Human Resources & Staffing Services Market Update: M&A Rebounds in 2021

Favorable Labor Market Conditions Drive Human Resources and Staffing Demand

Capstone Partners released its November 2021 Human Resources & Staffing Services Industry Update, reporting that the rising number of requisitions combined with entry level workforce shortages has created a labor gap, providing substantial growth opportunities for human resources (HR) and staffing services providers. The rebounding U.S. Labor market coupled with expiring COVID-19 relief programs further necessitated HR and staffing services as sidelined employees re-entered the workforce.

Although the initial shift to remote work was government mandated, organizations witnessed the benefits of outsourced remote staff through improved employee productivity levels and reduced operational and real estate expenditures, driving demand in the Remote Staffing segment. For additional insight into the Outsourced Remote Staffing segment, Capstone spoke with Patrick Linton, Founder & CEO of Bolton Remote, in an exclusive interview to discuss its business operations and how the Outsourcing industry has evolved.

Also included in this report:

• How public players have diversified services to capture a larger portion of the addressable market
• Why merger and acquisition (M&A) activity has rebounded in 2021 and which end markets are driving the recovery
• A breakdown of recent transactions and key differentiators that targets have exhibited to garner premium valuations