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Global Daily News

  • Temp Holdings invests in online staffing firm Wonolo

    Online staffing firm Wonolo received an investment from Tokyo-based Temp Holdings Co. Ltd., the ninth-largest staffing firm in the world.Wonolo operated in the “just-in-time” staffing segment of online staffing firms where buyer can order, pay and manage workers online while the workers perform tasks at a site such as setting up a display in a grocery store.The deal closed Wednesday, but the amount of funding was not announced.Wonolo Co-Founder and COO AJ Brustein said he is excited about the deal because the two companies don’t overlap in terms of business and the deal highlights the growing impact of online staffing firms.“It’s just really a validation that traditional temp staffing agencies are seeing the disruption in this space,” Brustein said. “We’ve been thinking about doing something like this for a while now, but we needed to find the right partner.”In addition, there will likely be a lot of mutual learning between the two companies.Wonolo passed the 100,000 jobs completed mark earlier last year, and it has 30,000 onboarded Wonoloers. Most of its jobs use independent contractors, but the company rolled out a W-2 option last year.Temp Holdings last month also made an investment in Hack Reactor LLC, a coding boot camp based in San Francisco. […]

  • eTeam acquires London-based Dryden Human Capital

    eTeam Inc., a US-based staffing services and talent management solutions provider, acquired Dryden Human Capital, the parent company of Darwin Rhodes. The acquisition gives eTeam access to new global markets and increases its market share in London and the US.The transaction closed Jan. 6; terms were not disclosed.Darwin Rhodes will continue to operate under the Darwin Rhodes brand with its key team.Dryden Human Capital, headquartered in London, is the holding company for two recruitment companies: insurance recruiter Darwin Rhodes and sales, marketing and retail recruiter Alexander Cane. It operates globally through offices in London, Hong Kong and New York.Darwin Rhodes has served niche areas of the insurance market for the past 20 years and operates offices in London, Hong Kong and Switzerland.“We are extremely excited to welcome the Darwin Rhodes team to eTeam group of companies,” said Ben Thakur, eTeam’s President and CEO. “Darwin Rhodes has a respected brand within the insurance industry and the union of our resources will add considerable expertise in addressing the industry’s unique talent needs.”Founded in 1999, eTeam counts revenue of $80 million and targets the general staffing, IT, engineering, clinical/scientific and professional sectors. It provides high-volume staffing, SOW and payrolling services to structured contingent workforce programs and projects across the US, Canada and India. It also provides contract-to-hire and direct placement.eTeam looks to make more acquisitions in the future, targeting companies in talent acquisition space such as temporary and full-time staffing providers, payrolling firms and private talent pools. […]

  • Catalant names former Salesforce exec as CRO

    Catalant, a Boston-based online staffing platform, announced Dave Walsh joined the company as its first chief revenue officer, effective last Monday. Walsh, who previously served as an advisor to Catalant, will be responsible for driving the company’s go-to-market strategy within companies and across industries.Walsh previously spent 12 years at Salesforce. He joined as a founding member of the enterprise sales team and most recently served as VP, enterprise sales.“For our most forward-thinking clients, Catalant has become a vital enterprise-wide resource,” said Rob Biederman, co-founder and co-CEO of Catalant. “Dave has more than 30 years of experience driving the sales strategy for organizations like ours that are defining new software categories. We believe that with his help and guidance we are well positioned to realize our vision.”HourlyNerd rebranded as Catalant in July, following a $22 million Series C funding round — led by General Catalyst Partners — which brought HourlyNerd’s total amount raised to more than $33 million. […]

  • People: Yoh, Oasis Outsourcing, Advanced Clinical, Korn Ferry and more

    Yoh, announced Emmett McGrath re-joined the company as executive VP effective Jan. 9. He reports directly to Yoh President Anthony Bosco. During the late ’80s through the early 2000s, McGrath worked for Yoh in various leadership positions. Prior to re-joining Yoh, he was division president of On Assignment Inc. (NYSE; ASGN), and most recently division president and executive VP of Specialist Staffing Solutions Inc., the US division of SThree PLC. Yoh is a business unit of Day & Zimmerman and ranks No. 26 on Staffing Industry Analysts’ list of largest staffing firms in the US.Professional employer organization Oasis Outsourcing, one of the largest PEOs in the US, announced Dolores Calicchio joined the company as executive VP of human resources. Calicchio has more than 15 years of experience in leadership roles across various industries and previously held HR positions at Merck & Company, Johnson & Johnson, Bayada Home Health Care and Carnival Cruise Lines. She will be based in the company’s West Palm Beach, Fla., headquarters.Advanced Clinical added Steve Matas, senior VP, staffing, to its leadership team, responsible for leading the staffing efforts across the company, inclusive of recruitment, sales and operations. The Deerfield, Ill.-based clinical development organization provides global services, including clinical staffing. Prior to joining Advanced Clinical, Matas served as VP of sales, health and life sciences, IT staffing and solutions at DISYS where he was responsible for the healthcare and life sciences technology practice.Executive search firm Korn Ferry International Inc. (NYSE: KFY) announced Mariano Malvicino joined the firm as senior client partner in the global industrial practice. Malvicino most recently worked at a global recruiting firm with organizations across the industrial/natural resources sector, and he previously worked with McKinsey & Company. He will be based in the Houston office.Executive search firm ZRG Partners Inc. hired David Sheahan as managing director, based in the firm’s Dallas office. Sheahan will focus on the life sciences, technology and energy sectors. He previously was a managing principal at Korn Ferry International Inc. (NYSE: KFY).The Caldwell Partners (TSX: CWL.TO), a Toronto-based executive search firm with operations in Canada, the US and Europe, appointed Nashville, Tenn.-based partner John Blank as co-leader of the firm's life sciences and healthcare practice, joining Darin DeWitt at the helm of the practice. Prior to joining Caldwell Partners, Blank held positions of increasing responsibility at several boutique executive search firms, including running the healthcare practice at DHR International.Hire an Esquire, a legal staffing technology company, announced Hi Leva joined its board of directors. Leva recently was VP of sales, marketing, business development and technology at Propel Financial Services, a financial services and fintech firm. He previously was senior VP of sales, sales Operations and PMO at advertising and media firm Clear Channel Outdoor. […]

  • Switzerland – Temp staffing market shows growth in December

    The number of temporary workers in Switzerland increased by 1.9% in December compared to the previous year, according to the latest figures from Swiss Staffing, the Swiss Federation for Staffing Companies.Swiss Staffing also estimated that the market declined by -0.3% for the full year 2016. The data showed that although the second half showed growth overall in the number of temporary workers, it did not did not compensate for the negative figures recorded during the first half.In a statement, the Swiss Staffing Federation commented, “Last year, Switzerland also showed how the wind can turn with regard to central and negative political decisions. Three years ago, after the adoption of the initiative against mass immigration, the economic development of Switzerland was uncertain. As in Great Britain today, Switzerland was threatened with losing its access to the European market. Fortunately, at the end of 2016, the National Council and the Council of States were able to present a bill favorable to the economy. Our industry as well as the Swiss economy can therefore be optimistic for 2017. However, it should not be believed that the games are made. The law requires concrete implementation through an order. Let's bet that we will have to thwart some of the traps that will hide there.&rdquo […]

  • Netherlands – DPA Group CFO to step down due to ‘difference of opinion’

    Chief Financial Officer Stefan Heesakkers of DPA Group, a Dutch staffing firm will leave the company at the upcoming general meeting of shareholders in April following the completion of the company’s annual results."His departure is the result of a difference of opinion regarding the policies pursued by the company", the company said in a press release.Heesakkers joined DPA in 2012 as finance director and was appointed CFO in 2015."The Supervisory Board and the Board are grateful to Mr. Heesakkers for his dedication to DPA," the press release said.DPA has been listed on Euronext Amsterdam since 1999, reported increased revenue growth of 13% in the third quarter of last year to €30.4 million mainly due to the acquisition of ConQuaestor in 2015 and Interim Professionals and PeopleGroup, consolidated as of 1 July 2016. […]

  • World – Switzerland ranks highest for attracting talent

    INSEAD, the France-based business school for the world, has published the Global Talent Competitiveness Index (GTCI) 2017, an annual study based on research in partnership with the Adecco Group and the Human Capital Leadership Institute of Singapore (HCLI), with Switzerland ranking number one on the list, same as last year.The latest report explores the effects of technological change on talent competitiveness, arguing that while jobs at all levels continue to be replaced by machines, technology is also creating new opportunities.“The fast advance of automation and artificial intelligence is the source of the most disruptive changes of our time in the way we live and work,” Alain Dehaze, Adecco Group Chief Executive Officer, said. “The transition will be rocky, so governments and business must act. Education system reforms are urgently needed to provide the right technical and people skills, and the ability to adapt to change. As a multi-career reality becomes the norm, workers must boost employability by committing to life-long learning. At the same time, employment policies must combine employers’ need for flexibility with social protection. Only by working together will we respond to the challenges, unleash the power of work and boost prosperity.” Switzerland and Singapore occupy the top spots in GTCI 2017, with four Nordic countries in the top 10 (Sweden, Denmark, Finland and Norway). The UK and the US rank third and fourth, respectively. Countries established in the top rankings have an education system that meets the needs of the economy, a labour market promoting flexibility, mobility and entrepreneurship, said the authors of the study. […]

