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One company has workstations equipped with treadmills to help keep internal staff energized. At another firm, it's the 100 different little things it does that set it apart.
Whatever the recipe, the number of staffing firms posting 2003-2007 annual revenue growth of more than 25% soared in 2007. Notably, more than half provided information technology staffing.
A total of 61 companies made this year's list of fastest-growing staffing firms, also known as The 25% Club. That's up from 47 last year.
The median compound average annual growth rate for the firms was 42.6%.
To make the final cut, companies had to have a compound annual growth rate of more than 25% between 2003 and 2007, adjusted for acquisitions. Companies also had to be privately held, U.S.-headquartered and independently owned. In addition, they had to have sales of at least $1 million in 2003.
Populus Group LLC, based in Southfield MI, ranked as the fastest-growing firm on this year's list. It's the company's first time in The 25% Club.
The fastest-growing firms are headquartered in all parts of the United States and operate in many staffing sectors. Massachusetts had the most firms – seven – on the fastest-growing list. Texas came next with six, and Georgia and Florida had five each.
More than half of the fastest-growing, 57%, provide information technology staffing.
In addition, more than 44% of the companies on the list provide office/clerical staffing, and 29.5% provide healthcare staffing, which includes healthcare information management.
Fewer than 20% of firms provide industrial staffing. That's down from last year's list, in which almost 28% of firms provided industrial staffing.
Some firms operate in a unique niche. One company, The Training Associates, provides staffing of information technology trainers.
Fourteen of the companies are appearing on the list for a second time, nine for the third time, and eight for the fourth time.
Several of the firms are relatively large. Apex Systems Inc., with revenue of $398.9 million, was on the list for the fourth year in a row, as was ZeroChaos, with $336.0 million in revenue.
Jackson Healthcare, with revenue of $370.6 million, appears on the list for the second year in a row.
Large firms making their first appearance on the list include TriNet Group Inc., with revenue of $432.5 million, and Veritude LLC, with revenue of $523.5 million.
Some firms just barely missed the list with revenue growth of more than 24% but less than the required 25%. These include the Armada Group Inc., CIO Partners and the Nelson Family of Companies.
Methodology
The ranking is based on compound average annual growth between 2003 and 2007. Revenue was adjusted for acquisitions.
Information on revenue comes from the companies themselves and was provided during a survey that took place earlier this year. Participating companies making the final list were required to submit financial statements.
#1 Populus Group LLC
Southfield MI
2007 revenue: $32.0 million
2006 revenue: $16.9 million
Compound average annual growth rate: 123%
Founded: 2002
This is the first year on the list for the Populus Group LLC, and the firm ranked as the fastest-growing company in Staffing Industry Analysts' survey.
Populus Group has experienced a lot of customer-driven growth, said Bobby Herrera, owner and president of the Southfield MI-based firm.
It has been able to grow with Midwest companies it has relationships with as the companies have expanded to other parts of the country. Populus' information technology and engineering segments have been seeing much of the growth.
There are many things the company does well that help propel growth, Herrera said. "I think as a company we try to keep things really simple and maintain our focus on continually executing for those customer relationships we have."
For future growth, Herrera said the company will continue to be aggressive and continue to expand its workforce management line.
It will also maintain its customer focus. "If we do right things with our existing customers, the growth is going to come," he said.
However, the key for Populus will also be responsible growth, Herrera said. And that responsible growth is especially important during the current economic slowdown.
"Everybody's feeling it, so we all have to adapt to it," he said. Some projects aren't lasting as long, and the length of some contingent worker assignments aren't as predictable.
In addition to making this year's fastest-growing list, Populus was also a participant in Staffing Industry Analysts' first list of women- and minority-owned businesses last year.
Herrera said more large companies are putting a priority on doing business with minority-owned firms, but Populus' priority is being a great firm first.
"We are very focused on being a great recruiting firm first, that happens to be minority owned," he said.
#2 VisionIT
Detroit
2007 revenue: $107.2 million
2006 revenue: $22.6 million
Compound annual average growth over five years: 106%
Founded: 1997
National expansion and consolidation have fueled growth at VisionIT.
