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Opportunities In Staffing Executive Summary
1.
A Comprehensive Guide
to Clients and Candidates 2010 presented by Staffing Opportunities IN COPYRIGHT © 2010 ALL RIGHTS RESERVED. CAREERBUILDER & Inavero
2.
2 COPYRIGHT ©
2010 ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE staffing firms are uniquely positioned to establish and define themselves as an indespensible partner to the clients and job seekers they serve. The industry’s fragmentation (no single firm was used by more than 29 percentofstaffingclientsor11percentofjobseekers)meansopportunity to the ambitious staffing leader. The fact that 83 percent of staffing clients are on LinkedIn or Facebook, but only 16 percent are engaged with a staffing firm online represents untapped potential as well. The 2010 Opportunities in Staffing research guide, published by CareerBuilder and Inavero, is your roadmap to unique and differentiated success in the staffing industry. From social media and brand-building strategies to ways to improve your client and candidate retention, the Opportunities in Staffing guide is designed to help you grow your staffing firm with information and suggestions that can directly impact your bottom line. The 2010 study, which includes more than 3,200 client and nearly 60,000 job candidate survey responses across five years of research, is the most comprehensive study of its kind in the industry today. As the United States economy emerges from the difficult recession of a year ago, summary Executive
3.
3COPYRIGHT © 2010
ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE name more than one. With unemployment still high, there is a unique opportunity to reach job candidates with highly targeted, brand-building messages. While job seekers search for opportunities, your staffing firm can do more to become a destination for qualified talent. Many job seekers reported they have had a negative experience with their staffing firm (only 15 percent rate the experience a 9 or 10 out of 10) which could have a significant impact on future job candidate selection and retention. However, with great challenge comes great opportunity. This opportunity is identified and discussed throughout the rest of the Opportunities in Staffing guide. KEYS TO AN EFFECTIVE SOCIAL MEDIA STRATEGY Your clients and job candidates are engaging with social media – they just might not be engaging with you. Facebook, LinkedIn and Twitter are the clear leaders among social media outlets, yet very few staffing firms have found ways to effectively reach and communicate with their client and job seeker audiences through these mediums (Figure 2). Awareness of the largest staffing firms has risen for the third consecutive year with clients, albeit only slightly. The average staffing client can now name between two and three staffing firms from memory, up from only two firms a year ago. This increased awareness has led to an increase in utilization of staffing firms by clients as well. STAFFING SLIPS WITH JOB CANDIDATES The percentage of job candidates who use staffing firms as a part of their job search slipped in 2010 from 22 percent to 19 percent. A mere 2 percent of job seekers indicated that a staffing firm was the first resource they used when starting a job search. These two statistics represent a great challenge to your staffing firm. How can you get the top talent, when more than 80 percent of job seekers are not engaging with you, and those that do are often only doing so once other resources have failed them? Awareness of staffing firms by job candidates dropped as well in 2010, with 35 percent unable to name a single staffing firm from memory, and nearly 60 percent unable to 2010: REASONS FOR OPTIMISM As the U.S. economy emerges from one of the most difficult recessions in its history, staffing firms are leading the way to job creation. Simply put – staffing firms work. Based on this research, job candidates who work with a staffing firm submitted 51% more resumes and had 45% percent more interviews in a 90 day period than those who did not.” (Figure 1). Figure 1: Staffing Firms Work: Resumes Submitted and Interviews Received per 90 Days of Job Searching Resumes submitted Interviews granted 35 30 25 20 15 10 5 0 32.5 1.61.1 21.5 Working with a staffing firm Facebook Twitter Not working with a staffing firm LinkedIn Figure 2: Staffing Firms are Failing to Engage Clients and Job Candidates through Social Media Use: Follow a staffing firm on: Follow a staffing firm employee on: 80% 70% 60% 50% 40% 30% 20% 10% 0% 45% 6% 4% 76% 7% 8% 42% 6% 9%
4.