  • Sweden – Almega calls on government to review tax system

    Almega, the employer and trade organisation for the Swedish services sector, is calling on the government to establish a broad inquiry with a mandate to review the entire tax system.The organisation stated that the aim must be to change the structure in a way so that work is taxed less.“The Swedish tax system was created for another time where wages were only a small part of the cost pie. So it does not look the reality of the companies that are now emerging. Anna-Karin Hatt, CEO of Almega, said.The call by Almega to the government published in the Swedish newspaper Svenska Dagbladet.Hatt said that it is “high time to review the tax system and implement a radical reform. Today's model works poorly for the services sector and it is in these industries where there are possibilities of new jobs. Bringing in a new system should reduce taxes on labour and lower marginal tax rates.&rdquo […]

  • India – TeamLease acquires Keystone Business Solutions

    Indian staffing firm TeamLease Services has signed a definitive agreement to acquire 100% shares in Keystone Business Solutions Private Limited through its wholly owned subsidiary, TeamLease Staffing Services Private Limited, for a consideration of INR 82 million (USD 1.2 million) payable in cash.With the agreement to acquire Keystone, TeamLease continues its acquisition spree as it seeks to strengthen its IT staffing business. The acquisition is expected to be completed on or before 31 January 2017.Keystone Business Solutions Private Limited was incorporated in June 2009 and offers IT staffing solutions. It operates through its registered office situated in Bangalore, India. […]

  • Asia Pacific – Number of contracting jobs and professional jobseekers decline in Q4

    The number of professionals seeking new jobs across Asia Pacific is down 14% compared to the previous year, and the number of contracting job vacancies decreased by 16% compared to last year according to the latest Morgan McKinley APAC Employment Monitor for the fourth quarter.The monitor also shows that across the Asia Pacific region, permanent financial services jobs are down 5% year-on-year. “The end of the year is for crafting a hiring plan, the beginning of the year is for executing that plan”, Richie Holliday, Chief Operations Officer, Morgan McKinley Asia Pacific, said. “We’re seeing the seasonal jobs slowdown now, and similarly can expect to see a jobs spike in the first quarter of 2017”.Morgan McKinley began reporting contracting employment data in 2016. Contracting jobs started the year off with an increase of 50% quarter-on-quarter, and closed the year with a drop of 21% in jobs available. “The APAC region remains slower than others to embrace contract employment, but as the region adjusts to ongoing market and political volatility, we expect the sector to grow”, Holliday said. “Contractor jobs are the most susceptible to seasonal shifts, so it’s normal to see them outperform during spikes and underperform during lulls. During periods of uncertainty, financial institutions are often unable to secure budget clearance for additional permanent staff, so a rise in contract jobs usually follows.”Meanwhile, in Japan, there was a 4% increase in jobs available quarter-on-quarter and 50% decrease in candidates, quarter-on-quarter. Australia saw a 5% decrease in jobs, quarter-on-quarter and 26% decrease in candidates, quarter-on-quarter. The quarterly drop in candidates can be largely attributed to seasonal factors.China saw a 14% decrease in jobs, quarter-on-quarter and 51% increase in candidates, quarter-on-quarter. Shanghai’s employment market has been negatively impacted by both the downturn in the retail sector as well as the property bubble.Hong Kong: 9% decrease in jobs, quarter-on-quarter and 25% decrease in candidates, quarter-on-quarter, which was consistent with seasonal trends.In Singapore, a 7% decrease in jobs, quarter-on-quarter was noted and a 17% decrease in candidates, quarter-on-quarter, was also reported. The Singapore government’s efforts to limit foreign born non-resident professionals from the employment market influenced the flow of candidates markedly in 2016, according to Morgan McKinley. […]

  • World – ‘We are seeing the emergence of a skills revolution’ — Staffing Quote of the Week

    “We are seeing the emergence of a Skills Revolution, where helping people upskill and adapt to a fast-changing world of work will be the defining challenge of our time,” Jonas Prising, ManpowerGroup Chairman & CEO, said in a report by ManpowerGroup entitled “The Skills Revolution.”“In this Skills Revolution, learnability - the desire and ability to learn new skills to stay relevant and remain employable - will be the great equalizer.” said Jonas Prising, ManpowerGroup Chairman & CEO. “The rise in populism and the polarization of the workforce continues to play out in front of our eyes. It’s time to take immediate action to upskill and reskill employees to address the gaps between the Haves and the Have Nots - those that have the right skills and those that are at risk of being left behind.  We also need to draw in those that are not fully participating in the workforce. That’s what we mean by the emergence of a Skills Revolution.”The report surveyed 18,000 employers across all sectors in 43 countries, and was published by the World Economic Forum. […]

  • India – Amazon India to create more than 7,500 temporary jobs (Business Insider India)

    Amazon.in is set to create more than 7,500 temporary jobs for its upcoming “Great Indian Sale”, a discounted sales festival that takes place from 20 January to 22 January, reports the Business Insider India. Most of the positions will be in logistics in order to help meet delivery deadlines. The roles will be seasonal and the company will not offer permanent roles as an employee. […]

Latest Research

  • January US Jobs Report

    Event: On a seasonally adjusted basis, total nonfarm employment increased by 156,000 and the unemployment rate rose slightly by 7 basis points to 4.72% in December, according to the U.S. Bureau of Labor Statistics (BLS) in its monthly jobs report. Temporary help services employment declined 0.52% in December, losing 15,500 jobs. The temporary penetration rate fell one basis point, to 2.04%, remaining below its all-time high of 2.06% reached in December 2015.Background and Analysis: On a year-over-year (y/y) basis (December 2016 over December 2015), total nonfarm employment was up 1.5%, and monthly job gains have averaged approximately 180,000 over the past 12 months. Temporary help employment was up 0.8% y/y, with monthly job gains averaging approximately 1,900 over the past 12 months. The economic sectors that most drove total nonfarm employment growth in December included healthcare & social assistance (+63,300), professional services (excluding temporary help, +30,500), and leisure & hospitality (+24,000). In addition to the losses in temporary help, declines for the month were seen in other services (-8,000), information (-6,000), and construction (-3,000).BLS Revisions: The change in total nonfarm payroll employment for October was revised from +142,000 to +135,000, and the change for November was revised from +178,000 to +204,000. With these revisions, total nonfarm employment gains during the two-month period were 19,000 greater than previously reported.The change in temporary help services employment for October was revised from +7,300 to +5,200, and the change for November was revised from +14,300 to +23,800. With these revisions, temporary help employment growth was 7,400 greater than previously reported.Staffing Industry Analysts’ Perspective: The year in employment didn’t end on a particularly strong note, as the total nonfarm job additions of +156K came up short of the median forecast of economists surveyed by Bloomberg of +175K, and the y/y trend continued to decelerate. The mild rise in the unemployment rate was also driven by a 10 basis point sequential increase in labor force participation, to 62.7%. Healthcare led in job creation for December as it did throughout 2016, driven by ambulatory healthcare services (+30K) and hospitals (+11K). Factoring in the decline in temp, professional services had its weakest month of jobs growth since January 2016, with y/y growth falling to 2.6%. Manufacturing boosted employment by +17K, ending a four-month string of losses, along with a solid increase for the transportation & warehousing sector (+14.7K). Having gained +57K jobs over the prior three months, however, construction swung back to a slight decline (-3K), accompanied by marked deceleration in y/y growth, to 1.5%. Temporary help was a drag on overall employment growth in December, with the y/y increase slowing to 0.8% from 2.2% in November. This deceleration was in part due to a notable upward revision to temp employment in November, which made it the second-best month of 2016 for the industry, at +23.8K. We note that the prevailing trend for temporary help jobs over the second half of 2016 has been fairly positive. Combined with wage growth, which showed some acceleration in December to 2.9% y/y, conditions on the whole appear constructive for expansion in the temporary staffing market heading into the new year.Corporate Member subscribers may download employment figures in greater detail from a link that will appear below:   Monthly Employment Situation January 2017 - You do not have permission to view this object. […]

