North America INSIGHT 2013 List of Largest U.S. Staffing Firms and Market Share Analysis Introduction: • We estimate that 105 firms generated at least $100 million in U.S. staffing revenue in 2012. Added together, these firms generated $70.1 billion in U.S. staffing revenue in 2012, which comprised 54.1% of the total market, according to our estimates. The complete list of 105 firms can be found starting on page three of this report. • We have ranked companies by revenue, according to industry custom, but this ranking should not be taken to imply that a firm with a higher rank provides better service or more value to its shareholders. • Staffing firms varied in degree of financial transparency, and even when forthcoming with information, in some cases data provided was adjusted for the sake of consistency. Therefore, for all firms on this list, the revenue reported is estimated by Staffing Industry Analysts. • Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the U.S. staffing market. However, as we are constantly improving our methodology, in some cases this year’s estimates may not be strictly comparable to those of previous years. For that reason, we did not report prior year revenue in this list. June 27, 2013 Timothy Landhuis, Research Analyst tlandhuis@staffingindustry.com This represents the 18th annual list of largest U.S. staffing firms produced by Staffing Industry Analysts. All of the companies listed were invited to provide their revenue numbers via online survey in Feb/Mar 2013. For firms that did not participate in the survey, revenue estimates were based on company reports, company websites and other sources. Our lists are of strong interest to staffing buyers and we hope those listed will benefit from the increased buyer awareness. Firms not on this list that feel they should have been included are encouraged to contact Staffing Industry Analysts, as we will be releasing a follow‐up briefing for any late additions. Many thanks to the staffing firms who offered their encouragement and assistance in this year's list process. Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. PROPRIETARY DATA, DO NOT DISTRIBUTE OUTSIDE YOUR ORGANIZATION. Your company’s use of this report precludes distribution of its contents, in whole or in part, to other companies or individuals outside your organization in any form – electronic, written or verbal – without the express written permission of Staffing Industry Analysts. It is your organization’s responsibility to maintain and protect the confidentiality of this report. Staffing Industry Analysts | 1975 W. El Camino Real, Ste. 304 | Mountain View, CA 94040 | 800.950.9496 | www.staffingindustry.com 2013 List of Largest U.S. Staffing Firms and Market Share Landscape - June 23, 2013 2 About the 2013 List of Largest U.S. Staffing Firms Information Provided: How does SIA define staffing? • Companies were ranked by their estimated 2012 U.S. staffing revenue. Franchise revenue was accounted for on a gross basis. • We include the following components within staffing: 1. temporary staffing – a B2B transaction in which a contingent worker is assigned by a staffing firm and the firm is paid based on the amount of time the worker spends on the assignment, 2. place/search – a B2B transaction in which a firm is paid to recruit a non‐contingent worker, 3. net payroll/compliance revenue, 4. net PEO revenue, and 5. outplacement. • The list also provides our estimate of each company’s market share of the U.S. staffing industry. Market share is calculated by dividing a company’s listed revenue by our 2012 industry estimate of $124.0 billion. • Our estimate of the two segments in which a company generated the most revenue are also provided. • We do include incidental VMS/MSP fee revenue generated by a firm in which its primary business is staffing, but do not count fee revenue from pure‐play VMS/MSP providers. What is not staffing? • Transactions that we do not classify as a B2B arrangement (home health, business to consumer). • Any business in which a company/contingent is paid a flat fee to complete a project, and the fee is not based on hours or days worked or number of workers (solutions/SOW). • Any outsourcing arrangement in which the company is paid on an hourly basis but the assignment is indefinite. Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. 2013 List of Largest U.S. Staffing Firms and Market Share Landscape - June 23, 2013 3 2013 list of largest U.S. staffing firms Rank 1 2 3 4 5 6 7 8 9 10 11 12 Company Allegis Group Adecco Randstad Holding ManpowerGroup Kelly Services Robert Half International Express Employment Professionals Recruit Insperity The Select Family of Staffing Companies Automatic Data Processing Volt Information Sciences 13 14 15 16 On Assignment1 TrueBlue Kforce AMN Healthcare Services 17 18 19 19 21 22 23 24 25 CDI Corporation 2 Act-1 Group CHG Healthcare Services Insight Global Corporate Resource Services EmployBridge Oasis Outsourcing Jackson Healthcare Cross Country Healthcare 2012 U.S. Staffing Revenue ($million) 7,707 4,385 4,147 4,016 3,464 2,675 2,242 2,130 2,000 1,927 1,863 1,841 Market Share 6.2% 3.5% 3.3% 3.2% 2.8% 2.2% 1.8% 1.7% 1.6% 1.6% 1.5% 1.5% 1,444 1,341 1,082 954 1.2% 1.1% 0.9% 0.8% IT, Clinical/scientific Industrial IT, Finance/accounting Travel nursing, locum tenens 936 900 746 746 640 584 500 487 479 0.8% 0.7% 0.6% 0.6% 0.5% 0.5% 0.4% 0.4% 0.4% IT, Engineering Industrial, Office/clerical Locum tenens, allied healthcare IT Industrial, Office/clerical Industrial PEO Locum tenens, allied healthcare Travel nursing, locum tenens 1. Includes revenue from the acquired company Apex Systems 2. Includes revenue from Management Recruiters International (MRI) franchises Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. Largest staffing segment(s) IT, Industrial Industrial, Office/clerical Office/clerical, Industrial Industrial, IT Industrial, Office/clerical Finance/accounting, Office/clerical Industrial, Office/clerical Industrial, Office/clerical PEO Industrial, Office/clerical PEO IT, Engineering 2013 List of Largest U.S. Staffing Firms and Market Share Landscape - June 23, 2013 4 2013 list of largest U.S. staffing firms Rank 26 27 28 29 30 31 32 33 34 35 Company Yoh Staff Management | SMX (The Seaton Companies) PDS Tech Barrett Business Services Collabera Resources Connection Belcan Superior Group 2012 U.S. Staffing Revenue ($million) 461 454 437 403 402 400 390 389 Market Share 0.4% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% 383 0.3% Industrial, Office/clerical 367 0.3% Industrial SOS Employment Group 3 Elwood Staffing 3 4 Largest staffing segment(s) IT, Engineering Industrial Engineering, Industrial PEO, Industrial IT Finance/accounting, IT Engineering, Industrial Engineering, Finance/accounting 36 37 38 39 ACS Group Rose International Employment Plus Artech Information Systems 366 360 345 341 0.3% 0.3% 0.3% 0.3% Office/clerical, Finance/accounting IT, Office/clerical Industrial IT 40 41 42 43 44 45 46 47 48 49 50 TriNet5 Ambrose Employer Group Snelling Staffing Services Digital Intelligence Systems (DISYS) System One The Judge Group Maxim Healthcare Services Korn/Ferry International Integrity Staffing Solutions Impellam Group Veritude 337 326 320 314 307 300 293 289 276 272 256 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% PEO PEO Industrial, Office/clerical IT Engineering IT Per diem nursing, travel nursing Retained search Industrial Industrial, Office/clerical IT, Other professional 3. Elwood Staffing acquired SOS Employment Group in February 2013 4. Includes revenue from the acquired firm Comforce 5. Includes revenue from the acquired firms SOI Holdings and Accord HR Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. 