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New research carried out by market research firm Luenendonk among the 60 leading temporary staffing agencies in Germany reveals that the majority have decided to grow organically rather than by acquisition.
Even the top 10 temporary staffing agencies, which in the boom years between 2004 and 2008 grew mainly by making acquisitions, are now opting for organic growth.
In terms of challenges for the future, there were major differences between those temporary staffing agencies which provide highly-qualified specialist staff and those which provide unqualified labourers.
At the specialist end of the market, temporary staffing agencies increasingly have to compete with IT, engineering services and technology consultancies and therefore have to invest to a much larger degree in temporary employee loyalty as well as their brands.
However, even at the less qualified end of the temporary employment market, investing in temporary employees in order to create loyalty and a long-term relationship is regarded as a means for increased profitability.