economic report - edition 2014

7/27/2019 Economic Report - Edition 2014

http://slidepdf.com/reader/full/economic-report-edition-2014 1/60

Economic Report 2014 Edition(Based on data o 2012/2013)



2 / Ciett / 2014 Economic Report

CONTENTSable o

4

Introduction

6

The key factsand figures

8

The privateemployment

services marketin 2012/2013

26

The private

employmentservices industry

20

Agency work asleading indicator

of the economy

1

3

2



2014 Economic Report / Ciett / 3

32

The profiles ofagency workers and

their assignments

44

Satisfaction andmotivation of

agency workers

4

5

52

About Ciett

54

About “The Wayto Work”

56

Ciett NationalFederationMembers

58

Glossary ofused terms,

acronyms andcountry codes




Dear reader,

It is our pleasure to present you with the 2014 annual

Ciett economic report. This report will provide you with acomprehensive overview of the agency work industry aroundthe world. It combines some key data that was available from2013 with more in depth data from 2012.

As the International Confederation of Private EmploymentServices, Ciett represents a sector that is today the Way toWork for more than 36 million workers around the world.Since its establishment in 1967 Ciett has been providing dataabout the industry, while this is the 7th economic report.

The picture that emerges over the years is one of a robustindustry that clearly relates to market volatility. Even somuch so, that agency work is considered to be a leadingeconomic indicator.

Considering this, it is promising that the US Staffing

Employment Index is at its highest point in the past fiveyears, just as the number of agency workers in Japan, whilethe European Agency Work Business Indicator has alsostarted an upward trajectory. Together these three marketsrepresent 82% of the worldwide market.

These cautious signs of economic recovery are welcomenews not only for our industry, but also for millions ofworkers and jobseekers around the world. Agency work hasproven to be a strong enabler of labour market transitions

– from unemployment into work, and from temporarywork into long lasting careers. Linked to this, Ciett and itsmembers presented in 2011 the Way to Work – A job forevery person and a person for every job. The Way to Workconsists of 5 global pledges by the private employmentservices around the world, over the course of five years(2011-2016) to:

INTRODUCTION




Support 280 MILLION PEOPLE in their job lie

Help 75 MILLION YOUNG PEOPLE enter thelabour market

UP-SKILL 65 MILLION PEOPLE , giving themmore work choices

Create 18 MILLION MORE JOBS

SERVE 13 MILLION COMPANIES with the righttalents to succeed

You can read more about the Way to Work and our pledges

on pages 54-55.

We hope you enjoy this report in its entirety, but with befittingpride, we would like to draw your special attention tochapter 5, digging into satisfaction and motivation of agencyworkers. After all, what is more rewarding to see than thaton average 80% of workers would recommend agency workto their familiy and friends?

Sincerely,

Fred van Haasteren, Ciett PresidentAnnemarie Muntz, Eurociett PresidentDenis Pennel, Ciett & Eurociett Managing Director



KEY FACTS

FIGURES&

AGENCYWORK in GLOBAL ANNUAL SALES REVENUE

€ 299.3 Bn

US28.9

%

EUR36.5

%

16.6%

JP

11.5million jobs

36MILLIONWORKERS

in agency workworldwide

In ull-time

equivalent

SHARE OF GLOBAL MARKET20126 / Ciett / 2014 Economic Report

For more inormation, see chapter 1





JAPANUSA EUROPE

PENETRATION RATES

1.4%2.0% 1.6%

80

%

would RECOMMEND AGENCY WORK to family or friends (avg. over 6 countries surveyed)

137,300 Agencies

203,500 Branches

624,500 Internal Staff


For more inormation, see chapter 1 For more inormation, see chapter 5




developments in 2012/2013SERVICES MARKET

THE PRIVATE EMPLOYMENT

1




Tis chapter combines some recent (2013) figures withmore in depth data over the year 2012.Tis combination shows that just as the global economy,the private employment services industry has beenthrough some rough times, but that IN 2013, THE BIGGEST

MARKETS – THE USA, EUROPE AND JAPAN – ALL SHOWEDCAUTIOUS SIGNS OF RECOVERY.

November 2013 November 2013 Q3 2013

Y-O-Y GROWTH PENETRATION RATES

EUR1.4%

EUR1.6%

US6.9%

US2.0%

JP26%

JP1.4%





1 THE PRIVATE EMPLOYMENT SERVICESMARKET DEVELOPMENTS IN 2012/2013

USA market grows in 2013

The US Staffing Employment Indexwas set at 100 in 2006. The agencywork sector reached 102 in Novemberof 2013, which is its highest positionin six years. Exactly 12 months beforethat, the index stood at 95. Staffing hadgrown 6.9% y-o-y in November 2013.The index has not yet reached thesame level as before the 2008 crisis

though.Employing on average over 2.9 millionagency workers each business dayin 2012, the USA remains the singlebiggest market for agency workaround the world.

