RESEARCH FOCUS The View from the Other Side: Staffing … · 2020-04-11 · 21%Healthcare Temp 31% Other Retained Search Human Resources Consulting Services Creative/Marketing Temp

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TheViewfromtheOtherSide:StaffingProviderandContingentWorkerSurveys

RESEARCHFOCUS

Speakers:§ JohnNurthen, ExecutiveDirector,GlobalResearch,StaffingIndustryAnalysts

§ BryanPeña, SVP,Contingent WorkforceStrategies,CCWP,StaffingIndustryAnalysts


TemporaryWorkerSurvey

StaffingCompanySurvey



Wheredotemporaryworkerscomefrom?

Howdidyoufirstlearnaboutyourcurrentstaffingagency?

2%

0%

1%

1%

2%

4%

7%

11%

14%

26%

31%

Other

Happenedtoseetheirlocaloffice

Jobfair/in-personnetworkingevent

Havefrequentlyheardthebrandname

Foundthemonasocialnetworkingwebsite(e.g.LinkedIn,Facebook)

Afriend/colleaguerecommendedaparticularrecruiterattheagency

AnemployerIinquiredatreferredmetothem

Foundthembysearchingtheweb(e.g.Google,etc.)

Irespondedtoajobtheyadvertisedonajobboard

Afriend/colleaguerecommendedtheagency

Theagencycontactedmedirectly

Source: Temporary Worker Survey, 2017


Mostcommon“other”reasonsforchoosingtemporarywork

Twogroupslessinterestedinpermwork:• Healthcaretemps• 66andover

WhydoTemporaryworkerschoosetemporarywork?


Primaryreasonstemporaryworkerschoosetobetemporaryworkers


Whomostpreferstempagencywork:• Healthcaretemps(56%

chooseit)• 66andover(55%choose

it)

Othernotablevariation:• Interestinfreelancingincreaseswithwage&age

Preferredworkstatusoftemporaryworkers



Preferredworkstatus



AssignmentlengthexpectationsvrealityTemporaryworkerexpectations forassignmentlengthsvs.assignmentlengthspreviouslyreported bytemporaryworkersinaseparatesurvey



Percentoftemporaryworkerswhohavequitanassignmentearly



Amongtemporaryworkerswhohavequitanassignmentearly,percentwhocitedselectedreasonsfordoingso



PayparityexpectationsvpermanentworkersFortemporaryworkersinyouroccupation,areworkerstypicallypaidmoreperhourthanpermanentworkers,aboutthesame,orless?



Temp-to-hireexpectationsvrealityStaffingfirms:Reportedtemp-to-hireratesrates

StaffingFirm ReportedMedianConversionRate

Commercialstaffingfirms 30%

Professionalstaffingfirms 10%


Temporaryworkers:Temp-to-hireexpectations

Source: Staffing Company Survey, 2017


Temporaryworkerhealthcareexchangestatus



Trendintemporaryworkernetpromoterscores



Impressionsofstaffingfirmexperience



EffectonoverallNPSofselectedsatisfactionfactors



Whenyouthinkaboutthestaffingfirmyouworkfor,whatonewordcomestomind?



Category Worst-caseScenario

CharacterofJob:duties,levelofresponsibility,skillstobeused

“Iwastolditwasoncology;itwascardiac.Hugedifference.Ihavenotraininginthespecialtyoftheactualposition.Iwastold‘whocares,you'reanurseyoushouldbeabletodoit.’That'slikeaskingabrainsurgeontoworkinorthopedics.”

Culture/Management/Operation:staffturnover,pressure,characterofboss,attitudetowardtemps

“Howincrediblyvulgarconstructionworkersare!I'vealwaysworkedinaprofessionalenvironment,soIwasshockedatthetypeofenvironmentmyfirmoffers.”

Logistics/DressCode:parking,dresscode,housing,towhomreport,howtologtime,payschedule,location

“Mypositionrequiredmetobeatadifferentlocationeveryday.Iwasnotsurewheremy‘base’locationwouldbe.Iwastoldwheretoshowupthefirstday,andafterthatIhadtofigureitoutmyself.”

WhatTempswishtheirstaffingfirmshadtoldthembeforetheirassignment



Category Worst-caseScenario

PermChances/AssignmentLength:realoddsoftemp-to-hire,probabletemptenure

“Iwishtheyhadbeenhonestaboutpotentialconversion.I'mnotsureIwouldhaveacceptedormovedmyfamilyiftheyhadbeenhonest.”

TermsofEmployment: benefits,holidaypay,hours,payincreases

“Ishouldhavebeentoldthattherewasnovacation,sick,orholidaypay.Ishouldhavebeentoldthatthebenefitsofferedbarelymetthefederallimitsandthataspousecouldnotbecovered.IshouldhavebeentoldthateventhoughIwashiredfor40hoursperweekthatthehourscouldbereducedwithnonoticeatall.”

