Employment & Recruiting Agencies in the US\u0003September 2015 1 WWW.IBISWORLD.COM\b You're hired: A more stable labor market and new online recruiting methods will boost revenue IBISWorld Industry Report 56131 Employment & Recruiting Agencies in the US September 2015 Ibrahim Yucel 2 About this Industry 17 International Trade 2 Industry Definition 18 Business Locations 2 Main Activities 2 Similar Industries 21 Competitive Landscape 34 Industry Data 2 Additional Resources 21 Market Share Concentration 34 Annual Change 21 Key Success Factors 34 Key Ratios 3 Industry at a Glance 33 Industry Assistance 34 Key Statistics 21 Cost Structure Benchmarks 23 Basis of Competition 4 Industry Performance 4 Executive Summary 25 Industry Globalization 4 Key External Drivers 6 Current Performance 26 Major Companies 8 Industry Outlook 35 Jargon & Glossary 24 Barriers to Entry 26 Randstad Holding NV 11 Industry Life Cycle 27 LinkedIn Corp. 13 Products & Markets 30 Operating Conditions 13 Supply Chains 30 Capital Intensity 13 Products & Services 31 Technology & Systems 15 Demand Determinants 31 Revenue Volatility 16 Major Markets 32 Regulation & Policy www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com Employment & Recruiting Agencies in the US\u0003September 2015 2 WWW.IBISWORLD.COM\b About this Industry Industry Definition This industry comprises establishments engaged in listing employment vacancies, referring job applicants to potential employers and assisting Main Activities The primary activities of this industry are companies with employee recruitment and placement. People referred or placed are not employees of the employment agencies. Operating casting agencies or bureaus Operating employment agencies or registries Operating employment referral agencies or registries Providing permanent placement services Providing temporary placement services Providing online job and resume listing services The major products and services in this industry are Executive search services Independent contractor placement services Permanent placement services Temporary staffing services Other Similar Industries 54161 Management Consulting in the US This industry provides executive search consulting services. 54161b HR Consulting in the US This industry provides advice and assistance to businesses for structuring human resource and personnel policies, employee benefits, wage and salary administration, recruitment and retention. 56132 Office Staffing & Temp Agencies in the US This industry supplies its own employees for limited periods of time to supplement a client's workforce. 56133 Professional Employer Organizations in the US This industry provides human resources and human resource management services to clients. Additional Resources For additional information on this industry www.americanstaffing.net American Staffing Association www.naps360.org National Association of Personnel Services www.arc-org.net The Association of Recruitment Consultancies www.usstaffing.org United States Staffing Association WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003 September 2015 3 Industry at a Glance Employment & Recruiting Agencies in 2015 Key Statistics Snapshot Revenue Annual Growth 10-15 Annual Growth 15-20 Profit Wages Businesses $26.2bn 5.3% 2.6% $11.0bn 22,423 $1.3bn National unemployment rate Revenue vs. employment growth Randstad Holding NV \u0003 4.8% LinkedIn Corp. 4 \u0003 .1% 10 10 % change 20 9 8 0 % Market Share -10 7 6 -20 5 -30 Year 07 09 11 13 Revenue 15 17 19 21 4 Year 07 09 11 13 15 17 19 21 Employment SOURCE: WWW.IBISWORLD.COM p. 26 Products and services segmentation (2015) Key External Drivers 6.1% National unemployment rate Independent contractor placement services 3.3% Other 8.6% Corporate profit Temporary stafng services Number of businesses External competition for the Employment and Recruiting Agencies industry 49.2% Permanent placement services 32.8% Executive search services p. 4 SOURCE: WWW.IBISWORLD.COM SOURCE: WWW.IBISWORLD.COM Industry Structure Life Cycle Stage Revenue Volatility Mature Medium Regulation Level Medium Technology Change Medium Capital Intensity Low Barriers to Entry Low Industry Assistance Low Industry Globalization Low Concentration Level Low Competition Level High FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 34 WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003September 2015 4 Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Executive Summary Over the past five years, the Employment and Recruiting Agencies industry performed well as strengthening labor markets boosted demand for recruiting and job placement services. Furthermore, rising corporate profit levels and heightened management restructuring activity increased demand for executive search services. Overall, industry revenue is projected to grow an annualized 5.3% to $26.2 billion over the five years to 2015. In 2015, revenue is expected to rise 3.3% as rising corporate profit levels, A \u0003 \u0003 more stable labor market and business sentiment will encourage employers to engage in new hiring and restructuring improving business sentiment and increased merger and acquisition activity continue to boost demand for permanent and executive placement services. Industry performance is dependent on the national unemployment rate, corporate restructuring activity and overall demand for permanent new hires. Accordingly, industry revenue shot up 13.7% in 2010 as businesses revitalized their investment in new hiring, while the national unemployment rate fell from a five-year high of 9.6% in mid-2010 to Key External Drivers National unemployment rate The national unemployment rate measures the proportion of Americans aged 16 or older who are currently unemployed and looking for work. An increase in the unemployment rate represents declining demand from businesses for employees and, therefore, reduces the number of placements available along with industry revenue. Conversely, stronger employment opportunities boost total revenue. The national unemployment rate is expected 8.5% at the end of 2011. Since 2012, the industry experienced decelerating growth as online technology continued to change how businesses interacted and companies remained hesitant to invest in new permanent hires, which resulted in a brief lull in demand for industry services in 2013. Technological development has had a major effect on industry structure, with online profiles and job listing platforms creating opportunities for new businesses, while larger operators have adopted online services to increase the efficiency and accuracy of candidate selection and interviewing. Over the next five years, the industry is expected to benefit from slower and increasingly stable conditions that promote revenue growth. While the national unemployment rate is not expected to fall significantly, a stabilizing and more fluid labor market and rising business sentiment will continue to encourage businesses to engage in new hiring and restructuring. Profit margins are expected to improve as wage costs decline and recruiting companies focus more on offering higher-margin services such as executive search and temporaryto-placement transition. Overall, IBISWorld expects industry revenue to grow at an average annual rate of 2.6% to $29.8 billion over the five years to 2020. to fall in 2015, representing a potential opportunity for the industry. Corporate profit Corporate profit measures profit across all industries and not just the Employment and Recruiting Agencies industry. An increase in corporate profit boosts available salary budgets and increases business confidence, which encourages operators to hire more staff, particularly on a permanent basis rather than on temporary contracts. Therefore, as corporate profit increases, Employment & Recruiting Agencies in the US\u0003September 2015 5 WWW.IBISWORLD.COM\b Industry Performance industry revenue expands. Corporate profit is expected to increase in 2015. Number of businesses The number of businesses measures the total number of companies in the United States with at least one employee. An increase in the