USA: US Staffing Employment Index(Set at 100 on 6/12/2006)

110

105

100

95

90

85

80

75

70

65

60

J u l y 2 0 0 6

O c t . 2 0 0 6

J a n . 2 0 0 6

A p r i l 2 0 0 7

J u l y 2 0 0 7

O c t . 2 0 0 7

J a n . 2 0 0 7

A p r i l 2 0 0 8

J u l y 2 0 0 8

O c t . 2 0 0 8

J a n . 2 0 0 8

A p r i l 2 0 0 9

J u l y 2 0 0 9

O c t . 2 0 0 9

J a n . 2 0 0 9

A p r i l 2 0 1 0

J u l y 2 0 1 0

O c t . 2 0 1 0

J a n . 2 0 1 0

A p r i l 2 0 1 1

J u l y 2 0 1 1

O c t . 2 0 1 1

J a n . 2 0 1 1

A p r i l 2 0 1 2

J u l y 2 0 1 2

O c t . 2 0 1 2

J a n . 2 0 1 2

A p r i l 2 0 1 3

J u l y 2 0 1 3

O c t . 2 0 1 3

Source: American Staffing Association

growth6.9% Y-O-Y

IN NOVEMBER 2013




European market showscautious upward trend in2013

In Europe, the monthly Agency WorkBusiness Indicator, showing the yearon year growth in the number ofhours worked in a range of Europeancountries, shows an upward trend. InOctober 2013 the first positive growthsince December 2011 was recorded at0.6%; in November this accelerated to1.4% growth.

European Agency Work Business Indicator:Evolution of hours worked, year-on-year change

60%

40%

20%

0%

-20%

-40%

J a n . 2 0 0 7

A p r i l 2 0 0 8

J u l y 2 0 0 8

O c t . 2 0 0 8

J a n . 2 0 0 8

A p r i l 2 0 0 9

J u l y 2 0 0 9

O c t . 2 0 0 9

J a n . 2 0 0 9

A p r i l 2 0 1 0

J u l y 2 0 1 0

O c t . 2 0 1 0

J a n . 2 0 1 0

A p r i l 2 0 1 1

J u l y 2 0 1 1

O c t . 2 0 1 1

J a n . 2 0 1 1

A p r i l 2 0 1 2

J u l y 2 0 1 2

O c t . 2 0 1 2

J a n . 2 0 1 2

A p r i l 2 0 1 3

J u l y 2 0 1 3

O c t . 2 0 1 3

Source: Ciett national ederations

European average

1.4% Y-O-Y growth IN NOVEMBER 2013

NO -7.0%

DE -6.7%

CH -0.7%

FR 1.5%

NL 1.0%

BE 4.8%

IT 9.0%

DK 14.0%

PL 19.3%




1 THE PRIVATE EMPLOYMENT SERVICES

MARKET DEVELOPMENTS IN 2012/2013

In 2013 Japanese markethits record high since 2008

The absolute number of agencyworkers in Japan has reached1.1 mln in Q3 of 2013, a growth of26% compared to Q3 2012. Q1 of 2013showed a record high with 1.24 mlnsince Q4 of 2008. The downturnbetween 2008 and 2013 was causedby the economic crisis as well as

restrictive regulation on the use ofdispatched (agency) workers. Basedon the number of agency workers (in2012), Japan is the fifth market in theworld. By turnover however, Japanranks second with 17% of total annualsales revenue.

Please note that for comparison anindex (USA), year on year growth(European Agency Work BusinessIndicator) and absolute numbers

(Japan) are three different indicators,which cannot be compared one on one.

The Japanese ministry of Health, Labor and Wel-fare provides alternative figures to the Japaneseministry of Public Management, Home Affairs,Post and Telecommunications. The latest availa-ble figures there are for 2011: 1,321,892 (FTE).

Japan: Number of agency workersx 1000 (FTE)

160

140

120

100

80

60

40

20

0

J a n . 2 0 0 2

A p r i l 2 0 0 2

J u l y 2 0 0 2

O c t . 2 0 0 2

J a n . 2 0 0 2

A p r i l 2 0 0 3

J u l y 2 0 0 3

O c t . 2 0 0 3

J a n . 2 0 0 3

A p r i l 2 0 0 4

J u l y 2 0 0 4

O c t . 2 0 0 4

J a n . 2 0 0 4

A p r i l 2 0 0 5

J u l y 2 0 0 5

O c t . 2 0 0 5

J a n . 2 0 0 5

A p r i l 2 0 0 6

J u l y 2 0 0 6

O c t . 2 0 0 6

J a n . 2 0 0 6

A p r i l 2 0 0 7

J u l y 2 0 0 7

O c t . 2 0 0 7

J a n . 2 0 0 7

A p r i l 2 0 0 8

J u l y 2 0 0 8

O c t . 2 0 0 8

J a n . 2 0 0 8

A p r i l 2 0 0 9

J u l y 2 0 0 9

O c t . 2 0 0 9

J a n . 2 0 0 9

A p r i l 2 0 1 0

J u l y 2 0 1 0

O c t . 2 0 1 0

J a n . 2 0 1 0

A p r i l 2 0 1 1

J u l y 2 0 1 1

O c t . 2 0 1 1

J a n . 2 0 1 1

A p r i l 2 0 1 2

J u l y 2 0 1 2

O c t . 2 0 1 2

J a n . 2 0 1 2

A p r i l 2 0 1 3

J u l y 2 0 1 3

O c t . 2 0 1 3

Source: Japan Ministry o Public Management, Home Affairs, Posts and elecommunications

26% Y-O-Y growth IN Q3 2013




Penetration rate developingdifferently across regions

The penetration rate is the amountof agency workers as a share of thetotal working population. In differentregions, different trends can beobserved. This is due to economicreasons as well as regulatoryinfluences. Since 1996 penetrationrates in these three key markets have

been converging to a certain extent.In 2008 all markets experienceda significant decrease due to theeconomic crisis. The market in theUSA has so far seen the best recoveryamong the three.

