Staffing Services

Germany’s personnel services market is characterised by thousands of small and medium-sized companies that often are specialised around a particular region, range of services, placement of particular qualified staff or customer sector. The field serves as an early indicator of economic fluctuations in the labour market and acts as an important economic buffer. Personnel services providers are affected by crises and subsequent upswings at an early stage.

Staffing services: a multidimensional range of services

The range of services offered by personnel service providers results in a diverse industry that supports its customers with various personnel solutions. In addition to temporary staffing and employment, which account for the highest average revenue by far, the industry also covers IT workforce and IT freelancers, permanent placement, perm and interim contracting and managed service providing (MSP). The industry (including the automotive industry) is the most important customer sector for personnel services, followed by transportation and logistics and retail.

Challenges: regulation, staff shortages and the maximum assignment period

Demographic changes and high demand for qualified staff pose major challenges to the industry. The significant pricing and profitability pressures in the market increase the pressure on companies to implement and maintain efficient processes. The industry is also characterised by rapid changes in increasing regulation and the effects of the Temporary Employment Act reform, causing uncertainty. Lünendonk has been studying the personnel services and temporary staffing market for over two decades. Our company also analyses the markets for IT freelancers and workforce and personnel placement. As a market observer, Lünendonk always has its finger on the pulse when it comes to contingent workforces, leadership advisory services, headhunting, contracting, interim management and HR consulting.