The temping market in France: from crisis to growth thanks to digital?
What are the new challenges facing the temporary employment market in France in recent years? And how can you maintain your competitive edge as an employment agency?
Whether you're the head of a temporary employment agency or of a temporary employment network, are you looking for a better understanding of what digital temping represents?
Here's an overview of this fast-changing sector, and some ideas on how to meet the emerging challenges of digital temping!
Overview of the temping market in France in 2019 and 2020
5 key figures
According to the work of DARES (December 2019 data), here's a global overview of the temporary employment market in France:
- 10,273 employment agencies
- 30,400 permanent employees
- 2,749,650 temporary employees
- 21,212,425 contracts signed
- 47,934 temporary permanent contracts
Source: Observatoire de l'intérim et du recrutement (OIT)
Breakdown of temporary work by region and business sector
By region
Temporary employment agencies are concentrated in 4 regions:
- Auvergne-Rhône-Alpes,
- Île-de-France,
- Nouvelle-Aquitaine,
- PACA.
By business sector
Temporary work is mainly concentrated in the following sectors :
- construction,
- industry
- transport
- and services.
The players in the temping business: what market share?
France's three leading temporary employment agencies, Adecco, Manpower and Randstad, together account for more than half of the temporary employment market, with 60% of the volume of work carried out.
Their strengths include :
- investing heavily in staff training,
- using specialized consultants,
- diversifying their offerings to bring greater value to companies.
However, this dominance is tending to decline. Indeed, the digital transformation of the recruitment world is changing the game and opening the door to emerging players, such as 100% digital temping platforms, which are beginning to conquer the market.
The impact of the crisis and the outlook for the post-crisis period
A year of ups and downs in 2020
Like many economic sectors, the health crisis of 2020 had a major impact on the temporary employment market:
- during the first containment period, a 54.3% drop was recorded between February and April 2020 ;
- when economic activity picked up, temporary employment rose again for 6 months;
- following the second containment in November 2020, a further fall is recorded, with the number of temporary workers at 89% of the February 2020 level, before the effects of the crisis.
According to November 2020 figures, temporary work has suffered a 14.5% drop compared to November 2019. Most sectors are negatively impacted, including :
- industry,
- construction
- services
- trade.
The only sector to see an upturn is transport (Source: Prismemploi.eu).
Signs of recovery in 2021?
While the figures for early 2021 are still tentative, forecasts for a gradual recovery in activity are optimistic.
Indeed, companies have been through some difficult times, and may be adapting their hiring practices to cope with fluctuating demand and limit risks.
Lacking visibility in an increasingly uncertain economic climate, they may turn to temporary recruitment for greater flexibility.
The temping sector, which is in the midst of a major transition with the rise of digital practices, could benefit from this and find its way back to growth.
Towards the temping industry of tomorrow
New challenges for temporary workers
In order to remain competitive, temporary employment agencies are faced with new challenges:
- guaranteeing better protection for employees,
- easier access to training,
- greater emphasis on accessibility,
- accelerating the adoption of digital tools,
- changes in the behavior of temporary workers, who are more mobile, etc.
This reflects a transformation of the employment market that has been accelerating since the onset of the crisis. And its players still have some interesting cards to play to ensure their transition.
[Focus] The digital temping market
Still relatively undeveloped, the digital temping market has the wind in its sails and could well see its role grow in importance over the next few years.
In addition to digital pure players, 1% of companies now digitalize 100% of their processes, from recruitment to administrative management. More and more companies are taking part in the digital transformation of the temporary employment sector, integrating new technologies into their strategy.
According to some forecasts, 10% of the temping market could be digitalized by 2025, which would correspond to more than 400,000 people having completed a temping assignment over the course of a year (Source: Xerfi).
Success factors for a temporary employment agency in 2021
To adapt to changes in the sector, remember to :
- remain attractive to both temps and user companies, by working on your brand image;
- build loyalty among your temps and reduce staff turnover;
- empower your staff;
- reduce the amount of time spent on administrative tasks, freeing up for higher value-added tasks such as consulting, training and human contact, etc.
So where do you start? Equip yourself with a specialized temping tool and optimize all your temping agencies' activities and processes. For example, the Troops full web platform is designed to meet your needs and simplify your day-to-day operations. As an added bonus, a dedicated consultant will help you define your strategy.
Are you ready to make the transition to digitalization? Find out more when choosing your tools: there are tailor-made offers to help you transform your business practices!
Article translated from French