© 2015 Crain Communications Inc. Tony Gregoire Director of Research, North America...

© 2015 Crain Communications Inc.

Tony GregoireDirector of Research, North [email protected]

How will the staffing industry & job boards evolve?



• Staffing Industry Trends

• Job Board Market

• 2020 and beyond

Agenda


• Staffing Industry Trends Increasing use of job boards

Commercial vs. professional staffing

Role of cyclicality

Global market size

Contingent workforce and total talent management

Human cloud


• 2020 and beyond

Agenda


Workforce Solutions Ecosystem(from the view of the staffing industry)

MSP

RPO

Payrolling

PEO

Job Boards

Outplacement

ConsultingServices

HRConsulting

VMS

Training

ICCompliance

Crowdsourcing

Online Work

Services

ATS

FMS

StaffingIndustry

OtherWorkforceSolutions

Temporary Staffing

Place & Search

Online StaffingPlatforms

BPO

Source: Staffing Industry Analysts

© 2015 Crain Communications Inc. Source: Staffing Industry Analysts

StaffingIndustry

Temporary Staffing

Place & Search

The Talent Solutions Ecosystem(from the view of the staffing industry)

© 2015 Crain Communications Inc. Source: Staffing Industry Analysts April 2015 US Staffing Industry Forecast

US staffing market surpasses pre-recession peak in 2014…

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

20

40

60

80

100

120

140

US Staffing Revenue ($B): 1995-2014


…in spite of being destroyed by job boards

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

20

40

60

80

100

120

140


Job boards will destroy our

industry!

Source: Staffing Industry Analysts April 2015 US Staffing Industry Forecast

© 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey – North America

Job boards of increasing importance to staffing companies

2013

Referrals

Databse of candidates

List of former temps

Job boards

Other networking

Postings- company web site

Job advertisements

Online social networking

Job fairs

University recruiting

4.6

4.1

3.9

3.9

3.5

3.4

3.3

3.1

2.4

2.2

Importance of Temp. Recruiting Tools(Scale of 1-5)

Job boards

Recruit from existing candidate list

LinkedIn

Pay referral bonuses

List jobs on company website

Outsourced sourcing/recruiting

Advertise your firm

Invest in look/usability of website

E-newsletter to existing candidate list

Attend job fair


Facebook

Other

33%

26%

10%

7%

7%

2%

2%

2%

1%

1%

1%

0%

8%

Highest Return Temp. Recruiting Tactics (% Responding)

2008

© 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey – North America

Job boards of increasing importance to staffing companies

Referrals

Databse of candidates

List of former temps

Job boards

Other networking

Postings- company web site

Job advertisements

Online social networking

Job fairs


4.6

4.1

3.9

3.9

3.5

3.4

3.3

3.1

2.4

2.2

Importance of Temp. Recruiting Tools(Scale of 1-5)

Job boards

Recruit from existing candidate list

LinkedIn

Pay referral bonuses

List jobs on company website

Outsourced sourcing/recruiting

Advertise your firm

Invest in look/usability of website

E-newsletter to existing candidate list

Attend job fair


Facebook

Other

33%

26%

10%

7%

7%

2%

2%

2%

1%

1%

1%

0%

8%

Highest Return Temp. Recruiting Tactics (% Responding)

20132008

© 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey

Number of times recommended as favorite vendor

Number of times recommended as

2nd favorite vendorSum Most common reason why firms

recommended this vendor

LinkedIn 24 27 51 Good pool of candidates CareerBuilder 30 18 48 Good, responsive service Bullhorn 20 9 29 High product quality Monster 14 8 22 Quality of candidates Indeed 9 6 15 Good price Bond Software 8 6 14 Good (responsive) service Dice 6 7 13 Good source of IT candidates JobDiva 9 2 11 Strong product/range of tools Salesforce 7 4 11 Good customization/flexibility Seek 5 5 10 Largest job board in Australia Avionte 7 0 7 Easy to use JobAdder 5 2 7 Produce is versatile and flexible Wells Fargo 3 4 7 Good, responsive service InsightSquared 5 1 6 Good analytics/reporting Quickbooks 4 2 6 Easy to use ADP 2 3 5 Consistent execution API Healthcare 4 0 4 Robust features Assurance 0 4 4 Good service Erecruit 3 1 4 Good ATS Maxhire 1 3 4 Simple to use Paychex 1 3 4 Easy to use Prove It 1 3 4 Good price Craigslist 1 2 3 Good results Essential Staffcare 2 1 3 Good service Haley Marketing 2 1 3 Good service Smart Search 3 0 3 Good price Sterling Background Checks 0 3 3 Ease of use, customer service, price Top Echelon 3 0 3 Good price Ziprecruiter 3 0 3 Posts to multiple job boards at once


