Staffing Industry Analysts (SIA) 2013 Executive Forum.
This conference and exhibition drew over 900 staffing industry senior executives and had a global agenda.
It is an understatement to say I was impressed. My initial observations are below.
- Agencies everywhere are struggling with the changes in the industry – increasing compliance requirements, new recruitment models, reducing margins, economic uncertainty. Agencies in our region may describe their issues differently, but they are common. The best agencies see change as opportunity.
- The US industry and its supporting functions are able to attract significant private equity investment.
- The US industry is able to attract high calibre CEO’s from outside the industry to head leading companies.
- There is a lot of revenue and profit to be made by agencies that learn how to support RPO and MSP providers. But it is a completely different business model.
- If you don’t include offshore outsourcing in your business function mix you are giving your competitors a 5-7% head start on costs. And then there is flexibility, time to market …
- SIA provides quality industry analysis for both North America and Europe and is very serious about growing its capability and presence in Asia Pacific.
- Part of SIA’s scope is to provide analysis and feedback to the recruitment industry’s clients – it is important that you understand that feedback.
- A significant debate in the USA is “the death of the branch office”, or at least “what functions can’t we centralise”. There has been a large decline in branch offices since the recession and the trend has not reversed.
- Globally there are surprising hotspots for the recruitment industry, such as Poland in Europe and Columbia in South America.
- The trends seen with websites such as freelance.com and 99designs.com will evolve and impact the recruitment industry.
- Technology choice and adoption will become critical to success [HHMC believes this is already the case]
- Total Talent Management will become ubiquitous – organisations will incorporate all temp & contract labour into their strategy and planning framework.
- SIA research shows the size of your agency impacts profitability – in the USA those agencies that have revenue greater than $10Mpa and up to $100Mpa have the best profitability ratio.
- There is a positive correlation between using an advisor for M&A and recording greater satisfaction in the outcome of the transaction
- Those agencies that are the “best places to work” ranked highly in profitability and grew the fastest.
- The Net Promoter Score is used extensively in the USA. It is unambiguous and impressive. [For further information see the book “The Ultimate Question” by Fred Reichheld]
- One in four temp workers go to an agency through a personal recommendation and they value trust, honesty and politeness.
- Focus on external KPI’s to grow your business and achieve profitability – benchmarking, financial performance, value proposition.
- Social media is not a major topic of conversation, even though agencies are some of the biggest users of social media.
- Finally, late at night a very rough guide to the global staffing world was offered: it is easier to do business in countries that drink beer and not just wine and spirits! [HHMC will undertake more research]
For further discussion on trends relevant to our region please contact Rod Hore