The market for Temporary Staffing and HR Services
The market for Temporary Staffing and HR Services in Germany is characterised by many thousands of small and medium-sized companies that are often highly specialised: on a region, on the placement of special qualifications or on a specific customer industry. The volume of the total market for Temporary Staffing is more than 30 billion euros in Germany. The industry serves as an early indicator for economic fluctuations in the labour market and has an important economic buffer function here. Temporary Staffing companies are usually affected not only by crises but also by the subsequent upswing at a very early stage.
Temporary Staffing: Multidimensional range of services
The range of services offered by Temporary Staffing and HR Service providers results in a diverse industry that provides its customers with different personnel solutions. Differences are already apparent in the remuneration groups offered and the sectors served. In addition to Temporary Staffing, which accounts for the highest average sales by far, permanent placement, project business, outsourcing and managed services play a significant role. The range of services can also be segmented according to the type of staff leased; common criteria are, for example, industrial helpers, skilled workers or personnel for office work. Industry (including the automotive industry) is by far the most important customer sector for Temporary Staffing, followed by transport and logistics and trade.
Challenges: Regulatory issues, staff shortages, maximum temporary staffing periods
Demographic change and the high demand for qualified skilled workers are a major challenge for the industry. The great pressure on prices and profitability in the market increases the pressure on companies to introduce and establish efficient processes. In addition, the industry is characterised and unsettled by increasing regulation at short intervals and the effects of the reform of the Temporary Employment Act. Lünendonk has been analysing the market for Temporary Staffing and HR Services for more than two decades. In addition, our company is also investigating the markets for IT Freelancers and Engineering Services, which have increasingly blurred with Temporary Staffing since the TEA (Temporary Employment Act) reform.