Office/clerical share of temp. continues to decline, majority of market is professional

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

Share of US Temporary Staffing Revenue (1997-2014)

Industrial Office/Clerical Professional


Sources: Staffing Industry Analysts, The Future of Employment: How Susceptible Are Jobs to Computerisation? Carl Frey and Michael Osborne

Due to computerization, shift toward professional staffing should continue, though professional jobs will also be affected

Office/Clerical Industrial Professional

0.81 0.80

0.33

Avg. Probability of Jobs Lost to Computer-ization in Next 10 to 20 Years Industrial

Photographic Process Workers and Processing Machine OperatorsSewers, HandOffice/ClericalCargo and Freight AgentsData Entry KeyersTelemarketersProfessionalInsurance UnderwritersTax PreparersTitle Examiners, Abstractors, and SearchersLibrary Technicians

Jobs with a 99% probability of computerization


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

20

40

60

80

100

120

140


2007-2009 Recession

2001 Recession

US staffing market: still a cyclical industry

Source: Staffing Industry Analysts April 2015 US Staffing Industry Forecast

© 2015 Crain Communications Inc. Sources: Staffing Industry Analysts, US Department of Commerce

US staffing market: still a cyclical industry

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

US Staffing Revenue Growth US GDP Growth

US

Staffi

ng R

even

ue G

row

th

US

GD

P G

row

th

© 2015 Crain Communications Inc. Sources: Staffing Industry Analysts, US Department of Commerce, Survey of Professional Forecasters

Continued growth projected for US staffing market through 2016, with economic recovery

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015P 2016P

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

US Staffing Revenue GrowthUS GDP Growth

US

Staffi

ng R

even

ue G

row

th

US

GD

P G

row

th


And now for some trivia

• According to the National Bureau of Economic Research, the longest economic expansion since the US government began tracking in 1854 is…???


• According to the National Bureau of Economic Research, the longest economic expansion since the US government began tracking in 1854 is…

• 10 years (March 1991 – March 2001)


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJXkwJr6ksYCFZI5iAodWLcAjA&url=http://mattmoorewrites.com/2012/09/27/social-media-will-change-in-2013/&ei=am1_VZWHJpLzoATY7oLgCA&bvm=bv.96041959,d.cGU&psig=AFQjCNEAaBOWVK8G19yCiRplzr5-HwbY4A&ust=1434500622482013


Sooner or later, next recession will temporarily derail industry trends

• According to the National Bureau of Economic Research, the longest economic expansion since the US government began tracking in 1854 is…

• 10 years (March 1991 – March 2001)

• We have been in expansion since June 2009. Therefore, unless we are currently in the longest expansion period in recorded US history, the next recession will begin within the next four years.


International - not just a hobby(8 of 10 largest US staffing firms have >10% of business outside US)

Rank Company Headquarters2013 US Staffing & Talent

Engagement Revenue ($million)

1 Allegis Group US 8,7512 Adecco Switzerland 4,4003 Randstad the Netherlands 4,3664 ManpowerGroup US 3,8305 Kelly Services US 3,4286 Robert Half International US 2,8027 Express Employment Professionals US 2,3438 The Select Family of Staffing Companies US 2,0279 Recruit Japan 2,000

10 Volt Information Sciences US 1,695


South America

Africa &Middle

East

Europe

AsiaPacific

North America

Countries and regions are to scale

Global temp. staffing market revenue of $354bn in 2013



US

CA

BRSA

JP

AU

NL

IN

CHCN

UK

FR

IT

DE

BE

Countries and regions are to scale

Global temp. staffing market revenue of $354bn in 2013



The temp. staffing market is but one piece of the $3.2 trillion global contingent workforce

Global Contingent Workforce Market: $3.2 Trillion (2013)

Temporary Staffing

$354 Billion

“Perm” Staffing

$45 BillionIndependent Contractors

Temporary Employees Not Assigned Through Agencies

(i.e. fixed contract, also includes payrolling)

SOW Consultants

Staffing Industry


Decentralized

Preferred Suppliers

Master Vendor

Managed Service Provider (MSP)

• Several suppliers• Procurement done

on an ad-hoc basis• Management done

internally

• Selective set of suppliers selected

• Contracts in place• Service level

agreements (SLA’s) in place

• One supplier (possibly managing second and third tier suppliers)

• One point of contact

• Direct cost savings on bill rate and usage

• Customized SLA’s and process

• Contingent workforce spend under management




• Non-compliant spend elimination

• Total cost of ownership savings

More Value

Evolving contingent workforce models

More Complexity ?



