Covid-19 loomed large in 2021 as it had the previous year despite the introduction of vaccines, impacting staffing and all other industries. The delta variant — first identified in 2020 — also spread in 2021 and the recent omicron variant appears poised to begin another surge of infections.
Also affecting the staffing industry, the Sixth Circuit recently dissolved a stay of a mandate that requires employers with 100 or more employees to either require the workers be vaccinated or be tested for Covid-19 weekly. Staffing firms and other businesses have raised concerns about the requirement, and opponents are taking their concerns to the US Supreme Court.
2021 also got off to a rough start with the storming of the US Capitol on Jan. 6, which drew responses from several business groups. 2021 saw other challenges as well, including supply chain issues, large numbers of employees quitting and inflation.
Focusing on the staffing industry, here are some of the top stories of 2021:
Travel nurses
Travel nurses made headlines in 2021. Staffing Industry Analysts estimates travel nurse staffing revenue will increase 40% in 2021 amid surging demand. And the travel nurse was selected as the Person of the Year in 2021 by Staffing Industry Review magazine.
Crisis bill rates for travel nurses also surged with concerns being raised in some corners. And the bill rates became a topic of discussion at the 2021 Healthcare Staffing Summit.
Mergers and acquisitions
Merger and acquisition activity continued throughout the year and included the buying and selling of large staffing systems, VMS providers and others.
Some of the year’s biggest deals included:
- IT staffing firm Digital Intelligence Systems LLC acquired Signature Consultants in a deal that would create an $860 million IT staffing firm.
- Apollo Global Management Inc. acquired EmployBridge, which ranked as the largest industrial staffing firm in the US. The deal closed in July. EmployBridge later acquired Hire Dynamics, which ranked as the 23rd-largest industrial staffing firm.
- Private equity firm EQT acquired MSP and VMS provider PRO Unlimited, which made several acquisitions of its own this year, including Workforce Logiq.
- Software firm Workday Inc. agreed to buy VMS provider VNDLY in a $510 million deal.
- ASGN Inc. (NYSE: ASGN) sold its Oxford Global Resources business to H.I.G. Capital.
- Engineering staffing providers Airswift and Competentia announced plans to merge in June.
Diversity, equity and inclusion
Diversity, equity and inclusion continued to be front and center in 2021, and this year SIA released its inaugural “Diversity, Equity and Inclusion Influencers – US and Canada” list.
Separately, research found that more work needs to be done in terms of DE&I, with women comprising less than 20% of executive roles in in the staffing industry.
Industry takes heat
The staffing industry took heat in some corners based on several alleged concerns. In one instance, the government of Mexico banned staffing — or outsourcing, as it is known in that country.
In addition, a union at Google is working to make changes and is also working with contingent workers to help represent them.
More change is coming
The omicron variant is causing more change and concern, and the Philadelphia Federal Reserve’s Survey of Professional Forecasters recently lowered GDP and job estimates for the first half of 2022. However, it continued to point to growth in both.
For now, we will have to wait and see what 2022 brings.