beyond the numbers - staffing industry analysts · left a negative review (glassdoor, etc.) ......

10/11/2016 © 2015 CareerBuilder

Presented By:

Kyle Braun, President, Staffing and Recruiting Group, CareerBuilder

[email protected]

Beyond The Numbers: Strategic insights from the 2016

Staffing Advantage Report

2

Nobody’s perfect…

“There’s no chance the iPhone is going to get any significant market share. No chance.”

Steve Ballmer, Former Microsoft CEO 2007

Source: 2016 CareerBuilder and Inavero Staffing Advantage Report

3

About the research

3,918 Job Candidates

• 39% currently on an assignment through a staffing firm

• 67% actively looking for a new job

• 52% in Clerical/IT/Finance

1,125 Employers

• Independent online panel and CareerBuilder database

• 62% > 250 employees

• 47% hire in Healthcare/Industrial/Professional ServicesImage: © Dreamstime.com Image: © Dreamstime.com

Staffing Firm

578 Staffing Employees

• 62% are temp or permanent placement recruiters

• 70% > 25 branch locations

• Industrial/Clerical/IT are most common types of staffed positions

Image: © Pixabay


The Present State of the Industry and Key Opportunities

STAFFING:

A WINNING INDUSTRY

5

UK Professional Recruitment Trends Aug/Sept. 2016

Source: 2016 SIA UK Pro Recruitment Trends Report

6

Economic Dashboard

Source: 2016 SIA Pro Recruitment Trends Report

7

Temp. and Perm. Placements Down Over the Year

Source: 2016 SIA Pro Recruitment Trends Report

8

What keeps staffing firm executives up at night?

75%

47%

45%

33%

32%

29%

24%

Access to high quality,placeable talent

Rising costs

Increasedcompetition/number of

competitors

Internal staffturnover/attrition

Government regulations

Health care issues (ACA)

A weakening US economy


9

Where is the Focus? 87%

78%

50%

46%

41%

39%

37%

33%

New account/client acquisition

Growing existing accounts

Improving our client’s experience with us

Improving our candidate’s experience with us

Streamlining/simplifying processes

Improving retention/rehire rate ofplaced talent

Investing in new technology

Expanding reach/growth intoother geographies


10

A bad prediction…

“If excessive smoking actually plays a role in the production of lung cancer, it seems to be a minor one."

W.C. Heuper, National Cancer Institute 1954

A (hopefully) better prediction…

“The number of freelance workers will grow twice as fast as the number of traditionally

employed in the next decade.”Source: 2016 CareerBuilder and Inavero Staffing Advantage Report

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When staffing is done right, it can be beautiful.

“I had an issue with accepting a

job because of the med

insurance for my autistic son.

Courtney was able to negotiate

a fair contract that would help to

allow me to continue my sons

therapy. I will never forget how

she helped me and my family.”

Keys to Attraction, Retention & Rehire

WINNING THE WAR FOR TALENT

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1. More flexibility

2. Increased variety

3. Better earning potential

Why talent work for staffing firms

Temporary by Need

24%

Temporary by Choice

76%

Primary Reason for Seeking Temporary Employment


14

It’s a talent-driven market…doesn’t mean the talent isn’t stressed

1. More than half of full-time employed expect to change companies within 12 months.

2. One in 4 are weighing multiple, interesting opportunities,

3. Yet, Nearly half are stressed about their job search.


15

Temporary assignments considered viable, but hard for firms to differentiate

47%Think firms are good bridge to permanent

employment

36%Think all firms are mostly the same

Would consider taking temporary

assignment

69%


16

How the staffing industry measures service quality A Net Promoter Score (NPS®) is an easily

understandable metric based on likelihood to recommend using a company, product or service to a

friend or colleague

Staffing firms see a direct correlation between: Net Promoter Score, retention, & referrals.

Is a Net Promoter Score?

WHAT

Use a Net Promoter Score?

WHY

HOW

Is Net Promoter Score calculated?

0 1 2 3 4 5 6 7 8 9 10

Detractors PromotersPassives

% Promoters % Detractors NPS

Promoters: Your firm’s strongest allies; most likely to promote your firm to others

Detractors: At risk of leaving your firm

Net Promoter Score®

® Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

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So what’s a good NPS?

