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US – What will happen to staffing in 2018?

March 05 2013

The staffing industry will grow, but it will become more concentrated by 2018. Online staffing will advance and the percentage of large staffing buyers using independent contractor compliance solutions will jump. In addition, the Affordable Care Act will be more boom than bust for the industry.

These are a few of the 18 predictions made by Staffing Industry Analysts President Barry Asin at the Staffing Industry Executive Forum last week in Orlando.

Here are all 18 predictions for the staffing industry in 2018:

  1. U.S. staffing revenue will hit $160 billion in 2018, up from $126.8 billion in 2012.
  2. North America will remain about a third of the global staffing market.
  3. Information technology and industrial staffing will make up nearly 60 percent of the U.S. temporary staffing market. They are at 53 percent now.
  4. Market concentration increases: the top 15 firms will have 50 percent of market share.
  5. The Affordable Care Act will benefit the staffing industry. “We will see that the Affordable Care Act will be more boom than bust for the staffing industry,” Asin said. However, a survey by Staffing Industry Analysts found that staffing firms expected customers to absorb a median 65 percent of extra costs while another survey found a majority of buyers expect to absorb none of the costs.
  6. Healthcare staffing revenue will reach $13.4 billion in 2018, which represents an estimated compound annual growth rate of 6 percent from 2013.
  7. Work will expand from “supply chain” to “human cloud” models. The human cloud includes online staffing as well as crowdsourcing where a large task is broken down into several smaller micro tasks that are farmed out to online workers.
  8. Online staffing will reach $5 billion in annual spend in 2018 from $1 billion in 2012. Online staffing includes firms such as Elance and oDesk. These firms connect staffing buyers with workers online — tasks are posted on a website and workers are engaged and paid via the platform. The workers are often independent contractors, but they can be W-2 employees as well. Often the staffing buyer and worker never meet face-to-face.
  9. Total talent management will become ubiquitous by 2012. Total talent management refers to overall management of a workforce, both traditionally hired and contingent workers. It includes such aspects as designing benefits and compensation, measuring performance and planning for future workforce needs among other aspects. It involves both traditionally hired and contingent workers.
  10. Technology choices and effective adoption practices will be critical to the success of staffing firms in 2018 like never before.
  11. Maturing VMS, MSP and RPO models morph into the next big thing.
  12. Staffing firms will be among the heaviest users of social media.
  13. Big data and social media will dominate the skills needed in staffing.
  14. New staffing operating models will roll out of the lab and into the mainstream. Examples include virtual and offshore recruiting and video interviewing.
  15. Death of the branch office model for staffing companies.
  16. Independent contractor compliance/screening adoption will exceed 70 percent among large clients. Presently, 54 percent of large buyers had adopted such models in 2012.
  17. Micro-targeting locations will drive growth for staffing firms.
  18. Micro-targeting of skills will drive growth in staffing as well.

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Ken Schuster 03/07/2013 07:18 pm

Market concentration increases: the top 15 firms will have 50 percent of market share - If acquisition rate of past 5 yrs is followed the concentration will be higher.

The ACA will benefit the staffing industry. “We will see that the ACA will be more boom than bust for the staffing industry. However, a survey by SIA found that staffing firms expected customers to absorb a median 65 percent of extra costs. - Almost without exception I have not talked with a staffing firm that understands how to turn ACA into a selling tool and build business from it. IBM, a firm we work closely with, is using ACA as a selling point even with software but we in staffing have not taken the time to see where we can help our customers build a different workforce through staffing.

Healthcare staffing revenue will reach $13.4B in 2018, which represents an estimated compound annual growth rate of 6 percent from 2013. With the rollout of the rest of ACA in 2014 healthcare staffing should grow at over 15%

Work will expand from “supply chain” to “human cloud” models. The human cloud includes online staffing as well as crowdsourcing where a large task is broken down into several smaller micro tasks that are farmed out to online workers. - For those who work with us on IBM Related Business projects this concept of capture the project then farm out the parts you don't normally deal with is a 15 yr old concept.

Online staffing will reach $5 billion in annual spend in 2018 from $1 billion in 2012. Online staffing includes firms such as Elance and oDesk - I would look to see this at nearly double what is projected here. The advancements in software and the understanding of portable skills is growing much faster then credit is being given to it.

Technology choices and effective adoption practices will be critical to the success of staffing firms in 2018 like never before - A M E N !

Maturing VMS, MSP and RPO models morph into the next big thing. - Which is ???

Staffing firms will be among the heaviest users of social media - Already are! In 2012 I was in the top 1% of viewed profiles on LinkedIn, amazing (;>)

New staffing operating models will roll out of the lab and into the mainstream. Examples include virtual and offshore recruiting and video interviewing. - Who made this one evidently has not been near the work area. Who isn't already doing these?

Death of the branch office model for staffing companies. - As seen by many of the major firms. The office will be gone but the local sales/account mgmt contact will still be there.

Micro-targeting of locations and skills will drive growth for staffing firms. - Should already be doing it! With the IBM Related Business we promote this to drive business through the major levels of IBM and then the Business Partners.

Had only planned to give you 2 cents but I think I went for three.

Thanks for the original post.


Daren Bitter 03/06/2013 12:34 pm

Well said, Lori!


www.loriwilliamsonline.com

Lori Williams 03/05/2013 02:12 pm

WOW! The key to anyone's success in the near future will be how fast can you operate like "this" now? Who will do it first? Who will be the leader?

Lots of exciting and very needed change on the horizon.


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