "more of a real business partner." Strangely enough, in a separate survey, when we asked staffing firms what advice they would give to buyers, their number one response was exactly the same--buyers should be "more of a real business partner."
So if everyone wants the other side to be a real business partner, why do both sides feel the other doesn't want it and isn't doing it? Reading the details of their comments reveals the answer--the two sides are worlds apart in terms of expectations and priorities.
Staffing buyers want a lot--quality, speed, cost control, shared knowledge, creativity and ever-improving performance. Staffing firms, presumably doing at least some of that, feel their profits are excessively squeezed and that buyers should be helping them stay in business instead of treating them as a commodity.
Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually.
But that common ground doesn't lend itself to terribly serious partnership; it's less like marriage and more like high school, because ultimately everyone is still open to a better deal. That instability can be tough at times, but in business it makes for progress.
A more marriage-like partnership might seem attractive, but my recommendation for the contingent world is--be happy with just going steady."
USA Staffing Services:
Not including Osborne's sharp wit, there is an incredibly important note to consider for a moment. He asks:
"Is there a common ground between all those needs? Yes, and the reality is that staffing firms and buyers are already finding it on a regular basis to the tune of nearly $100 billion in U.S. sales annually."
Probably a good time to add a crucial, competitive advantage in such a hot market. Check out our Web site today.
http://www.usastaffingservices.com/
Saturday, August 14, 2010
21% more temporary employees than 12 months ago!
From a very interesting article by Mark Whitehouse of the WSJ that discusses the reasons why so many employers are still struggling to recruit qualified employees, despite record unemployment:
"The obstacles to moving are aggravated because many employers no longer provide the same job security they have in the past. Temporary jobs, for example, have increased 21% since September 2009 as more employers ... hire through staffing agencies to help control health-care costs and maintain flexibility."
USA Staffing Services:
This is a continuing trend that we have been noting for several months now. Check out our Web site to gain a competitive advantage during this period of growth for the temporary staffing industry.
www.usastaffingservices.com
"The obstacles to moving are aggravated because many employers no longer provide the same job security they have in the past. Temporary jobs, for example, have increased 21% since September 2009 as more employers ... hire through staffing agencies to help control health-care costs and maintain flexibility."
USA Staffing Services:
This is a continuing trend that we have been noting for several months now. Check out our Web site to gain a competitive advantage during this period of growth for the temporary staffing industry.
www.usastaffingservices.com
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/
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/
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/
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/
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/
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/
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/
"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/
"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/
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