29 November 2023
Amid turbulent times in the staffing industry, successful companies will be the ones that have the talent. However, that talent might not all be human, according to John Nurthen, Staffing Industry Analysts’ executive director of global research.
There will be six key topics of turbulence in coming years including technology, the economy, demographics, regulation, geopolitics and the green transition, according to Nurthen who gave the opening keynote address ‘Successful Strategies for Turbulent Times’ at SIA’s Executive Forum Europe conference in London.
Nurthen also highlighted weaknesses that will hold back the staffing ecosystem. For one, the low numbers of women in the audience suggested a “failure across the industry.” Only 30% of the people in attendance were women, he said, adding that more female leaders could help improve the industry overall.
The six topics of turbulence include:
1. Technology
When it comes to emerging technologies, AI, cloud computing, communications and other disruptive tech are set to impact staffing services.
Software-as-a-Service (SaaS), which is part of cloud computing, is expected to have a “very high” impact on staffing services, Nurthen said. Other disruptive tech such as blockchain and quantum computing are also in line to upend the staffing ecosystem.
“Without cloud computing, the staffing business would’ve keeled over and died during the pandemic,” Nurthen said. “We don’t have keynote speakers about cloud computing, but it’s hard to underestimate how important it is.”
Other technology to watch includes 6G and the Internet of Things.
“6G is around the corner. It’s going to improve everything. There will be huge benefits from that,” Nurthen added.
On the Internet of Things, Nurthen said one way it could be relevant is if companies tagged temporary workers to better track their work on a minute-by-minute basis. There could be health and safety benefits, Nurthen said, but added that workers and employers alike may be concerned about the privacy implications of such usage.
The emergence of multi-platforms and the growth of healthcare staffing firms are also trends to watch out for.
2. Economy
GDP growth will likely be soft going into 2024 and 2025. Across several markets, job vacancies softened in 2023. In terms of staffing market growth projections, the forecast across North America and most European countries is also set to be “limp.” However, APAC is set for strong growth, particularly in China and India.
Overall, Finland is the most attractive staffing market, according to 2022 data.
3. Demographics
Nurthen added that demographics are favourable as clients will be more reliant on firms. Furthermore, closing the gender pay gap would improve GDP and create millions more jobs.
Key trends in post-pandemic labour markets include a decline in manufacturing, AI disruption, remote work, increasing female participation, migrant restrictions, ageing populations, rise in self-employment and a rise in contingent work.
4. Regulation
While regulation will always have an impact on the industry, upcoming global legal trends include AI and privacy regulation, protection for platform workers, temporary staff and casual labour. Furthermore, flexible working and extension of paid leave types, DE&I legislation coverage and pay transparency law expansion are also key trends. Another thing to watch for in the ESG category is supply chain due diligence and whistleblowing
5. Geopolitics
Geopolitical risks include ongoing wars and elections which will have an impact on GDP and the staffing industry. Energy security, cyberattacks, climate risk and US-China relations are highly likely to impact the industry.
6. Green Transition
Staffing firms are taking gradual steps to support environmental goals. These steps include improving energy efficiency, tracking carbon emissions and more.
Meanwhile, among the world’s largest privately-owned staffing firms, most do not have an ESG policy on their website.
Trends to keep an eye on for next year include global legal changes, AI and privacy concerns, platform worker protections, flexible working and paid leave regulations, DE&I legislation, pay transparency law expansions and ESG supply chain due diligence and whistleblowing.
SIA’s Executive Forum Europe 2023 conference continues this week through Thursday.
