Corporate Partners STATE OF THE STAFFING INDUSTRY ASA State of the - PowerPoint PPT Presentation

STATE OF THE STAFFING INDUSTRY Driving Success in 2017 Trends, Challenges, and Opportunities Susan C. Dietrich, SPHR, Principal, AllTek Staffing Inc. Chairman, American Staffing Association Ohio Staffing and Search Association Annual Conference June 22, 2017

Corporate Partners

STATE OF THE STAFFING INDUSTRY ASA State of the Industry  My Journey  ASA Strategic Initiatives  2016 Review and 2017 Trends  2017 Legislative Update  ASA for the industry

My Journey

My Journey

Why I support and volunteer at ASA  Legislative Advocacy – I want a voice  I want to always be at the head of the curve  Data Data Data  Access to Industry Experts  Updates including contract language, best practices and tips about hot button issues

 ASA Strategic Plan Strategic Plan OVERALL GOAL: To position the industry as an essential driver of workforce innovation, growth, and public policy solutions by Engaging thought leaders from diverse communities and disciplines to develop  innovative workforce solutions to meet the needs of members, workers, and businesses Promoting the industry and the value of its services to clients, workers, and the  public Offering constructive solutions to workforce issues that expand and enhance the  industry’s public policy and advocacy role at the national and international levels Creating a solution-focused public identity for the industry that better reflects the  association’s expanded mission and the scope of its members’ services

 ASA Strategic Plan Strategic Plan OVERALL GOAL: To position the industry as an essential driver of workforce innovation, growth, and public policy solutions EXTERNAL OBJECTIVES  Expand public policy advocacy and thought leadership  Promote the industry  Enhance operational excellence

2016 Review and 2017 Trends

 ASA Staffing Index Track Weekly Staffing Employment  Provides a current snapshot of the economy  Tracks weekly changes in staffing employment  Lets you compare your company with national trends  Only three questions

 ASA Staffing Employment and Sales Survey Monitor Quarterly Staffing Trends  Provides staffing sales, payroll, and employment  Reports quarterly and yearly changes  Graphs sales and gross margin growth by sector and company size  Only seven questions

 ASA Staffing Operations Benchmarking Survey Benchmarks for Data Driven Decisions  Provides sales, expense, profit, and personnel performance metrics  Statistics for temporary and contract staffing, and direct hire  New platform including custom filters and report downloads  Free reports for survey participants

 ASA Staffing Compensation and Benefits Survey Corporate Employee Salaries & Benefits  Comprehensive view of internal corporate employee salaries and benefits  New platform including custom filters and executive compensation  Free reports for survey participants

 Temporary & Contract Staffing Overview

 Temporary and Contract Staffing Sales Staffing Sales Totaled $128.5 Billion in 2016 — Up 1.7% Total Annual Temporary and Contract Staffing Sales (in Billions) $140.0 $128.5 $126.4 $121.5 $120.0 $114.8 $110.1 $102.4 $98.3 $95.5 $100.0 $95.1 $89.9 $89.2 $80.9 $77.2 $80.0 $73.4 $71.4 $68.9 $68.2 $70.5 $64.0 $57.2 $60.0 $48.1 $41.2 $40.0 $35.7 $20.0 $0.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: American Staffing Association, Staffing Employment and Sales Survey

 Temporary and Contract Staffing Sales Staffing & Recruiting Sales Totaled $150.4 Billion in 2016 — Up 1.8% Sales (Billions of U.S. Dollars) — Annual Totals for Staffing and Recruiting Industry Source: American Staffing Association, Staffing Industry Analysts Inc., U.S. Department of Commerce

Staffing Statistics by State In 2016, Staffing Firms Employed 546,200 Workers in Ohio  Average number of temporary workers each week: 120,800  Annual staffing employment: 546,200  Average annual earnings per job: $30,200  Estimated number of offices: 1,910  2016 total annual sales: $6.1 billion Sources: Economic Modeling Specialists Intl. (EMSI), Census Bureau, American Staffing Association

 Staffing Stats Source: American Staffing Association, Staffing Market Survey

 General Employment Trends Unemployment Has Declined U.S. Recessions Civilian Unemployment Rate (UNRATE) 12.0% 10.0% 10.0% Unemployment Rate 8.0% 6.6% 6.0% 4.0% 4.4% 3.8% 2.0% 0.0% Source: U.S. Bureau of Labor Statistics