European average excludes Russia. If included,average would be 1.2%Historic series European average was revised

Agency work penetration rate in key markets1996-2012

2,5%

2,0%

1,5%

1,0%

0,5%

0,0%

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 2 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

Source: Ciett national ederations; ILO - ILOSA Database, 2013.

EUR 1.6%

JP 1.4%

US 2.0%

US2.0%

EUR1.6%

JP1.4%






36

Almost 36 million peopleworked in agency work in2012

The total number of agency workersin 2012 is significantly lower than in2011 (1). With 11.5 mln workers, theUSA employs the largest numberof people in 2012. Brazil is stillsecond, as in 2011, but withless than 60% of the amount ofworkers it employed in 2011.South America and Europeboth represent around 23% ofthe total amount of workers.The Asia/Pacific region employsanother 10%.

(1) Based on 43 countries(2) Number of workers for China was not included

due to a lack of reliable and comparable data.Estimates for China are around 27 millionworkers (Source: Staffing Industry Analysts).

(3) UK calculates total number of agency workerson a given moment.

(4) Bulgaria: FTE's.(5) 2011.(6) 2010

World: Total number of individualsemployed

millionworkers





World: Daily average number of agencyworkers (FTE)

EUROPE4.1 MILLION

35%

ASIA/PACIFIC1.8 MILLION

20%

NORTH AMERICA3.0 MILLION

25%

AFRICA1.2 MILLION

10%

Agency workers filled 11.5million full-time jobs in2012

In 2012, around the world 11.5 millionworkers were employed daily as anagency worker (1). That is a slightdecrease from 2011 (12.4 million).Considering the bigger decreasein the total amount of workers,this means that on average, thenumber of hours for each agencyworker has increased.

(1) Based on 46 countries(2) Russia is part of European total(3) Germany: total number of individuals(4) UK calculates total number of agency workers

at a given moment.(5) 2011.






World: Agency work penetration rate,2005-2012

2005 2007 2009 2010 2011 2012

Source: Ciett national ederations; ILO - ILOSA Database, 2013.

0.9% world AVERAGE PENETRATION RATE

Many markets relativelystable

Penetration rates are quite stablein most markets around the world.South Africa is a big exception, with agrowth from 7.7% to 9.2%. Most othermarkets show either only minimalgrowth or a decline in penetrationrate in 2012. Most notably, penetrationrates have gone down in Brazil and in

Europe. The global average has gonedown from 1.0% to 0.9% (1).

(1) Based on 46 countries. Global averageexcludes China due to lack of reliable data.Including China, average would be 2.0%.

(2) European average excludes Russia. If included,average would be 1.2%. Historic series Euro-pean average was revised

(3) China estimate Staffing Industry Analysts



A LEADING INDICATOR

AGENCY WORK AS

2of the economy





In times o economic recovery, available work is ofen first turnedinto jobs by agency work. THIS IS WHY AGENCY WORK IS A LEADINGECONOMIC INDICATOR: a rise in GDP will more or less coincide with a

rise in the number o hours worked by agency workers.otal employment levels will ofen pick up and ollow the sametrend– only afer several months.

Te ollowing graphs also show that agency work is a catalystrather than substitute o job growth.

PRIVATE EMPLOYMENT SERVICES HAVE DEVELOPED AS PART OF THESOLUTION TO MEET AN INCREASED VOLATILITY IN LABOUR DEMANDAND TO SUPPORT ORGANISATIONS IN ADAPTING TO THE IMPACT THATEACH CYCLE HAS ON THEIR EMPLOYMENT LEVELS. European Commission European Social Situation Quarterly Review,March 2012




2 AGENCY WORK AS A LEADING

INDICATOR OF THE ECONOMY

Agency work returnsto positive growth asunemployment growthslows down

In Q3 2013, EU unemployment levelsrose by 4.9% compared with the sameperiod in 2012. This means a slowdownin the negative trend. In the meantime,the growth of hours worked by agencyworkers is nearing zero, which is animprovement from previous periods.

This data continues to displayan inverse relationship betweenunemployment levels in the EU and theamount of agency work being carriedout. Recent months have displayednegative growth, while at the sametime, year on year unemploymentlevels have risen. In other words, arising number of agency work hoursgenerally occurs when unemploymentgoes down.

40%

30%

20%

10%

0%

-10%

-20%

30%

-40%

J a n . 2 0 0 8

A p r i l 2 0 0 8

J u l y 2 0 0 8

O c t . 2 0 0 8

J a n . 2 0 0 9

A p r i l 2 0 0 9

J u l y 2 0 0 9

O c t . 2 0 0 9

J a n . 2 0 1 0

A p r i l 2 0 1 0

J u l y 2 0 1 0

O c t . 2 0 1 0

J a n . 2 0 1 1

A p r i l 2 0 1 1

J u l y 2 0 1 1

O c t . 2 0 1 1

J a n . 2 0 1 2

A p r i l 2 0 1 2

J u l y 2 0 1 2

O c t . 2 0 1 2

J a n . 2 0 1 3

A p r i l 2 0 1 3

J u l y 2 0 1 3

O c t . 2 0 1 3

EVOLUTION OF AW HOURS WORKED - EUROPE Y-O-Y CHANGE IN UNEMPLOYMENT (EU 28)

Europe: Evolution of number of hours worked by agency workersversus average EU 28 unemployment change (year on year)

Source: Ciett national ederations; Eurostat




USA: Agency work precedesgeneral employment trend

The agency work industry will usuallyrespond quicker to economic trends– both positive and negative - thangeneral employment. For example,in the 2009 recession, agency workstarted growing again in September,which was about 6 months beforegeneral employment.