number of businesses increases the need for new workers, which boosts demand for industryrelevant services such as online job listings and candidate profiling. The number of businesses is expected to increase marginally in 2015. External competition for the Employment and Recruiting Agencies industry Operators in this industry compete with companies that manage their own recruiting, usually through online job portals and listings. Additionally, the industry competes with temporary employees that mitigate demand for permanent placements. External competition for the Employment and Recruiting Agencies industry is expected to increase in 2015, representing a potential threat to the industry. Corporate prot National unemployment rate 10 30 9 20 % change 8 % Key External Drivers continued 7 6 4 0 -10 5 Year 07 10 09 11 13 15 17 19 21 -20 Year 09 11 13 15 17 19 21 SOURCE: WWW.IBISWORLD.COM Employment & Recruiting Agencies in the US\u0003September 2015 6 WWW.IBISWORLD.COM\b Industry Performance Employment opportunities surge growth The Employment and Recruiting Agencies industry consists of recruiting companies that help both entry-level and experienced candidates find jobs that are most appropriate for their skill set and experience level. In addition to traditional recruiting firms, the industry includes executive search companies that specialize in recruiting upper management candidates, as well as online job listing and professional networking websites. During the past five years, rising corporate profit, growth in the number of new businesses and improved business sentiment have boosted revenue as operators take on new permanent staff and recruiters assist corporate expansion and restructuring efforts. Most notably, the strongest growth over the five-year period has been from the most technologically advanced operators. Relatively new industry players with an emphasis on online recruiting and job listings have experienced rapid growth as consumer preferences trend toward online services. Nonetheless, new online technologies are also creating heightened competition for industry operators, which increasingly compete with businesses that create their own online job listing platforms. Overall, industry revenue is projected to increase at an average annual rate of 5.3% to $26.2 billion over the five years to 2015. Revenue is forecast to increase 3.3% in 2015 due to stronger employment opportunities across a wide range of industries. However, this growth is partially offset by a slowdown in new permanent hiring as the unemployment rate hovers at 5.6%. This industry's success is highly dependent on changes to the national unemployment rate, corporate restructuring activity and overall demand for permanent employment. During the past five years, significant recovery in the US labor market and the ongoing shift toward specialized jobs has boosted demand for permanent placement services, executive recruiting and other professional services offered by industry operators. Although demand for employment and recruiting agencies tends to surge during time of economic duress while individuals seek assistance finding work, operators are typically not paid until they have placed a client. Accordingly, the industry performed poorly in the two years prior to the current five-year period, as deficient economic performance forced most employers to cut back on staff and reduce new hiring. However, improving business sentiment has encouraged employers to resume operations and boost hiring since the beginning of the five-year period. In fact, the national unemployment rate has dropped steadily from a five-year high of 9.6% at the beginning of 2011 to a five-year low of 5.6% in June 2015. As more Americans returned to the labor market, they sought recruiting services, which boosted demand for industry services; revenue jumped up 13.7% in 2011, followed by a 3.2% increase in 2012. Although growth slowed down considerably in 2013 as employers turned toward temporary staffing agencies to fill workforce Industry revenue 20 10 % change Current Performance 0 -10 -20 Year 07 09 11 13 15 17 19 21 SOURCE: WWW.IBISWORLD.COM Employment & Recruiting Agencies in the US\u0003September 2015 7 WWW.IBISWORLD.COM\b Industry Performance Employment opportunities surge growth continued vacancies, revitalized demand for permanent placement services has boosted industry revenue during the latter half of the five-year period. Conditions for industry operators are expected to remain bright in 2015 as the number of businesses increases 0.9%, creating greater demand for talented Digital winners and losers Over the past five years, widespread adoption of broadband internet speeds and increased internet penetration have changed how consumers conduct everyday tasks. More broadly, the percentage of services conducted online is projected to increase from 8.2% in 2010 to 9.8% in 2015; this increase reflects stronger consumer and business inclination to turn to online substitutes. This trend has also changed the behavior of job candidates, who have increasingly turned to internet job postings rather than traditional recruiting agencies. During this period, the recruiting industry has changed significantly as a greater share of job candidates, particularly those between the ages of 18 to 25, rely on online recruiting and resume-screening services to help them reach out to potential employers. Consequently, companies that have been able to develop advanced online recruitment methods have performed better than the industry as a whole. Accordingly, the most notable industry winner has been LinkedIn Corporation, whose industry-relevant revenue is projected to grow at a rapid annualized 71.0% over the five years to 2015. The company has grown from a small start-up in 2002 to one of the largest providers of recruitment and professional networking solutions through its streamlined interface and intuitive profilecreating platform. Additionally, other companies such as Monster have experienced stronger growth during the period as they focus on investing profit into further product development and, therefore, win greater market share in the industry. In particular, Monster has invested significantly in expanding the number of job listings available on its website from less than 250,000 at the end of 2013 to over 4.0 million at the beginning of 2015. On the other hand, traditional recruiting services provided by well-established operators such as Randstad Holding NV and Adecco have also garnered strong demand because professional candidates seeking positions in middle and upper management continue to rely on the expertise and vast network of traditional recruiting agencies. Lastly, traditional executive search firms such as Korn Ferry and Spencer Stuart have also performed well because of increased corporate restructuring and acquisition activity, which has driven demand for executive search services (IBISWorld report OD5670). Industry profit margins are expected to grow from 3.9% of industry revenue in 2010 to 5.1% in 2015. Stronger demand from businesses for recruiting assistance precipitated greater transaction volumes and enabled operators to increase the Profitability and industry structure employees, while rising corporate profit is likely to boost demand for executive search services. However, growth will be partially offset by increasing competition from external sources such as in-house recruitment services and temporary staffing firms (IBISWorld report 56132). M \u0003 \u0003 ore tech-savvy businesses post their own job listings and recruit through internal departments Employment & Recruiting Agencies in the US\u0003September 2015 8 WWW.IBISWORLD.COM\b Industry Performance Profitability and industry structure continued cost of providing recruitment services. Furthermore, demand for higher-margin services such as middle and upper management recruiting, in addition to traditional executive search services, has increased as a share of total revenue over the past five years. Greater industry focus on these services have played a factor in boosting profit margins. Additionally, recruiting