the global private employment agencies industry & market · the global private employment...
TRANSCRIPT
15 May 2014
The Global Private Employment Agencies Industry & Market
Ciett Annual Conference, 15 May, BrusselsDavid Papapostolou – Staffing Industry AnalystsMenno Bart – Ciett secretariat
Overview of Ciett research & data gathering
Annual Economic Report (global data)• Published March 2014 (2012 data) • Worldwide focus• In depth study (industry, profiles of agency workers, satisfaction etc.)
Compendium of regulatory framework for the use of agency work (global data)
• Masterlist of restrictions and requirements• Overview of industrial relations/social dialogues in various countries
Monthly Eurociett Agency Work Business Indicator (Europe)• Selected countries (hours worked: 9 countries - 63% of market, turnover: 8 countries -
37% of market)• Leading indicator of employment levels, coincidental indicator of GDP.
Joint research project with UNI-Europa (EUSectoral Social Dialogue)• Comparing Agency work with other forms of employment• (previous editions on transitions, vocational training and more)• Results & conference January 2015
©2014 by Crain Communications Inc. All rights reserved.
Who We Serve
©2014 by Crain Communications Inc. All rights reserved.
Staffing Providers Staffing & Process BuyersProcess Improvement Providers
15 May 2014
Key facts & figures
Key data on the worldwide AW market in 2012
36 Million individuals employed (2012)
USA 11.5 mlnEurope 8 mlnBrazil 7 mlnAsia/Pacific 4.8 mln
Agency work penetration
UK: 3.8%NL: 2.7%LU: 2.4%DE: 2.2%FR: 2.0%
Agency work market slowly recovering in 2013...
60708090
100110
18/0
6/20
0624
/09/
2006
31/1
2/20
068/
04/2
007
15/0
7/20
0721
/10/
2007
27/0
1/20
084/
05/2
008
10/0
8/20
0816
/11/
2008
22/0
2/20
0931
/05/
2009
6/09
/200
913
/12/
2009
21/0
3/20
1027
/06/
2010
3/10
/201
09/
01/2
011
17/0
4/20
1124
/07/
2011
30/1
0/20
115/
02/2
012
13/0
5/20
1219
/08/
2012
25/1
1/20
123/
03/2
013
9/06
/201
315
/09/
2013
22/1
2/20
1330
/03/
2014
USA: US Staffing Employment Index (Set at 100 on 6/12/2006)
-60%
-40%
-20%
0%
20%
40%
60%
Jan-
08M
ar-0
8M
ay-0
8Ju
l-08
Sep
-08
Nov
-08
Jan-
09M
ar-0
9M
ay-0
9Ju
l-09
Sep
-09
Nov
-09
Jan-
10M
ar-1
0M
ay-1
0Ju
l-10
Sep
-10
Nov
-10
Jan-
11M
ar-1
1M
ay-1
1Ju
l-11
Sep
-11
Nov
-11
Jan-
12M
ar-1
2M
ay-1
2Ju
l-12
Sep
-12
Nov
-12
Jan-
13M
ar-1
3M
ay-1
3Ju
l-13
Sep
-13
Nov
-13
Jan-
14M
ar-1
4
European Agency Work Business Indicator (y-o-y growth in hours worked)France
Belgium
Netherlands
Italy
Germany
Norway
Switzerland
Poland
Denmark
Europe (monthly)
...which may be good news for GDP & Employment...
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
Jan-
08M
ay-0
8S
ep-0
8Ja
n-09
May
-09
Sep
-09
Jan-
10M
ay-1
0S
ep-1
0Ja
n-11
May
-11
Sep
-11
Jan-
12M
ay-1
2S
ep-1
2Ja
n-13
May
-13
Sep
-13
Evolution of number of hours worked by agency workers in europe (year on year) versus average
EU 28 Unemployment change (year on year)
Evolution of AW hours worked - Europe
Y-O-Y Change in unemployment (EU 28)
-30%
-20%
-10%
0%
10%
20%
30%
-6%
-4%
-2%
0%
2%
4%
6%
Jan-
08M
ay-0
8S
ep-0
8Ja
n-09
May
-09
Sep
-09
Jan-
10M
ay-1
0S
ep-1
0Ja
n-11
May
-11
Sep
-11
Jan-
12M
ay-1
2S
ep-1
2Ja
n-13
May
-13
Sep
-13
Evolution of number of hours worked by agency workers in europe (year on year) versus evolution of
GDP volume EU28
Evolution of AW Hours Worked - Europe
Evolution of GDP volume - EU28
Countries and regions are to scale
South America
US
Africa &Middle East
Europe
AsiaPacific
Global staffing market 2013
Source: Staffing Industry Analysts
Global staffing market 2013 = €331 billion (+2.1%)
©2014 by Crain Communications Inc. All rights reserved.
