The Global Private Employment Agencies Industry & Market · Overview of Ciett research & data...

15 May 2014

The Global Private Employment Agencies Industry & Market

Ciett Annual Conference, 15 May, BrusselsDavid Papapostolou – Staffing Industry AnalystsMenno Bart – Ciett secretariat

Overview of Ciett research & data gathering

Annual Economic Report (global data)• Published March 2014 (2012 data) • Worldwide focus• In depth study (industry, profiles of agency workers, satisfaction etc.)

Compendium of regulatory framework for the use of agency work (global data)

• Masterlist of restrictions and requirements• Overview of industrial relations/social dialogues in various countries

Monthly Eurociett Agency Work Business Indicator (Europe)• Selected countries (hours worked: 9 countries - 63% of market, turnover: 8 countries -

37% of market)• Leading indicator of employment levels, coincidental indicator of GDP.

Joint research project with UNI-Europa (EUSectoral Social Dialogue)• Comparing Agency work with other forms of employment• (previous editions on transitions, vocational training and more)• Results & conference January 2015

©2014 by Crain Communications Inc. All rights reserved.

Who We Serve


Staffing Providers Staffing & Process BuyersProcess Improvement Providers

15 May 2014

Key facts & figures

Key data on the worldwide AW market in 2012

36 Million individuals employed (2012)

USA 11.5 mlnEurope 8 mlnBrazil 7 mlnAsia/Pacific 4.8 mln

Agency work penetration

UK: 3.8%NL: 2.7%LU: 2.4%DE: 2.2%FR: 2.0%

Agency work market slowly recovering in 2013...

60708090

100110

18/0

6/20

0624

/09/

2006

31/1

2/20

068/

04/2

007

15/0

7/20

0721

/10/

2007

27/0

1/20

084/

05/2

008

10/0

8/20

0816

/11/

2008

22/0

2/20

0931

/05/

2009

6/09

/200

913

/12/

2009

21/0

3/20

1027

/06/

2010

3/10

/201

09/

01/2

011

17/0

4/20

1124

/07/

2011

30/1

0/20

115/

02/2

012

13/0

5/20

1219

/08/

2012

25/1

1/20

123/

03/2

013

9/06

/201

315

/09/

2013

22/1

2/20

1330

/03/

2014

USA: US Staffing Employment Index (Set at 100 on 6/12/2006)

-60%

-40%

-20%

0%

20%

40%

60%

Jan-

08M

ar-0

8M

ay-0

8Ju

l-08

Sep

-08

Nov

-08

Jan-

09M

ar-0

9M

ay-0

9Ju

l-09

Sep

-09

Nov

-09

Jan-

10M

ar-1

0M

ay-1

0Ju

l-10

Sep

-10

Nov

-10

Jan-

11M

ar-1

1M

ay-1

1Ju

l-11

Sep

-11

Nov

-11

Jan-

12M

ar-1

2M

ay-1

2Ju

l-12

Sep

-12

Nov

-12

Jan-

13M

ar-1

3M

ay-1

3Ju

l-13

Sep

-13

Nov

-13

Jan-

14M

ar-1

4

European Agency Work Business Indicator (y-o-y growth in hours worked)France

Belgium

Netherlands

Italy

Germany

Norway

Switzerland

Poland

Denmark

Europe (monthly)

...which may be good news for GDP & Employment...

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

-40,0%

-30,0%

-20,0%

-10,0%

0,0%

10,0%

20,0%

30,0%

40,0%

Jan-

08M

ay-0

8S

ep-0

8Ja

n-09

May

-09

Sep

-09

Jan-

10M

ay-1

0S

ep-1

0Ja

n-11

May

-11

Sep

-11

Jan-

12M

ay-1

2S

ep-1

2Ja

n-13

May

-13

Sep

-13

Evolution of number of hours worked by agency workers in europe (year on year) versus average

EU 28 Unemployment change (year on year)

Evolution of AW hours worked - Europe

Y-O-Y Change in unemployment (EU 28)

-30%

-20%

-10%

0%

10%

20%

30%

-6%

-4%

-2%

0%

2%

4%

6%

Jan-

08M

ay-0

8S

ep-0

8Ja

n-09

May

-09

Sep

-09

Jan-

10M

ay-1

0S

ep-1

0Ja

n-11

May

-11

Sep

-11

Jan-

12M

ay-1

2S

ep-1

2Ja

n-13

May

-13

Sep

-13

Evolution of number of hours worked by agency workers in europe (year on year) versus evolution of

GDP volume EU28

Evolution of AW Hours Worked - Europe

Evolution of GDP volume - EU28

Countries and regions are to scale

South America

US

Africa &Middle East

Europe

AsiaPacific

Global staffing market 2013

Source: Staffing Industry Analysts

Global staffing market 2013 = €331 billion (+2.1%)