firms are expected to take on more employees in anticipation of stronger demand for services. More specifically, the number of industry employees is forecast to grow at an average annual rate of 4.6% to 285,844 workers over the five-year period. In Industry Outlook Over the next five years, the Employment and Recruiting Agencies industry is expected to continue growing, albeit at a slower rate, as the US labor market stabilizes and the national unemployment rate fluctuates at 5.2%. IBISWorld anticipates industry revenue to expand because of stronger macroeconomic conditions, which will encourage new businesses to enter the market and expand the size of their workforce. These companies are likely to seek professional recruiting services to find the best candidates, which will boost demand for permanent placement services. Likewise, rising corporate profit levels and heightened corporate restructuring activity in line with globalization, outsourcing and a constantly changing regulatory environment, will also boost demand for executive search services, which currently accounts for a 32.8% share of industry revenue. However, internal and external competition is expected to remain fierce in the industry. Technological changes will continue to provide opportunities and threats to industry participants, placing significant pressure on the profitability of smaller operators that are unable to offer value-added services outside the scope of standard job listings or traditional recruitment. Overall, industry revenue is projected to grow at an average annual rate of 2.6% to $29.8 billion over the five years to 2020. In 2016, industry revenue is expected to grow 3.1% to an estimated $27.0 billion, driven primarily by strong demand for permanent hires from the professional (e.g. banking and finance industries) and healthcare sectors. Although the industry is expected to record slower growth over the next five years, operators are expected to experience favorable conditions due to relatively lower volatility in job markets. Economic recovery during the past three Job openings provide consistent growth contrast, the number of enterprises is expected to rise marginally over the five years to 2015, reaching an estimated 22,423 businesses by 2015. Stagnant growth in the number of enterprises was mostly due to increased merger and acquisition activity, which has accelerated industry consolidation during the past five years. In particular, major players LinkedIn and Randstad have completed over a dozen industry-relevant acquisitions since 2010, which has helped boost their respective share of the industry while reducing the number of independent recruiters operating in the US employment and recruiting market. R \u0003 \u0003 evenue will expand because of stronger macroeconomic conditions Employment & Recruiting Agencies in the US\u0003September 2015 9 WWW.IBISWORLD.COM\b Industry Performance Job openings provide consistent growth continued years has already helped drive down the national unemployment rate to 5.6% in mid-2015. Although the unemployment rate is not expected to decline significantly over the next five years, IBISWorld anticipates employers to hire a greater share of permanent workers than temporary workers, thereby sustaining demand for the industry's largest service segment. In addition, the total number of businesses operating in Future of technology Industry capital intensity is expected to rise over the next five years as technology is increasingly leveraged to reduce wage costs and improve efficiency. In particular, online tools will continue to assist both employers and recruiting firms search submitted applications for keywords and certain criteria quickly and effectively. Additionally, industry operators will continue to develop new methods for checking qualifications and tracking potential candidates. Nonetheless, industry services will remain laborintensive as further analysis, candidate interviews and testing will remain a highly personalized process. A personalized recruiting process will remain particularly important for executive search firms, which leverage their extensive network and talented recruiters to find the most appropriate candidate for vacant middle and upper management positions. However, industry operators that readily adopt technology as a tool for recruitment and employment will continue to outperform the industry as a whole. In broad terms, the percentage of services conducted online is expected to increase from 10.7% in 2015 to an estimated 12.7% in 2020 as both consumers and businesses transition services online for greater efficiency and convenience. Consequently, internet-based operators such as LinkedIn and Monster will continue to be successful as they increase the size of their user base the United States is expected to continue growing at an annualized 0.8% over the next five years. Although smaller business generally do not use traditional recruiting firms to find the best employees, they are likely to use online recruiters such as Monster, CareerBuilder and LinkedIn to advertise these opportunities, thereby boosting demand for online job postings and other internet-based recruiting services. T \u0003 \u0003 raditional industry operators are expected to increase their online presence and respond to online preferences through intuitive online job listings and mobile application development. For more information on internet-based recruiters, see the Online Recruitment Sites industry (IBISWorld report OD4590). Traditional industry operators, such as major players Randstad and Adecco, are also expected to increase their online presence in response to rising demand for these services from employers seeking middle and upper management candidates. However, technology will also continue to pose a potential threat to industry operators. Many companies are expected to post their own job listings as online portals allow candidates to upload their own information and fill out other key details. Furthermore, third-party IT consulting solutions such as Oracle's Taleo Cloud Service will threaten online recruiters since these software-as-aservice platforms allow businesses to conduct candidate search and placement on their own without having to outsource to a professional recruiting agency (IBISWorld report 54151). Employment & Recruiting Agencies in the US\u0003September 2015 10 WWW.IBISWORLD.COM\b Industry Performance Profit and expansion Industry profitability is expected to improve over the next five years as heightened business activity encourages stronger investment in new permanent hires. In addition, the increasing use of technology will help reduce labor costs and improve company profit margins. On the other hand, technological innovation will continue to lower barriers to entry, which is likely to create an influx of new operators over the next five years. More specifically, the number of industry enterprises is projected to increase at an annualized rate of 0.6% to 23,122 companies over the five years to 2020. Despite this continued influx of new players, market share concentration is expected to increase as larger players continue to outperform smaller rivals, particularly T \u0003 \u0003 echnological innovation will continue to lower barriers to entry, which will encourage new entrants within the executive search services segment. Furthermore, larger recruiting firms are likely to continue acquiring smaller competitors in order to capitalize on economies of scale and offer a broader selection of value-added services. On the other hand, strong performance will encourage industry operators to hire new workers, with total industry employment projected to increase an annualized 2.4% to 322,190 workers over the five-year period. Employment & Recruiting Agencies in the US\u0003September 2015 11 WWW.IBISWORLD.COM\b Industry Performance Life Cycle Stage Industry growth typically follows the overall economy, although recent growth has been driven primarily by a recovering labor market Technological change is quickly altering the way the industry operates % Growth