The flexibility that agency work offersgives businesses an opportunity toturn newly available work into real

jobs. This also means that agencywork can be considered a leadingeconomic indicator.

The US Bureau of Labor Statistics uses the term"Temporary help services" rather than agencywork.

3,000

2,500

2,000

1,500

1,000

150,000

120,000

90,000

1 9 9 1

1 9 9 3

1 9 9 5

1 9 9 7

1 9 9 9

2 0 0 1

2 0 0 3

2 2 0 5

2 0 0 7

2 0 0 9

2 0 1 1

2 0 1 3

AGENCY WORK TOTAL NONFARM EMPLOYMENT

Source: U.S. Bureau o Labor Statistics

Recessions (shaded periods)

USA: Total employment versus agencywork, in thousands




2 AGENCY WORK AS A LEADINGINDICATOR OF THE ECONOMY

Europe: agency workmirrors economic growth

In Q3 of 2013, agency work in Europedeclined by 0.5%, which was the bestresult since 2011. Coincidentally,GDP development in Europe alsosaw its best result since 2013, with0.3% growth. These figures show acontinuing pattern between the yearon year growth rate of EU 28 GDP and

the evolution of the number of hoursworked by agency workers in Europe.This reflects that agency work is not asubstitute companies use in bad times,but a useful service that will be usedmore if the economy prospers.

Europe: evolution of number of hours worked by agencyworkers (year-on-year) versus evolution of GDP volume EU28

6%

4%

2%

0

-2%

-4%

-6%

30%

20%

10%

0%

-10%

-20%

-30%

J a n . 2 0 0 8

A p r i l 2 0 0 8

J u l y 2 0 0 8

O c t . 2 0 0 8

J a n . 2 0 0 9

A p r i l 2 0 0 9

J u l y 2 0 0 9

O c t . 2 0 0 9

J a n . 2 0 1 0

A p r i l 2 0 1 0

J u l y 2 0 1 0

O c t . 2 0 1 0

J a n . 2 0 1 1

A p r i l 2 0 1 1

J u l y 2 0 1 1

O c t . 2 0 1 1

J a n . 2 0 1 2

A p r i l 2 0 1 2

J u l y 2 0 1 2

O c t . 2 0 1 2

J a n . 2 0 1 3

A p r i l 2 0 1 3

J u l y 2 0 1 3

O c t . 2 0 1 3

EVOLUTION OF AW HOURS WORKED - EUROPE EVOLUTION OF GDP VOLUME - EU28

Source: Ciett national ederations; Eurostat




Agency work is a leadingeconomic indicator

The agency work industry isconsidered to be hyper-cyclical,meaning that it follows the sametrends as employment and GDP,while troughs are deeper and peaksare higher. Since changes in theamount of agency work usually occursimultaneously with changes in

GDP and before changes in generalemployment, agency work is animportant indicator of what the nearbyfuture will bring.

USA: Evolution of agency work comparedto GDP and total employment

Source: National Bureau o Economic Research, U.S. Bureau o Economic Analysis and U.S. Bureau o Labor Statistics

40%30%

20%

10%

0%

-10%

-20%

-30%

1 9 7 8

1 9 8 0

1 9 8 2

1 9 8 4

1 9 8 6

1 9 8 8

1 9 9 0

1 9 9 2

1 9 9 4

1 9 9 6

1 9 9 8

2 0 0 0

2 0 0 2

2 0 0 4

2 0 0 6

2 0 0 8

2 0 1 0

2 0 1 2

AGENCY WORK GROSS DOMESTIC PRODUCT NONFARM EMPLOYMENT

Recessions (shaded periods)




services INDUSTRY 3THE Private Employment




Private employment services offer their broad rangeo services around the world. Although activities maydiffer according to local situations, people are alwaysat the core o their work.

Tereore, it is o utmost importance or agencies tohave dedicated and EXPERT STAFF AT THE LOCAL LEVEL, where they can be in touch with jobseekers as well aswith the companies they serve.

137,300agencies 203,500branches 624,500internal staff




3 THE PRIVATE EMPLOYMENT SERVICEINDUSTRY


World: number of private employmentagencies, branches and internal staffPrivate employmentservices operate a close-knit network around theworld

In 2012, there were almost 137,300private employment agencies aroundthe world, which is about the sameas in 2011. These had in total 203,500local branches, where 624,500internal staff were available to finda job for every person, and a personfor every job. This means that privateemployment services have a verywidespread network of labour marketspecialists covering many corners ofthe earth. Local branches ensure adeep knowledge of the local labourmarket, while there are many regional,national and international networksthat help workers gain a broaderperspective.

(1) 2011(2) 2010(3) 2009(4) Only members represented(5) Source: Staffing Industry Analysts

137,300agencies

203,500branches




3 THE PRIVATE EMPLOYMENT SERVICEINDUSTRY

Percentage of global annual salesrevenue in 2012USA grows at the expense ofEurope

The USA is still the biggest market inthe world, with about 28.9% of totalannual sales revenue. This is up from23% last year. Europe now represents36.5% of the world market, which isdown from 41% last year. Canadawas a growing market in 2012, whilethe market in Brazil severely shrunk,

resulting in only 1.8% of the totalannual sales revenue.