Decentralized

Preferred Suppliers

Master Vendor

Managed Service Provider (MSP)

Total Talent Management

• Several suppliers• Procurement done

on an ad-hoc basis• Management done

internally

• Selective set of suppliers selected

• Contracts in place• Service level

agreements (SLA’s) in place

• One supplier (possibly managing second and third tier suppliers)




• Contingent workforce spend under management





• Total cost of ownership savings

• Total workforce spend under management

• Complete workforce visibility




• Increased total cost of ownership savings

• Additional productivity and process savings

• High degree of value added services

More Value

Evolving contingent workforce models

More Complexity



Talent strategy and business alignment

Metrics and Analytics

Workforce Planning

• Learning and Development• Career and performance management

Compensation/Benefits

TTM integrates traditional talent employment and non-employee labor

Traditional employees

Talent Acquisition ModesRecruiters, Direct Hire, RPO

Managed By: HR

Outsourced services

ContingentTemps, IC, SOW & Internal stretch

Agencies, MSP/VMS, Direct IC

Consulting & Outsourcing Firms

Managed By: HR and Procurement Managed By: Procurement



The Human Cloud


The human cloud landscape

How the Work is

Organized

Specific Worker(s)

“A Crowd”

What the Client GetsLabor Relationship

Service Output

Crowdsourcing

Online Staffing

Online Services

• freelancer.com

• Upwork

• Task Rabbit• FieldNation

• Work Market

• CrowdFlower• LionBridge

• Innocentive• 99Design

• LiveOps• Rev

• OnForce

• Peopleperhour

• Gigwalk

• Amazon Turk• Chaordix

• WikiStrat



Evolution of human cloud to FMS (freelancer management systems)



How FMS can fit into a CW program


Enterprise

Temporary agency staff Independent workers

SOWconsultants



• Job Board Market Global market size and largest providers

Employment trends/skill misalignment

Job board innovations

A more integrated ecosystem

• 2020 and beyond

Agenda



• What company generated the most revenue from its job board(s) across the globe in 2014?



• What company generated the most revenue from its job board(s) across the globe in 2014, by Staffing Industry Analysts estimates?

• It’s not LinkedIn (which came in second)


Largest job boards by estimated revenue

Source: Staffing Industry Analysts 2015 Largest Job Boards Globally

Rank Company HQ Country

2014 Revenue (USD million)

1 Recruit Indeed, Rijunabi, Hatalike, Work in Japan, JobDirect, Minna-no-Kyujinban, Travaille, From A Navi, Yumex

Japan $2,400

2 LinkedIn US $856 3 Monster Monster, CareerOne, Jobpilot, Workania, jobs.cz, profesia US $808 4 Gannett CareerBuilder, which also operates JobsCentral, JobScout24,

Broadbean, Sologig, Headhunter, CareerRookie, MiracleWorkers, WorkinRetail, JobsinMotion

US $670

5 SEEK Australia $500 6 Axel Springer StepStone, (includes IrishJobs, Pnet, jobsite),

YOURCAREERGROUP (HOTEL CAREER, TOURIST CAREER, GASTRONOMIE CAREER), Totaljobs Group (totaljobs, RetailChoice, CWJobs, CareerStructure, Caterer, CatererGlobal)

