Kelly Services, Inc. (KELYB): Business Model Canvas [11-2024 Updated]

In the competitive landscape of staffing and recruitment, Kelly Services, Inc. (KELYB) stands out with its innovative business model that effectively addresses the diverse needs of its clients. By leveraging key partnerships and a robust service delivery framework, Kelly Services not only provides tailored staffing solutions but also positions itself as a trusted advisor in talent management. Discover how their business model canvas reveals the intricate layers of their operations and value propositions that drive success in this dynamic industry.

Kelly Services, Inc. (KELYB) - Business Model: Key Partnerships

Collaborations with staffing agencies

Kelly Services collaborates with various staffing agencies to enhance its service offerings and expand its market reach. These partnerships allow for resource sharing and improved access to talent pools. In 2024, Kelly Services reported a revenue from services of $1,038.1 million in the third quarter, demonstrating a 7.1% decline compared to $1,118.0 million in the same quarter of 2023, largely due to the sale of their EMEA staffing operations.

Partnerships with educational institutions

Kelly Services has established partnerships with educational institutions to facilitate workforce development programs. These collaborations aim to align educational outcomes with industry needs, providing students with opportunities for internships and job placements. The Education segment reported revenue of $142.1 million for the third quarter of 2024, up from $128.1 million in the same period in 2023.

Alliances with technology vendors

Strategic alliances with technology vendors are crucial for Kelly Services to enhance its operational efficiencies. In 2024, the company completed the acquisition of Motion Recruitment Partners, LLC (MRP), strengthening its technological capabilities in staffing and consulting solutions across various sectors. This acquisition added $124.6 million in revenue and $2.3 million in net earnings to Kelly Services in the third quarter of 2024.

Relationships with government contractors

Kelly Services maintains relationships with government contractors to secure contracts for staffing services across various governmental departments. These partnerships mitigate risks and provide steady revenue streams. The company’s total liabilities and stockholders’ equity stood at $2,688.9 million as of the third quarter of 2024, reflecting its financial stability in engaging with government contracts.

Partnership Type	Details	Impact on Revenue (Q3 2024)
Staffing Agencies	Collaborations to expand talent pool and market reach.	$1,038.1 million
Educational Institutions	Programs aligning education with industry needs.	$142.1 million
Technology Vendors	Acquisition of MRP to enhance tech capabilities.	$124.6 million
Government Contractors	Securing contracts for staffing services.	Revenue stability

Kelly Services, Inc. (KELYB) - Business Model: Key Activities

Talent sourcing and recruitment

Kelly Services engages in talent sourcing and recruitment as a fundamental activity. This process includes identifying, screening, and hiring candidates for various roles across multiple industries. In 2024, the Professional & Industrial segment reported revenue of $1,086.5 million, a decrease of 7.3% from $1,171.4 million in 2023, largely attributed to a decline in staffing services revenue due to lower hours volume.

Service delivery through staffing solutions

The company delivers staffing solutions through its specialized divisions. The Science, Engineering & Technology segment saw significant growth, with revenue increasing by 13.6% year-to-date to $1,026.7 million, compared to $903.5 million in 2023. This growth was bolstered by the acquisition of MRP, which contributed $164.6 million to revenues.

Segment	2024 Revenue (in millions)	2023 Revenue (in millions)	% Change
Professional & Industrial	1,086.5	1,171.4	-7.3%
Science, Engineering & Technology	1,026.7	903.5	13.6%
Education	683.1	583.9	17.0%
Outsourcing & Consulting	346.0	342.4	1.1%

Consulting and advisory services

Kelly Services also provides consulting and advisory services, focusing on workforce solutions and organizational effectiveness. The Outsourcing & Consulting segment generated $346.0 million in revenue for the first nine months of 2024, reflecting a slight increase of 1.1% from $342.4 million in 2023.

Continuous market analysis and strategy development

Continuous market analysis is integral to Kelly Services' operations, enabling the company to adapt its strategies based on current trends. In the first nine months of 2024, total SG&A expenses decreased by 14.6% to $601.0 million from $703.8 million in the previous year, primarily due to the sale of EMEA staffing operations and lower employee-related costs.