4 299.3 BnGlobal annual sales revenue in 2012


US

BR

ITIN

NL

AU

FR

DE

UK

JP

REST OFWORLD:

18.4%

CA




Global annual sales revenueup since 2012

The total agency work sector wasworth 1 299.3 Bn in 2013, up from1 259 Bn in 2012. The top 10 firms tookup about 27.5% of the total, the top 3represented 17.9% of global annualsales revenue.

Top 10 firms sales revenue in 2013– billion of 4

Source: “Largest Global Staffing Firms 2013”, Staffing IndustryAnalysts

2.9 2.8 2.0

20.5

17.116.1

7.4

4.9 4.5 4.2

A d e c c o

R a n d s t a d

M a n

p o w e

r

A l l e g i s G r o u p

R e c r u i t

H a y s

P L C

K e l l y

S e r v i c e s

U S G P e o p l e

R

o b e r t H a l f

T e m p s t a f f




Te Profiles of AGENCY WORKERS 4




People doing agency work have very diverse backgrounds. Ofen, the type o people doing agencywork depends on the country, and the sector or the company looking or agency workers. However, itis clear that agency workers are relatively young.Tis is not surprising, since agency work is ofen seen as an important stepping stone onto the labour

market. As such, AGENCY WORK SUPPORTS PEOPLE IN SEVERAL IMPORTANT TYPES OF TRANSITIONS IN THE LABOURMARKET: rom education to work, rom unemployment to work, and rom short term employment intolonger lasting careers. Te importance o smooth transitions is growing in a changing world o work.For companies, being able to efficiently adapt to changing workloads is the most important reason touse agency workers.

TODAY, ABOUT HALF OF THE GLOBAL WORKFORCE IS ENGAGED IN WAGED EMPLOYMENT,BUT MANY DO NOT WORK FULL TIME FOR A SINGLE EMPLOYER. THE SUPPOSEDLY“ATYPICAL” HAS BECOME TYPICAL; THE “STANDARD” HAS BECOME THE EXCEPTION.Mr Guy Ryder, ILO Director General in his speechat the 2013 International Labour Conference on the future of work.

61% OF AGENCY WORKERSARE under 30

WERE EMPLOYEDbeore,

afer AGENCY WORK

ON AVERAGE, 32% 68%



4 THE PROFILE OF AGENCY WORKERS




4AND THEIR ASSIGNMENTS

Agency work helpsunemployed find jobs andremain in employment

People who start doing agency workout of unemployment will often remainemployed after their assignment.Germany, South Africa, Greece andSweden are the strongest examplesof this stepping stone function ofagency work. In South Africa, 60%

of people starting agency work wereunemployed before, while only 8% ofpeople return to unemployment.The industry has a strong track recordin providing labour market transitionsfrom unemployment to work, as wellas from work to long term careers.Many examples, including Norway,Portugal and France show that theamount of agency workers who remainin employment after agency work is farhigher than those who were employed

before agency work.So agency work is not only a short timesolution, but provides a stepping stoneinto long term employment.

Employed / unemployed before & afteragency work

FR NO DE BR CZ CH NL ZA GR SE BE LU PT

80%

60%

40%

20%

0%

0%

20%

40%

60%

42

8

67 65

5659

73

81

61

77

69 71

20

36

49 51

21

33

44

18

43

38

56

19

27 26

12

60

34 3326 25

17 15 15 148 8 6 5

BEFORE

AFTER

% o agency workers that are employed (either with a temp, fixed-termor open-ended contracts) beore and 12 months afer temping

% o agency workers that are officially registered as unemployedbeore and 12 months afer temping


BEFOREBEFORE AFTERAFTER

32%35% 68%14%Unemployed Employed

27% 50% 23%




Agency workers are mediumto high educated

On average, 27% of agency workerscompleted higher education, which ismore than the still significant groupof 23% of agency workers withoutsecondary education. This shows thatagency work can play an importantrole in helping both low- and high-skilled workers to get valuableexperiences on the labour market.

Educational attainment level of workershigh-to-low

HIGH [COMPLETED HIGHER EDU CATION] MEDIUM [COMPLETED SECONDARY EDUCATION]

LOW [NOT COMPLETED SECONDARY EDUCATION] UNKNOWN / OTHER


19% 28%

3% 4% 5% 7% 8% 10% 15% 15%

49% 50% 70% 89% 42% 30% 65% 67%

29% 18% 25% 4% 50% 60% 20% 18%

19%

16% 19% 19% 23% 30% 30% 32% 33%

39% 22% 46% 46% 60% 40% 42% 59%

45% 59% 35% 12% 10% 30% 26% 9%

2%

37% 39% 45% 50% 50% 52% 54%

49% 43% 48% 40% 40% 43% 26%

14% 18% 5% 10% 10% 5% 20%

COMPLETEDHIGHER EDUCATION

COMPLETEDSECONDARY EDUCATION

DID NOT COMPLETESECONDARY EDUCATION

27 50 23

H U D E

F R

G R

AG

N L

M X

Z A

R O

S E

C Z

E E

AU

LU

N Z

B G

B R

U S

N O

F I

R U

I N

E S

4 THE PROFILE OF AGENCY WORKERS 23% 42% 35%




AND THEIR ASSIGNMENTS

Agency workers arerelatively evenly distributedin low, medium and highskilled jobs

On average, 42% of agency workrequires medium skill levels. Lowskilled work accounts for about 35%,high skilled work for 23%. The skilllevel required often has a relationto the sector where agency work

mostly takes place. Luxembourg forexample has a big share of agencywork in the construction sector, and inArgentina many agency workers workin manufacturing, and both countrieshave a larger share of low skilledwork.