in share of economy The industry is expected to continue consolidating, although it remains highly fragmented 20 Maturity Quality Growth Company consolidation; level of economic importance stable High growth in economic importance; weaker companies close down; developed technology and markets 15 Key Features of a Mature Industry Revenue grows at same pace as economy Company numbers stabilize; M&A stage Established technology & processes Total market acceptance of product & brand Rationalization of low margin products & brands 10 Quantity Growth Many new companies; minor growth in economic importance; substantial technology change 5 Office Staffing & Temp Agencies 0 Management Consulting HR Consulting Employment & Recruiting Agencies Computer Stores Decline -5 Shrinking economic importance Office Supply Stores -10 -10 -5 0 5 10 15 20 % Growth in number of establishments SOURCE: WWW.IBISWORLD.COM.AU Employment & Recruiting Agencies in the US\u0003September 2015 12 WWW.IBISWORLD.COM\b Industry Performance Industry Life Cycle T \u0003 his industry is Mature\u0003 \u0003 The Employment and Recruiting Agencies industry is in the mature phase of its life cycle. Industry value added (IVA), used to measure an industry's contribution to the overall economy, is projected to grow at an average annual rate of 3.2% over the 10 years to 2020. In contrast, the overall economy is forecast to grow at a slower annualized rate of 2.5% over the same period. Growth in IVA is primarily a result of recovering profit margins and sales in the postrecessionary economy. Over the next five years, IVA growth will be relatively slower as industry revenue grows roughly in line with the overall economy. The industry is characterized by a moderate rate of technological change, a growing number of industry players, wholehearted acceptance of industry services and a well-defined portfolio of standard services offered by the industry; these traits are all characteristic of an industry currently in the mature stage of its life cycle. Over the past five years, the industry has largely recovered from the onset of the US recession, which decimated the overall industry in the two years prior to the current five-year period. During the past five years, rising corporate profit and business sentiment has reinvigorated new hiring and management restructuring, thereby boosting demand for recruitment services. The industry is undergoing significant change, driven primarily by the widespread adoption of online recruitment services and other technological developments. New industry players such as LinkedIn are becoming increasingly relevant through online operations, which attract consumers because of their userfriendly and convenient services. Furthermore, traditional operators are able to increase their efficiency by investing in technologies that help cull potential candidates based on keyword and criteria searches. These developments have already helped reduce the need for human input, and are likely to continue transforming the industry's structure and service portfolio over the next five years. Employment & Recruiting Agencies in the US\u0003September 2015 13 WWW.IBISWORLD.COM\b Products & Markets Supply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations Supply Chain KEY BUYING INDUSTRIES 31-33 Manufacturing in the US Manufacturing firms may seek new employees through placement services. 53 Real Estate and Rental and Leasing in the US Real estate professionals seek new work through online job listings and placement services. 54 Professional, Scientific and Technical Services in the US Companies in this sector use employment agencies to find suitable professional staff. 56 Administration, Business Support & Waste Management Services Administrative and business support professionals are placed by industry operators. 62 Healthcare and Social Assistance in the US Companies in this sector use employment agencies to find full-time and part-time medical staff. 71 Arts, Entertainment and Recreation in the US Companies in this sector use employment agencies, particularly talent agencies, to find creative projects for performers. KEY SELLING INDUSTRIES 44312 45321 Office Supply Stores in the US The Office Supply Stores industry supplies employment agencies with office supplies. 53112 Commercial Leasing in the US The Commercial Leasing industry supplies office space for employment and recruiting agencies. 54151 Products & Services Computer Stores in the US The Computer Stores industry supplies employment agencies with computer equipment. IT Consulting in the US The IT Consulting industry supplies online software support for submitting of resumes and vacancy information. Permanent placement services Permanent placement services are estimated to account for 49.2% of industry revenue in 2015. Permanent placement services include recruiting, selecting and referring candidate to clients to fill positions on a permanent or indeterminate basis. Services involved include candidate testing, interviewing, reference checking, evaluation and counseling of prospective employees. Service providers act as an employment intermediary as candidates are finally selected and hired by the client. Firms are then paid on a contingency basis, meaning that only successful placement of a candidate will result in revenue. Over the past five years, heightened business activity and improved business sentiment has made companies more comfortable with hiring permanent staff, rather than relying on temporary staffing agencies (IBISWorld report 56132) to fill temporary roles. Consequently, this segment has grown as a proportion of revenue over the five-year period. Executive search services Executive search services are forecast to comprise 32.8% of revenue in 2015. This segment includes the same services as offered in permanent placement services, although it focuses on corporate executives and other upper management and professional positions. Industry operators provide detailed interviews Employment & Recruiting Agencies in the US\u0003September 2015 14 WWW.IBISWORLD.COM\b Products & Markets Products & Services continued Products and services segmentation (2015) 3.3% 8.6% Other Temporary stafng services 6.1% Independent contractor placement services 49.2% Permanent placement services 32.8% Executive search services Total $26.2bn with client management teams, develop specific job profiles, conduct original research and advertising, screen candidates and present and discuss confidential lists of highly qualified applicants. Additionally, industry operators negotiate compensation and provide post-hire follow-up with successful candidates. The provision of this service typically includes assurance clauses such as the repeat of a search at no extra charge should a successful candidate subsequently fail for reasons attributed to lack of due diligence by the firm, and not to recruit from the firm for a given period of time. This segment has grown as a proportion of revenue over the past five years due to stronger business activity, higher corporate profit and significant management restructuring following the recession. For more information on this segment, see IBISWorld report OD5670. Temporary staffing services Industry operators typically do not provide temporary staffing services, which are included in the Office Staffing and Temp Agencies industry (IBISWorld report 56132). However, temporary staffing services are estimated to account for 8.6% of revenue in 2015 since several SOURCE: WWW.IBISWORLD.COM larger traditional recruiting firms, such as Randstad and Adecco, offer temporary staffing as a part of their diversified service portfolio. Unlike executive search and permanent placement services, industry operators of temporary and contract placement services do not necessarily require up-front fees and retainers. Over the past five years, this segment's share of industry revenue has declined slightly as rising business sentiment has encouraged employers to seek permanent hires over temporary workers. For more information on this segment, see IBISWorld report 56132. Independent