4 COPYRIGHT ©
2010 ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE The Opportunities in Staffing data is clear on this topic: A well-designed, informative and simple to use mobile application would likely be well received by both clients and job candidates. Engaging clients and job candidates in new and unique ways can be an effective strategy for your staffing firm, but only if you offer engagement that is truly valued by those very audiences. Every process within your firm impacts the very nature of these engagement points. From your marketing and business development process to your recruiting and placement practices; every interaction matters and further defines your firm. Through Opportunities in Staffing, you will be able to use relevant data to benchmark your firm in order to refine and optimize your own strategies as you strive towards short and long term success. When attempting to build an online community through social media sites, many staffing firms make one of two common, yet costly mistakes; they communicate too generally, and they focus too much on their staffing firm instead of the client or candidate. The 2010 study found that clients and candidates engage with staffing firms for two primary reasons – to gain updates on their search or order, and to access content and trends that affect them in their career and professional lives. While some people indicate they are interested in engaging with individual employees at the staffing firm, only 2 percent believed interacting with other job seekers was the most important reason to interact via social media. It is also important to note that regardless of how good your strategy is, 65 percent of clients and over half of job seekers report no interest in interacting with their staffing firm through social media. This means that to build a robust online community, you must overcome the initial perception of a large portion of your audience. The Opportunities in Staffing research showed consistently that both clients and candidates look for individual connections and content in their social media interactions. Your strategy must provide them considerable value and a relationship they are personally, not just professionally invested in. MOBILE MARKETING – THE KILLER APP FOR STAFFING? Data-enabled smartphone ownership is increasing each year and staffing firms need to be exploring this trend as a potential opportunity. As job seekers and clients engage more and more frequently through their mobile devices, what is your staffing firm doing to provide tools and resources in the mobile arena? Sixty percent of staffing industry clients and 41 percent of job seekers report owning a data-enabled smartphone (Figure 3). These owners interact with their smartphones in a number of ways. While the most common use of the smartphone found in the survey was email, a significant portion had also used mobile apps on their phone, with nearly half of those having done so to help interact with a supplier. Executive summary Have a smartphone Downloaded an app for your phone Interacted with a mobile ad Read emails on your phone Used a mobile app to work with a supplier Figure 3: Data-Enabled Smartphone Usage and Interaction are Significant Among Clients and Job Seekers Of those with Smartphones 60% 41% 80% 45% 90% 72% 39% 23% 47% 15% 0% 0% 20% 20% 60% 60% 100% 100% 80% 80% 40% 40% Job Seekers Clients
5.
5COPYRIGHT © 2010
ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE Staffing clients from each sector and a wide variety of industries participated in the 2010 Opportunities in Staffing survey. As in past waves of this study, both “buyers” (those with direct decision-making authority) and “users” (those who influence decisions and manage employees placed by staffing and recruiting firms) were included to ensure the broadest assessment of client experiences possible. Participants reported making placements in a wide variety of sectors (Figure 4). AWARENESS AND UTILIZATION BOTH UP IN 2010 Awareness and utilization of staffing firms increased slightly in 2010 compared to prior years in the United States. In 2010, the average client was able to name between two and three staffing firms from memory, including the primary staffing firm their organization works with. While still low, this represents a significant increase over last year when the average recall was just over two staffing firms. Nearly 60 percent of survey participants couldn’t name more than two firms, and 27 percent could only name their primary staffing firm. While this still represents a serious lack of awareness, it is encouraging that staffing firm clients are becoming increasingly more aware of additional staffing firms and the services they provide. When shown a list of the 35 largest staffing firms in the United States, the average survey participant recognized just over 6 of the brands. The two most recognized names in staffing garnered just under 70 percent recognition, meanwhile no other staffing firm brand was recognized by more than 40 percent of current industry clients. Figure 5 shows the 10 U.S. brands most recognized by buyers and users of staffing services. THE CLIENT PERSPECTIVE More than 3,300 clients have given their feedback since 2006, with 1,298 clients from the United States, Canada and the United Kingdom participating in the 2010 wave of the survey. In the United States, 525 responses were analyzed in 2010 across all industries and job sectors. A wide range of participants were included to ensure a broad perspective of the client experience. Nearly half of the 2010 participants are from organizations with more than 100 employees and 38 percent are senior leaders within their organization. On average, the organizationsinthestudyuse2.4differenttypesofstaffingplacementswithtemporarystaffing, direct hire and retained search the most common services listed. All responses are from people who indicated they play an active role in their organization’s staffing firm decisions or management. In addition, all organizations in the study have utilized a staffing or recruiting firm within the past 12 months. Executive Office/Clerical Professional Industrial Technical, IT and Scientific Healthcare Figure 4: Staffing Clients made Placements In the Following Sectors 48% 38% 24% 40% 0% 60%40%20% 11% 11%
6.