 General Employment Trends Labor Force Participation Is Low 67.3% 68.0% Jan. – Apr. 2000 67.0% Monthly Labor Force Participation 66.0% 65.0% 64.0% 62.9% 63.0% [VALUE] 62.0% 61.0% Source: U.S. Bureau of Labor Statistics

 Staffing Employment Trends Staffing Penetration Rate Steady Temporary Help Employment as a Percentage of Total Nonfarm Employment 2.50% 2.06% 2.03% 1.95% March April November & 2016 2000 December 2.00% 2005 1.64% 1.50% December 2001 & January 2002 1.34% June ‒ August 2009 1.00% 1.02% May & Recessions July 1991 (Shaded Periods) 0.50% 0.00% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

 Temporary and Contract Employee Turnover & Tenure Turnover Decreased to 352% While Tenure Remained Below 12 Weeks Source: American Staffing Association, Staffing Employment and Sales Survey

 Staffing Employment Trends Staffing Jobs Holding Above Weekly Average of 3M

Legislative Update

Key Legislative Issues in Congress  American Health Care Act – Passed narrowly by House; contains some controversial provisions – Senate likely to write their own bill; hoping to pass by August recess – Agreement will need to be reached on one final version to put up for vote  Tax Reform – Waiting on health care reform to be complete – Longer it takes, more watered down bill is likely to be

Department of Labor  Overtime Rules • Pending lawsuit • New Rules • Legislative Action  Joint Employer Standard • Withdraw or reverse current agency “guidance”  Gig Economy

OSHA  ASA/OSHA Formal Alliance • 5 year extension signed in 2016  Temporary Worker Initiative • Will it continue under Trump administration  State and Local officials • ASA will work with new administration and states to ensure even handed and fair enforcement

National Labor Relations Board (NLRB)  Joint Employer Standard – Browning Ferris  Pending lawsuit  Potential reversal through new ruling  Congressional Action  Unionization of Temporary Employees – Miller v. Anderson  Potential reversal through new ruling

Equal Employment Opportunity Commission (EEOC)  Temporary Staffing as a Target • The recently published its 2017-21 enforcement plan focuses on “complex employment relationships and structures in the 21st century workplace”—specifically “temporary workers, staffing agencies, independent contractor relationships, and the on- demand economy.” • Current Chair is longtime friend of the staffing industry  EEO-1 report changes, background checks

Department of Homeland Security  Immigration • Top Target of New Administration • H1-B Visa reform legislation • E-Verify Mandate?  Executive Order  Congressional legislation

States

Top State Legislative Issues  State Legislative Issues • Predictive Scheduling  California: AB 5 • Paid Sick Leave • Wage Issues (notification, salary history, posting requirements) • Minimum Wage • Parental Leave • Ban the Box

Legislative Issues of Concern to the Staffing Industry in Ohio  Repeal of State Sales Tax on Employment Services  Unemployment Insurance Reform  Minimum Wage

What we are doing for our industry at the American Staffing Association

ASA Regional Councils  Capital Area  Connecticut- Established in 2017  Indiana- Established in 2017  Mississippi  North Carolina- Established in 2017  Oregon  Tennessee  Virginia  Washington

 Mark Your Calendar Upcoming Webinars americanstaffing.net/webinars  July 13: How Socially Responsible Companies Rise to April 6: Prospecting with LinkedIn the Top April 11: Competing in the Gig Economy  July 26: Maximize Your ASA Membership April 20: Workplace Violence and Safety Series, Part III — Emergency Planning: Training Is Everything April 25: Promoting and Ensuring Temporary Worker Safety May 4: Making the Most of New Technology in Recruiting

 Safety Standard of Excellence Making Temporary Worker Safety a Priority Across All Industry Sectors Learn more at americanstaffing.net/safety . You’ll find program criteria, a preliminary assessment tool, and much more.

 Staffing as a Career Addresses top challenge for staffing companies: recruiting corporate staff  Free downloadable video (recently updated)  Directory of firms that offer internships and management training programs  Messaging about the benefits of a career in staffing  New volunteer opportunity – ASA Staffing as a Career Ambassador