Year	SG&A Expenses (in millions)	% Change
2024	601.0	-14.6%
2023	703.8

Kelly Services, Inc. (KELYB) - Business Model: Key Resources

Skilled workforce and talent pool

The core asset of Kelly Services, Inc. is its highly skilled workforce. The company maintains a talent pool across various sectors, including Professional & Industrial, Science, Engineering & Technology, Education, and Outsourcing & Consulting. As of September 2024, the company reported total revenues from services of $1,038.1 million, with significant contributions from its diverse segments:

Segment	Revenue (Q3 2024, in $ millions)	Year-to-Date Revenue (2024, in $ millions)
Professional & Industrial	370.4	1,086.5
Science, Engineering & Technology	405.2	1,026.7
Education	142.1	683.1
Outsourcing & Consulting	121.0	346.0
International	—	—

This skilled workforce is crucial for delivering quality staffing solutions and supporting clients’ operational needs, contributing to the company’s competitive advantage in the staffing industry.

Proprietary technology platforms

Kelly Services invests in proprietary technology platforms that enhance its operational efficiency and service delivery. The company has implemented advanced systems to streamline recruitment processes, manage talent pools, and facilitate client interactions. The integration of technology allows Kelly to quickly adapt to market changes and meet client demands effectively.

Strong brand reputation

Kelly Services has built a strong brand reputation over its decades of operation. This reputation is supported by its commitment to quality service, ethical business practices, and client satisfaction. The company’s strong brand equity is reflected in its ability to attract top talent and retain long-term clients, which is evidenced by its revenue performance. The reported net earnings for the first nine months of 2024 were $31.2 million, up from $25.0 million in the same period of 2023, illustrating the effectiveness of its brand strategy in driving profitability.

Financial resources for acquisitions

Kelly Services has strategically utilized its financial resources to enhance its market position through acquisitions. In 2024, the company completed the acquisition of Motion Recruitment Partners, LLC (MRP) for approximately $444.8 million, which is expected to strengthen its capabilities in staffing and consulting solutions across technology and telecommunications. The acquisition is projected to enhance revenue streams and operational synergies, contributing to Kelly's growth strategy. The company reported cash and equivalents of $32.8 million as of September 2024, down from $125.8 million at year-end 2023, indicating active investment in growth opportunities.

Kelly Services, Inc. (KELYB) - Business Model: Value Propositions

Customized staffing solutions for diverse industries

Kelly Services offers tailored staffing solutions across various sectors, including Professional & Industrial, Science, Engineering & Technology, Education, and Outsourcing & Consulting. As of the third quarter of 2024, the revenue from services in these segments was as follows:

Segment	Revenue (Q3 2024, in millions)	Revenue (Q3 2023, in millions)	Year-over-Year Change (%)
Professional & Industrial	$370.4	$378.0	(2.0)
Science, Engineering & Technology	$405.2	$295.7	37.1
Education	$142.1	$128.1	10.9
Outsourcing & Consulting	$121.0	$114.1	6.0
International	$0.0	$203.0	(100.0)

High-quality talent matching and placement

Kelly Services emphasizes high-quality talent matching through a comprehensive evaluation process. The company’s revenue from permanent placements saw a substantial decline of 30.8% in Q3 2024 compared to the previous year, indicating challenges in market demand for permanent placements, which totaled $2.6 million in Q3 2024 versus $3.4 million in Q3 2023 .

Enhanced client service through local delivery models

Kelly Services adopts local delivery models to enhance client services, allowing for personalized attention and responsiveness to client needs. This strategy has contributed to revenue growth in certain segments, particularly in the Education sector, which reported a 10.9% increase in revenue year-over-year . The company’s focus on local talent and customer relationships is reflected in the steady demand for staffing services, despite overall market fluctuations.

Comprehensive outsourcing and consulting services

Kelly Services provides extensive outsourcing and consulting services, which have shown resilience amid industry challenges. The Outsourcing & Consulting segment achieved a revenue increase of 6.0% in Q3 2024, reflecting effective service delivery and client retention strategies . The total revenue from this segment was $121.0 million in Q3 2024 compared to $114.1 million in Q3 2023.

Overall, Kelly Services continues to adapt its value propositions to meet changing market demands, focusing on customized solutions, quality talent matching, enhanced service delivery, and comprehensive outsourcing capabilities to maintain competitive advantages.

Kelly Services, Inc. (KELYB) - Business Model: Customer Relationships

Long-term partnerships with clients

Kelly Services emphasizes establishing long-term partnerships with its clients to foster loyalty and repeat business. This strategy is reflected in the company's revenue streams, which include a significant portion from long-term contracts. In the first nine months of 2024, the revenue from services was $3.14 billion, down from $3.60 billion in the same period of 2023, indicating a focus on maintaining existing client relationships despite market fluctuations.