contractor placement services Independent contractor placement services are estimated to account for 6.1% of revenue in 2015. Recruitment and employment agencies find individual contractors to fill positions based on written contracts that stipulate job duties negotiated by clients. Under these agreements, the service provider has legal rights with respect to the individual contractor, who is responsible for its own payroll deductions and government filings. This segment enjoyed growth in the immediate aftermath of the recession as firms Employment & Recruiting Agencies in the US\u0003September 2015 15 WWW.IBISWORLD.COM\b Products & Markets Products & Services continued remained hesitant to increase the size of their workforce and instead opted to hire independent contractors who were not officially employed by the company and assigned to complete specific roles. However, this segment has declined as a proportion of revenue during the second half of the five-year period as firms resume seeking full-time employees over short-term fixes. Demand Determinants Demand for industry placement services follows the ebbs and flows of the economic cycle, particularly with sudden changes in the labor force and the unemployment rate. As the unemployment rate increases, demand for permanent placement services will increase among unemployed workers in search of permanent work. For industry recruiting agencies, however, there is often far less economic activity from companies during periods of high unemployment. Employers will reduce salary costs by instituting hiring freezes or even laying off employees amid economic downturns, which greatly reduces the economy's overall demand for employment and recruiting agencies among job creators. Demand for senior and executive recruitment is particularly sensitive to business sentiment and overall economic conditions. Since the industry's executive recruitment services are typically charged as a percentage of the position's salary, companies are quick to hire for major roles using in-house recruitment systems during recessionary periods. Additionally, there is far less staff turnover when economic conditions are uncertain because employed workers will be less inclined to pursue a new position if the labor market has few suitable openings. Many industry players also operate in the Office Staffing and Temp Agencies industry (IBISWorld report 56132). Temporary employment agencies tend to grow and decline parallel to the Employment & Recruiting Service industry, although temporary agencies offer a greater degree of flexibility than permanent work agencies. While all hiring can be expected to suffer during an economic downturn, temporary workers are often hired more readily over fulltime employees, as companies are wary to invest in permanent workers until economic conditions improve. Accordingly, demand for temporary staffing services tends to be highest in the immediate years following a recession, whereas demand for permanent placement services tends to rise in the 2-3 years following a recession. A growing number of industry operators are expanding their portfolio to include value-added services such as outplacement services, training and human resources consultancy services. Outplacement services are intended to help employers and terminated employees transition to new employment through structuring severance pay, offering job-search advice and even providing counseling services. These services are typically countercyclical, with demand for new employment increasing as economic activity and unemployment increase. During the recession, many agencies experienced an increase in demand for outplacement services; however, the gains associated with providing these services have not mitigated losses from lulls in demand for permanent placement, which has traditionally accounted for the largest share of industry revenue. Employment & Recruiting Agencies in the US\u0003September 2015 16 WWW.IBISWORLD.COM\b Products & Markets Major Markets Major market segmentation (2015) 7.5% 11.0% Healthcare 33.5% Technical Industrial 16.0% Administrative and clerical Total $26.2bn 32.0% Executive and managerial Commercial The commercial market includes the industrial (e.g. manufacturing and construction) sector, as well as administrative and clerical staffing. This segment is estimated to account for a combined 49.5% of industry revenue in 2015. Jobs in these industries, particularly in nondurable goods manufacturing and construction, account for the majority of temporary placement revenue. In addition to temporary placement, this segment is also a large market for permanent placement services, particularly for administrative positions. This market's share of industry revenue has remained relatively unchanged during the past five years. Executive and managerial Executive and other managerial positions are expected to generate 32.0% of industry revenue in 2015. These positions are not filled as quickly as most commercial positions; however, they typically provide higher revenue per job filled. These positions include mid-level management (e.g. regional managers or vice presidents) and in some cases can include placement services for CEO and CFO positions. During the five years to 2015, this segment is estimated to expand SOURCE: WWW.IBISWORLD.COM its share of total revenue as larger business clients are increasingly seeking the help of industry operators to fill positions that require a higher level of skill and education. Technical Information technology (IT) and other technical (e.g. engineering) positions are another major source of revenue for the Employment and Recruiting Agencies industry. IBISWorld estimates this market to account for 11.0% of total industry revenue. Demand for employees who have technical and IT skills has been on the rise over the past five years as more business operations are pushed online and completed through different computer programs and software. However, this segment is anticipated to stagnate over the next five years as companies increasingly outsource IT and tech support duties overseas. Healthcare The industry generates an estimated 7.5% of revenue from prospective employers seeking work in the healthcare sector. While some of these prospective workers seek administrative and office positions within the healthcare sector, many are part-time and full-time licensed nurses and Employment & Recruiting Agencies in the US\u0003September 2015 17 WWW.IBISWORLD.COM\b Products & Markets Major Markets continued physicians in search of permanent and temporary job placement. This segment has remained stable over the past five years, although rising health expenditure will likely increase its share of total industry revenue over the next five years. International Trade Due to the service-based nature of this industry, employment and recruiting agencies do not participate in any international trade. However, domestic players have increasingly focused on entering emerging markets, where rapidly developing labor markets create lucrative opportunities for recruiting firms. Likewise, several foreign-owned recruiting firms have entered the US market to capitalize on America's dynamic labor force. For example, major player Adecco is a Swiss HR consulting company with a dominant presence in Western Europe; revenue from North American clients generated only 19.3% of the company's net sales in 2014. Like other international employment agencies, Adecco has specifically targeted North America as a key resource for job growth following the recession. Employment & Recruiting Agencies in the US\u0003September 2015 18 WWW.IBISWORLD.COM\b Products & Markets Business Locations 2015 West New England AK 0.6 WA Rocky Mountains ID 1.8 West NV 1.0 1.5 SD 0.1 WY 0.1 MN 0.1 0.3 OR Great Lakes ND MT 1.5 Plains CO 0.6 1.9 0.6 3.3 KY 9 15.4 OK 0.7 AZ NM 0.5 0.2 Southwest TX 8.7 HI 0.1 Additional States (as marked on map) 1 VT 2 NH 3 MA NC 2.9 SC Southeast 5 CT 6 NJ 7 DE 8 MD 1.5 0.8 3.2 4.0 0.1 0.3 2.0 MS AL 0.8 0.7 GA 3.6 0.5 LA 1.1 FL 4.2 Revenue (%) 4 RI 0.1 0.5 8 0.2 TN AR 7 WV VA 1.9 1.0 CA West OH 0.7 