Over the past several months we have communicated with executives and
owners at some of the largest publicly-held and private staffing
companies,mid-size staffing firms,independent recruiters, and
client companies that spend millions of dollars in contingent labor each
year.
From these conversations, we have begun to gain tremendous insight on the
marketplace, challenges that companies are facing, as well as how they are
starting to utilize contingent labor. The contingent staffing landscape is
changing fast, so we thought it would be valuable to share our findings with
you in this newsletter which we’ll send out twice a month.
Overall we have seen staffing industry optimism increase as well as margins
and cost of contingent labor remain extremely competitive.Some staffing
companies that have focused niches or geographic focus have been able to
maintain markup rates (fees on top of worker pay rates) in the high thirty
to low forty percentile range, however many of the more traditional
staffing companies we have talked to are providing services with markups
in the low to mid-thirty percentile ranges.
Additionally, client companies have looked to source their own
contingent labor to drive down costs. Although the demand for temporary
labor is increasing steadily contingent workforce service
providers and the companies that use them are looking towards innovation and
flexibility to help their companies gain the most value from this emerging
workforce.
Our mission is to help the companies the use and supply contingent labor
(temps, contractors, consultants, and project-based workers) increase
profitability while decreasing cost and risk. We hope that this newsletter
will provide you with information that will help you and your business.
If you would like to speak with me personally about contingent labor trends
or for on advice on using contingent labor, please feel free to reach out to
me at binman@emergent.com
I look forward to speaking with you,
Bill Inman
President
Emergent
binman@emergent.com
emergent.com
N.B. To view the full version of this newsletter, please go to http://ow.ly/4epfS
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