The Changing Role of the Staffing Industry

1
The Changing Role of the Staffing Industry
David Bartholomew CEO, Staffmark Chairman,
American Staffing Association
2
What Is Staffing?
3
The Staffing Economy
Percentage of Temporary and Contract Employees in
Each Sector, February 2001
20.4 OfficeClerical
4
Industry Facts

• 82 billion industry
• Employs about 3 million temporary and contract
  employees on an average day
• One of the top 10 fastest-growing industries

5
Temporary Help Average Daily Employment
Millions
April 2003April 2006
April 03
April 04
April 05
April 06
6
The Staffing Economy
Average Annual Growth Rate
Number of New Jobs in the Top 10 Fastest-Growing
Industries Through 2014 (BLS)
Child day care services 316,100
7
U.S. Staffing Work Force Penetration 1.90
8
Over the Course of the Year, U.S. Staffing Firms
Hired 12.1 Million Employees in 2005.
Total Annual Employment (Millions)
14.0
13.8
13.1
12.3
12.1
12.0
11.3
10.9
10.2
10.1
10.1
9.5
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Staffing Creates Jobs in Kansas

• 80,000 employees in 2005
• 32,000 bridged to permanent jobs
• 20,000 employees per day on average
• 374 million in payroll generated in 2005

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Todays Temporary Employee

• Temporary and contract employees work in
  virtually all sectors and occupations
• Americas staffing companies match millions of
  people to millions of jobsevery day
• 2.9 million per day
• 12.1 million per year
• 53 were hired for full time work
• (6.4M temporaries)

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The Flexibility Factor
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The Flexibility Factor

• The U.S. staffing industry is growing faster
• than the economy because of flexibility
• employees want it, businesses need it, and
• its good for the economy.

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The Flexibility Factor

• Increased reliance on contingent (i.e.,
  temporary/part-time) laboris associated with
  superior subsequent performance and no
  increase in systematic risk.
• Economists Nandkumar Nayar, Lehigh University,
  and G. Lee Willinger, University of Oklahoma in
  Decision Sciences

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Just-in-Time Staffing

• Low inventory
• Respond to demand

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The Flexibility Factor

• Businesses
• American Management Association (1,248)
• 91 said flexibility in staffing issues was
  important
• 95 said that flexibility was being achieved
• 38 increased use of staffing companies
• American Staffing Association (500)
• Nine out of 10 customers agreed Staffing
  companies offer flexibility to businesses so that
  they can keep fully staffed during busy times.

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The Flexibility Factor
Percentage of Businesses With 25 Employees That
Cite as a Main Reason for Using Staffing Firm
17
The Flexibility Factor

• U.S. Economy
• Alan Greenspan, former chairman of the Federal
  Reserve Board
• President Bill Clinton
• President George W. Bush

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The Flexibility Factor

• The growth of the staffing industry was
  responsible for up to 40 of the sharp reduction
  of unemployment in the 1990s
• Lawrence Katz, Harvard University, and Alan
  Krueger, Princeton University

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The Flexibility Factor

• Employees
• 66 say flexible work time was an important
  factor in their decision to become a temporary or
  contract employee
• 23 said it was extremely important
• 56 said needing time for family was an important
  factor
• 20 said it was extremely important

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Access to Talent
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Access to Talent

• Speed
• keep fully staffed during busy times
• Screening
• good way to find permanent employees
• Specialized skills
• Particularly important in professional sectors
• Best talent
• Staffing companies offer the best talent for
  both temporary and permanent positions.

22
Access to Talent
Percentage of Staffing Customers That Commonly
Engage Temporary or Contract Employees in Key
Occupational Sectors
OfficeClerical 62
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Choice Is Key
Temporary and contract employees work with you
because they choose to

• Work schedules
• Work places
• Work assignments

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The Emergent Work Force

• Generations X and Y
• Personal fulfillment in the work place
• Performance-based recognition

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We Help You Find the Right Fit

• Recruiting
• Selection
• Screening
• Matching
• Background checks

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Save Time and Money
Staffing firms screen candidates, assess
their skills, and verify their credentials so
you dont have to
You get immediate access to talented individuals
who are ready to start work
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We Function As the Employer

• Wages
• Benefits
• Payroll deductions

• Social Security
• Medicare
• Unemployment
• Workers compensation insurance

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Misconceptions About the Staffing Industry

• All staffing companies draw from the same pool of
  people
• How do you build employee loyalty
• Your application process is different
• Pay rate vs. true cost of the employee

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Predictions

• Recruitment crunch
• Increase In Outsourcing
• Performance Base Pricing/Cost Per Unit
• Immigration Reform
• Mandated Healthcare Cost
• Workforce Culture Change

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Help Us Help You

• Talent relations

• Let staffing firms establish pay rates and
  benefits
• Treat employees well and dont call them temps

• Business partners

• Let staffing firms help you define and fill
  talent needs
• Focus on value, not price build relationships
  to get the quality service you deserve
• ASA member firms committed to high standards of
  legal, ethical, and professional conduct

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The Changing Role of the Staffing Industry
David Bartholomew CEO, Staffmark Chairman,
American Staffing Association