2013 List of Largest U.S. Staffing Firms and Market Share Landscape - June 23, 2013 5 2013 list of largest U.S. staffing firms Rank Company 2012 U.S. Staffing Revenue ($million) Market Share 6 Largest staffing segment(s) 51 51 53 54 55 56 57 58 58 60 61 62 63 63 inVentiv Health Roth Staffing Companies Labor Finders Medical Staffing Network Heidrick & Struggles International Nesco Resource Pinnacle Technical Resources MAU Workforce Solutions Strategic Staffing Solutions Computer Task Group CoWorx Staffing Services C&A Industries Alphastaff Atterro Human Capital Group 250 250 249 246 240 237 231 215 215 210 209 205 200 200 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% Clinical/scientific Office/clerical, Industrial Industrial Per diem nursing, allied healthcare Retained search Industrial, Engineering IT Industrial IT IT Office/clerical, Industrial Allied healthcare, Travel nursing PEO Industrial, Office/clerical 63 63 63 68 69 70 71 72 73 74 75 MDT Personnel 7 Supplemental Healthcare Team Health Genesis10 The Bartech Group Parallon Workforce Management Solutions (HCA) TRC Staffing Services Eliassen Group Hudson Global Matrix Resources Beacon Hill Staffing Group 200 200 200 186 182 176 175 170 165 158 156 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Industrial Allied healthcare, Per diem nursing Locum tenens, Allied healthcare IT Office/clerical, Engineering Per diem nurse, Travel nurse Industrial, Office/clerical IT Legal, IT IT IT, Legal 6. Includes revenue from the acquisition of Kforce's Clinical Research division 7. Acquired by TrueBlue in February 2013 Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. 2013 List of Largest U.S. Staffing Firms and Market Share Landscape - June 23, 2013 6 2013 list of largest U.S. staffing firms Rank 76 77 78 78 78 78 78 83 84 84 84 84 84 84 90 90 92 93 94 95 96 97 98 99 100 101 101 103 103 103 Total Company Automation Personnel Services The Eastridge Group of Staffing Companies Paychex Russell Reynolds Associates SCI Companies Signature Consultants Spencer Stuart Mitchell Martin Acro Service Corporation Peoplelink Staffing Princeton Information SNI Companies Solomon Page Group VisionIT Addison Group The Onin Group Aquent Pyramid Consulting QPS Employment Group Tekmark Global Solutions PrideStaff Joulé ICONMA @WORK GROUP Headway Workforce Solutions Amerit Family of Companies Axelon Services Corporation Reliant Healthcare Professionals Southeast Personnel Leasing The Sedona Group Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. 2012 U.S. Staffing Revenue ($million) 152 151 150 150 150 150 150 146 140 140 140 140 140 140 139 139 137 136 133 120 115 114 110 109 107 105 105 100 100 100 67,057 Market Share 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 54.1% Largest staffing segment(s) Industrial Industrial, Office/clerical PEO Retained search PEO IT Retained search IT, Allied healthcare IT, Engineering Industrial IT Office/clerical, Finance/accounting Clinical/scientific, IT, Finance/accounting IT IT, Office/clerical Industrial Marketing/creative IT Industrial IT Industrial, Office/clerical Engineering, Clinical/scientific IT, Other Professional Industrial Clinical/scientific, Finance/accounting Office/clerical, Other professional IT, Industrial Travel nursing PEO Industrial, Office/clerical 2013 List of Largest U.S. Staffing Firms and Market Share Landscape - June 23, 2013 7 U.S. Staffing industry more concentrated over five year span • Using data from Staffing Industry Analysts’ annual list surveys, the chart on the right shows the sum of the market shares of the top five largest, and top fifteen largest staffing firms from 2007 to 2012. (Note: The relevant market is the U.S. staffing market.) U.S. Largest Staffing Firms 43% 42% 43% 40% • The portion of the market captured by the top five firms has steadily increased since 2008– the market share of the top fifteen firms increased by an average of +1.51 percentage points per year from 2008-2012, while the market share of the top fifteen firms increased by an average of +0.79 percentage points per year. • In 2012 the market share of the top 15 firms stayed roughly constant, while the market share of the top 5 firms fell one percentage point. 35% 35% 24% 20% 2007 Top 5 Top 15 24% 21% 18% 2008 2009 2010 Source: Staffing Industry Analysts, © Crain Communications 2013 Confidential Report – NOT for Distribution | ©2013 by Crain Communications Inc. All rights reserved. 25% 2011 2012