Countries and regions are to scale
South America
US
UK
FR
DE
NL
IT
BE
CH
Africa &Middle East
Europe
AsiaPacific
Global staffing market 2013
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts
Global staffing market 2013 = €331 billion (+2.1%)
Countries and regions are to scale
South America
US
UK
FR
DE
NL
IT
BE
CH
Africa &Middle East
Europe
AsiaPacific
Global staffing market 2013
JP
AU
CN
IN
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts
Global staffing market 2013 = €331 billion (+2.1%)
Asia Pacific
Countries and regions are to scale
South America
US
CA
BR SA
JP
AU
UK
FR
DE
NL
IT
BE
CH
CN
INAfrica &Middle East
Europe
AsiaPacific
Global staffing market 2013
©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts
Global staffing market 2013 = €331 billion (+2.1%)
©2014 by Crain Communications Inc. All rights reserved.
Country 2013 GDP Forecast*
2013 StaffingMarket Growth Forecast
UK 1.5% 2%
Germany 0.5% 3%
France 0.2% ‐4%
Netherlands ‐1.2% ‐7%
Europe ‐0.1% ‐2%
Japan 1.8% ‐2%
Australia 2.5% 1%
Brazil 2.5% 4%
South Africa 2.0% 0%
USA 1.6% 5%
Global 2.1% 1%
*GDP as per SIA estimate based on IMF/Economist or EU/Economist, November 2013
Staffing Market Forecasts
2014 GDP Forecast*
2014 StaffingMarket Growth Forecast
1.9% 7%
1.4% 5%
0.9% 2%
0.4% 0%
1.4% 4%
1.7% 5%
2.8% 1%
2.6% 4%
3.1% 1%
2.6% 5%
2.9% 4%
Gulf/AfricaEuropeAsiaPacAmericas
VariableProfessional/Commercial staffing mix
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Argentina
Brazil
Chile
Colombia
Peru
Uruguay
Canada
Mexico
USA
Australia
New
Zealand
China
India
Japan
South Ko
rea
Austria
Belgium
Denm
ark
Finland
France
Germany
Ireland
Italy
Nethe
rland
sNorway
Poland
Portugal
Russia
Spain
Swed
enSw
itzerland
United Kingdo
mMiddle East
South Africa
Commercial Professional
Source: Staffing Industry Analysts ©2014 by Crain Communications Inc. All rights reserved.
MSP & VMS more prominent in the US
$0
$20
$40
$60
$80
$100
$120
$140
$160
Europe AsiaPac, LATAM & Africa North America
Staffing Market VMS spend under management MSP spend under management
MSP &VMS as a Proportion of Regional Staffing Revenue2012 Revenue (USD Billion)
55%
39%
18%14%
9% 4%
Source: Staffing Industry Analysts
©2014 by Crain Communications Inc. All rights reserved.
15 May 2014
Selected markets
©2014 by Crain Communications Inc. All rights reserved.
Japanese Staffing Market
©2014 by Crain Communications Inc. All rights reserved.
• Second largest national market: €41bn• Highly fragmented, high density of domestic firms
• Staffing firms often part of larger conglomerates
• Adecco the largest foreign firm
Japanese Staffing Market
©2014 by Crain Communications Inc. All rights reserved.
Top Staffing Firms in Japan
Company Country HQRecruit JPTempstaff JPPasona Group JPAdecco CHNichii Gakkan JPManpowerGroup USARandstad NLIntelligence Ltd JPMeitec JPPanasonic Excel Staff JP
• Dispatching = temporary staffing• Staffing legal since 1985 (‘Dispatch Law’)• Dispatch law relaxed between 1999‐2007
More categories of workers Extended period of hire Temp‐to‐perm
• 3‐year assignments limit, except for highly skilled workers
• Licence to become compulsory (draft bill)©2014 by Crain Communications Inc. All rights reserved.
