I checked the margin rate published by a staffing agency in Aichi Prefecture
In order for workers to be able to choose a more appropriate dispatching company, dispatching companies are obliged to disclose information on their efforts regarding margin rates and education and training. In other words, a temporary worker dispatch business operator that has obtained a worker dispatch business license is basically obliged to disclose the margin rate, etc., and if you check it, you should be able to see the situation of temporary staffing to some extent. Here, we investigated dispatch companies that have offices in Aichi Prefecture, and investigated the average dispatch fees, average wages, and margin rates published on the website of the Ministry of Health, Labor and Welfare and the websites of each company.
The reason why we chose Aichi Prefecture as the target area is because our company, Tamatsu Lab, operates in Aichi Prefecture, so we decided to investigate the local situation first.
When I tried it, it was quite difficult. There are more than 3,500 temporary staffing agencies in Aichi Prefecture, and the method of announcing the margin rate varies from company to company, so it took a lot of time and effort to collect data one by one. There are some vendors who post in easy-to-see places on their homepages, and there are also websites where it is difficult to find the margin rate even if you search. Not to mention the margin rate, some of them can't find the homepage...
In addition, on the website of the business operator, there were cases where it was written that "the margin rate can be viewed at the office" or "Please contact us by phone or email". In this survey, we used only information published on the Internet, and did not bother to visit the offices of dispatch companies or make individual inquiries. In addition, cases where the margin rate is 0 because there is no dispatch record, or where only the margin rate is disclosed and the dispatch fee, hourly wage, etc. are not displayed on the homepage, were excluded from the study data.
After collecting information little by little every day, I have collected more than 1200 valid data, so I would like to consider it based on it.
Distribution of Average Hourly Wages and Margin Rates of Workers at Temporary Staffing Agencies
The distribution of the entire data is shown in Figure 1. Average hourly wages and margin rates vary depending on the operator, but you can see that the data is concentrated around 1,300 to 1,400 hourly wages and margin rates of around 30%. It is thought that in densely populated areas, competition is fierce and margins tend to be low.
Looking at the average hourly wage and the number of businesses in Figure 2, it can be seen that the number of businesses with 1000 to 1500 is the most, and the number of businesses decreases as the average hourly wage increases. Also, looking at Fig. 3, the majority of businesses have a margin rate of 30 to 40%, but there are also a considerable number of businesses with a margin rate of 20 to 30%.
Comparison between “excellent temporary staffing agencies” and the whole
"Excellent temporary staffing agencies" not only comply with laws and regulations, but also meet certain standards regarding career advancement of temporary workers, ensuring a good working environment, and efforts to prevent troubles at dispatched companies. A company that has been certified as You can also check the companies certified as "excellent dispatch companies" from the website of the Ministry of Health, Labor and Welfare.
More than 100 pieces of data were collected from excellent dispatch companies. As expected, most of the businesses published the margin rate in an easy-to-find place on the homepage. Approximately 8.6% of the valid data is from excellent temporary staffing agencies.
Figures 4 to 6 show the data distribution of excellent temporary staffing agencies.
I noticed the following three things by comparing the graphs of the excellent temporary staffing companies and the overall companies.
(1) Data is not dense at around 1,300 to 1,400 hourly wages and a margin rate of around 30%
(2) Businesses with an average hourly wage of 1,500 to 2,000 are the most common
(3) Not many excellent temporary staffing companies have a relatively low margin rate of 20-30% (relatively less likely to be involved in low-margin competition that cuts profits)
For people who work as temporary workers
There are three things I would like to convey to people who work as temporary workers, based on my impressions from this survey.
(1) When choosing a dispatch company, research thoroughly on the Internet and compare "data" (avoid companies that do not disclose data)
(2) Find out more about the skills you want to develop and the support of dispatch companies for career development
(3) If possible, choose a excellent temporary staffing company
For temporary staffing companies
Also, from the results of this survey, I have three things to say for staffing companies.
(1) If you don't want to be exposed to severe competition, create a feature that sets you apart from other companies, and be proactive in disseminating information and improving your company's reputation.
(2) Try to reduce expenses such as administrative costs so that you can make a profit even with a low margin
(3) If possible, aim for an excellent dispatch company
Summary
This is the summary of this survey.
・ It turned out that there are still quite a few businesses who are not positive about disclosing margin rates, etc. on their websites. On the other hand, there are also businesses that are actively using the Internet to disseminate information and are highly rated. This gap is likely to widen in the future.
・The "data-intense area" with an hourly wage of around 1300-1400 and a margin rate of around 30% is probably considered a red ocean in the temporary staffing industry (an area where there is a lot of competition and it is difficult to make a profit due to intense competition). Equal pay for equal work and further revisions to the Dispatch Law are expected to continue to increase the severity of the dispatch business. In particular, business operators in this area will become more and more difficult in the future.
・By becoming an excellent temporary staffing agency, you can expect to gain brand power to a certain extent and have the effect of differentiating yourself from other companies. In particular, it is effective to aim for excellent temporary staffing agencies in order to escape from the "data-intense area" that seems to be the red ocean area. However, it cannot be said that there is a decisive difference in the overall margin rate.
*If you have any questions regarding the data and evaluation of this survey, please contact Tamatsu Lab.
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