South America

US

UK

FR

DE

NL

IT

BE

CH

Africa &Middle East

Europe

AsiaPacific


©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts



South America

US

UK

FR

DE

NL

IT

BE

CH

Africa &Middle East

Europe

AsiaPacific


JP

AU

CN

IN



Asia Pacific


South America

US

CA

BR SA

JP

AU

UK

FR

DE

NL

IT

BE

CH

CN

INAfrica &Middle East

Europe

AsiaPacific





Country 2013 GDP Forecast*

2013 StaffingMarket Growth Forecast

UK 1.5% 2%

Germany 0.5% 3%

France 0.2% ‐4%

Netherlands ‐1.2% ‐7%

Europe ‐0.1% ‐2%

Japan 1.8% ‐2%

Australia 2.5% 1%

Brazil 2.5% 4%

South Africa 2.0% 0%

USA 1.6% 5%

Global 2.1% 1%

*GDP as per SIA estimate based on IMF/Economist or EU/Economist, November 2013

Staffing Market Forecasts

2014 GDP Forecast*

2014 StaffingMarket Growth Forecast

1.9% 7%

1.4% 5%

0.9% 2%

0.4% 0%

1.4% 4%

1.7% 5%

2.8% 1%

2.6% 4%

3.1% 1%

2.6% 5%

2.9% 4%

Gulf/AfricaEuropeAsiaPacAmericas

VariableProfessional/Commercial staffing mix

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Argentina

Brazil

Chile

Colombia

Peru

Uruguay

Canada

Mexico

USA

Australia

New

Zealand

China

India

Japan

South Ko

rea

Austria

Belgium

Denm

ark

Finland

France

Germany

Ireland

Italy

Nethe

rland

sNorway

Poland

Portugal

Russia

Spain

Swed

enSw

itzerland

United Kingdo

mMiddle East

South Africa

Commercial Professional

Source: Staffing Industry Analysts ©2014 by Crain Communications Inc. All rights reserved.

MSP & VMS more prominent in the US

$0

$20

$40

$60

$80

$100

$120

$140

$160

Europe AsiaPac, LATAM & Africa North America

Staffing Market VMS spend under management MSP spend under management

MSP &VMS as a Proportion of Regional Staffing Revenue2012 Revenue (USD Billion)

55%

39%

18%14%

9% 4%

Source: Staffing Industry Analysts


15 May 2014

Selected markets


Japanese Staffing Market


• Second largest national market: €41bn• Highly fragmented, high density of domestic firms

• Staffing firms often part of larger conglomerates

• Adecco the largest foreign firm

Japanese Staffing Market


Top Staffing Firms in Japan

Company Country HQRecruit JPTempstaff JPPasona Group JPAdecco CHNichii Gakkan JPManpowerGroup USARandstad NLIntelligence Ltd JPMeitec JPPanasonic Excel Staff JP

• Dispatching = temporary staffing• Staffing legal since 1985 (‘Dispatch Law’)• Dispatch law relaxed between 1999‐2007

More categories of workers Extended period of hire Temp‐to‐perm

• 3‐year assignments limit, except for highly skilled workers

• Licence to become compulsory (draft bill)©2014 by Crain Communications Inc. All rights reserved.

Japan: Legal Context


Chinese Staffing Market


Typical Services: US & EU

Staffing Agency

Temporary Staffing

Permanent Placement

Temp to

Perm


Typical Services: China

Staffing Agency

Temporary Staffing

Permanent Placement MSP RPO

VMS ATS

PayrollingHR Advisory

Temp to

Perm

TrainingConsulting /Solutions

HROutsourcingOutplacement

InsuranceOutsourcing Job Board



• Temporary staffing is mostly quasi‐outsourcing/payrolling– ‘Dispatched’ workers shifted onto third party payroll– The staffing forms is the legal employer of the workers– Foreign firms required to hire through dispatch agencies– Assignments cannot last > six months– Brokers source labour in villages and charge a commission to

agencies

• The larger staffing firms are Government‐owned– Historical providers to foreign firms: FESCO– Large conglomerates providing HR and staffing services– Recently global players entered the market



• Labor Contract Law changed in July 2013 to counter abuse and tighten loopholes– Temporary workers to enjoy payments, including all

welfare and benefits, equal to permanent counterparts– ‘Dispatched workers’ can only be employed in positions

which are temporary, auxiliary or substituting in nature – Temporary work should last no longer than six months – Max proportion of temporary workers should not

exceed 10% of total workers (excl. foreign firms).


China headlines (SIA daily news)

• “Recruitment rises by +18% in Q1“• “Demand for accounting and finance professionals highest

in Asia”• “Plans to recruit more foreign professionals”• “Increasing demand for it and engineering talent”• “NES Global opens regional office to meet demand”

www.staffingindustry.com/Newsletters/Newsletter-Subscriptions-for-Staffing-Firms


Indian Staffing Market



Indian workforce404.5m

‘Formal’ employment42.7m

‘Flexi staffing’1.3m

€3.2bn



Range of services offered by staffing Intermediaries

Permanent Recruitment

Executive Search

Recruitment

Flexi Staffing

Professional

White Collar

Blue Collar

HR Solutions

Consulting

Outsourcing

Training

Talent


Top Staffing Firms in India

Company Country HQAdecco CHTeamlease INRandstad NLIkya Human Capital Sol. INManpowerGroup USAGlobal Innovsource Sol. INGenius Consultants INKelly Service USAAllegis USAABC Consultants IN



OPPORTUNITIES• Sizeable growth opportunities in the long term• Market consolidation • Greater reliance on technology• New delivery models• Specialised talent shortages in STEM, Pharma, and IT

THREATS• Archaic, outdated & overlapping laws • Competition from the Informal Sector• Complex & expensive compliance • Current stagnant growth outlook• User companies see staffing companies as “transfer of burden” rather than a partner

15 May 2014

Profile of agency workers

Agency workers tend to be young

Most agency workers employed in services and manufacturing

Agency work helps unemployed find jobs and remain in employment

Before agency work, only 32% was employed, 12 months later this was 68%

Before agency work, 35% was registered as unemployed, afterwards only 14%

Companies cite flexibility and temporary demand as main reasons to hire agency workers

There are many reasons for choosing agency work

High job satisfaction among agency workers

80% of Agency Workers would recommend it

83% is satisfied to very satisfied

15 May 2014

Questions?Questions?

David [email protected]

www.staffingindustry.com@SIAEurope @Davidpap

David [email protected]

www.staffingindustry.com@SIAEurope @Davidpap

Menno [email protected]

www.ciett.org @Ciett_waytowork @mennobart

Menno [email protected]

www.ciett.org @Ciett_waytowork @mennobart

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