Japan: Legal Context
©2014 by Crain Communications Inc. All rights reserved.
Chinese Staffing Market
©2014 by Crain Communications Inc. All rights reserved.
Typical Services: US & EU
Staffing Agency
Temporary Staffing
Permanent Placement
Temp to
Perm
©2014 by Crain Communications Inc. All rights reserved.
Typical Services: China
Staffing Agency
Temporary Staffing
Permanent Placement MSP RPO
VMS ATS
PayrollingHR Advisory
Temp to
Perm
TrainingConsulting /Solutions
HROutsourcingOutplacement
InsuranceOutsourcing Job Board
©2014 by Crain Communications Inc. All rights reserved.
Chinese Staffing Market
• Temporary staffing is mostly quasi‐outsourcing/payrolling– ‘Dispatched’ workers shifted onto third party payroll– The staffing forms is the legal employer of the workers– Foreign firms required to hire through dispatch agencies– Assignments cannot last > six months– Brokers source labour in villages and charge a commission to
agencies
• The larger staffing firms are Government‐owned– Historical providers to foreign firms: FESCO– Large conglomerates providing HR and staffing services– Recently global players entered the market
©2014 by Crain Communications Inc. All rights reserved.
Chinese Staffing Market
• Labor Contract Law changed in July 2013 to counter abuse and tighten loopholes– Temporary workers to enjoy payments, including all
welfare and benefits, equal to permanent counterparts– ‘Dispatched workers’ can only be employed in positions
which are temporary, auxiliary or substituting in nature – Temporary work should last no longer than six months – Max proportion of temporary workers should not
exceed 10% of total workers (excl. foreign firms).
©2014 by Crain Communications Inc. All rights reserved.
China headlines (SIA daily news)
• “Recruitment rises by +18% in Q1“• “Demand for accounting and finance professionals highest
in Asia”• “Plans to recruit more foreign professionals”• “Increasing demand for it and engineering talent”• “NES Global opens regional office to meet demand”
www.staffingindustry.com/Newsletters/Newsletter-Subscriptions-for-Staffing-Firms
©2014 by Crain Communications Inc. All rights reserved.
Indian Staffing Market
©2014 by Crain Communications Inc. All rights reserved.
Indian Staffing Market
Indian workforce404.5m
‘Formal’ employment42.7m
‘Flexi staffing’1.3m
€3.2bn
©2014 by Crain Communications Inc. All rights reserved.
Indian Staffing Market
Range of services offered by staffing Intermediaries
Permanent Recruitment
Executive Search
Recruitment
Flexi Staffing
Professional
White Collar
Blue Collar
HR Solutions
Consulting
Outsourcing
Training
Talent
©2014 by Crain Communications Inc. All rights reserved.
Top Staffing Firms in India
Company Country HQAdecco CHTeamlease INRandstad NLIkya Human Capital Sol. INManpowerGroup USAGlobal Innovsource Sol. INGenius Consultants INKelly Service USAAllegis USAABC Consultants IN
©2014 by Crain Communications Inc. All rights reserved.
Indian Staffing Market
OPPORTUNITIES• Sizeable growth opportunities in the long term• Market consolidation • Greater reliance on technology• New delivery models• Specialised talent shortages in STEM, Pharma, and IT
THREATS• Archaic, outdated & overlapping laws • Competition from the Informal Sector• Complex & expensive compliance • Current stagnant growth outlook• User companies see staffing companies as “transfer of burden” rather than a partner
15 May 2014
Profile of agency workers
Agency workers tend to be young
Most agency workers employed in services and manufacturing
Agency work helps unemployed find jobs and remain in employment
Before agency work, only 32% was employed, 12 months later this was 68%
Before agency work, 35% was registered as unemployed, afterwards only 14%
Companies cite flexibility and temporary demand as main reasons to hire agency workers
There are many reasons for choosing agency work
High job satisfaction among agency workers
80% of Agency Workers would recommend it
83% is satisfied to very satisfied
15 May 2014
Questions?Questions?
David [email protected]
www.staffingindustry.com@SIAEurope @Davidpap
David [email protected]
www.staffingindustry.com@SIAEurope @Davidpap
Menno [email protected]
www.ciett.org @Ciett_waytowork @mennobart
Menno [email protected]
www.ciett.org @Ciett_waytowork @mennobart