  • IQN/Beeline Merger –What you can Expect

    The IQN/Beeline merger announced in December was the largest VMS market development during 2016. At the same time, the spin-off of Beeline from its parent company, Adecco, to private equity company, GTCR, was announced. Together, the combined organization has ~280 clients, of which ~50% of these have a total annual spend of $50m or more, representing programs of significant scale. Staffing Industry Analysts estimate the combined IQNavigator and Beeline organization now represents the second largest VMS provider in the market.For existing IQN and Beeline clients, this merger brings some opportunities as well as risks, which are analysed in more detail below.Key Risks1, Leadership changes always bring some element of uncertainty as organizational realignment takes shape. The fact that the new leadership team has been so quickly announced and is made up of a mix of IQN and Beeline veterans will help mitigate fears and clarify responsibility. The new leadership team comprises: Doug Leeby (Beeline), CEO (for more information: http://si100.staffingindustry.com/2016/02/doug-leeby-3/) Autumn Vaupel (Beeline), COO Ron Litton (Beeline), Sales Manuel Roger (Beeline) Global Markets (for more information: http://si100europe.staffingindustry.com/2016/07/manuel-roger-2/) Brian Hoffmeyer (IQNavigator) Global Marketing Sherri Hammons (IQNavigator) CTO Barry Capoot (IQNavigator) CFO Beeline’s Doug Leeby takes top spot as the new CEO. The relative size of the companies is relevant in a merger as well as who takes the leadership positions. In this case, IQNavigator’s organizational size is about half that of Beeline’s organization. Therefore, it is worth noting that, although the companies are not equal in size, the Beeline leadership does not dwarf the IQNavigator leadership with IQNavigator managers taking three out of the six leadership positions below the CEO.Dedicated client account teams will see no immediate impact, although executive sponsors may change.Recommendation: Invest in getting to know the new leadership team. To help with this, consider attending the Beeline Conference in Orlando on May 1-3, 2017 (http://www.beelineconference.com/) or enquire about the Beeline World Tour. (The existing IQNsiders event will be merged with the Beeline event; the conference will cater to the needs of both IQN and Beeline customers).Beeline + IQN are hosting an event called Meeting of Minds in London on February 2nd. If you're interested in attending please register here.You can also meet representatives of the newly merged business at SIA’s upcoming 2017 conferences: CWS Summit Europe: April 26-27, 2017 |Andel’s Hotel, Berlin www.cwssummitwe.eu CWS Summit Asia Pacific: July 18-19, 2017 |Grand Hyatt, Singapore www.cwssummitap.com CWS Summit North America: September 11-12, 2017 |Omni Dallas Hotel, Dallas, TX www.cwssummit.com 2. Management time is often overstretched during the integration phase of a merger. Whether or not this proves to be the case with the Beeline/IQNavigator merger remains to be seen though very few mergers escape suffering from some form of distraction. As with any merger, management will need to spend time supporting staff in the transition, confirming roles and ensuring that staff understand the new organisation and continue to be motivated. This could impact the newly merged business’s ability to deal with escalations, to support new sales and to ensure roadmaps are delivered on time.Recommendation: Keep on top of your account team to ensure that your requirements are dealt with promptly. Executing additional due diligence planning and close communication around your CY 2017 priorities with your account team may yield the best results during this transition period.  Clearly document and communicate your expectations and requirements.3. Importantly, for clients, the new organization has committed to delivering on their current roadmap and has confirmed that clients will not be required to migrate to another platform. Clients will be able to leverage features from both platforms and new features will be built to work with both the Beeline and IQN VMSs. However, despite what is promised in the short-term, it is unlikely the company will continue to invest in two products in the longer term.Recommendation: Do check your contract and understand the terms and timescales. It would be a good time to check that your configuration and interfaces are well documented and that you are continuing to keep your data clean. Do a stock take on which product features you are waiting to be released on the current roadmaps and revalidate the timing of the releases with your account team. Track closely any outstanding fixes you are expecting to be addressed.Key Opportunities1. Joe Juliano, the outgoing CEO of IQN, always said technology should be about efficiency. The combined forces of IQN and Beeline certainly brings significant scale to the new organization. The ability to offer metrics, benchmarks, leverage technology investments, in particular support product localizations in over 100 countries will support greater efficiencies. The key success of this approach depends on the ability of the organizations to blend culturally. Given both organizations already operate internationally (Beeline had clients in 71 countries and IQN had clients in 125 countries), the global mind-set is already embedded in the organizations. Culturally, both organizations have been operating as fairly independent VMS divisions for a number of years and have a strong technology mind-set. IQN sold its MSP division in 2014 to MSX International Inc. Beeline had always maintained a separate management organization while owned by Adecco.Recommendation: The newly enhanced scale may be an opportunity to develop your program in new markets or, perhaps, take advantage of some additional functionality. The new management team will be very keen to promote the benefits of the new merger and looking for case studies to demonstrate that. Consider the opportunity to take your program to the next level and on some favorable terms? 2. In particular, analytics and self-sourcing work best when driven by scale. Without scale, these solutions have less credibility and lower value. Beeline’s acquisition of Freelancer Management System (FMS), OnForce, in August 2014 has enabled a number of organizations (e.g. Southwest Airlines) to achieve efficiencies in sourcing contingent workers directly. During 2015 – 2016 Beeline has developed its self-sourcing application. Meanwhile, IQN developed its own FMS partnerships with HIRED, Genesys, and Work Market. Going forward, the new organization may choose to develop relationships with multiple FMS providers.Recommendation: Understand the broader VMS/FMS ecosystem and consider the impact of the merger on partner relationships.What’s Next?Expect to see a brand name launched by March with staff email addresses likely to change as a result. No doubt the company will be making considerable efforts during 2017 and beyond to mollify any concerns their clients may have as well as ensuring potential clients appreciate the benefits and strengths of the combined business so expect a very active PR campaign to swing into action.For more information, IQN and Beeline have just launched a new website to help clients using frequently asked questions which can be accessed here. You can also reach out to your account manager or to bhoffmeyer@iqn.com Alternatively, please feel free to contact SIA’s CWS Council Team for independent advic […]

  • IT Staffing Growth Assessment 2016

    IntroductionAs we enter 2017, the outlook for the IT staffing industry includes a fairly balanced mix of countervailing positive and negative indicators. Important demand drivers remain intact in the form of technologies with significant runway for enterprise adoption still ahead, including cloud computing, data analytics, mobile connectivity, digital marketing and cybersecurity. High-level IT talent is in short supply, creating recruiting challenges but simultaneously enhancing the value of staffing services, both in the form of direct hire recruiting and in providing contract labor to fill the gap in interim hiring needs. That said, there was a slight rise in unemployment rates for IT occupations in the US over the past four quarters—the first time we have seen this occur in the current cycle—though tech unemployment rates are still at historically low levels.Economic expansion, both in the US and the rest of the developed world, plods along at an uninspiring pace, with no clear signs of significant acceleration ahead. The outsized growth that the IT staffing industry enjoyed in the early phase of the recovery from the global financial crisis was driven by the pendulum swinging back after several years of frozen corporate investment, combined with an overabundance of caution toward perm hiring on the heels of a historic wave of layoffs. Growth since 2013 has settled into a more normalized pace of mid-to-upper single digits as business spending has been constrained due to economic and—particularly in the US and Europe over the past year—political uncertainty. Resolution of those circumstances along with the potential stimulative impact of an ostensibly pro-business agenda with the incoming administration in the US could create a more conducive environment for IT services. The decelerating revenue growth reported by public companies since mid-2015 is backed up by other measures including our monthly Pulse survey, which has shown sales difficulty for IT staffing firms rising while recruiting difficulty and sales growth decline. This owes in part to challenges in some of the segment’s primary vertical markets, such as stagnation afflicting the large tech integrators and compressed profitability for the banking sector, the latter of which may find some relief as market interest rates finally begin to move higher. Meanwhile, as with most other measures of inflation, wage increases have been muted in recent years relative to what might be expected based on the market’s steady growth and short supply of talent. We saw the most tangible signs of movement in this area through the second half of 2016, however, and more of the same in 2017 would be a tailwind for revenue.The high proportion of IT staffing spend passing through VMS and MSP has had a deleterious impact on the closeness of the supplier-client relationship, ratcheting up competitive pressure and constraining gross margins. Even in accounts where a staffing supplier may be fortunate enough to retain direct contact, IT budgets are becoming more dispersed within the organization, meaning those contacts may have diminishing control over spend. Encroachment into IT staff augmentation by consulting, outsourcing, tech integrator and human cloud firms have likewise complicated the competitive landscape. Specialization has become a critical determinant of competitive advantage in the IT staffing world, evidenced by the above-market growth of large firms such as On Assignment and Insight Global, as well as many of the mid-tier firms on our fastest-growing list. We see this differentiation among the large-scale suppliers in the relative success of firms that have a dedicated focus on technical occupations taking market share from generalist staffing suppliers. Among smaller firms, this may take the form of a concentration on certain IT skillsets and/or technology platforms, in some cases further aligned with the unique applications of those technologies in specific industry verticals. The development of such subject matter expertise may provide the foundation for a push up the value curve into the provision of projects and managed services under statement of work (SOW), which can offer more stable and higher-margin revenue.As the field of IT services was early and eager to embrace the use of contingent labor, its temporary agency penetration rate is high relative to other occupational segments, suggesting that potential further secular growth in utilization may prove incremental at best. Nonetheless, the high penetration serves as a lever for demand as long-term growth in overall IT employment is projected to exceed all areas of the economy aside from healthcare. Moreover, regulatory developments in the US and Europe may favor working with staffing agencies over the direct engagement of independent contractors, a form of contingent labor that has historically figured prominently in the IT field.Taking all of these factors into consideration, we still expect the IT space will remain conducive to staffing growth in the years ahead. Market activity seems to reinforce this generally positive outlook, with IT leading the pack in staffing M&A activity year-to-date, and indicated in our survey results as the top segment of interest for acquirers looking ahead. However, the signs also tell us that conditions are growing incrementally more challenging, which will require IT staffing leaders to think creatively about how their firms can enhance the value proposition they offer clients. This report aims to provide the information and tools necessary to support the planning and implementation of strategic initiatives that will position you for success as the IT staffing segment moves into its next phase of evolution.To download the complete report, please click the link below: IT Staffing Growth Assessment 20161230 - You do not have permission to view this object. […]