MO KS 1.6 1.1 5.7 6 4.0 IN IL 0.4 UT PA 3.4 0.8 0.2 1 2 3 NY 11.6 5 4 MI 1.3 IA NE 0.1 WI ME MidAtlantic 9 DC 0.7 Less than 3% 3% to less than 10% 10% to less than 20% 20% or more SOURCE: WWW.IBISWORLD.COM Employment & Recruiting Agencies in the US\u0003September 2015 19 WWW.IBISWORLD.COM\b Products & Markets The geographic spread of the industry largely reflects the distribution of population and economic activity. Furthermore, the amount of revenue generated in each region largely reflects the number of establishments within the respective regions. However, the West, Mid-Atlantic and New England regions, which primarily offer executive search services, generate slightly more revenue per establishment than the national average. This is due to the high-value positions that are located within these regions, which typically garner higher fees. Southeast The Southeast region is home to 21.1% of industry establishments, making it a major region for the Employment & Recruiting Agencies industry. In spite of the region's dominance in establishments, the region is expected to generate just 18.1% of total revenue. This is largely the result of the types of positions that are placed in the region. Unlike many firms in the Mid-Atlantic, which focuses on highly paid professional positions, firms in the Southeast are more likely to focus on Distribution of revenue vs. population recruiting for lower-wage jobs, particularly in the retail and service sectors. Florida maintains a dominant presence within this region, accounting for 6.5% of all industry establishments. West With 18.9% of total industry establishments, the West represents the second most important region for industry services. California is an essential market for the West; its 14.5% of the region's employment agencies is a higher percentage than that of any other state. Many of the operators in the region rely on the entertainment industry; a large number of these regional firms are casting agencies and bureaus. Although casting agencies for entertainers do not make up a major segment of the industry's market, it is the most important component of the industry's business in California due to its proximity to music and film studios. Mid-Atlantic The Mid-Atlantic region is expected to account for 18.8% of industry establishments in 2015. The region's Distribution of revenue vs. establishments 30 20 20 % 30 % Population Southwest Southeast Plains New England Rocky Mountains Revenue Mid-Atlantic Great Lakes West Southwest Southeast Rocky Mountains Revenue Plains 0 New England 0 Mid-Atlantic 10 Great Lakes 10 West Business Locations Establishments SOURCE: WWW.IBISWORLD.COM Employment & Recruiting Agencies in the US\u0003September 2015 20 WWW.IBISWORLD.COM\b Products & Markets Business Locations continued high share of establishments is largely due to New York City, where several major clients are headquartered. Many agencies in the Mid-Atlantic focus on professional and executive recruitment services, which represents the largest and most profitable segment within this industry. In contrast, agencies in the West, Great Lakes and Southeast regions tend to service more low-skilled sector, such as nondurable manufacturing and retail. WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003 September 2015 21 Competitive Landscape Market Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalization Market Share Concentration Level \u0003 Concentration in this industry is Low\u0003 \u0003 Key Success Factors I \u0003 BISWorld identifies 250 Key Success Factors for a business. The most important for this industry are: The Employment and Recruiting Agencies industry has a low level of market share concentration, where the four largest operators are expected to generate 13.2% of industry revenue in 2015. Due to its client-oriented nature, this highly fragmented industry is characterized by a large number of small enterprises operating in narrow geographic markets. These employment and recruiting agencies typically focus on servicing local and regional customers and build relationships with businesses in these areas. Larger firms with a global presence, such as Adecco and Randstad, still have a relatively low share of the market because of the highly dispersed and localized nature of recruiting services. Market share concentration has risen significantly over the past five years. The rapid digitization of online job listings and other services has allowed new players such as LinkedIn and Monster to enter the industry and quickly capture a large market. Traditional recruiting agencies such as Randstad have also increased their share of the market during the past five years, though their growth was primarily driven by merger and acquisition activity. For example, Randstad acquired SFN Group, another major staffing firm, for $771.0 million in 2011, which helped boost the company's industry-relevant revenue by 46.4% in 2012. The industry is expected to continue consolidating over the next five years as large, traditional recruiting firms continue to acquire smaller competitors, while internet-based recruiters continue to outperform the industry as a whole through new product development and aggressive marketing. Ability to effectively communicate and negotiate Employees should have the ability to effectively communicate with clients and be able to understand a company's corporate culture and exactly what they are looking for in a candidate. resume screening by employers, is vital for success in this industry. Must have license Licenses for businesses and counselors are required to operate in most states. Providing client confidentiality It is important to ensure total confidentiality in all areas of operation and in all dealings with clients and potential placements. This factor is particularly important for executive search firms. Ability to quickly adopt new technology Keeping up to date with new technology, particularly the use of the internet and online web portals for information on job vacancies and Cost Structure Benchmarks Access to highly skilled workforce Firms should hire talented and amiable workers who can seek out the best potential candidates for a job and negotiate effectively between clients (employers) and job candidates. The cost structures of firms in this industry vary based on a variety of factors, including the types of clients served and level of capital intensity. For example, firms that specialize in niche industries typically charge a premium for finding talent within specialized industries. Furthermore, many firms now offer value-added services, which can boost profit margins through higher premiums WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003 September 2015 22 Competitive Landscape that are charged to clients. In general, firms that provide executive search services have higher profit margins than firms that offer administrative or industrial permanent placement services. The following cost structure illustrates typical expenses averaged across all firms operating in this industry. Profit Profit margins for employment and recruitment agencies, measured as earnings before interest and taxes, tend to be low, making the industry extremely vulnerable to changes in the economy and demand for labor. Some agencies specialize in placing professional clients, which typically generates a higher margin per placement than companies that specialize in lower-margin placements, such as clerical, technical or manufacturing. Furthermore, companies that offer online services typically have higher profit margins than their offline counterparts due to lower operating costs. In periods of decreased economic and investment activity, competitive pricing generally erodes profit margins. The lack of potential new clients during the recession led operators to compete more intensely by offering lower prices. In 2015, IBISWorld estimates that average industry profit will account 5.1% of revenue, up from an estimated 3.9% in 2010. Wages This industry is highly labor intensive because operations require personal, face-to-face service to generate business from