Germany $350

7 Craigslist US $278 8 DHI Group Dice, BioSpace, ClearanceJobs, eFinancialCareers, Hcareers,

HEALTHeCAREERS, Rigzone, Slashdot, SourceForge, WorkDigital

US $213

9 51Job China $81 10 HeadHunter Russia $80


Global job board marketEstimated 2014 revenue: $10B - $20B


$10 billion

$20 billion

Recruit; 23%

LinkedIn, 13%

Monster; 8%

Gannett; 7%SEEK; 7%

Axel Springe

r; 3%

Craigslist; 3%

DHI Group,

3%

51Job; 2%

Head-Hunter,

2%

Rest of Mar-ket, 30%

Recruit, 11%

LinkedIn; 7%

Mon-ster; 4%

Gannett; 4%

SEEK, 3%

Rest of Market,

65%

© 2015 Crain Communications Inc. Source: US Bureau of Labor Statistics

Job market becomes more fluid

Dec-00Jun-01

Dec-01Jun-02

Dec-02Jun-03

Dec-03Jun-04

Dec-04Jun-05

Dec-05Jun-06

Dec-06Jun-07

Dec-07Jun-08

Dec-08Jun-09

Dec-09Jun-10

Dec-10Jun-11

Dec-11Jun-12

Dec-12Jun-13

Dec-13Jun-14

Dec-14

0

1,000

2,000

3,000

4,000

5,000

6,000

Quits


Fluidity, and demand for new positions, drive surge in job openings

Dec-00Jun-01

Dec-01Jun-02

Dec-02Jun-03

Dec-03Jun-04

Dec-04Jun-05

Dec-05Jun-06

Dec-06Jun-07

Dec-07Jun-08

Dec-08Jun-09

Dec-09Jun-10

Dec-10Jun-11

Dec-11Jun-12

Dec-12Jun-13

Dec-13Jun-14

Dec-14

0

1,000

2,000

3,000

4,000

5,000

6,000

Openings Quits

Source: US Bureau of Labor Statistics


Healthy increase in hires, but not proportional to rise in openings

Dec-00Jun-01

Dec-01Jun-02

Dec-02Jun-03

Dec-03Jun-04

Dec-04Jun-05

Dec-05Jun-06

Dec-06Jun-07

Dec-07Jun-08

Dec-08Jun-09

Dec-09Jun-10

Dec-10Jun-11

Dec-11Jun-12

Dec-12Jun-13

Dec-13Jun-14

Dec-14

0

1,000

2,000

3,000

4,000

5,000

6,000

Openings Quits Hires

Source: US Bureau of Labor Statistics


Beveridge curve shifts to right…why does this matter?


Moving people to the demand

Computer and mathematical

Healthcare practitioners

Architecture and engineering

Natural and social science

Social services

Maintenance and repair

Arts, design and entertainment

Food services

Production

Cleaning and maintenance

Construction and extraction

0.2

0.5

0.8

1

1.5

1.7

1.8

4.2

5.5

10.7

18.7

Ratio of Unemployed People to Job Postings in US, 2014

Source: Burning Glass, McKinsey Global Institute, US Bureau of Labor Statistics


Traditional education not likely to align workforce skills with demand anytime soon


• Compete for attention of candidates (both passive and active) by building cradle-to-grave online communities, with content, social, online training…and, of course, jobs

• Not only are job boards doing this. Their clients are, too!

So, in the meantime, job boards innovate to hunt for talent


Zappos Insider: Building community hub over internal job board

2001 Recession


• New ways to scour the internet for information on candidates (Monster’s TalentBin and DHI’s Open Web)

• Increasingly sophisticated algorithms for recruiting, screening and assessment

• Sourcing management services (Concierge powered by Monster, Dice Sourcing Concierge)

• Workforce analytics

• Pay for performance

Additional job board innovations



MSP

RPO

Payrolling

PEO

Job Boards

Outplacement

ConsultingServices

HRConsulting

VMS

Training

ICCompliance

Crowdsourcing

Online Work

Services

ATS

FMS

StaffingIndustry

OtherWorkforceSolutions

Temporary Staffing

Place & Search


BPO



Payrolling/Compliance

Solutions

Temporary StaffingPrograms

RecruitmentTechnologyPlatforms

TheHuman Cloud

WorkforceProcessOutsouring

MSP

RPO

Payrolling

Job Boards

VMS

ICCompliance

Crowdsourcing

Online Work

Services

ATS

FMS

Temporary Staffing

Place & Search


BPO

Direct HirePrograms




Elements of ecosystem less clearly defined




• 2020 and beyond

Agenda


Sources: *Ericsson Mobility Report, June 2015**Chris DeRose, “How Google uses data to build a better worker,” The Atlantic, October 7, 2013

Looking to 2020, and beyond

• Mobile first (projected 6.1 billion smartphone users globally).*• Job boards/online talent platforms will increase market efficiency,

driving even greater pay disparity among workers based on skill and talent (Google analytic team demonstrated that exceptional technologists can have a performance differential of up to 300x an average employee).**

• As job boards evolve into online communities, brands will need to serve specific occupations.

• Increasingly scalable technology will drive job board companies to become larger, but with many separate brands for each occupation, region.

• Opportunity to use data from online talent platforms to drive educational changes to better align workforce skills with demand.


Sources: *Ericsson Mobility Report, June 2015**Chris DeRose, “How Google uses data to build a better worker,” The Atlantic, October 7, 2013

Looking to 2020, and beyond

• Mobile first (projected 6.1 billion smartphone users globally).*• Job boards/online talent platforms will increase market efficiency,

driving even greater pay disparity among workers based on skill and talent (Google analytic team demonstrated that exceptional technologists can have a performance differential of up to 300x an average employee).**

• As job boards evolve into online communities, brands will need to serve specific occupations.

• Increasingly scalable technology will drive job board companies to become larger, but with many separate brands for each occupation, region.

• Opportunity to use data from online talent platforms to drive educational changes to better align workforce skills with demand.

Though economic recessions,

whenever and wherever they occur,

can temporarily derail trends.

© 2015 Crain Communications Inc. Tony Gregoire Director of Research, North America...

Documents

Transcript of © 2015 Crain Communications Inc. Tony Gregoire Director of Research, North America...