Ten Predictions for the Staffing Industry
Where will staffing be in 2018? The industry has already undergone remarkable change and growth following the recession.
Staffing Industry Analysts President Barry Asin made these predictions at the Staffing Industry Executive Forum about what the next few years will bring:
- U.S. staffing revenue will hit $160 billion in 2018, up from $126.8 billion in 2012.
- North America will remain about a third of the global staffing market.
- Information technology and industrial staffing will make up nearly 60 percent of the U.S. temporary staffing market. They are at 53 percent now.
- Market concentration increases: the top 15 firms will have 50 percent of market share.
- 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.
- Healthcare staffing revenue will reach $13.4 billion in 2018, which represents an estimated compound annual growth rate of 6 percent from 2013.
- 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.
- 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.
- 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.
- Technology choices and effective adoption practices will be critical to the success of staffing firms in 2018 like never before.
Asin has eight more predictions that can be found here.