Sponsored by - Staffing Industry Analysts...Breaking Through Firms From start up to top 2% Grown 4X...

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New Banner to ComeFuture Forward

Sponsored by

Future ForwardKeynote:

Barry Asin, President, Staffing Industry AnalystsFebruary 27, 2018



▪ NEED

▪ BETTER

▪ PICTURE



Picture of Professional staffing types IT, Healthcare, Nurses, Doctors, Accountants



Top 50 firms €6.1 billion

The Workforce Solutions

Ecosystem: Evolving to A

More Complex World



Staffing Industry Analysts Has Evolved as Well



SIA logo



What Got Us Here, Won’t Get Us There



Agenda

▪ What Got Us Here?

▪ Where We Are

▪ What Will Get Us There?

▪ Making the Most of Executive Forum



Source: Staffing Industry Analysts

140.7

0

20

40

60

80

100

120

140

160

US Staffing Revenue ($B): 1995-2017

The US Staffing Market Has Nearly Doubled in Size in the Past 20 Years



Temporary Penetration Rate at Record Highs

Source: US Bureau of Labor Statistics



Historical Industry Growth Drivers

▪ Access to talent

▪ Managing uncertainty and business risk

▪ Reducing costs

▪ Outsourcing non-core functions/roles

▪ Compliance

▪ Growing social acceptance



Contingent Usage Has Grown

Source: SIA Workforce Solutions Buyers Survey, 2017

Projected



And Professional Skills Now a Majority of US Spend

Source: SIA US Staffing Industry Forecast, September 2017

Percent of US Temp Staffing Spend by Skill



▪ US less than 1/3 of global market

▪ Global clients want global solutions

An Increasingly Global Business



An Increasingly Global Business

Source: SIA Global Staffing Industry Market Estimates and Forecast, May 2017



$3,500,000,000,000



Temporary workerssourced directly (e.g. seasonal workers): $611 billion*

Workers under a Statement-of-work arrangement: $458 billion*

Temporary agency workers: $382 billion

Independentcontractors/self-employed individualsarethelargestcomponentofthegigeconomy,generating$2,039billioninrevenue*

Temporaryworkerssourceddirectly(e.g.seasonalworkers):$611billion*

WorkersunderaStatement-of-workarrangement:$458billion*

Temporaryagencyworkers:$382billion

Uber:$20billion Didi Chuxing:$14.2billion

AllB2B-focusedhumancloudcompanies:$5.7billion

Lyft:$2.3billion

Humancloud:$47billion**

MarketsizeandfeaturesoftheGigEconomy

MarketsizeandfeaturesoftheHumanCloud

MarketsizeandfeaturesofB2BHumanCloudCompanies

11

1

2

3

4

350+identifiedB2B-focusedhumancloudplatforms(otherthanthosetotheright):$1.4billion

Zhubajie (Witmart):$1.3billion

Upwork:$1.2billion

MBOPartners$404million

Axiom:$250million

GLG:$320million

12

5 6

78

910

13

14

15

16 17

18

A Broader Gig Economy of Global Contingent Work

SOW = $458 B

Independent Contractors = $2,039B

Internal Temps = $611B

Temporary Staffing =$382B

Sources: The Global Gig Economy: Market Estimates and Features, Global Staffing Industry Market Estimates and Forecast: May 2 017

2016 Global Contingent Market Estimates



Limited Signs of Industry Consolidation

Source: SIA Staffing Firm Market Share Landscape and Book of Lists

2016 Market Share

24.9% - Global

28.7% - US Total

43.8% - Healthcare US

41.0% - IT US

37.7% - Office US

52.8% - Industrial US



▪ Market growth

▪ Solid growth drivers

▪ Increasing usage

▪ More strategic

What Got Us Here?



Agenda


▪ Where We Are




New Banner to ComeFuture ForwardKeys to Success Today

A Good External Environment AND

Timeless Disciplines You Can Control



Why do so Few Staffing Firms Make it to the Top?