Personalized customer service approach

The company adopts a personalized customer service approach to cater to the diverse needs of its clients. Kelly Services has enhanced its local delivery model and launched the Kelly Now mobile application to improve accessibility and communication with clients. This focus on personalized service is critical, especially as the company reported a gross profit rate increase to 21.4% in the third quarter of 2024, up from 20.4% in the same quarter of 2023.

Regular feedback loops for service improvement

Kelly Services implements regular feedback loops to gather insights from clients and improve service quality. This practice is vital in adapting to client needs and market changes. The company has reported a decrease in SG&A expenses by 14.6% year-over-year in the first nine months of 2024, indicating efficient resource management influenced by client feedback.

Dedicated account management

Dedicated account management is a cornerstone of Kelly Services' strategy to strengthen customer relationships. The company ensures that clients have access to specialized account managers who understand their unique needs and can provide tailored solutions. This strategy has contributed to a year-to-date net earnings of $31.2 million in 2024, compared to $25.0 million in the same period of 2023.

Customer Relationship Strategy	2024 Performance Metrics	2023 Performance Metrics
Revenue from Services	$3.14 billion	$3.60 billion
Gross Profit Rate	21.4%	20.4%
SG&A Expenses	Decreased by 14.6%	—
Net Earnings	$31.2 million	$25.0 million

Kelly Services, Inc. (KELYB) - Business Model: Channels

Direct sales force for enterprise clients

The direct sales force of Kelly Services primarily targets large enterprise clients, facilitating customized staffing solutions. In the first nine months of 2024, the Professional & Industrial segment generated revenue of $1,086.5 million, down from $1,171.4 million in the same period of 2023, reflecting a 7.3% decline. The company reported a profit of $23.0 million for this segment during the first nine months of 2024, significantly higher than the $7.7 million reported in the same period of the previous year.

Online platforms for job seekers and employers

Kelly Services has developed robust online platforms that connect job seekers with employers. These platforms are critical in the recruitment process, enabling efficient job matching. Revenue from the Science, Engineering & Technology segment rose to $1,026.7 million for the first nine months of 2024, up from $903.5 million in the previous year, marking a 13.6% increase. The company has also integrated functionalities that enhance user experience on these platforms, driving engagement and increasing the volume of job placements.

Networking events and job fairs

Networking events and job fairs are pivotal channels for Kelly Services, allowing face-to-face interaction with potential candidates and clients. Participation in these events has helped the company maintain visibility in a competitive market. The Education segment reported a profit of $27.5 million for the first nine months of 2024, compared to $22.2 million a year ago, indicating a robust strategy in engaging with educational institutions and potential talent pools.

Strategic marketing campaigns targeting key sectors

Kelly Services employs strategic marketing campaigns aimed at key sectors such as technology, engineering, and education. Total SG&A expenses for the first nine months of 2024 decreased by 14.6% to $563.8 million, primarily due to the sale of its EMEA staffing operations and effective cost management strategies. The company recognized a gain of $1.6 million from the sale of its EMEA staffing operations, which reflects the effectiveness of its strategic initiatives.

Channel Type	Revenue (2024)	Revenue (2023)	Change (%)	Profit (2024)	Profit (2023)
Direct Sales Force	$1,086.5 million	$1,171.4 million	-7.3%	$23.0 million	$7.7 million
Online Platforms	$1,026.7 million	$903.5 million	+13.6%	$67.7 million	$57.1 million
Networking Events	N/A	N/A	N/A	$27.5 million	$22.2 million
Marketing Campaigns	N/A	N/A	N/A	N/A	N/A

Kelly Services, Inc. (KELYB) - Business Model: Customer Segments

Large enterprises across various sectors

Kelly Services serves large enterprises by providing staffing solutions tailored to specific industry needs. In 2024, the Professional & Industrial segment generated revenue of $1,086.5 million, while the Science, Engineering & Technology segment reported $1,026.7 million in revenue. The Education segment also showed significant revenue of $683.1 million. The company focuses on enhancing service delivery through a comprehensive approach that captures a larger share of the wallet from these large clients.

Small to medium-sized businesses

Kelly Services actively targets small to medium-sized businesses (SMBs) by offering flexible staffing solutions that cater to their unique operational challenges. As of 2024, SMBs contributed to the overall revenue, particularly within the Professional & Industrial segment, where revenue from staffing services was reported at $708.0 million. The tailored services for SMBs are designed to enhance operational efficiency while managing costs effectively.

Educational institutions seeking staffing solutions

Kelly Services has developed a robust offering for educational institutions, providing staffing solutions that meet the needs of schools and universities. In 2024, the Education segment generated $683.1 million in revenue. The increasing demand for specialized educational staff has led to a 10.9% year-over-year revenue increase in this segment. This growth reflects the company's commitment to supporting educational institutions in meeting their staffing needs.