  • 2016 Staffing Company Survey

    Key Findings:This report – 445 pages in all – represents the aggregation and distillation of staffing industry knowledge derived from eight separate surveys of North American staffing firms, conducted over 2009-2016. It includes a wide variety of best practices, benchmark data and industry trends. A few examples of the questions you will find answered herein: Which is better, traditional purchased health insurance or self-insurance? While staffing firms as a whole overwhelmingly (by a 3:1 margin) choose to provide healthcare benefits for their temporary workers via conventional fully-outsourced healthcare insurance, vs. using self-insurance, the popularity of self-insurance increases markedly as a function of firm size. Self-insurance usage rates rise from 5% among firms of $10 million or less in annual revenue, to 27% among firms of $11 million to $100 million, to 51% among firms of greater than $100 million in annual revenue. That said, staffing firms aren’t particularly happy with either insurance arrangement, rating conventional insurance (on a scale of 0-10) at a 5.3, on average, and self-insurance a 5.8. How common is it for staffing firms to use the “bench model?” Twenty-five percent of staffing firms reported using the bench model (temps employed by the staffing firm on a salaried permanent basis but placed outside on temporary assignments) to at least some degree in 2016. Looking forward, nearly twice as many staffing firms – 45% – expect to use it over the next ten years. Of those reporting using it, the median percent of temporary workers on bench is 10%. What’s the current acquisition multiple for staffing firms? Median reported price multiples for acquisitions in 2015-2016 were 0.6x revenue, and 3.5x EBITDA. Both of these values were identical to those reported in 2014. While the two largest professional segments – IT temp and healthcare temp – together are the preferred acquisition target for about half of potential staffing firm acquirers, intensity of acquisition interest (ratio of buyers vs. available targets) varied markedly by segment. At the high end of intensity of interest, there were nearly four staffing firms seeking to acquire in the clinical/scientific temp segment for every one staffing firm saying clinical/scientific temp was their primary segment offered. What’s the trend in direct hire and temp-to-hire fees? Across all surveyed staffing firms, the median direct hire fee reported was 20% of salary, the same rate charged since at least 2011. However, temp-to-hire fees appear to have declined. The median reported temp-to-hire conversion fee was 10% of salary, notably lower than in 2009, when the median fee was 16%-20%. How common is it for staffing firms to pay temporary workers with 1099s? Staffing firms primarily selling commercial skill segments (industrial and/or office/clerical) nearly universally pay their temporary workers via W-2. On average, only 1% of workers were reported to be compensated via 1099 and only 15% of commercial staffing firms used 1099s at all. By contrast, on average across professional staffing firms, while 79% of temporary workers were paid via W-2, the remaining 21% were paid via 1099. The majority of professional staffing firms – 74% – reported paying at least some of their temps via 1099. To access the complete report, please select the link below: 2016 North America Staffing Company Survey XX024 20161229 - You do not have permission to view this object. […]