Skill level required for temporary agencyworker jobs


HIGH SKILLED MEDIUM SKILLED LOW SKILLED

23 3

HIGH [COMPLETED HIGHER EDUCATION] MEDIUM [COMPLETED SECONDARY EDUCATION]

LOW [NOT COMPLETED SECONDARY EDUCATION] UNKNOWN / OTHER

1% 1% 5% 8% 9% 10% 17% 17% 20%

5% 12% 40% 40% 86% 40% 58% 6% 50%

94% 87% 55% 52% 5% 50% 25% 77% 30%

1%

20% 29% 30% 32% 35% 40% 43% 50%

60% 31% 30% 49% 54% 40% 41% 40%

20% 39% 40% 19% 11% 20% 16% 10%

H U LU Z AAG B R LT E S C Z E E

N O S E R O G R M X AU N Z B G



4 THE PROFILE OF AGENCY WORKERSAND THEIR ASSIGNMENTS



AND THEIR ASSIGNMENTS


Reasons for hiring agency workersCompanies cite flexibilityand temporary demand asmain reasons to use agencywork

Although there are many factorsthat play a role in a companies’decision to hire an agency worker,the most important reasons includethe possibility to effectively deal withpeaks in the work load, and replacing

staff absent due to sickness, maternityleave etc. In research done in theUSA, Germany, Sweden and the UKother regularly cited reasons are shortterm projects, often requiring specificskills, or as a way to test out potentialnew permanent workers. Anotherinteresting factor is that staffingagencies provide workers in an easyand efficient way, resulting in lowercosts and less bureaucracy.

Source: (1) American Staffing Association Client Survey, 2005, (2) Zeitarbeit in Deutschland –reiber ür Flexibilität und Wachstum, IW Consult GmbH, 2011, (3) REC JobsOutlook 2013aggregate data, (4) PERSONALINHYRNINGEN I SVERIGE, En studie av 600 arbetsgivares anlitande av bemanningsöretag 2012, Bemanningsöretagen (Swedish Staffing Association), 2012.

PERCENTAGE OF BUSINESSES WITH 25+ EMPLOYEES THATCITE AS A MAIN REASON FOR HIRING AGENCY WORKERS: (1)

HOW IMPORTANT WOULD YOU SAY THAT AGENCY WORK IS FORYOUR ORGANISATION? "IMPORTANT TO VERY IMPORTANT" (3)

REASONS THAT ARE “IMPORTANT TO VERY IMPORTANT” FORCOMPANIES TO HIRE AGENCY WORKERS (2)

WHICH OF THE FOLLOWING REASONS DID YOU HAVE FORHIRING AGENCY WORKERS? (4)

Labourcosts ofhiring

Replace aregular job totest workers

Keeprunning

costs down

Flexibility; shortnotice adaptation

of capacity

Replace absentpermanent staff

(sick leave, mater-nity leave, …)

Meetingpeaks indemand

Respondingto growth

The size of theworkforce should be

rapidly adaptable

bureaucracyinvolved

in hiring staff

Availabilityof workers

Absorb activity fluctuation(seasonal, unexpected,

economic cycle)

Coveringshort termstaff leave

Managing fastchanging organisa-tional requirements

Managinguncertainty during

economic downturn

Tryingout

workers

Staff specialshort term

projects

Providing shortterm access to key

strategic skills

80%

84%

59% 52% 42%

Difficultto find anyother way

33%

Companyneeded a special

expertise

32%

It is easier andinvolves less adminis-tration than employing

30%

82% 64% 61%

Company had temporarywork peaks and it

required extra staff

63%

To substituteabsent or sick

employees

51%

Therewas arush

49%

A time-limitedproject requiring

temporary staffing

37%

34%

72% 68% 59% 84% 73% 43% 34% 21%

US

UK

DE

SE

62% OF AGENCY WORK JOBS would not HAVE BEEN




Alternatives to agency workAgency work mostly not asubstitute for permanentworkers

In a study done by the BostonConsulting Group and Ciett, 74%of companies reported that theywould not consider hiring permanentworkers as an alternative to agencywork. In 62% of the cases there wouldbe no job creation as companies chose

internal flexibility or not to do thework at all. This shows that privateemployment services, and agencywork in particular, are an engine of jobcreation and economic growth. Agencywork gives employers the opportunityto turn available work into jobs.

Source: Ciett & Boston Consulting Group 2011, Adapting to Change

Internalflexibilitysolution 54%

Hirepermanent

workers 26%

Other external flexibilitysolution 12%

Not dothe work

8%

NO JOB CREATION(62%)

NO SUBSTITUTION(74%)

62% OF AGENCY WORK JOBS would not HAVE BEENCREATED WITHOUT ACCESS TO AGENCY WORK




Satisfaction & motivation

of AGENCY WORKERS 5



Previous chapters have shown that agency work contributes to economic growth, helps to bring about labour market transitions, and provides an

answer to business needs or adaptability. At the center o this all however, IS A PERSON’S CHOICE TO WORK AS AN AGENCY WORKER. Tis chapter explores thereasons people have to make this choice, and i they are happy with their job as an agency worker.