>70% (Worldclass)

>50% (Exceptional)

30% (Average)

0% (Bad)

62%

10%

54%

14%

35%

-1%

84%

-13%

66%

19%

11%

78%

55%

29%

75%

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The candidate experience remains mediocre, with slight declines

-48% -48%

-33% -34%-26% -25% -27% -30%

19% 16%

28% 30% 33%

22% 24% 21%

-60%

-40%

-20%

0%

20%

40%

2009 2010 2011 2012 2013 2014 2015 2016

Candidates: Likelihood to Recommend Working with Primary Staffing Firm

Applicant NPS® Placed Candidate NPS®

21%50%

65%

Staffing Industry Best of Staffing Minimum Best of Staffing WinnersSource: 2016 CareerBuilder and Inavero Staffing Advantage Report

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Loyalty (NPS) decays over the span of an assignment

30%

19%

14%

6%

1 month or less 2-6 months More than 6 months End of Assignment

Length of Time on Assignment


20

Stop flushing money down the toilet with your placed talent

74% aren’t rehired post-assignment end.

Nearly 20% have an issue while on assignment.

45%

39%

25%

20%

14%

14%

Assignment misrepresented

Assignment ended unexpectedly

Mistreated by company where placed

Company wasn't ready for me when I started

Was paid the incorrect amount

Check was late

Top Issues Talent Have While on Assignment


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Mistakes aren’t the issue – it’s the recovery (or lack thereof)!

Resolved 38%

Unresolved 62%

‘Very Satisfied’ with Speed of Recovery: 32%

‘Very Satisfied’ with Outcome of Recovery: 24%

38%

38%

34%

22%

4%

Told everyone I knowabout the issue

Left the assignment

Quit working with thestaffing firm

Discouraged othersfrom using the firm

Left a negative review(Glassdoor, etc.)


22

Speed and Outcome are of Equal Importance

4/27/2016

8/3/2016(98 days later)

23

Keep talent engaged with timely, personalized, information

How to Keep Talent Engaged

93% New job opportunities

52% Salary trends for their position

48% Online training opportunities

47% Opportunities to interact with other talent


Keys to World-Class Selling and Service Delivery

WINNING BUSINESS

25

Times are changing. Are you?

26

The sales funnel for staffing firms

118 connects/week/AM50 calls 155 calls

25th Percentile 75th PercentileAverage

7 meetings4 10


4 job orders2 5



27

Referrals are King for Client Acquisition – but is Your Online Reputation Where it Should Be?

51%

31%

30%

29%

28%

27%

24%

23%

16%

13%

9%

8%

7%

5%

0% 50%

Professionalnetworkreferral

Firm’sreputa onwithintheindustry

Staffingfirm’swebsite

Searchedforthestaffingfirmonline

Hiredfirmatapreviousjob

Onlinereviews

Personalnetworkreferral

Proac verecommenda on

Workedwithfirmonpersonaljobsearch

Firm'ssalesrep

Socialmedia

Onlineads

Industrytradeshowsandevents

Tradi onalmediaads

ResourcesUsedtoFindandSelectPrimaryStaffingFirm

62%Still Vet Your Firm Online:

40% Staffing firm’s website

37% Online reviews

35% Online search

11% Social Media

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81% work with

more than 1 staffing firm

Share of Wallet – The Untapped Growth Engine for Your Firm

59% Better access to qualified talent

59% If one firm can’t fill order, another probably can

45% Broader industry experience

Top Reasons for Working with More than One Firm


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Client satisfaction recovers (slightly) from 2015 low

56%

47%50%

39%35%

32%

27%

29%

15% 14%20%

21%

27%24%

30%

25%

41%

33% 30%

18%

8% 8%

-3%4%

-20%

0%

20%

40%

60%

2009 2010 2011 2012 2013 2014 2015 2016

Clients: Likelihood to Recommend Working with Primary Staffing Firm

Promoters Detractors Net Promoter Score®

4%

50%68%

Staffing Industry Best of Staffing Minimum Best of Staffing Winners

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Maximizing the Satisfaction of Staffing Industry Clients

Ask questions to clarify the needs of the position

Follow up on your requests or issues within 24 hours

Set realistic expectations about any potential open positions

Pre-Submission

+84%

+57%

+56%

Candidates submitted were a good culture fit

Candidates submitted matched the position’s specifications

Candidate’s unique qualifications were shared

Submission

+65%

+61%

+59%

Checked in at least monthly throughout the assignment

Resolved any issues of the placed talent within 24 hours

Debriefed on placed talent’s performance at end of assignment

Post-Placement

+62%

+60%

+55%

Impacting Satisfaction Throughout the Process

Gap between NPS when action occurs versus NPS when action does not occur


31

A bad prediction…

“I think there is a world market for maybe five computers."

Thomas Watson, IBM 1943


“Within 5 years, traditional staffing firms will be marketing their candidates using performance

reviews and hiring manager testimonials.”