6 COPYRIGHT ©
2010 ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE With increases in awareness, utilization of staffing firms by U.S. organizations is up in 2010 as well. In past years, between 15 and 25 percent of U.S. organizations reported using a staffing or recruiting firm in the past 12 months. This year, 31 percent of potential survey respondents had used a staffing or recruiting firm within the past 12 months; a significant improvement. This increase is good news for the staffing industry, and perhaps highlights the important role that staffing and recruiting firms play in the U.S. economy as it emerges from a difficult recession. SATISFACTION DECLINES AS STAFFING INDUSTRY EMERGES FROM RECESSION After three straight years of improved client satisfaction scores within the staffing industry, 2010 showed a slight step backwards in client experience. The average staffing client rated their experience an 8.0 (out of 10). While still higher than in 2008, the score represents a minor drop from last year’s average score of 8.2. The industry’s Net Promoter Score® with clients dropped from 41 percent in 2009 to 30 percent in 2010. The Net Promoter Score is calculated by subtracting the percentage of people who rate their experience a 0-6 (detractors) from those who rate their experience a 9 or 10 out of 10 (promoters). The industry’s client promoters and detractors are shown in figure 7 below. Referrals and direct sales contact remain the two most common ways to introduce prospective clients to your brand (Figure 6). Similar to past years, there are many different avenues that first lead people to their staffing and recruiting firm of choice. While referrals are the most trusted form of awareness, it is important as a staffing firm to recognize that there are many ways in which to create a strong, well recognized brand. To be effective most firms will need to tightly target their brand message and outreach. Executive summary Figure 5: 10 Brands Most Recognized by U.S. Staffing Industry Clients Accountemps Adecco Aerotek AppleOne Kelly Services Labor Ready Manpower Robert Half Snelling Staffmark Brands listed in alphabetical order Event sponsorship Referral Contracted by a salesperson Traditional media advertising Industry or HR-focused event Online advertisement Figure 6: Change in Sources of Initial Awareness for Staffing Industry Clients 25% 27% 18% 20% 7% 4% 4% 0% 10% 30% 40%20% 13% 13% 16% 16% 16% Figure 7: U.S. Staffing Industry Client Satisfaction Change over Time 2009 2010 2006 2007 2008 2009 2010 35% 40% 42% 56% 45% 15% 15% 18% 23%22% 60% 50% 40% 30% 20% 10% 0% % Detractors % Promoters
7.
7COPYRIGHT © 2010
ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE and prospective clients. Thirty percent of staffing industry clients had taken part in a live or on-demand webinar in the past 3 months, significantly higher than those who leveraged blogs, online videos or social media sites. As the cost of webinar platforms declines and the technology supporting these platforms improves, webinars are quickly becoming a very economical and effective method of reaching large audiences to deliver valuable content. Content is a lead acquisition and nurturing exercise – not a direct sales opportunity. If clients and prospects feel they are being sold to, they will not participate. Clients are asking to be educated and that is what you must provide if you want to engage with them consistently outside of strictly job orders. Study participants rated industry-specific staffing trends and current salary information as the two most valuable pieces of content staffing firms could provide. What new information have you brought to your current and prospective clients? If that question isn’t easily answered, you may be missing a significant piece of your marketing, business development and retention strategy. Use the data in this study to ensure you have the most effective strategy in place that will help you connect and provide value to your clients and prospective clients for the long-term. While 2009 represented a significant gain in client satisfaction, 2010 saw the percentage of staffing industry promoters drop by more than 10 percent. This change is likely due to staffing firms’ inability to maintain the same level of service or focus as the economy (and thus staffing orders) started to pick up in 2010. Satisfied and loyal clients point to things such as the staffing firm’s consistency, responsiveness and knowledge of their business and culture as factors in their high ratings. As one client put it, “They seem to be able to read my mind. Its quick, efficient and a pleasure to work with them.” However, 15 percent of the time, U.S. clients rated their experience with a staffing firm a 6 or less. Why? Typically it is a perception of low quality candidates or placing a candidate that doesn’t fit with the company’s culture. Often key service areas such as communication, setting reasonable expectations or not delivering quality candidates within a defined timeframecome to the forefront when service failures occur. RULES OF ENGAGEMENT: CONTENT IS KING Staffing industry clients are actively pursuing educational content. Staffing firms strive to be a valued partner and consultant that cannot easily be commoditized or replaced. At the intersection of these two desires is an opportunity for staffing firms to deliver targeted, highly valued content to their clients (and job candidates, for that matter). The 2010 CareerBuilder and Inavero survey identified two key strategies for branding your staffing firm as a knowledge expert and thought leader within the field of staffing and human resource management. The first lesson is effective utilization of your company’s website. Many websites within the industry are “brochure-ware” or word-heavy descriptions of the staffing firm’s abilities and expertise. If this describes your website, you are missing a significant opportunity. Company websites were the most common resource used by staffing industry clients to get information for their jobs or careers in the past three months, nearly double the next closest source of information (Figure 8). The second lesson is to leverage educational webinars or other more interactive forms of technology to reach current Podcasts Company Websites Trade Association Events Online Video Blogs White Papers 0r Case Studies Supplier Presentations or Events Webinars Social Media Sites Figure 8: Most Common Sources of Information used by U.S. Staffing Industry Clients in past 3 Months 61% 35% 30% 29% 25% 19% 15% 0% 80%60%40%20% 23% 23%
8.
