Orange County employment agencies had solid revenue gains last year while placing essentially the same number of workers—a sign, they say, of an uptick in demand to find new workers for clients in their bread-and-butter businesses.
The same number of placed workers producing more revenue also is the result of a tight market.
The 21 largest employment agencies ranked by local revenue and with local offices—two-thirds of firms on the list are also based here—show about a 6% increase in revenue to $717 million.
The boost over last year’s $678 million came as companies placed 145 additional temporary workers combined to a total of 34,289—a 0.6% growth rate.
Placement of full-timers grew 39% from 300 to 416. The robust activity underscores what agency executives say is a salient feature of today’s local employment picture.
“This is a candidate-driven market,” said Adam Roth, chief executive of Roth Staffing Cos. LP. “Unemployment is falling, and finding qualified talent is our biggest challenge.”
Roth Staffing Cos. is No. 2 on the list, up one slot from last year, with $78 million in local revenue, up 30%. Companywide revenue was $360 million, up 10%. Its divisions provide finance, legal, engineering, and office and clerical workers.
Roth said the revenue increase also is based on another aspect of the current climate.
“Companies use us (more) as the market gets tighter because it requires more resources to find a person,” he said.
Harder Task
Other companies concur.
“Finding and recruiting candidates is harder,” said Walter Reece, president of TeamQuest Staffing Services Inc. in Santa Ana.
TeamQuest is No. 16 on the list, up two slots to about $12 million in local revenue, with about another $3 million coming from the agency’s Corona office.
Reece and co-owner Oscar Navarro place manufacturing, light industrial, and warehouse and fulfillment workers in groups typically ranging from 20 to 100 employees—the “small to midsized market,” Reece said.
He’s spending more money to find those workers.
“We have to be creative and work with all resources,” including an online job board, he said.
Agency executives say they’re facing their own financial and regulatory pressures, along with the added challenge of placing workers in the tight market. They said federal healthcare reform; changes in state mandates that involve parental and sick leave; and paying temporary employees for time they spend interviewing for new positions are driving up costs for the agencies.
Brian Wigdor, president of B2B Staffing Services Inc. in Cypress, named “government regulations and restrictions on small business” a key challenge for his company.
Move Quick
B2B—Ranked No. 18 with $7.4 million in local revenue, up 16%—places healthcare, retail, call center, information technology, and accounting employees.
Wigdor said he expects to get more demand this year for medical and clinical staffing, which includes placing pharmacy technicians and nurses.
“As baby boomers become senior citizens, healthcare is going to grow,” he said.
Seasonal demand is coming, too.
“We always get a peak from summer through Christmas,” said TeamQuest’s Reece.
Kimco Staffing Services Inc. in Irvine has been growing on the corporate side. The list’s No. 5 company took in $53.5 million in local revenue—one-third of its $154 million companywide revenue. Last year it merged Irvine-based Project Pro Search into its Advantex Professional Services division.
The companies—which place finance, accounting, IT and engineering workers—are part of The Megonigal Group of companies led by founder and Chief Executive Kim Megonigal.
Kimco President Lisa Pierson said growth is the industry watchword.
“We are seeing candidates moving quicker in this labor market than I have seen in my 20 years in this industry,” she said. She counsels companies “to move quickly on [potential employees], or they will be gone.”
