Adecco Competition
Now Viewing Adecco's competition in: Personnel Staffing Agencies (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What type of customers does the company serve? - Major end-use customers include businesses from a wide range of industries.
What percentage of revenue comes from the largest client? - Most personnel agencies are small and may depend highly on a few big customers for a large portion of revenue.
How does the company find new customers? - Marketing involves direct sales presentations, referrals from existing clients, and advertising.
How does the company find workers for customers? - Staffing companies identify potential employees through advertising and referrals, and the companies interview, test, and counsel workers before sending them to the customer for approval.
Does the company specialize in one industry? How does it mitigate exposure to cyclical trends in that industry? - Personnel agencies can provide multiple services, and performing well in one service can make them a candidate to provide others.
Competitive Landscape
Job growth drives demand for the personnel staffing industry. The profitability of individual companies depends on good marketing and availability of qualified employees. Large companies enjoy economies of scale in marketing and back-office operations. Small companies can compete successfully by specializing in an industry or a job function. The industry is labor-intensive: average annual revenue per worker is about $40,000.
Business Challenges
CRITICAL ISSUES
Revenue Depends on Employment Growth - The revenue of personnel agencies depends on the number of jobs they fill, which in turn depends on economic growth. During economic slowdowns, many client companies stop hiring altogether. In years of good economic growth, the number of jobs in the US economy grows 1 to 2 percent per year.
Competition from Internet Job Sites - Internet employment sites expand companies' ability to find workers without the help of traditional agencies. Personnel agencies often work as intermediaries, helping employers accurately describe job openings and screen candidates. Increasing the use of sophisticated, automated job description and candidate-screening tools could make many traditional functions of personnel agencies obsolete.
Industries Where Adecco Competes
- Business Services
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Staffing(primary)
- Executive Search
- Information Technology & Other Technology Staffing
- Consulting
- Human Resources & Staffing Consulting
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Staffing(primary)