Research shows a large variety o reasons, but remarkable consistency inagency workers high job satisaction.

OF WORKERS ARE SATISFIEDTO very satisfied

OF WORKERS wouldrecommend AGENCY WORK

83%80%


5 SATISFACTION AND MOTIVATION OFAGENCY WORKERS OF WORKERS would80%




Would you recommend Agency work to a

family member or a friend?80% of agency workerswould recommend it to theirfamilies or friends

Research from a range of countriesshows that agency workers are onaverage very satisfied with theirwork. On average, 83% of agencyworkers report that they are satisfiedor very satisfied. This clearly showsthat working through an agency is aconscious and deliberate choice for avast majority of the workers.

OF WORKERS wouldrecommend AGENCY WORK

80%

NOYES OTHER

BE(2012)

CO(2013)

FI(2012)

NO(2012-13)

SE(2011-12)

US(2006)

82% 93% 87% 88%64% 67%

8% 7% 13% 12%17% 18%


49% OF WORKERS ARE SATISFIED,ti fi d83%



SATISFIED

OTHER

VERY SATISFIED


Percentage of agency workers

who are satisfied with their work

BE (2012)

NO (2012/2013)

FI (2012)

US (2006)

CO (2013)

SE (2011/2012)

FR (2013)


23%

18%

42%

46%

42%

35

%

30%

53%49%

48%

48%

39%

57%

48%

34% ARE very satisfied 83%

5 SATISFACTION AND MOTIVATION OFAGENCY WORKERS




Top 3 reasons for choosing agency work

There are many reasons tochoose agency work

Agency work can provide in amultitude of specific needs that anindividual worker might have. Forworkers, it can provide flexibility bothin hours, location and duration ofemployment, or it can provide themwith access to the labour market thatthey might otherwise not have.

Financialreasons

Couldn’t finda permanent

job Flexibilityof schedule

This was theonly type of work

I could find

I canchoose the

working hoursand location

Being an agencyworker is easier than

getting a differentkind of job

I want to see

different work placesand acquire different

experiences

As astepping stoneto permanent

work

Lookingfor differentprofessional

experiences beforesettling for one

To obtainexperience/

training

I want to useit to find a

permanent job

I can earnadditional

income

Want to seedifferent workplaces

and gain all-roundwork experience

Work as agencyworker is easier toget than other work

2

2

2

2

2

2

2

3

3

3

3

3

3

3

Betterthan being

unemployed

1Agency

work allowedme to find work

quickly

It will leadto permanentemployment

It is hard toget a direct

contract

Otherwise I

would be outof work

Agency work isa good gateway to

working life

The agency offeredan interestingassignment

1

1

1

1

1

1

BE(2012)

FR(2013) US

(2006)

CO(2013)

NO(2012-13)

FI(2012)

SE(2011-12)

Source: Ciett national ederation members

73% 20% ARE extremely satisfied,




The Netherlands: Agency worker

satisfaction with the employment agency

Source: Inflow Survey Facts & figures on temporary employees, ABU, 2009

Information on legal or fiscal matters

Speed and suitability of jobs offered

Information on the assignment/company (in advance)

Support in administrative formalities

Correctness of the contracts offered

Contact with employment agency staff

Payment by the employment agency

11%

20%

16%

18%

19%

28%

27%

44%

49%

55%

57%

60%

51%

53%

31%

19%

19%

16%

12%

13%

11%

9%

8%

7%

6%

6%

5%

6%

5%

4%

3%

3%

3%

3%

3%

EXTREMELY SATISFIED SATISFIED NEUTRAL UNSATISFIED EXTREMELY UNSATISFIED

73

Private employment

agencies offer aprofessional service tobusinesses and workers

Private employment services areexperts on the local labour market,and help workers not only find aposition, but also employ them, dealwith all sorts of administrative issues,and pay them for their work. It is the

agency that has full responsibilityfor the employment relation with theworker, not the user company.

y fi ,53% ARE SATISFIED



ANNEXES





As the international confederation of

private employment services, Ciett is the

authoritative voice REPRESENTING THE

INTERESTS OF THE AGENCY WORK INDUSTRY

across the world.

Founded in 1967, Ciett consists of

49 NATIONAL FEDERATIONS of private em-

ployment agencies and eight of the largest

staffing companies worldwide: Adecco, GI

Group, Kelly Services, ManpowerGroup,

Randstad, Recruit, renkwalder and USG

People.

ABOUT CIETT




Its members gather over 200,000

BRANCHES and employ more than

11.5 MILLION AGENCY WORKERS on a daily

average (FE).

Its main objective is to help its members

conduct their businesses in a LEGAL AND

REGULATORY ENVIRONMENT that is positive

and supportive.

Ciett is divided into SIX REGIONAL

ORGANISATIONS: Africa/Near East,

Northern Asia, Southern Asia, North

America, South America [CLE&A],

and Europe [Eurociett].



Te way to work; a job or every person, a person or every job is the unified vision for the global privateemployment services industry. It reflects the industry’sunique position in building better labour markets andproviding work opportunities and hope to millions of peopleevery day.