  • UK Legal Update Q4 2016

    In this report, we round up the legal developments making the headlines in the United Kingdom in Q4 2016: Data Protection – GDPR to be implemented in UK Employment Law – Dismissal must be communicated to an agency worker for unfair dismissal claim Employment status – Government reviews employment in the gig economy Gig economy - Uber model faces a setback Immigration - Changes to Tier 2 Visas Tax - Apprenticeship levy will impact staffing firms Tax - IR35 Public Sector reforms from April 2017 Whistleblowing - Agency workers are protected against retaliation from hirers Working Time – Working arrangements must allow for rest breaks Data Protection – GDPR to be implemented in UKThe government has now confirmed that the UK will be implementing the General Data Protection Regulation (GDPR) which comes into force across the European Union on 25 May 2018. The Secretary of State Karen Bradley MP used her appearance before the Culture, Media and Sports Select Committee on 24 October 2016 to say:“We will be members of the EU in 2018 and therefore it would be expected and quite normal for us to opt into the GDPR and then look later at how best we might be able to help British business with data protection while maintaining high levels of protection for members of the public.”The Information Commissioner has given guidance on the steps businesses should take to be compliant and the Article 29 Working Party (WP29) has published guidelines together with FAQs on three key areas of the General Data Protection Regulation (GDPR). These include: The right to data portability; Data Protection Officers (DPO); and Lead Supervisory Authority. Osborne Clarke provides information on the WP29 guidelines and further information on the GDPR can be found in our Global Overview of Developments in Data Protection and Privacy Laws 2016.  Employment Law – Dismissal must be communicated to an agency worker for unfair dismissal claimAn agency worker, who had been employed by a staffing firm on a contract of employment for the duration of an assignment, failed in her claim for unfair dismissal because she could not prove that she had been dismissed.In Sandle v Adecco UK Ltd UKEAT/0028/16/JOJ, the claimant was a lawyer who was placed on an assignment with BASF plc by Adecco. Her assignment was terminated by BASF plc giving her one month’s notice. There had been very little contact between Adecco and the claimant during the assignment and after the assignment ended the claimant made no attempt to contact the agency to seek further assignments. The agency attempted to contact the claimant on one occasion, leaving a voicemail message, but made no attempt to confirm whether she was seeking further assignments. A couple of months after the end of the assignment, Adecco issued a P45 but did not send it to the claimant. The claimant then brought a claim against both BASF plc and Adecco claiming unfair dismissal.Adecco accepted that the claimant was their employee but argued that they had not dismissed her. Her case was that they had dismissed her in failing to find and offer her any further assignments. The Employment Appeal Tribunal (EAT) commented on the fact that this inaction was a potential repudiatory breach (i.e. a failure to carry out an obligation that entitles the other party to treat the contract as at an end) of the terms of her contract with Adecco. In the circumstances, she could have brought a claim for constructive dismissal, meaning she would not have to show that she had been dismissed, merely that her employer was in breach of its’ obligations. As it was, her claim was for unfair dismissal for which she must prove that there had been a dismissal for her claim to be considered.The EAT concluded that mere inaction on the part of Adecco and the issuing of a P45, of which she was not aware, could not amount to a dismissal for the purposes of an unfair dismissal claim. There had to be communication of the dismissal by the employer to the employee. The EAT in its’ judgement stated “dismissal does have to be communicated. Communication might be by conduct and the conduct in question might be capable of being construed as a direct dismissal or as a repudiatory breach, but it has to be something of which the employee was aware”.This case provides an important lesson for staffing firms who employ agency workers on contracts of employment. The contract will not necessarily come to an end on the termination of an assignment, but may, as in this case, exist in ‘limbo’ until it is terminated either by the worker or the agency. If the contract contains a clause placing an obligation on the agency to look for other opportunities for the worker at the end of an assignment, a failure to do so may amount to constructive dismissal which may result in a successful claim for damages. It should be noted that, in such a case, a worker would have to show they had taken active steps to contact the agency and to find work themselves to mitigate any damages arising from the lack of work opportunities. So a damages claim may not be substantial.In spite of the fact that a failure to communicate the issue of the P45 worked in Adecco’s favour in this case, as it prevented a claim for unfair dismissal, it is not good practice to keep worker’s contracts in limbo. From an administrative point of view, it is sensible to have a system in place to issue and send a P45 to workers if they have not been in contact for a period of at least three months after the end of an assignment. Three months is the limitation period for claims to an employment tribunal for unfair dismissal, except for specific claims such as discrimination. Data protection law also requires data on agency workers to be accurate and up-to-date, and this is much easier to manage if it is not held for long periods of time without any communication with the worker. Employment status – Government reviews employment in the gig economy There are currently at least three government-backed inquiries into the future for employment in the ‘gig economy’.The Business, Energy and Industrial Strategy Committee has launched an inquiry into the future world of work, focussing on the "rapidly changing nature of work, and the status and rights of agency workers, the self-employed, and those working in the 'gig economy'”. The inquiry also looks at issues such as low-pay and poor working conditions for people working in these non-traditional employee roles.The inquiry follows the Committee's recent inquiry into working practices at Sports Direct and the Committee's inquiry on the Digital Economy, which looked at the employment status of workers in the sharing economy.The inquiry also follows recent news stories about working practices and the use of agency staff at Asos, concerns about couriers at Hermes, and growing questions around the status of those working in the 'on-demand' economy, for businesses such as Uber and Deliveroo.The terms of reference are set out on the Committee webpage. The deadline for accepting written submissions was 19 December 2016 with evidence sessions taking place in 2017. The Committee will report later this year.The Independent Review of Employment Practices in the Modern Economy was commissioned by the Prime Minister on 1 October 2016. Matthew Taylor (the Chief Executive of the Royal Society of the Arts) is leading the review to consider how employment practices need to change in order to keep pace with modern business models. The review will consider the implications of new forms of work, driven by digital platforms, for employee rights and responsibilities, employer freedoms and obligations, and our existing regulatory framework surrounding employment.Meanwhile the Office of Tax Simplification is also contributing to the debate on the gig economy and what it means for the tax system with its gig economy Focus Paper. The OTS recently published a paper on the alignment of income tax and National Insurance Contributions and also responded to HMRC’s consultation on “off-payroll working in the public sector” saying that the OTS “supports the need for greater certainty and clarity in this area, but feels that the proposals contained within the consultation document may not deliver the simplifications required to fully achieve this”.It will be interesting to see what, if any, changes to tax and employment laws emerge from these inquiries as there is a huge divergence between the needs and wants of vulnerable workers and the self-employed in terms of employment protections; and the need for government to maximise its revenue from traditional employment taxes and the development of the digital gig economy. Gig economy - Uber model faces a setbackOn 28 October 2016, a tribunal in the UK ruled that two ‘test’ claimants, who brought claims to test the employment status of the 40,000 drivers estimated to be operating in the UK, were ‘workers’. The claims, which succeeded, were to establish the drivers’ entitlement to be paid at least the minimum national ‘living wage’ of £7.20; to receive payment for holidays; and to be protected against detrimental action for ‘whistleblowing’.On the face of it, the case is a decision of the lowest tribunal and therefore does not create a precedent. However, the impact could be felt more widely by Uber as the judgement provides a damning indictment of the claim that Uber is a “technology company” rather than a provider of transportation services. Referring to Uber’s documentation as containing “fictions” and “twisted language” which “bears no relation to the real dealings and relationships between the parties” the employment judge listed 11 reasons why in the tribunal’s judgement drivers working for Uber had a ‘worker’ contract.Interestingly, the tribunal said that none of their reasoning should be taken as doubting that a model could be devised in which drivers were not employed - it was just that this particular model did not achieve that aim. Immigration – Changes to Tier 2 VisasOn 3 November 2016 the Home Office presented to Parliament changes to the Immigration Rules. The main purpose of these changes to the Immigration Rules is to implement the first of two phases of changes to Tier 2 visas, announced by the Government on 24 March 2016 following a review by the independent Migration Advisory Committee.Tier 2 of the Points-Based System caters for non-EU migrant workers with an offer of a skilled job from a licensed employer. There are four overall categories: General, Intra-Company Transfer (ICT), Minister of Religion, and Sportsperson.The salary threshold for experienced workers has been increased to £25,000 for the majority of new applicants (the salary threshold for new entrants has been held at £20,800). An exemption from this increase will apply for nurses, medical radiographers, paramedics and secondary school teachers in mathematics, physics, chemistry, computer science, and Mandarin. The exemption will end in July 2019. As a transitional arrangement, the £25,000 threshold will not apply to workers sponsored in Tier 2 (General) before 24 November 2016, if they apply to extend their stay in the category.The Government intends to increase the threshold to £30,000 in April 2017; there will be no such transitional arrangement for workers sponsored in Tier 2 (General) between 24 November 2016 and April 2017 – they will need to satisfy the £30,000 threshold in any future application.Following a separate review by the MAC on nursing shortages, nurses are being retained on the Shortage Occupation List, but a change is being made to require a Resident Labour Market Test to have been carried out before a nurse is assigned a Certificate of Sponsorship.For further details of the changes and an explanation of the implications for employers seeking to employ migrant workers Taylor Wessing has provided a summary. Tax - Apprenticeship Levy will impact staffing firmsFrom 6 April 2017, the way the government funds apprenticeships will change  through the introduction of a monthly levy. All employers operating in the UK, with a pay bill over £3 million each year, will need to spend 0.5% of their total pay bill on the apprenticeship levy. There is also a new system for all employers, not just those caught by the levy, to access apprenticeships.To calculate whether an employer is caught by the levy the pay bill is made up of the total amount of their employees’ earnings that are subject to Class 1 National Insurance contributions including wages, bonuses, commissions and pension contributions. A ‘levy allowance’ of £15,000 per year is deducted from the amount of the levy. This means that the total amount employers will spend is 0.5% of their pay bill, minus £15,000. Where several employers are connected as a group, they will only be able to use one £15,000 levy allowance. The draft Income Tax (Pay as You Earn) (Amendment) Regulations 2017 published in September 2016, indicate that the levy allowance will operate on a monthly cumulative basis, so any unused allowance will be carried forward from one month to the next. The wage bills of some employers will fluctuate around the £3 million threshold for the levy allowance so the draft regulations provide that at the end of the year, any overpaid levy can be offset against the employer's other PAYE liabilities.In December the government commenced a ‘technical consultation’ on the draft regulations with a closing date for comments of 3 February 2017.Each month, employers with a pay bill of at least £3 million will have to let HMRC know whether they need to pay the apprenticeship levy; and include the levy in their usual PAYE payment to HMRC. This should be done by the 19th (or 22nd if an employer reports electronically) of the following month.Once employers have declared the levy to HMRC, they will be able to access funding for apprenticeships through a new digital apprenticeship service account. The Department for Education has published guidance to indicate how the system for funding and accessing the digital apprenticeship service will work. However, while the digital apprenticeship service will support the English apprenticeship system, Scotland, Wales and Northern Ireland will have their own arrangements for supporting employers to access apprenticeships.The introduction of the apprenticeship levy will disproportionately impact staffing suppliers, and at this stage it is not clear how staffing firms will be able to make use of the funds allocated for apprenticeship training under the scheme. An employment business supplying agency workers will have to calculate the levy payable by them based on the combined pay bill for their own employees and their agency workers. As an employer with more than one PAYE scheme, they will only be able to claim a single levy allowance of £15,000 to offset the levy. As most agency workers are engaged by clients who expect a worker to have a certain level of skill and experience for the assignment they are placed in, it is difficult to see how agencies will be able to facilitate the apprenticeship of agency workers to take advantage of this apprenticeship funding. However, this may be a business opportunity for staffing firms to match apprentices with clients willing to train workers.Despite lobbying on behalf of the staffing industry, the regulations do not provide any exemption for the sector or for agency workers, so staffing firms should prepare for the requirement to report and pay the levy from 6 April 2017. Tax - IR35 public sector reforms from April 2017Philip Hammond, Chancellor of the Exchequer said in his Autumn Statement that “following consultation, the government will reform the off-payroll working rules in the public sector from April 2017 by moving responsibility for operating them, and paying the correct tax, to the body paying the worker’s company”.The rules he is referring to are, in effect, IR35 which was introduced in 2000 to ensure that an individual supplying his or her services through a limited company, but performing the role of an employee, should pay tax as if he were an employee. There has been widespread non-compliance and this is said to have cost the government £400m a year in lost tax revenue. However, the law is unclear and it is notoriously difficult to determine whether an individual is performing the role of an employee or an independent contractor.The government has been embarrassed in the past by the numbers of civil servants and BBC presenters who operated through a limited company blatantly in contradiction of the IR35 rules, and believes that “public sector bodies should be leading by example in ensuring that workers pay the correct taxes”.As a result, from 6 April 2017, where a public sector body engages an off-payroll worker through their own limited company, responsibility for determining whether the rules should apply, and paying the right tax shifts from the individual’s limited company (intermediary) to the public body agency, or third party paying the intermediary. Where the rules apply it is not just the payment of tax that an agency may be liable for, as the person paying the fee to the intermediary for the worker’s services “the fee payer”, is treated as an employer for tax, NICs and Employment Allowance purposes. This means an increased liability for Employer’s National Insurance contributions.To help agencies and public sector bodies decide whether the rules apply, a new Employment Status Service will be provided by HMRC. This is being tested privately and a version will be made public for testing before 6 April 2017.This measure will place a burden on agencies and will also dissuade agencies from placing independent contractors into the public sector. Some authorities have already indicated that they will not use contractors even before the rules come into effect. However, it seems likely that agencies will have to be prepared to deal with determinations as to whether independent contractors being supplied into the public sector fall within IR35 from April 2017. Some guidance has been published by the government so affected agencies should train recruiters, and discuss with their public sector clients what impact this will have on their hiring in the future. It is worth noting that genuinely self-employed contractors, and those working solely for private sector clients will not be affected. Whistleblowing - Agency workers are protected against retaliation from hirersThe EAT (Employment Appeal Tribunal) has held that an agency worker was entitled to whistleblowing protection against a hirer as she was a "worker" under the extended definition in section 43K of the Employment Rights Act 1996. The EAT found that an important purpose of s.43K was to extend cover to agency workers in relation to victimisation for protected disclosures made while working for a hirer. Section 43K means that a “worker” is not limited to an individual with a contract to personally perform work for the employer, but also includes an individual who “works or worked for a person in circumstances in which—(i)                  he is or was introduced or supplied to do that work by a third person, and(ii)                the terms on which he is or was engaged to do the work are or were in practice substantially determined not by him but by the person for whom he works or worked, by the third person or by both of them.Ms McTigue was employed by an agency, TMS Ltd (TMS), and was assigned to work as a nurse for the University Hospital Bristol NHS Foundation Trust (the Trust) in a sexual assault referral centre. She had a written employment contract with TMS on their standard terms. She was also subject to the Trust's standard “honorary” contract which required her to cooperate with the Trust in relation to health and safety, clinical governance and working time and also identified the supervisor under whom she would work.Ms McTigue was removed from the assignment in December 2013 and brought whistleblowing claims against TMS and the Trust in relation to the protected disclosures she had allegedly made to the Trust and the detriment she claimed to have suffered as a result.The key issue was who substantially determined her terms, TMS, the Trust or both TMS and the Trust?The EAT held that if the Trust had some part in determining the terms on which Ms McTigue worked she would be able to bring a claim as a worker against the Trust for whistleblowing detriment. The case was sent back to a fresh Tribunal to consider this point.This case significantly widens protection for agency workers who are whistleblowers. Following this decision, individuals who are employed by a staffing agency and working for a hirer are protected in the event they suffer a detriment for whistleblowing by that third party. This is regardless of whether the arrangement with the hirer simply deals with day to day practicalities rather than core employment terms and conditions.  Hirers will need to ensure there is a mechanism in place so that whistleblowing concerns raised by non-employees working on their sites are addressed either within the organisation or by the supplier. Staffing firms should have a policy for dealing with any whistleblowing claims and working with hirers to resolve such issues, either so that the worker does not suffer a detriment, or so that the issue does not escalate into a tribunal claim. Working Time – Working arrangements must allow for rest breaksUnder the Working Time Regulations 1998 (WTR) a worker is entitled to 20 minutes’ rest break after working for more than 6 hours. As an entitlement, there is no mechanism within the WTR for an employer to be penalised for failing to provide a rest break, unless the worker brings a claim against the employer in an employment tribunal.In a recent case, Grange v Abellio London Ltd UKEAT/0130/16/DA, the Employment Appeal Tribunal (EAT) concluded that if an employer refuses this right, regardless of whether the worker had expressly asked for it, then the worker is entitled to bring a claim under the WTR.Prior to July 2012, the Claimant had an eight and a half hour working day, paid for eight hours, with the intention that he take a half hour unpaid lunch break (although the nature of his work meant that this could be difficult to fit into the working day). On 16 July 2012, the Respondent emailed the Claimant expressing its expectation (at best) or instruction (at worst) that he was to work straight through for eight hours, without the half hour break, but then to leave earlier than he would have done before. In July 2014, the Claimant lodged a grievance complaining that he had been forced to work without a break, which had contributed to a decline in his health.The EAT found that there had been conflicting decisions on the question whether there had to be an actual refusal of a request to exercise the right to a rest break in order to give rise to a legal liability under the WTR. The EAT judge therefore went back to consider evidence of the language and purpose behind the drafting of the Working Time Directive (WTD) from which the WTR right to a rest break arises.In a case heard by the European Court of Justice in 2006, Commission v UK C‑484/04, the UK government were criticised for issuing guidance that said employers were under no obligation to ensure that workers were actually able to exercise such a right. The EAT judge therefore stated: “I consider it clear the WTD entitlement to a rest break is intended to be actively respected by employers. It is required not merely that employers permit the taking of rest breaks (in accordance with WTD provision) but - allowing that workers cannot be forced to take rest breaks - that they proactively ensure working arrangements allow for workers to take those breaks”.Employers should review their working arrangements to ensure that all workers have the ability to take a rest break in accordance with their WTR entitlement.Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice. It is always recommended to seek the advice of qualified legal counsel before taking action.To download a pdf copy of this update click below: UK_LegalUpdate_Q4_2016_01052017 - You do not have permission to view this object. &nbs […]