Number of US Staffing Firms by Size

Source: US Economic Census, 2012 and Staffing Industry Analysts



Book



Founded 19832006 Revenue: $4.7B2016 Revenue: $10.2B CAGR 2006-2016: 8.1%

Founded 20012006 Revenue: $99M2016 Revenue: $1.6B CAGR 2006-2016: 32.1%

Founded 19952006 Revenue: $296M2016 Revenue: $1.8B CAGR 2006-2016: 19.8%

US Staffing Industry2006 Revenue: $117B2016 Revenue: $137B

CAGR 2006-2016: 1.6%CAGR = Compound Annual Growth Rate

Source: SIA Largest Staffing Firms and Fastest Growing Staffing Firm Reports, 2007, 2017



Break Through Growth Firms Have Outperformed

▪ Acro Service Corp.▪ Advanced Group▪ ALKU▪ AtWork Personnel Services▪ The Delta Companies▪ ettain Group▪ Hire Dynamics▪ LaSalle Network▪ Medix▪ Signature Consultants▪ Strategic Staffing Solutions

Breaking Through Firms▪ From start up to top 2%▪ Grown 4X faster than

the industry 2011/2016



Five Disciplines of Top Performing Staffing Firms


New Banner to ComeFuture ForwardThe Business Environment Still Matters



Economy Moving Ahead

▪ GROWTH:

– GDP growth forecasts at 2.5% to3% for 2018

▪ JOBS:

– Over 200,000 new jobs in 3 of last4 months

– Unemployment back down to 4.1%

Sources: Philadelphia Federal Reserve Bank, US Bureau of Labor Statistics,



Inflation is Back!

▪ Here’s Johnny! Inflation is Back!

▪ Just when you thought it was safe!



Is Inflation Back?

January Figures

▪ Consumer Price Index : + .35% M/M (Highest since 2005)

▪ Produce Price Index : + .4% M/M

▪ Average Hourly Earnings: + 2.9% Y/Y (Highest since 2008)



Sources: Staffing Industry Analysts, US Department of Commerce, US Bureau of Labor Statistics

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Sep

-03

Mar

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Sep

-04

Mar

-05

Sep

-05

Mar

-06

Sep

-06

Mar

-07

Sep

-07

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Sep

-08

Mar

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-09

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-11

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-12

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-14

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-14

Mar

-15

Sep

-15

Mar

-16

Sep

-16

Mar

-17

Sep

-17

Op

enin

gs, H

ires

(00

0's

)

Recession Openings Hires

Skill Shortages Restraining Growth



Pulse Survey Suggests Moderate Growth

Source: SIA US Staffing Industry Pulse Survey Report, Jan 2018 Update, February Preliminary Results



SIA 2018 Forecast Calls for Moderate Growth

Sources: Staffing Industry Analysts, US Staffing Industry Forecast September 2017



Gross Margins Improving SIBC Average Gross Margin Percentage

* 2017 Average for first three quartersSources: SIA and Company Reports for 16 Public Staffing Firms, Staffing Industry Benchmarking Consortium 2010-2017


New Banner to ComeFuture ForwardWhere We Are

▪ Economy and market looking positive for near to mid term

▪ Skills shortages the biggest drag on growth



Agenda


▪ Where We Are





What Will Get Us There?

▪ Timeless leadership disciplines

▪ Anticipating client challenges

▪ Disrupt or be disrupted mentality

▪ Learning to love technology

▪ Visionary solutions

▪ Supportive business/legal environment


New Banner to ComeFuture ForwardAnticipatingClient Challenges



Strategies for Managing a Contingent Workforce




A More Strategic Future for Contingent Work?




Disrupt or Be DisruptedMentality!

did not launch

did not create

did not build

did not launch

did not create



Disrupt or Be DisruptedMentality!

What is Staffing?

Branches and Recruiters?

ORConnecting People and

Work?



Travel Agents Real Estate Agents

OR

Now Running With the Big Dogs!





IKEA and TaskRabbit

▪ Get photos of the two logos or an IKEA building



Online Platforms Seeking Their Place in the Ecosystem

Source: Staffing Industry Analysts



The Great Convergence?