32

Online staffing models provide a glimpse into a high tech future

17%2016

Client

7%2015

9%2016

5%2015

Talent

Online Staffing Model Utilization


33

Really Good Recruiters are Proactive, Skilled & Responsive

• Be extremely responsive

• Provide multiple candidates to choose from

• Be proactive

• Find talent they can’t find

• Be trustworthy

• Be slow to respond

• Be aggressive with your suggestions

• Misrepresent your talent

• Underemphasize industry-specific trends

• Underemphasize culture fit


Where the Industry is Investing and Why

WINNING THE TECH ARMS RACE

35

18% 48% 33%

Where is your firm in the staffing industry technology race?

Ahead of Competition

On Par with Competition

Behind Competition

84% Believe it hurts their business

96%Believe it helps their business


36

Technology investment is expected to continue increase in 2017

67%

61%

50%

27%

21%

Missed revenue opportunities

Losing out on high qualitytalent

Less efficient than other firms

Losing accounts

Competitive disadvantage

Negative Impact of Lagging the Industry in Technology

100%0%73% Increased Investment Vs. 5 Years Ago

99% Expect Same or Increased Investment in 2017

47%

42%

32%

31%

31%

17%

17%

28%

17%

11%

Improved recruiter efficiency

Candidate searchimprovements

Mobile optimization

Talent Communities/Networks

Job boards

Currently Investing Investing in Next 12 Months

Most Popular Areas of Technology Investment


37

The best staffing firms leverage technology to win

Best of Staffing Winners Non-Best of Staffing Winners

72% Website is mobile friendly 63%

71% Salary data/guides are provided 51%

61%Plan to increase their technology investment within

the next 12 months52%

53%Report they’re “very comfortable” with using their

staffing firm’s current technology41%

52%Share market conditions and trends data snippets

on social media39%

41% Ahead of competing firms in leveraging technology 27%


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1 in 5 Clients Believe our Industry is ‘Behind the Times’ on Technology

90%Think it’s important for

their staffing firm to have the most up-to-

date technology

74%Think up-to-date

technology differentiates a

staffing firm


39

Up-to-date technology is viewed as critical by job candidates

Only 9%Think the staffing

industry technology use is ahead of the times

• Outdated website

• Lacking mobile integration

• Lack of communication through technology

Behind the Times Tech

92%Think it’s important for

their staffing firm to have the most up-to-

date technology


40

A bad prediction…

“It'll be gone by June." Variety Magazine on Rock n’ Roll 1955


“A smartphone is just a phone….”

“Mobile-optimized is just a website...”

“On-demand is no longer a feature...”Source: 2016 CareerBuilder and Inavero Staffing Advantage Report

41

Technology empowers candidates in the process, but only if the human element isn’t lost

Average job candidate uses 16different resources, during the job search

• Overall process has improved

• Applications are easier to complete

• Mobile applications have improved

• Automated job alerts improved

• Responsiveness has declined

• Negative decline in human interaction

• Applications have gotten longer


42

Talent are always ‘on’ and your engagement with them needs to reflect that

Just Applied for a Killer Job!

85%

67%

65%

42%

28%

5%

Search for a job

Applied to a job

Responded to emails about a job I wasinterested in

Corresponded via text message withsomeone about a potential job

Submitted a timecard

Other (please specify):

Activities Talent EXPECT to be Able to do Via Mobile


43

Smartphone Addiction Adoption Near 100% - Now its About Function

62%

60%

57%

46%

45%

39%

34%

0% 40% 80%

ViewopenjobssimilartotheonesIhaveopen

Requestrecruiter/accountmanagercontact

Checkonthestatusofopenorders

Locatethebranchnearesttome

Getanideaoftheratestheycharge

Learnmoreaboutthefirm’sindustryexper se

Learnmoreabouthiringtrends/bestprac ces

Ac vi esClientsEXPECTtobeabletodoViaMobileonStaffingFirmWebsites


44

A bad prediction…

“There will never be a bigger plane built.”

Boeing Engineer, 1962


“Marketing success in 2020 and beyond will be achieved by those who do the best job of providing a consistently remarkable

experience and enabling their fans to tell their story.”

45

It’s not what you say, it’s what you do….

46

Its not our strategy, its our execution.

What the Brand

Promises

What the Field

Delivers

1. Information

2. Visibility

3. Accountability

47

And finally…. Don’t overlook the simple solution.

© 2016 CareerBuilder

Thank you!Presented By:

Kyle Braun, President, Staffing and Recruiting Group, CareerBuilder

[email protected]

View More Resources at:

Resources.CareerBuilder.com

beyond the numbers - staffing industry analysts · left a negative review (glassdoor, etc.) ......

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