  • IQN/Beeline Merger –What you can Expect and Key Recommendations

    The IQN/Beeline merger announced in December was the largest VMS market development during 2016. At the same time, the spin-off of Beeline from its parent company, Adecco, to private equity company, GTCR, was announced. Together, the combined organization has ~280 clients, of which ~50% of these have a total annual spend of $50m or more, representing programs of significant scale. Staffing Industry Analysts estimate the combined IQNavigator and Beeline organization now represents the second largest VMS provider in the market.For existing IQN and Beeline clients, this merger brings some opportunities as well as risks, which are analysed in more detail below.Key Risks1. Leadership changes always bring some element of uncertainty as organizational realignment takes shape. The fact that the new leadership team has been so quickly announced and is made up of a mix of IQN and Beeline veterans will help mitigate fears and clarify responsibility. The new leadership team comprises: Doug Leeby (Beeline), CEO (for more information: http://si100.staffingindustry.com/2016/02/doug-leeby-3/) Autumn Vaupel (Beeline), COO Ron Litton (Beeline), Sales Manuel Roger (Beeline) Global Markets (for more information: http://si100europe.staffingindustry.com/2016/07/manuel-roger-2/) Brian Hoffmeyer (IQNavigator) Global Marketing Sherri Hammons (IQNavigator) CTO Barry Capoot (IQNavigator) CFO Beeline’s Doug Leeby takes top spot as the new CEO. The relative size of the companies is relevant in a merger as well as who takes the leadership positions. In this case, IQNavigator’s organizational size is about half that of Beeline’s organization. Therefore, it is worth noting that, although the companies are not equal in size, the Beeline leadership does not dwarf the IQNavigator leadership with IQNavigator managers taking three out of the six leadership positions below the CEO.Dedicated client account teams will see no immediate impact, although executive sponsors may change.Recommendation: Invest in getting to know the new leadership team. To help with this, consider attending the Beeline Conference in Orlando on May 1-3, 2017 (http://www.beelineconference.com/) or enquire about the Beeline World Tour. (The existing IQNsiders event will be merged with the Beeline event; the conference will cater to the needs of both IQN and Beeline customers). Beeline + IQN are hosting an event called Meeting of Minds in London on February 2nd. If you're interested in attending please register here.You can also meet representatives of the newly merged business at SIA’s upcoming 2017 conferences: CWS Summit Europe: April 26-27, 2017 |Andel’s Hotel, Berlin www.cwssummitwe.eu CWS Summit Asia Pacific: July 18-19, 2017 |Grand Hyatt, Singapore www.cwssummitap.com CWS Summit North America: September 11-12, 2017 |Omni Dallas Hotel, Dallas, TX www.cwssummit.com 2. Management time is often overstretched during the integration phase of a merger. Whether or not this proves to be the case with the Beeline/IQNavigator merger remains to be seen, though very few mergers escape suffering from some form of distraction. As with any merger, management will need to spend time supporting staff in the transition, confirming roles and ensuring that staff understand the new organisation and continue to be motivated. This could impact the newly merged business’s ability to deal with escalations, to support new sales and to ensure roadmaps are delivered on time.Recommendation: Keep on top of your account team to ensure that your requirements are dealt with promptly. Executing additional due diligence planning and close communication around your CY 2017 priorities with your account team may yield the best results during this transition period.  Clearly document and communicate your expectations and requirements.3. Importantly, for clients, the new organization has committed to delivering on their current roadmap and has confirmed that clients will not be required to migrate to another platform. Clients will be able to leverage features from both platforms and new features will be built to work with both the Beeline and IQN VMSs. However, despite what is promised in the short-term, it is unlikely the company will continue to invest in two products in the longer term.Recommendation: Do check your contract and understand the terms and timescales. It would be a good time to check that your configuration and interfaces are well documented and that you are continuing to keep your data clean. Do a stock take on which product features you are waiting to be released on the current roadmaps and revalidate the timing of the releases with your account team. Track closely any outstanding fixes you are expecting to be addressed.Key Opportunities1. Joe Juliano, the outgoing CEO of IQN, always said technology should be about efficiency. The combined forces of IQN and Beeline certainly brings significant scale to the new organization. The ability to offer metrics, benchmarks, leverage technology investments, in particular support product localizations in over 100 countries will support greater efficiencies. The key success of this approach depends on the ability of the organizations to blend culturally. Given both organizations already operate internationally (Beeline had clients in 71 countries and IQN had clients in 125 countries), the global mind-set is already embedded in the organizations. Culturally, both organizations have been operating as fairly independent VMS divisions for a number of years and have a strong technology mind-set. IQN sold its MSP division in 2014 to MSX International Inc. Beeline had always maintained a separate management organization while owned by Adecco.Recommendation: The newly enhanced scale may be an opportunity to develop your program in new markets or, perhaps, take advantage of some additional functionality. The new management team will be very keen to promote the benefits of the new merger and looking for case studies to demonstrate that. Consider the opportunity to take your program to the next level and on some favorable terms? 2. In particular, analytics and self-sourcing work best when driven by scale. Without scale, these solutions have less credibility and lower value. Beeline’s acquisition of Freelancer Management System (FMS), OnForce, in August 2014 has enabled a number of organizations (e.g. Southwest Airlines) to achieve efficiencies in sourcing contingent workers directly. During 2015 – 2016 Beeline has developed its self-sourcing application. Meanwhile, IQN developed its own FMS partnerships with HIRED, Genesys, and Work Market. Going forward, the new organization may choose to develop relationships with multiple FMS providers.Recommendation: Understand the broader VMS/FMS ecosystem and consider the impact of the merger on partner relationships.What’s Next?Expect to see a brand name launched by March with staff email addresses likely to change as a result. No doubt the company will be making considerable efforts during 2017 and beyond to mollify any concerns their clients may have as well as ensuring potential clients appreciate the benefits and strengths of the combined business so expect a very active PR campaign to swing into action.For more information, IQN and Beeline have just launched a new website to help clients using frequently asked questions which can be accessed here . You can also reach out to your account manager or to bhoffmeyer@iqn.com Alternatively, please feel free to contact SIA’s CWS Council Team for independent advic […]

