Our apologies for the lapse between blog posts, but rest assured you can now expect to see them on a weekly basis.
We have had quite a bit going on in the last three months and the best starting point is to highlight our attendance last week at the 2013 Staffing Industry Analysts Executive Forum. Over 900 CEOs, owners and senior level executives gathered for four-days at the Omni Orlando Resort at ChampionsGate in Florida for one of highest rated conferences in the industry.
The Affordable Care Act was a central topic of discussion (as it is with all businesses right now), but the overall vibe is the ACA will be more of a boom than bust for our industry. And as 2014 draws closer, all staffing firms are gearing up for the changes but many proposed rules are still under discussion. You can definitely expect to see several ensuing blog posts as we learn more in the upcoming months.
A few other discussion points were about the expected industry growth over the next five years and the emerging online staffing market. Barry Asin, Staffing Industry Analysts President, gave a keynote speech on the following 18 predications for our industry.
Here are all 18 predictions for the staffing industry by 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.