8 COPYRIGHT ©
2010 ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE ATTRACTING THE BEST JOB CANDIDATES: ADDITIONAL BENEFITS THEY VALUE In 2010, job candidates were asked which benefits they would value most from a staffing or recruiting firm. Their answers were somewhat surprising. While health insurance is the most valued benefit, flexible work schedules, training and resume reviews were all considered to be the most valuable benefit by at least 10 percent of job seekers (figure 11). firms as a component of their job search strategies, and 35 percent could not name a single staffing firm from memory. When provided a list of the largest U.S. staffing firms, the average job candidate recognized nearly 5 firms, however no single staffing firm brand was recognized by more than two- thirds of the job candidates surveyed. A list of the 10 U.S. staffing firms most often recognized by the job candidates surveyed is shown in figure 10. Jobseekersparticipatinginthe2010OpportunitiesinStaffing survey represent the vast diversity of candidates within reach of staffing firms. More than 1,200 had been placed on a temporary or permanent assignment through a staffing firm, while another 1,015 were working as an independent contractor. Half were unemployed, while another 25 percent worked full-time while searching for other job opportunities. Of those who report being unemployed, 56 percent indicated it was due to a layoff during the recent recession. Job seeker survey participants were seeking employment in a wide variety of sectors (Figure 9). JOB SEEKER AWARENESS AND UTILIZATION OF STAFFING FIRMS DROPS IN 2010 After increasing both awareness and utilization in 2009, both of the key branding measures dropped for the staffing industry in 2010. Only 19 percent of job seekers used staffing THE JOB CANDIDATE PERSPECTIVE 23,632 active job seekers participated in the 2010 survey of job candidates. The research included 16,356 U.S. responses from CareerBuilder’s internal database, with an additional 1,438 U.S. responses from an independent, 3rd party online sample provider to ensure the validity of the CareerBuilder data and accurately reflect the overall pool of U.S. job candidates. All participants were either actively engaged in a job search, or had completed a search within the past 12 months. The median job seeker has been active in their job search for nearly 6 months, with those laid off by the recession having been in the search for close to 8 months. Job seekers were searching in a variety of sectors, and actively sought out 4 sources to aid in their job search, on average. Executive summary Executive Office/Clerical Professional Industrial Technical, IT and Scientific Healthcare Figure 9: Staffing Clients made Placements in the Following Sectors 0% 40%20% 30%10% 28% 17% 14% 22% 13% 5% Figure 10: 10 Brands Most Recognized by U.S. Staffing Industry Job candidates Accountemps Adecco Aerotek Kelly Services Labor Ready Manpower Randstad Robert Half Snelling Volt Brands listed in alphabetical order
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9COPYRIGHT © 2010
ALL RIGHTS RESERVED. CAREERBUILDER & Inavero Job candidates look to staffing firms to help them improve themselves and the more your firm can provide avenues to improve a candidate’s opportunities, the more loyalty you will be able to build. A ROADMAP TO IMPROVING CANDIDATE SATISFACTION–GOING BEYOND OUTCOMES After a drop in satisfaction a year ago, in 2010 the overall experience with staffing firms remained essentially unchanged for job seekers. Job candidates were more likely to rate the experience they had with a staffing firm a 2 or lower (19 percent) than a 9 or 10 (15 percent). The overall Net Promoter Score for the job candidate experience was a -48 percent. While this score is very low, the scores for those who are placed in an assignment (or within a permanent position) are much higher. Figure 12 shows how satisfaction changes as candidates make their way through the employment process with a staffing firm. But it’s not just the outcome that matters to job candidates. In fact, given the difficult economic conditions, many staffing firm leaders assume that satisfaction is impossible to achieve when open job orders are so sparse. However, job candidates were more pragmatic in 2010 than they were a year earlier and many understood that finding a job would be difficult. In fact, only 25 percent of the time when candidates gave their staffing firm a low score was it due to not finding a job. Nearly half the time the reason for the dissatisfaction was based on a lack of responsiveness – far and away the most prevalent complaint registered by candidates in 2010. A strong process of communication with and empathy for job candidates working with your staffing firm can be a true point of differentiation as you strive to become a destination for the top talent available. The job candidate experience is vital to the long-term success of your staffing firm for a variety of reasons. Clearly, more satisfied