Annual Performance Survey

The Alliance tracks alternative staffing organizations’ annual performance data, including business and employment outcomes, to establish operational benchmarks and measure the sector’s aggregate impact.

Key Findings, 2011 Performance Survey

• Temporary staffing accounts for 84% of ASO revenue. Direct placements account for 6%, grants account for 8% and other business services accounts for 2%.
• Seventy five percent of ASOs cover at least 85% of their total operating costs with staffing revenue. 63% cover at least 95% of total operating costs with staffing revenue, making alternative staffing one of the most cost effective workforce development strategies.
• ASOs have a median gross margin of 22%. This compares to a gross margin of 24% for firms with less than $15 million in revenues in the conventional staffing industry. In the Industrial and Office-Clerical sectors, where ASO business is concentrated, conventional staffing firms report gross margins of 21% and 27%, respectively.
• ASO staffing revenues tend to be concentrated among a few large customers. 33% of respondents received 75% or more of their revenues from their top five customers, while an additional 25% received between 50% and 75% of revenues from their top five customers.
• Ex-offenders, low-income individuals, recovering drug users, people with disabilities, and people who are homeless are the key populations served by participating ASOs. 71% of participating ASOs listed ex-offenders as one of the top three populations they serve; 54% named low-income individuals/TANF recipients, 42% named recovering drug users, 42% named people with disabilities, and 25% named people who are at risk of homelessness.
• People served by ASOs are twice as likely as the employed population to lack a high school diploma. 16% of people served lack a high school diploma and only 31% have continued their education past high school.
• ASOs’ median wage rate was $9.70, a 9% decrease from the previous year. The median bill rate was $14.25, a 1% decrease from the previous year.
• The average duration of job assignments for people employed by ASOs was 28 days, down from 37 days in the previous year.
• Participating ASOs placed 10,041 individuals into competitive employment in 2011 and 1,842 people secured permanent employment while working for a participating ASO.
• 15% of employees in the average ASO secured permanent employment, down from 28% in the previous year’s survey.
• Job coaching and case management are the most common services ASOs offer to employees during and between assignments. 82% of ASOs offer job coaching, 50% offer case management, and 45% offer clothing, work shoes, or tools. While these percentages are lower than in previous years, a greater percentage of ASOs offer services between during and between assignments (92% v. 76%).

Download annual performance survey reports