  • The Hungarian Market

    We calculate that the Hungarian Staffing Market was worth HUF 218 billion (EUR 705 million) in 2015, with temporary agency work accounting for 92% of total staffing market size and permanent recruitment 8%.The market is relatively concentrated with the market leader Budapest headquartered Prohumán 2004 accounting for slightly under 11% of total revenue, followed by Trenkwalder and Adecco. Overall the top ten companies have a 44% market share with the remaining 1,061 companies generally more narrowly focused on one city, one industry, or with one client.This report includes information on the composition of the market, revenue by workforce, the largest firms by work and their geographic spread.In addition to the top ten list, we also provide a directory of other Hungarian providers drawn from the members’ roll of the Association of Personnel Consultants in Hungary.To download are report, please click below: The Hungarian Market - You do not have permission to view this object. For Hungarian readers, this Insight should be read in conjunction with the summary of the activities of temporary work agencies - 2015 (Összefoglaló a munkaerő-kölcsönzők tevékenységéről ) and the summary of the activities of private employment agencies - 2015 (Összefoglaló a magán-munkaközvetítők tevékenységéről) – 2015 from the National Employment Service, which are available  to download on our website. stat_osszefogl_magan-munkakozv_tevekeny_2015 - You do not have permission to view this object. stat_osszefogl_munkaero-kolcson_tevekeny_2015 - You do not have permission to view this object. […]

  • The UK Financial Sector

    We estimate that the Financial Sector (temp and perm) was worth an estimated £1.924 billion in 2015. London accounts for 33% of this at £642 million; and if you include the South East, this increases to 45%.The biggest financial sector market outside of London is Manchester, which we estimate is £91 million in size, followed by Birmingham at £45 million. Statistics for Edinburgh and Glasgow are not available, however we believe that both represent substantial markets.The other major markets in order of size are Leeds, Wider Merseyside, Bristol, Cardiff, Belfast, Milton Keynes, Norwich, Brighton, Halifax, Sheffield and Reading. Please click on the picture below to enlarge it. Nearly 2.2 million people work across the UK in financial and related professional services – including legal services, accounting services and management consultancy – accounting for over 7% of total UK employment. More than two-thirds are employed outside London, including over 200,000 in the North-West and South-East; around 150,000 in the East of England, Scotland and the South West; and around 130,000 in West Midlands and Yorkshire and The Humber. Out of all 650 Parliamentary constituencies in the UK, there are 159 (24%) where 3,000 or more people are employed in financial and related professional services and a total of 486 (77%) with more than 1,000 such employees. Over 20 towns and cities in the UK, each have over 10,000 people employed in financial and related professional services. Of total financial services employment of 1 million, the majority was in banking (416,800 employees) and insurance (308,700 employees). Securities Dealing (47,600) and fund management (41,600) were the other main categories, with other financial services accounting for 245,300 employees. Professional services employment of 1.1m people is divided between management consultancy (483,400), legal services (314,100) and accounting services (319,300). Total employment in UK financial and related professional services is broken down by sector below (Source: TheCityUK) The data broken down by region can be found here (Source: TheCityUK) These figures are derived from the Business Register and Employment Survey (BRES) and the Annual Business Survey produced by the UK Office for National Statistics (ONS) and the excellent work of the TheCityUK, which is attached below. Key-facts-about-UK-financial-and-related-professional-services-2016 (1) - You do not have permission to view this object. […]

  • IQN/Beeline Merger –What you can Expect and Key Recommendations

    The IQN/Beeline merger announced in December was the largest VMS market development during 2016. At the same time, the spin-off of Beeline from its parent company, Adecco, to private equity company, GTCR, was announced. Together, the combined organization has ~280 clients, of which ~50% of these have a total annual spend of $50m or more, representing programs of significant scale. Staffing Industry Analysts estimate the combined IQNavigator and Beeline organization now represents the second largest VMS provider in the market.For existing IQN and Beeline clients, this merger brings some opportunities as well as risks, which are analysed in more detail below.Key Risks1. Leadership changes always bring some element of uncertainty as organizational realignment takes shape. The fact that the new leadership team has been so quickly announced and is made up of a mix of IQN and Beeline veterans will help mitigate fears and clarify responsibility. The new leadership team comprises: Doug Leeby (Beeline), CEO (for more information: http://si100.staffingindustry.com/2016/02/doug-leeby-3/) Autumn Vaupel (Beeline), COO Ron Litton (Beeline), Sales Manuel Roger (Beeline) Global Markets (for more information: http://si100europe.staffingindustry.com/2016/07/manuel-roger-2/) Brian Hoffmeyer (IQNavigator) Global Marketing Sherri Hammons (IQNavigator) CTO Barry Capoot (IQNavigator) CFO Beeline’s Doug Leeby takes top spot as the new CEO. The relative size of the companies is relevant in a merger as well as who takes the leadership positions. In this case, IQNavigator’s organizational size is about half that of Beeline’s organization. Therefore, it is worth noting that, although the companies are not equal in size, the Beeline leadership does not dwarf the IQNavigator leadership with IQNavigator managers taking three out of the six leadership positions below the CEO.Dedicated client account teams will see no immediate impact, although executive sponsors may change.Recommendation: Invest in getting to know the new leadership team. To help with this, consider attending the Beeline Conference in Orlando on May 1-3, 2017 (http://www.beelineconference.com/) or enquire about the Beeline World Tour. (The existing IQNsiders event will be merged with the Beeline event; the conference will cater to the needs of both IQN and Beeline customers). Beeline + IQN are hosting an event called Meeting of Minds in London on February 2nd. If you're interested in attending please register here. You can also meet representatives of the newly merged business at SIA’s upcoming 2017 conferences: CWS Summit Europe: April 26-27, 2017 |Andel’s Hotel, Berlin www.cwssummitwe.eu CWS Summit Asia Pacific: July 18-19, 2017 |Grand Hyatt, Singapore www.cwssummitap.com CWS Summit North America: September 11-12, 2017 |Omni Dallas Hotel, Dallas, TX www.cwssummit.com 2. Management time is often overstretched during the integration phase of a merger. Whether or not this proves to be the case with the Beeline/IQNavigator merger remains to be seen, though very few mergers escape suffering from some form of distraction. As with any merger, management will need to spend time supporting staff in the transition, confirming roles and ensuring that staff understand the new organisation and continue to be motivated. This could impact the newly merged business’s ability to deal with escalations, to support new sales and to ensure roadmaps are delivered on time.Recommendation: Keep on top of your account team to ensure that your requirements are dealt with promptly. Executing additional due diligence planning and close communication around your CY 2017 priorities with your account team may yield the best results during this transition period.  Clearly document and communicate your expectations and requirements.3. Importantly, for clients, the new organization has committed to delivering on their current roadmap and has confirmed that clients will not be required to migrate to another platform. Clients will be able to leverage features from both platforms and new features will be built to work with both the Beeline and IQN VMSs. However, despite what is promised in the short-term, it is unlikely the company will continue to invest in two products in the longer term.Recommendation: Do check your contract and understand the terms and timescales. It would be a good time to check that your configuration and interfaces are well documented and that you are continuing to keep your data clean. Do a stock take on which product features you are waiting to be released on the current roadmaps and revalidate the timing of the releases with your account team. Track closely any outstanding fixes you are expecting to be addressed.Key Opportunities1. Joe Juliano, the outgoing CEO of IQN, always said technology should be about efficiency. The combined forces of IQN and Beeline certainly brings significant scale to the new organization. The ability to offer metrics, benchmarks, leverage technology investments, in particular support product localizations in over 100 countries will support greater efficiencies. The key success of this approach depends on the ability of the organizations to blend culturally. Given both organizations already operate internationally (Beeline had clients in 71 countries and IQN had clients in 125 countries), the global mind-set is already embedded in the organizations. Culturally, both organizations have been operating as fairly independent VMS divisions for a number of years and have a strong technology mind-set. IQN sold its MSP division in 2014 to MSX International Inc. Beeline had always maintained a separate management organization while owned by Adecco.Recommendation: The newly enhanced scale may be an opportunity to develop your program in new markets or, perhaps, take advantage of some additional functionality. The new management team will be very keen to promote the benefits of the new merger and looking for case studies to demonstrate that. Consider the opportunity to take your program to the next level and on some favorable terms? 2. In particular, analytics and self-sourcing work best when driven by scale. Without scale, these solutions have less credibility and lower value. Beeline’s acquisition of Freelancer Management System (FMS), OnForce, in August 2014 has enabled a number of organizations (e.g. Southwest Airlines) to achieve efficiencies in sourcing contingent workers directly. During 2015 – 2016 Beeline has developed its self-sourcing application. Meanwhile, IQN developed its own FMS partnerships with HIRED, Genesys, and Work Market. Going forward, the new organization may choose to develop relationships with multiple FMS providers.Recommendation: Understand the broader VMS/FMS ecosystem and consider the impact of the merger on partner relationships.What’s Next?Expect to see a brand name launched by March with staff email addresses likely to change as a result. No doubt the company will be making considerable efforts during 2017 and beyond to mollify any concerns their clients may have as well as ensuring potential clients appreciate the benefits and strengths of the combined business so expect a very active PR campaign to swing into action.For more information, IQN and Beeline have just launched a new website to help clients using frequently asked questions which can be accessed here . You can also reach out to your account manager or to bhoffmeyer@iqn.com Alternatively, please feel free to contact SIA’s CWS Council Team for independent advice&nbs […]