job candidates tend to do a better job while on assignment and are less likely to leave an assignment prior to completion. In addition, with a high ratio of job candidates to clients, dissatisfied candidates can create a significant word- of-mouth issue and hurt your stream of candidate referrals. Perhaps most importantly – candidates also become client buyers and influencers. In the 2010 study, nearly half (46 percent) of U.S. clients surveyed indicated they had also worked with a staffing firm as a job seeker, up significantly from a year ago. Staffing firms who believe they can become exceptional in client service without developing a strong candidate experience are failing to see how strong the connection between the two really is. The job candidate experience with staffing firms begins the moment they see their first ad, make their first phone call to the firm or engage with a recruiter for the first time. Every interaction is an opportunity to build the candidate’s perception of your staffing brand, and once they go on assignment with you they, in fact, become an extension of that very brand. To deliver an exceptional experience to job candidates, you must have the right people with the right training and a process designed to exceed expectations. Leveragetheinformationpresentedinthe2010Opportunities in Staffing Guide to identify opportunities where you can make stronger connections with your candidates that will lead to long-term loyalty. Figure 12: U.S. Job Seeker Satisfaction Improves Dramatically as Interaction with the Staffing Firm Increases Submitted resume Interviewed, no position Placed on temporary assignment Found full-time position 10% 26% 47% 53% 24%29% 49% 73% 80% 60% 40% 20% 0% % Detractors % Promoters Prescription Drug Insurance Health Insurance Flexible Work Schedule Inteview Training Paid Time Off Career Coaching Resume Review Skills Training and Certification Ability to Telecommute Figure 11: Most Valued Potential Staffing Firm Benefits 0% 40%30%20%10% 32% 13% 12% 10% 8% 5% 1% 7% 6%
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10 COPYRIGHT ©
2010 ALL RIGHTS RESERVED. CAREERBUILDER & INAVERO INSTITUTE Historically, as the U.S. economy emerges from a recession, staffing firms lead the way for overall employment, playing a critical role by providing flexible hiring solutions for organizations attempting to grow. 2010 has proved to be no different. Staffing firms are well placed to grow quickly and establish themselves as trusted advisors to the audiences they serve. Whileclientscontinuetoembracestaffingfirmsasaviablehiringoption,loyaltytoasinglestaffing firm has declined compared to a year ago. The key to long-term, profitable client relationships is becoming indispensible to their business. A staffing firm who views their commitment starting andendingwiththesourcingandacquisitionofqualifiedjobcandidatesisincreasinglybecoming vulnerable to being replaced by another firm. Clients are open to opportunities to engage with staffing firms – but on their terms. They want education, information and trends directly related to them and their organizations. In exchange for that material, a significant portion (35 percent) are willing to engage more deeply with your firm through social media or mobile applications. Effectively delivering the educational content and information clients need and desire is a key factor in client retention and protection of eroding margins. The job candidate experience with staffing firms is highly variable depending on the firm they work with and the depth of that relationship. For job candidates who submit a resume but are never interviewed, only 10 percent rate their experience a 9 or 10. Those who end up placed on an assignment give their experience a 9 or 10 nearly 5 times as often. As more job candidates entered the market during the economic downturn, staffing firm awareness with job seekers declined, and utilization dropped to 19 percent from 21 percent a year ago. Candidates who do accept positions working on behalf of your firm value more than just the salary they receive. They also view health benefits, flexibility and the opportunity to acquire additional skills and certifications as valuable aspects of their working arrangement with you. The suite of services and benefits your staffing firm offers helps you become a cherished resource for job seekers, assisting in the creation and maintenance of satisfaction, loyalty and referrals. Interested in taking the next step deeper into the information and what it means for your staffing firm? Contact your CareerBuilder or Inavero representative to gain access to the full report and supporting PowerPoint materials for use in your client presentations and proposals. Staffing Opportunities IN
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A Comprehensive Guide
to Clients and Candidates 2010 presented by Staffing Opportunities IN COPYRIGHT © 2010 ALL RIGHTS RESERVED. CAREERBUILDER & Inavero
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