Training/Tools: technology/toolsusedinjob,orientation,trainingincludedinjob

“IwasnotinformedthatIwouldhavetobeworkingfrommyownlaptop.OnDay2,theCEOaskedmetocompleteataskthatrequiredalaptop,butIdidnothaveonewithme.InevermadeittoDay3.”

WhatTempswishtheirstaffingfirmshadtoldthembeforetheirassignment



Amongthe5%currentlyusingbusiness-relatedhumancloud,whatpercentoftheirincomedoesitgenerate?

Familiaritywithanduseofbusiness-relatedhumancloudservices



Temporaryworkerpotentialusagevs.actualcurrentusageofhumancloudservices

Consumer-Related Business-Related

Amongthoseaware,usingcurrently 10% 13%

Amongthoseaware,consideringw/in2years 14% 17%

TotalPotential 24% 30%

Actualcurrent use 6% 5%

Ratio 24%/6%=4x 30%/5%=6x

Growthpotentialofhumancloudservicesamongtemporaryworkers



TemporaryWorkerSurvey

StaffingCompanySurvey


Preferredacquisitiontargets


3% 0% 0% 1% 1% 1% 2% 2% 2% 3% 3% 4% 4%

6% 6%

10% 21%

31%

Other

RetainedSearch

EducationTemp

HumanResourcesConsultingServices

Creative/MarketingTemp

DirectHire/PermanentPlacement

Finance/AccountingTemp

Clinical/ScientificTemp

HealthcareTemp

Amongstaffingfirmsreportingacquisitioninterest,percentchoosingselectedsegmentsastoptargets


Ofplacedtemps,percentthatconverttopermanentpositions,asafunctionofstaffingfirmprimarysegmentandfirmsize

Howoftendotemporaryworkersconverttopermanentpositions?



Useofoutsourcedandoffshorerecruiters


Percentofstaffingfirmsusingoutsourced/offshorerecruiters,asafunctionoffirmsize

15%12% 11%

18%15%

19%

29% 31%

42%45%

3% 2%

10%

3%

9%

26% 25%

31%

18%

46%

1% 0% 0%5% 7% 6%

9% 8%

18% 17%

<$2.5M $2.5M-$4.9M

$5M-$9.9M

$10M-$24.9M

$25M-$49.9M

$50M-$99.9M

$100M-$249.9M

$250M-$499.9M

$500M-$999.9M

$1billion+

U.S.outsourced India-based Otheroffshore


Averagetemp-to-hireconversionfee(%ofsalary)

Howmuchdostaffingfirmstypicallychargewhenatempconvertstoapermanentposition?



Howdostaffingfirmscalculatetemp-to-hireconversionfees?



Atwhatassignmentlengthdoconversionfeesnolongerapply?


basis


Howmuchdostaffingfirmstypicallychargefordirecthire?



Trendindirecthirefees2010-2016



Percentofstaffingfirmsusingbenchmodel2012,2016,andprojected2026



Useofbenchmodel,asafunctionofprimaryskillsegmentandfirmsize



Timetofillmeasures


Howstaffingfirmsdefinetime-to-fill,intermsofeventtriggeringclosureoftime-to-fillperiod

2% 2% 7%

40% 49%

OtherClearsbackgroundcheck

IsonboardedAcceptsofferStartsonjob

Howstaffingfirmsdefinetime-to-fill,intermsofeventtriggeringclosureoftime-to-fillperiod,asafunctionofprimarysegment

AcceptsOffer StartsonJob Other Sum N

Commercial 21% 68% 11% 100% 97

Professional 48% 40% 12% 100% 190

AllFirms 40% 49% 12% 100% 333


Temporaryworkersperbranch


Temporaryworkers/branch,asafunctionofprimarysegmentandbyfirmsize

25thPercentile

Median75th

PercentileN

Commercial 89 140 211 109

Professional 36 83 173 193

<=$10m 25 43 100 127

$11m-$100m 81 140 250 157

>$100m 110 177 365 48

All 50 105 200 305


Temporaryjoborderproductivitymetrics


25thPercentile

Median75th

PercentileN

Commercial 5.0 10.0 17.0 94

Industrial 7.0 10.5 20.0 74

Office/Clerical 4.0 5.5 10.0 20

Professional 1.0 2.0 4.0 178

Healthcare 2.0 3.5 10.0 42

IT 1.0 1.0 1.3 88

<=$10m 1.0 3.0 6.0 118

$11m-$100m 1.0 4.0 10.0 139

>$100m 1.0 3.0 9.0 39

AllFirms 1.0 3.0 10.0 306

Number ofjoborderspertemporarystaffingrecruiter filledinaweek(i.e.candidatesplacedinaweek),bystaffingfirmprimarysegmentandfirmsize


Directhireorderproductivitymetrics


Number ofjobordersperdirecthirestaffingrecruiter filledinamonth(i.e.candidatesplacedinamonth),bystaffingfirmprimarysegmentandfirmsize

