The Staffing Industry market
The staffing industry market in Germany is characterised by many thousands of small and medium-sized companies that are often highly specialised – by region, by a particular range of services, by the provision of specialist staff, or by a specific customer industry. The industry serves as an early beacon of cyclical changes in the labour market, thus playing an important role as an economic buffer. Staffing businesses are usually affected at an early stage by both crises as well as the subsequent upswings.
The Staffing Industry: multidimensional service offerings
The range of services offered by staffing industry providers makes for a diverse sector supporting clients with a variety of staffing solutions. In addition to agency and temporary staffing, which accounts for by far the greatest average proportion of sales, a significant role is also played by IT workforce and freelancer services, permanent placement, permanent and interim contracting and managed service provision (MSP). The most important customer sector for the staffing industry is the industrial sector (including the automotive industry), followed by transport and logistics and commercial.
Challenges: regulatory issues, staff shortages, maximum assignment duration
Demographic change and the significant demand for qualified skilled workers together represent a major challenge for the industry. Within the market, the considerable pressures on pricing and profitability are increasingly pushing companies to introduce and bed in efficient processes. The industry is also being shaped and unsettled by the rapidly growing burden of regulation and the impacts of reforms to the Temporary Agency Work Act. Lünendonk has been analysing the staffing industry market for more than two decades. The company also researches the markets for IT freelancers and IT workforce services as well as agency recruitment. Our close observation of the market means Lünendonk always has its finger on the pulse of contingent workforce and leadership advisory services, headhunting, contracting, interim management and HR consulting.
