Staffing firms and the financial impact of Covid-19

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Staffing Industry Analysts (SIA), the Global Advisor on Staffing and Workforce Solutions, reports on the effect of the Covid-19 virus on staffing firms:

Member staffing firms of the Affiliated Staffing Group, an industry network group of noncompeting staffing firms, recently met regarding the Covid-19 pandemic. The 27 member firms reported drops in weekly business revenue of between 8% and 40% amid the crisis, said Roy Fazio, chairperson of ASGroup.

They were among many staffing firms reviewing the financial impact of Covid-19. For example, ManpowerGroup Inc. (NYSE: MAN) previously announced it was withdrawing guidance for the first quarter based on the Covid-19 pandemic. Groupe Crit, a French-based staffing firm with operations in the US, said in an earnings announcement this week that the total impact of Covid-19 on operations is still uncertain but there was a significant drop in business activity in March.

ASGroup’s membership ranges in size from $10 million in annual revenue to $350 million. Staffing segments served include light industrial, construction/technical and others.

Layoffs of internal staff in the ASGroup ranged from none to 33%. In some cases, the members’ owners took salary cuts and salaries were lowered for internal staffing workers. The decreases ranged from 33% for those in leadership positions to 10% for other internal workers.

Fazio is also co-owner of The Protocall Group, a staffing firm headquartered in Cherry Hill, New Jersey.

“At Protocall Group we have focused our efforts on ‘essential employers’ and have only been down about 8% but anticipate drops in revenue up to 20% and unsure at this time where it will bottom out,” Fazio wrote. “The challenge in healthcare is to get the [personal protective equipment] for employees and in [light industrial] to assure workers are safe at work.”

Separately, in an announcement, staffing firm Express Employment Professionals focused on how stay-at-home orders and possible quarantines have hourly workers especially worried…

Read the full story at Staffing firms and the financial impact of Covid-19

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