Today, Staffing Industry Analysts (“SIA”) announced its 2014 list of the Largest Staffing and Talent Engagement Firms in the US. There were 124 firms on the list in all, each with more than $100 million in reported revenue in these two industry segments.
SIA defines “staffing” revenue as revenue generated from temporary help, direct hire, and retained search engagements. “Talent management” revenue is defined as PEO net revenue (gross billings less wages and taxes), recruitment process outsourcing revenue, payrolling net revenue (gross billings less wages and taxes), online staffing revenue and MSP fee revenue.
The top 5 firms all fall into the staffing bucket, although 2 PEOs made it into the top 10. The top five firms are:
- Allegis Group
- Randstad Holding
- Kelly Services
The top 5 had a combined market share of 18.1 percent (calculated by taking their reported revenue in these 2 segments and dividing it by SIA’s 2013 industry estimate of $136.1 billion, leaving the next five largest firms in the dust, with only an 8.3 percent combined market share.
Of the 8 staffing firms in the top 10, 7 identified Commercial (Industrial/Office/Clerical) as one of their largest segments. IT only shows up as a large segment of the business for two firms in the top 10, Allegis Group and ManpowerGroup. I presume this is because the list only includes IT staffing firms that are paid on an hours worked, days worked or number of workers basis, and excludes those companies that are paid a flat fee to complete a project, or other “solutions” businesses. However, IT staffing was the largest segment for 34 firms, or 27% of firms on the list. The third most commonly appearing largest segment was healthcare staffing, which was the largest segment for 16 firms on the list. I suspect that the number of firms in the Top 10 with IT and Healthcare as their largest segment will continue to grow, since those two segments have been predicted by SIA to grow at a rate much faster than the Commercial sector through 2022 (a projected 5.6% CAGR for both IT and Healthcare vs. 4.0% for Commercial).