  • IT Staffing Growth Assessment 2016

    IntroductionAs we enter 2017, the outlook for the IT staffing industry includes a fairly balanced mix of countervailing positive and negative indicators. Important demand drivers remain intact in the form of technologies with significant runway for enterprise adoption still ahead, including cloud computing, data analytics, mobile connectivity, digital marketing and cybersecurity. High-level IT talent is in short supply, creating recruiting challenges but simultaneously enhancing the value of staffing services, both in the form of direct hire recruiting and in providing contract labor to fill the gap in interim hiring needs. That said, there was a slight rise in unemployment rates for IT occupations in the US over the past four quarters—the first time we have seen this occur in the current cycle—though tech unemployment rates are still at historically low levels.Economic expansion, both in the US and the rest of the developed world, plods along at an uninspiring pace, with no clear signs of significant acceleration ahead. The outsized growth that the IT staffing industry enjoyed in the early phase of the recovery from the global financial crisis was driven by the pendulum swinging back after several years of frozen corporate investment, combined with an overabundance of caution toward perm hiring on the heels of a historic wave of layoffs. Growth since 2013 has settled into a more normalized pace of mid-to-upper single digits as business spending has been constrained due to economic and—particularly in the US and Europe over the past year—political uncertainty. Resolution of those circumstances along with the potential stimulative impact of an ostensibly pro-business agenda with the incoming administration in the US could create a more conducive environment for IT services. The decelerating revenue growth reported by public companies since mid-2015 is backed up by other measures including our monthly Pulse survey, which has shown sales difficulty for IT staffing firms rising while recruiting difficulty and sales growth decline. This owes in part to challenges in some of the segment’s primary vertical markets, such as stagnation afflicting the large tech integrators and compressed profitability for the banking sector, the latter of which may find some relief as market interest rates finally begin to move higher. Meanwhile, as with most other measures of inflation, wage increases have been muted in recent years relative to what might be expected based on the market’s steady growth and short supply of talent. We saw the most tangible signs of movement in this area through the second half of 2016, however, and more of the same in 2017 would be a tailwind for revenue.The high proportion of IT staffing spend passing through VMS and MSP has had a deleterious impact on the closeness of the supplier-client relationship, ratcheting up competitive pressure and constraining gross margins. Even in accounts where a staffing supplier may be fortunate enough to retain direct contact, IT budgets are becoming more dispersed within the organization, meaning those contacts may have diminishing control over spend. Encroachment into IT staff augmentation by consulting, outsourcing, tech integrator and human cloud firms have likewise complicated the competitive landscape. Specialization has become a critical determinant of competitive advantage in the IT staffing world, evidenced by the above-market growth of large firms such as On Assignment and Insight Global, as well as many of the mid-tier firms on our fastest-growing list. We see this differentiation among the large-scale suppliers in the relative success of firms that have a dedicated focus on technical occupations taking market share from generalist staffing suppliers. Among smaller firms, this may take the form of a concentration on certain IT skillsets and/or technology platforms, in some cases further aligned with the unique applications of those technologies in specific industry verticals. The development of such subject matter expertise may provide the foundation for a push up the value curve into the provision of projects and managed services under statement of work (SOW), which can offer more stable and higher-margin revenue.As the field of IT services was early and eager to embrace the use of contingent labor, its temporary agency penetration rate is high relative to other occupational segments, suggesting that potential further secular growth in utilization may prove incremental at best. Nonetheless, the high penetration serves as a lever for demand as long-term growth in overall IT employment is projected to exceed all areas of the economy aside from healthcare. Moreover, regulatory developments in the US and Europe may favor working with staffing agencies over the direct engagement of independent contractors, a form of contingent labor that has historically figured prominently in the IT field.Taking all of these factors into consideration, we still expect the IT space will remain conducive to staffing growth in the years ahead. Market activity seems to reinforce this generally positive outlook, with IT leading the pack in staffing M&A activity year-to-date, and indicated in our survey results as the top segment of interest for acquirers looking ahead. However, the signs also tell us that conditions are growing incrementally more challenging, which will require IT staffing leaders to think creatively about how their firms can enhance the value proposition they offer clients. This report aims to provide the information and tools necessary to support the planning and implementation of strategic initiatives that will position you for success as the IT staffing segment moves into its next phase of evolution.To download the complete report, please click the link below: IT Staffing Growth Assessment 20161230 - You do not have permission to view this object. […]

  • Offshore Recruitment Services Overview

    We believe that this report is the first research analysis of Offshore Recruitment Services (ORS) providers. It includes those firms who are specialists in the provision of these niche services for staffing firms as well as a number of generalist Recruitment Process Outsourcing providers who target staffing firms as a part of their wider business focus. The report does not include offshore providers whose main focus is call-center provision or technology support, although ORS providers could potentially provide such services as a complementary add-on to their broader service portfolioTo download the full report, please click below: Offshore Recruitment Services Overview 20161209 (1) - You do not have permission to view this object. […]

  • APAC/LatAm/MEA Listed Staffing 2Q16 Financial Results

    Key Findings: This is an update of a selection of publicly traded recruitment firms in Australia, China, Japan, New Zealand and South Africa with the most recently updated financial information as of the second quarter. Tokyo-based Recruit Co. Ltd. Reported revenue rose 18.4% in the quarter ended 30 June 2016. Revenue at Programmed Maintenance Services rose 54.1% in its fiscal year ended March 31, 2016; however, the company had acquired fellow Australia-based staffing firm Skilled Group. Tables of income and revenue performance can be found on the following pages. Revenue may reflect net sales only in some instances. In addition, revenue includes all revenue of a particular firms even if they have revenue from the Americas or Europe or in other business lines. Where possible, hyperlinks to Staffing Industry Analysts’ news coverage of the results have been provided. This list includes staffing companies and firms directly related to the workforce solutions ecosystem. To access the full report, click below: ALM Results 2Q16 - You do not have permission to view this object. […]