corporate clients and potential employment candidates. Although internet sites, data warehousing and mining software are increasingly being used to complete initial job screening tasks, candidates must still be screened in person by industry employees and Sector vs. Industry Costs Average Costs of all Industries in sector (2015) Industry Costs (2015) 6.7 5.1 100 80 Percentage of revenue Cost Structure Benchmarks continued n Profit n Wages n Purchases n Depreciation n Marketing n Rent & Utilities n Other 41.9 50.8 60 40 20 0.3 15.9 2.1 4.4 2.3 13.3 3.9 2.1 33.4 17.8 0 SOURCE: WWW.IBISWORLD.COM WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003 September 2015 23 Competitive Landscape Cost Structure Benchmarks continued Depreciation, rent and other costs IBISWorld estimates depreciation accounts for just 0.3% of industry revenue. Depreciating items include fixtures, fittings, computer equipment and software. Although this industry has a low capital intensity, the use of Basis of Competition Level & Trend \u0003 Competition in this industry is H \u0003 igh\u0003and the trend is Increasing\u0003 \u0003 in-person interviewing is extremely helpful for industry consultants to get a strong assessment of the individual character of each job seeker. Wages are by far the largest cost for industry operators, estimated to account for 41.9% of total industry revenue in 2015. The cost of wages as a percentage of industry revenue has dropped over the past five years as operators have increasingly taken advantage of online resume screening and candidate selection services. This trend is expected to continue over the next five years, as operators increasingly rely on computer technology to search for and manage potential job candidates. computer equipment to find and select potential candidates has increased over the past five years. This trend is expected to continue, leading to marginal increases in depreciation. However, depreciation costs vary significantly, depending on the level of personalized service the company offers. Therefore, online players have high depreciation costs while local placement firms typically incur very low depreciation expenses. Relatively small premises are required to operate an employment placement agency; however, some agencies incur high rental costs by working in geographically important regions that are close to established clients. Rent and utilities total a combined 3.9% of revenue, while marketing activities account for an estimated 2.1%. All other costs, which include office-related and administrative expenses, as well as office supplies and office equipment rental, account for the remaining 33.4% of industry revenue. Internal competition Firms that develop a close and personal relationship with clients, maintain their quality of service and have a high level of client satisfaction tend to see consistently strong performance. Additionally, firms that strive to understand their clients' businesses, corporate culture and needs provide a higher level of service to their clients. Among major players, having a global network of offices provides a distinct advantage, especially as many corporations move into emerging markets. Most of the major players have operations across Europe and Asia, with many recently moving into the Middle East and Latin America. Employment agencies face fee-based competition, especially when economic growth deteriorates and unemployment increases. The recession caused serious price competition within the industry, causing many companies to reduce pricing to maintain existing clients and attract new ones. The industry has minimal barriers to entry, so competitors often contend with a large number of small operators, causing relatively low net income margins. To remain competitive, employment agencies must have a large database of potential employees and contacts in key client industries. A firm that has access to a large, well-organized database, in addition to the latest search technologies, can readily identify potential headhunting opportunities for clients. The ability to offer web-based advertising of jobs and online applications is now essential; firms that do not invest in such capabilities will suffer if available jobs are not brought immediately to the attention of potential candidates. WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003 September 2015 24 Competitive Landscape Basis of Competition continued External competition Industry operators face limited competition from related industries that supply similar services, such as the Office Staffing and Temp Agencies industry (IBISWorld report 56132). Many industry operators offer services across related industries; for example, Adecco generates 91.0% of its revenue from temporary staffing services, which are technically not included in this industry. The industry also competes with internal Barriers to Entry The Employment and Recruiting Agencies industry has few barriers to entry. In terms of regulations, employment agencies should be licensed to perform corporate consultation and recruitment activities. In some states, a counselor's license is also required for any person who interviews, counsels or advises candidates and clients on any matter related to employment and contracts. Having a license allows the business to charge for the provision of services. Proper licensing also allows the business to charge for the provision of its services. In addition, the industry has a very low level of capital intensity. New entrants could provide services from a home office with little more than computer and telephone access. Furthermore, the industry has a low level of market share concentration due to the ease with which companies may enter and exit the industry. Consequently, the industry is highly fragmented and has a large number of small operators that can often carve out a space within the industry by providing services to small, local or niche businesses. In general, new businesses may have difficulty Level & Trend \u0003 Barriers to Entry in this industry are L \u0003 ow\u0003and Steady\u0003 \u0003 corporate HR divisions that perform their own recruiting instead of outsourcing this work to professional employment agencies. This has become more common since the recession, as many companies have scaled back on recruiting-related costs. Industry operators, particularly traditional recruiting firms, also compete with employment services provided by professional networking websites and low-cost (or free) job boards. Barriers to Entry checklist Competition Concentration Life Cycle Stage Capital Intensity Technology Change Regulation & Policy Industry Assistance High Low Mature Low Medium Medium Low SOURCE: WWW.IBISWORLD.COM establishing relationships with large corporations and clients, but this is only pertinent to entrants wishing to expand their business beyond a local or regional level. Entrants will need to build a reputation based on providing quality candidates. In addition, new entrants are likely to be more successful if they are able to provide a full range of employment services, including temporary placement, permanent placement, executive search and training services. In general, larger clients that demand a variety of services prefer to use a single operator that provides many services at an affordable price than multiple operators that each offer a different service. WWW.IBISWORLD.COM\b Employment & Recruiting Agencies in the US\u0003 September 2015 25 Competitive Landscape Industry Globalization Level & Trend \u0003 Globalization in this industry is L \u0003 ow\u0003and the trend is Increasing\u0003 \u0003 The Employment and Recruiting Agencies industry has a low level of industry globalization. Because the industry is service-based, it does not participate in any international trade. Nevertheless, larger industry players are increasing their operations overseas to provide services to global corporations, while large international recruiting firms are have established regional branches throughout major US metropolitan areas. Globalization has made the US labor market increasingly