In the US, over 40,000 personnel staffing offices generate total annual revenue of more than $130 billion. Large firms include Adecco, Manpower, Vedior, and Kelly Services. The average agency has one office, $2 million in annual sales, and 15 employees. Despite strong consolidation in recent years, the industry remains fairly fragmented: the 50 largest firms hold about 40 percent of the market. Agencies with multiple offices may have agency-owned branches, independently owned franchise offices, or licensed area-representative offices.
COMPETITIVE LANDSCAPE
Job growth drives demand for the personnel staffing industry. The profitability of individual companies depends on good marketing. Large companies enjoy economies of scale in marketing and back-office operations. Small companies can compete successfully by specializing in an industry or by job function.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry is divided into three major segments: permanent placement of workers, temporary placement of workers, or leasing of full-time workers. In terms of revenue, the temporary and leasing segments dominate, with about $70 billion and $55 billion of annual revenue, respectively, while permanent placement produces only $5 billion of annual revenue. However, these figures are misleading because temporary and leasing agencies count as revenue the wages and benefits they collect from employers and pass along to workers, while revenue for placement agencies only includes placement fees.
Placement agencies find workers to fill permanent positions at customer companies. These agencies may specialize in placing senior managers (executive recruiters, ...
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