Directing the WAY TO WORK being a labour market entrypoint, encouraging transitions, enhancing people's skills

Offering a new WAY TO WORK providing labourcontractual diversity to meet work-life balance and individualconstraints

Giving people a great WAY TO WORK delivering decentand quality jobs

Helping people to organise the WAY TO WORK matching skills and jobs better and faster

The values of the private employment services. industry arecentred around people, because work is an essential part

of life and identity. These values demonstrate the industry’scommitment to advancing people and businesses through work:

QUALITY: The industry promotes ILO core conventions anddecent work and calls for appropriate regulation to be adoptedon private employment services. The industry works to raiseself regulation and quality standards and is committed tofighting rogue and untrustworthy providers in order to get rid ofabuses and illegal practices.

INCLUSIVENESS:The industry is committed to engaging inconstructive dialogue with all relevant stakeholders –

governments, trade unions, NGO, academics - to ensure everyvoice is heard. We are an open industry, willing to develop aninclusive society by increasing labour market participation anddiversity.

SERVING: As a professional services industry, we are drivenby customer satisfaction, be it companies or individuals. Weare here to support our customers in their diverse needs andexpectations, helping them to adapt to change and to realisetheir ambitions.

FREEDOM: We provide more work opportunities for more people,therefore increasing freedom of choice in the labour market.We give people the freedom to choose when, where and howthey work.

ABOUT THE WAY TO WORK




CIETT, THE VOICE OF LABOUR CHOICE

THE WAY TO WORK

A JOB FOR EVERY PERSON, A PERSON FOR EVERY JOB

SUPPORT280

MILLIONPEOPLE INTHEIR JOB

LIFE

HELP75 MILLION

YOUNGPEOPLE

ENTER THELABOURMARKET

UP-SKILL65 MILLION

PEOPLE,GIVINGTHEMWORKCHOICE

CREATE 18MILLION

MORE JOBS

SERVE 13MILLION

COMPANIESWITH THE

RIGHTTALENTS TO

SUCCEED

PEOPLE - QUALITY, FREEDOM, INCLUSIVENESS, SERVING

Te private employment servicesindustry has the COLLECTIVE POWER TOBRING ABOUT POSITIVE CHANGE to labourmarkets and act as a bridge to socialand economic progress.

As such, in 2011, CIETT’S MEMBERS

HAVE MADE FIVE PLEDGES regarding theircontribution over the next five yearsto individuals and companies in thelabour market.


CIETT MEMBERS



CIETT MEMBERS


AFRICA / NEAR EASTMoroccoSouth AfricaZambia

NORTHERN ASIAChinaJapanSouth Korea

SOUTHERN ASIAAustraliaIndiaNew ZealandNepalSingapore

NORTH AMERICACanadaMexico

USA

EUROPEAustriaBelgiumBulgariaCzech RepublicDenmarkEstoniaFinlandFrance

GermanyGreeceHungaryIrelandItalyLatviaLithuaniaLuxembourgMacedoniaNetherlandsNorwayPoland

PortugalRomaniaRussiaSlovakiaSloveniaSpainSwedenSwitzerlandTurkey

UK

SOUTH AMERICAArgentinaBrazilChileColombiaPerú




GLOSSARY OF USED TERMSACRONYMS COUNTRY CODES (1)&




emporary agency workBoth at international and EU level, agency work is legally defined andrecognised. In ILO Convention on private employment agencies (C181, 1997) as

well as in the EU Directive on temporary agency work (2008/104/EC), the three-party relationship is precisely characterised: “Services consisting of employingworkers with a view to making them available to a third party, who may be anatural or legal person (usually referred to as a “user company”) which assignstheir tasks and supervises the execution of these tasks”

Private employment services (industry)Agency work is usually one of several other HR services provided byrecruitment and employment agencies, along with permanent recruitment,outplacement, training, executive search, skills assessments and more. Thebroad range of these services are called private employment services. The

agency provides a professional service to a user company by taking over (a partof) the recruitment and HR process. In this sense, private employment servicesare comparable to other professional services such as accounting, security orcleaning.

Daily average number of agency workers (FE)Total number of hours worked by all agency workers in a country over a periodof one year divided by the average number of hours worked over a period of oneyear by a worker with a full-time job with an open-ended contract

Penetration rateDaily average number of agency workers [in full-time equivalents]divided by the working population [as defined by the ILO as follows:“The employed comprise all persons of working age who during a specifiedbrief period, such as one week or one day, were in the following categories:a) paid employment (whether at work or with a job but not at work); orb) self-employment (whether at work or with an enterprise but not at work).”

ARGENTINA AR MACEDONIA MK

AUSTRALIA AU MEXICO MX

AUSTRIA AT MOROCCOMA

BELGIUM BE NEPAL NP

BRAZIL BR NETHERLANDS NL

BULGARIA BG NEW ZEALAND NZ

CANADA CA NORWAY NO

CHILE CL PERÚ PE

CHINA CN POLAND PL

COLOMBIA CO PORTUGAL PT

CZECH REPUBLIC CZ ROMANIA RO

DENMARK DK RUSSIA RUESTONIA EE SINGAPORE SG

FINLAND FI SLOVAKIA SK

FRANCE FR SLOVENIA SI

GERMANY DE SOUTH AFRICA ZA

GREECE GR SOUTH KOREA KR

HUNGARY HU SPAIN ES

INDIA IN SWEDEN SE

IRELAND IE SWITZERLAND CH

ITALY IT TURKEY TRJAPAN JP UK UK

LATVIA LV USA US

LITHUANIA LT ZAMBIA ZM

LUXEMBOURG LU

ACRONYMS COUNTRY CODES (1)&

(1) The International Organisation forStandardisation ISO: the internationalstandard for country codes ISO 3166



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economic report - edition 2014

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