global, and many prospective employees are open to the possibility of working abroad as a means of both growing their careers and experiencing business culture in other parts of the world. Industry globalization is therefore increasing gradually, although the majority of industry employment and recruiting agencies continue to operate on a local or regional basis. Employment & Recruiting Agencies in the US\u0003September 2015 26 WWW.IBISWORLD.COM\b Major Companies Randstad Holding NV | LinkedIn Corp. | Other Companies Major players (Market share) LinkedIn Corp. 4.1% 91.1% Other Randstad Holding NV 4.8% Player Performance Randstad Holding NV M \u0003 arket share: 4.8% SOURCE: WWW.IBISWORLD.COM Headquartered in Diemen, Netherlands, Randstad Holding NV is a multinational human resource consulting firm. Founded in 1960, the company now employs more than 28,720 corporate employees in more than 4,400 offices in 39 countries. The company helped place more than 600,000 people in temporary or permanent employment, with about 100,000 workers placed into permanent positions in 2014. The company's primary focus is in Western Europe, with North American operations accounting for only 21.8% of total net sales in 2014. Across all markets and service offerings, the company generated net sales of about $22.9 billion in 2014. Within the United States, Randstad placed over 19,900 candidates into permanent jobs in 2014, up from 18,377 permanent placements in 2013. Randstad Holdings provides services through three key business divisions: staffing, professionals and in-house solutions. The company's staffing category primarily relates to the provision of employees to clients in the industrial and administrative sectors. Staff is primarily provided on a temporary basis to these companies and, therefore, is not included in this industry (IBISWorld report 56132). Similarly, the company's in-house services provide HR solutions, rather than employment and recruiting services (IBISWorld report 56133). Therefore, the professional services segment, which primarily includes permanent placing to the banking and finance sectors, is the company's only industry-relevant business unit. Financial performance The company's performance over the five-year period has been driven by a number of major acquisitions, in addition to strong organic growth. In particular, Randstad (US recruiting services) - financial performance* Year Revenue ($ million) (% change) Operating Income ($ million) (% change) 2010 603.0 -7.9 14.5 N/C 2011 819.5 35.9 12.6 -13.1 2012 1,199.5 46.4 9.0 -28.6 2013 1,127.1 -6.0 24.9 176.7 2014 1,172.7 4.0 35.0 40.6 2015 1,271.2 8.4 39.5 12.9 *Estimates SOURCE: ANNUAL REPORT AND IBISWORLD Employment & Recruiting Agencies in the US\u0003September 2015 27 WWW.IBISWORLD.COM\b Major Companies Player Performance continued the company acquired SFN Group, another major staffing firm, for $771.0 million in 2011. This acquisition effectively doubled the company's market share within the United States and boosted industry-relevant revenue an estimated 46.5% in 2012. Since 2013, however, growth has slowed down as the company faced challenges with its temporary staffing unit. In particular, lower demand from the information technology sector has hampered growth during the latter half of the five-year period, despite revitalized demand from the banking and finance sectors in 2014. However, the company's permanent placement unit has performed well since 2013 as economic recovery and rising business sentiment has boosted demand for professional hiring and management restructuring. Overall, the company's industry-relevant sales are expected to grow at an average annual rate of 16.1% to $1.3 billion over the five years to 2015. Player Performance Founded in 2002, LinkedIn Corp. has grown from a small, Silicon Valley start-up to one of the largest professional networking websites in the world. The company provides a platform that allows members to become more successful in their careers through managing contacts and sharing their qualifications and personal information digitally with others. Furthermore, the website allows members to seek jobs through online listings and recruiter programs. LinkedIn now has over 6,800 full-time workers in 30 offices worldwide. Across all business segments and geographic regions, LinkedIn generated over $2.2 billion in net sales in 2014, up 45.1% from the year before. LinkedIn's online network currently consists of more than 300 million members from over 200 countries. During the past two years, the company has focused more on expanding into foreign markets; in 2014, over 70.0% of new members were from outside of the United States. LinkedIn operates through three segments: talent solutions, marketing solutions and premium subscriptions. Industry-specific operations are conducted through the company's talent solutions segment, which seeks to match talent with opportunity through leveraging data from employer and employee profiles. The segment generates LinkedIn Corp. M \u0003 arket share: 4.1% LinkedIn Corporation (US talent solutions segment) - financial performance Revenue ($ million) (% change) Operating Income ($ million) 2010 74.2 178.9 6.0 N/C 2011 176.8 138.3 8.8 46.7 2012 333.6 88.7 19.5 121.6 Year (% change) 2013 582.9 74.7 18.2 -6.7 2014 809.6 38.9 13.2 -27.5 2015* 1,084.0 33.9 27.3 106.8 *Estimates SOURCE: ANNUAL REPORT AND IBISWORLD Employment & Recruiting Agencies in the US\u0003September 2015 28 WWW.IBISWORLD.COM\b Major Companies Player Performance continued Financial performance LinkedIn's streamlined interface and focus on rapidly expanding its user base Other Companies revenue by selling slots and space which companies can post available positions, while candidates can upgrade to premium subscriptions to access enhanced search results and communication capabilities. In 2010, the company pursued several expansion opportunities, opening a European headquarters in Dublin and acquiring Pittsburgh-based mSpoke, which develops software for sorting data by relevance. In addition, LinkedIn acquired SlideShare, a social content business, for $119.0 million in 2012 to give members a way to discover new users through content. More recently, the company acquired online job listing startup Bright for $120.0 million in 2014. has helped it become one of the fastestgrowing online recruiting companies during the past five years. While relatively young, the company's US industry-specific revenue is forecast to grow at an average annual rate of 71.0% to $1.1 billion in 2015. The talent solutions segment continues to grow and in 2013, the company focused on product development with a new version of the flagship recruiter platform. Additionally, the company has unveiled several new services that are designed to help users keep track of networking events, job postings and applications on mobile devices rather than on desktop PCs. Lastly, the company's recent acquisition of Bright has significantly boosted the company's database of open job listings. As of June 2015, the company's database has more than 2.6 million active job listings within the United States. Adecco SA Estimated market share: 1.8% Adecco SA is one of the world's largest temporary employment agencies. The Switzerland-based company places about 3.0 million people in employment each year and is among the largest players in North America. In 2014, Adecco employed more than 31,500 full-time equivalent employees and had more than 650,000 associates on assignment daily. The company now has about 5,000 branches in more than 60 countries across the globe and generated $26.5 billion in global revenue in 2014. Adecco operates through four main business lines: temporary, permanent, career transition; and outsourcing, talent development and other services. Temporary staffing represents the majority of company revenue; however, it is not included in the Employment and Recruiting Agencies industry, which comprises permanent, career transition and outsourcing revenue. Permanent employment represents the need to fill key positions on a permanent basis, which Adecc