Pure online marketplace/ technology

Hybrid model/offerings

Traditional staffing/pure service provider



Online Staffing Interest Growing

Source: SIA 2017 Contingent Workforce Buyers Survey



Lessons From the Growth of VMS

The main choices

for staffing firms

▪ Launch your own VMS or MSP

▪ Learn to play

▪ Avoid/find a niche

Recession



The only bad option? Denial!


New Banner to ComeFuture Forward Learning to Love Technology

AI can go far beyond the recruiter

Impacts on Staffing

▪ Sourcing

▪ Screening

▪ Matching

▪ Optimization

▪ Prediction



AI can go far beyond the recruiter



http://trymya.io/

Mya

Talla

https://talla.com/

https://pal.chat/ https://xor.ai/

http://karen.ai/

https://talkpush.com/chatbot.html

Job Pal

Karen

Xor

Stanley

https://www.wadeandwendy.ai

Wade & Wendy

Advent of Recruiting Chatbots



The Staffing Black Hole! Candidates apply and never hear back…ever

The Candidate Black Hole



60%70%80%90%

100%110%120%130%140%150%160%170%180%

20

08

20

09

20

10

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11

20

12

20

13

20

14

20

15

20

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Change in Revenue per Office

Adecco Group

Randstad

ManpowerGroup

AVERAGE

60%70%80%90%

100%110%120%130%140%150%160%170%180%

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Change in Revenue

Adecco Group

Randstad

ManpowerGroup

AVERAGE

60%70%80%90%

100%110%120%130%140%150%160%170%180%

2008

2009

2010

2011

2012

2013

2014

2015

2016

Change in Number of Offices

Adecco Group

Randstad

ManpowerGroup

AVERAGE

Source: Company reports and Staffing Industry Analysts

Big Three Firms: More Revenue/Fewer Offices



Projected change in staff levels due to automation

Source: SIA North American Staffing Company Survey 2017

N=439

Glass Half Full?



Next Up?Blockchain!

Blockchain Coming Soon!




New Banner to ComeFuture ForwardVisionary Solutions

▪ Bundled solutions vs. people/hour

▪ Total talent acquisition

▪ People & technology


New Banner to ComeFuture ForwardAnd a Sunny Business Environment Helps!



What Will Get Us There?

▪ Timeless leadership disciplines

▪ Anticipating client challenges

▪ Disrupt or be disrupted mentality

▪ Learning to love technology

▪ Visionary solutions

▪ Supportive business/legal environment



Agenda


▪ Where We Are





▪ Keynote Sessions | Glimmer Ballroom

▪ Concurrent SessionsFlicker 1/2, 3 (4th Level), Splash 9/10, 11/12 (Upper Lobby Level)

▪ Ideas In Action (Upper Lobby Level)Splash 13/14, 15/16

▪ Breakfasts/Networking Breaks/Receptions/ExhibitsSparkle Ballroom (Upper Lobby Level)

▪ Tuesday Networking Lunch | Sparkle Ballroom (Upper Lobby Level); Birds of a Feather | Glimmer Ballroom (4th Level)

Events and Locations



Presentations Available to Download

▪ Available on March 2

▪ www.staffingindustry.com/ppts_efna18

Audio Recordings with Screen Capture

▪ Available to purchase

▪ Place your order at Conference Media Kiosk outside the Exhibit Hall located near the Conference Registration Desk



▪ All Sessions – Conference Community

▪ General Sessions – Evaluation Form in the back of your conference booklet

▪ Concurrent Sessions –Evaluation Card on your chair

Three Easy Ways to Give Feedback



Use the Conference Community App to Get Involved!

▪ See Who is Here

▪ Ask a Question

▪ Request a Meeting

▪ Rate the Sessions

▪ Contribute to the Discussion



What Got Us Here, Won’t Get Us There


New Banner to ComeFuture ForwardWhat You Get Here at Executive Forum, Will Help Get You There!

©Crain Communications Inc. All rights reserved. 71©Crain Communications Inc. All rights reserved.

Welcome to 2018 Executive Forum

February 26 – March 1, 2018Future Forward

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