Government agencies and contractors

Kelly Services has positioned itself to serve government agencies and contractors by offering staffing solutions that comply with regulatory requirements. This segment remains critical as government contracts often require specialized talent. In 2024, the Outsourcing & Consulting segment, which includes services for government agencies, reported revenues of $346.0 million. The company continues to enhance its capabilities in this area, aligning its services with the specific needs of government contracts and agencies.

Customer Segment	2024 Revenue (in millions)	Year-Over-Year Growth
Professional & Industrial	$1,086.5	-7.3%
Science, Engineering & Technology	$1,026.7	13.6%
Education	$683.1	17.0%
Outsourcing & Consulting	$346.0	1.1%

Kelly Services, Inc. (KELYB) - Business Model: Cost Structure

Employee compensation and benefits

In the first nine months of 2024, Kelly Services, Inc. incurred total employee compensation and benefits expenses amounting to $601.0 million, compared to $703.8 million in the same period of 2023, reflecting a decrease of 14.6%. This reduction is attributed to strategic cost management initiatives and a decline in temporary employee payroll expenses due to lower revenue volumes.

Technology and infrastructure investments

Kelly Services has made significant investments in technology and infrastructure, totaling approximately $14.5 million in depreciation and amortization for the first nine months of 2024. The company has also allocated $10.3 million for transaction-related costs associated with the sale of its EMEA staffing operations and the acquisition of MRP, highlighting its commitment to integrating advanced technologies and enhancing operational efficiencies.

Marketing and sales expenses

Marketing and sales expenses for Kelly Services in the first nine months of 2024 reached $204.5 million, a decrease of 6.4% from $218.4 million in the same period of 2023. This decline reflects the company's focus on optimizing its marketing strategies and reducing overall costs in response to changing market conditions.

Operational costs for service delivery

Operational costs for service delivery, which include general and administrative expenses, accounted for $219.0 million in total SG&A expenses for the third quarter of 2024. This figure represents a 4.1% decrease compared to $228.4 million during the same period in 2023. The decrease is primarily due to the company's ongoing transformation initiatives, which have resulted in lower employee-related costs and improved resource management.

Cost Category	Q3 2024 (in millions)	Q3 2023 (in millions)	Change (%)
Employee Compensation and Benefits	601.0	703.8	-14.6
Technology and Infrastructure Investments	14.5	10.0	45.0
Marketing and Sales Expenses	204.5	218.4	-6.4
Operational Costs for Service Delivery	219.0	228.4	-4.1

In summary, Kelly Services' cost structure reflects a strategic focus on reducing overall expenses while investing in critical areas such as technology and infrastructure to enhance operational efficiency. The continuous decrease in SG&A expenses indicates effective cost management strategies amidst fluctuating revenue conditions.

Kelly Services, Inc. (KELYB) - Business Model: Revenue Streams

Staffing and recruitment fees

In the first nine months of 2024, Kelly Services reported revenue from staffing services at $1,086.5 million, down from $1,171.4 million in the same period of 2023, reflecting a decrease of 7.3%. This decline was attributed to lower hours volume, partially offset by higher bill rates.

Consulting and advisory service charges

Revenue from Outsourcing & Consulting services reached $346.0 million in the first nine months of 2024, slightly up from $342.4 million in 2023, marking an increase of 1.1%. The growth was driven by increased demand in Professional Employer Organization (PEO) services.

Outcome-based service agreements

Revenue from outcome-based services decreased by 5.1% year-over-year. The total revenue from these services was flat year-over-year in the third quarter of 2024. Despite the decline, the overall demand for these solutions remains significant, reflecting a shift in client preferences towards performance-based payment structures.

Permanent placement fees and commissions

Permanent placement revenue saw a substantial decline, falling 28.5% year-over-year to approximately $106.1 million for the first nine months of 2024, down from $148.5 million in the same period of 2023. This decrease is attributed to continued lower market demand and reflects a broader trend impacting the recruitment industry.

Revenue Stream	2024 Revenue (in millions)	2023 Revenue (in millions)	% Change
Staffing and Recruitment Fees	1,086.5	1,171.4	-7.3%
Consulting and Advisory Services	346.0	342.4	+1.1%
Outcome-Based Services	Flat	Flat	N/A
Permanent Placement Fees	106.1	148.5	-28.5%

Updated on 16 Nov 2024

Resources:

1. Kelly Services, Inc. (KELYB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kelly Services, Inc. (KELYB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Kelly Services, Inc. (KELYB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.