25thPercentile

Median75th

PercentileN

Commercial 1.0 2.0 3.0 84

Industrial 1.0 2.0 3.0 65

Office/Clerical 1.1 2.0 2.5 18

Professional 0.5 1.5 2.0 146

Healthcare 1.0 1.5 2.0 25

IT 0.5 1.0 2.0 79

<=$10m 0.5 1.5 2.0 111

$11m-$100m 1.0 1.5 2.5 111

>$100m 1.0 1.5 2.5 35

AllFirms 1.0 1.5 2.5 269


TimeandcosttorespondtoanRFP


ImputedhourstowinanRFPcontract

25thPercentile

Median 75thPercentile

ImputedTypicalHours/SuccessfulRFP

16 40 100

ImputedCost/SuccessfulRFP@$25/Hour

$400 $1,000 $2,500


$800 $2,000 $5,000


$1,200 $3,000 $7,500

RFPresponserates,hourstocomplete,and%successful

25thPercentile

Median 75thPercentile

PercentofRFPsRespondedTo 10% 50% 75%TypicalHourstoCompleteanRFP 6 10 20PercentofRFPsSuccessful 10% 25% 50%


Tenurediscounts


Distributionoftenurediscountsamongstaffingfirmsofferingthem

25th Median 75thAt6monthscompleted… 0.0% 0.0% 1.0%At12monthscompleted… 0.5% 1.0% 2.0%At18monthscompleted… 1.0% 1.5% 3.0%At24monthscompleted… 1.0% 2.0% 3.0%At30monthscompleted… 1.0% 2.0% 3.0%At36monthscompleted… 1.0% 2.0% 3.4%

Professional Commercial<$10M 15% 22%$10-49M 25% 6%$50-99M 30% 12%$100M+ 47% 21%All 25% 15%

Percentofstaffingfirmsofferingatenurediscount,asafunctionofstaffingfirmsizeandsegmentfocus


Staffingemployeeperceptions

Source: Internal Staff Survey, 2017

StronglyAgree

Agree SomewhatAgree

SomewhatDisagree

Disagree StronglyDisagree

Iamproudtoworkhere 63% 28% 7% 1% 1% 0%

Myworkmotivatesme 55% 32% 9% 2% 1% 1%

IhavetheinformationIneedtodomy jobwell

53% 36% 8% 2% 1% 0%

Myimmediateco-workersconsistentlygo theextramiletoachievegreatresults

52% 33% 11% 2% 1% 1%

Iaminspiredbytheworkwedo 51% 33% 12% 3% 1% 1%

Iampaidfairly 37% 35% 17% 6% 3% 2%


Staffingsales/marketingemphasis

Inyourcompany'ssalesandmarketingefforts,whichofthefollowingismostemphasized?

1%

1%

2%

2%

3%

4%

4%

5%

14%

18%

19%

27%

Lowbillandfeerates

Geographiccoverage

Abilitytominimizerisktobuyer

Yourfirm'sdiversitystatus(ifapplicable)

Breadthoftempskillsetsavailable

Speedofplacement

Breadthofvalue-addedservices

Workforcestrategy/consultingexpertise

Knowledgeofclientindustry

Workerquality

Generalservicequality

Individualizedbusinessrelationshipfocus



StaffingsalestacticsHighestreturnsalestactics

10%

11%

14%

56%

6%

7%

13%

20%

19%

26%

Channelpartnershipsales

Other

Hiringnational/regionalsalesstaff

Door-to-doorcoldcalling

AnsweringRFPs/RFIs/RFQs

Hiringlocalsalesstaff

Focusonrecurringbusiness

Telephonesalescoldcalling

Existingaccountpenetration

HighestReturnTactic SecondHighestReturnTactic



Staffingfirmpriorities


Averagenumberofyearsofcontinuousprofitability,bymanagementpriorityselected

2010Survey*

2011Survey

2012Survey

2014Survey

4YearAverage

Recruiting/retainingqualityinternalstaff 4.0 5.0 6.4 6.7 5.5Creatingapositivecompanyculture 4.1 4.8 4.6 8.0 5.4Providingexcellentcustomerservice 3.8 4.6 5.1 7.6 5.3Training/developinginternalemployees 4.4 5.0 5.3 6.1 5.2Growingmarketshare 3.1 4.2 6.0 7.2 5.1Improvinggrossmargins 3.7 4.7 4.7 6.8 5.0Recruitingqualitycandidatestoplace 3.5 4.0 4.8 6.6 4.7Expanding/diversifyingnumberofclients 3.2 4.2 4.3 6.6 4.6Growingrevenue 3.1 3.9 4.4 6.2 4.4Acquiringotherfirms 1.7 5.8 -- 5.2 4.2Retainingexistingclients 3.0 4.1 5.5 -- 4.2Reducing/controllingcosts 2.7 4.5 4.7 -- 4.0Ensuringbusinesssurvival 1.9 3.7 2.9 -- 2.8Allfirms 3.3 4.6 4.9 6.6 4.8


AnyQuestions


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Documents

RESEARCH FOCUS The View from the Other Side: Staffing … · 2020-04-11 · 21%Healthcare Temp 31% Other Retained Search Human Resources Consulting Services Creative/Marketing Temp