"Clearly, the consolidation of the staffing industry within large corporations was a big driver of our growth in '07," said CEO David Segura, "and how we were able to significantly impact our customers through cost-savings initiatives while continuing to source-assign some of the best talent in the IT industry."
VisionIT is becoming a prime staffing supplier as more of the larger corporations shrink their supplier base, Segura said. It got a boost in 2007 from the consolidation of staffing at a major Fortune 500 company, he said.
This is the Detroit-based company's second appearance on Staffing Industry Analysts' list of fastest-growing privately held staffing firms. This year, it moved up to No. 2 with compound average growth of 122.7% between 2003 and 2007. Last year, it ranked No. 7.
Segura said the company opened new locations in New Orleans, Dallas and Philadelphia.
VisionIT also continues to focus solely on IT. "We're a technology firm that provides IT personnel," Segura said. A majority of its work is in contract and contract-to-hire.
Prior to VisionIT, Segura was at Ford Motor Co. and worked on IT staffing as part of a team that supports contract labor of all types throughout Ford. He was able to take his experience to VisionIT.
Segura said the need for IT personnel continues despite the economic slowdown, and it's helped that the company expand the industries it serves.
"We feel pretty strong now in the position that we’re in, where we have such a diverse base of customers we can always offer our IT personnel a solid opportunity," Segura said.
Future plans for VisionIT include continued expansion across the country as well as growing the company's existing markets, Segura said. The company already operates in 30 U.S. states.
#3 P2P Staffing Corp. - TekPartners/MedPartners HIM
Coral Springs FL
2007 revenue: $22.7 million
2006 revenue: $10.5 million
Compound annual average growth over five years: 101%
Founded: 2002
At P2P Staffing Corp. - TekPartners/MedPartners HIM, it's the people and the process that make the company successful.
"Obviously, anytime you're in the service business, you have to excel at a higher level than your competition," said Vito Scutero, president and COO. "A service company is only as good as the team they assemble in each individual market."
The character and capability of its people have allowed the company to excel, Scutero said.
CEO Harris Katz also said it takes the right processes and procedures for quality service.
"It is a detailed process, it's not a numbers game," Katz said. "We have a good plan behind what we do." As a result, the company has taken great people and made them better, he said.
P2P is making its second appearance on Staffing Industry Analysts' list of fastest-growing privately held staffing firms. It moves up to No. 3 this year after coming in at No. 6 last year.
The company operates in the information technology and healthcare information management staffing spaces. It also plans a government services division by the end of the year that will provide personnel who have security clearances.
Despite the slower economy this year, Scutero said the company hasn't seen any decline in revenue and continues to grow. And companies still have major projects and initiatives with IT and healthcare information management professionals still in demand, he said. "The market's tightened up, which makes us have to focus on our relationships even further."
Harris said the company has gained market share and attracted more top talent.
P2P had six offices in 2007 and added a seventh office this year in Atlanta. And the company's plans call for more growth, but at a controlled pace.
"We want to be very controlled and strategic with our growth," Scutero said. "Wherever we identify the talent is where we open offices."
#4 Insight Global Inc.
Atlanta
2007 revenue: $157.3 million
2006 revenue: $99.0 million
Compound annual average growth over five years: 97%
Founded: 2001
It's not just one thing propelling growth at Insight Global Inc., but the whole package.
"There are 100 little things that make us special, that help us grow," said Glenn Johnson, president of Insight Global. "Every one of those things adds up to a whole and makes us successful."
It's also the employees, Johnson said. Training, holding people accountable and creating a career path have enabled the company to maintain a high retention rate.
Johnson said he would run through a brick wall for his people, and they would do the same for each other.
The Atlanta-based information technology staffing firm turned in five-year compound average annual growth of 97.2%. This marks the third year that Insight Global has placed among the fastest of the fastest-growing. The company ranked No. 1 in last year's list and No. 2 the year before.
It has 19 offices this year, up from 15 last year. Markets where it has added offices include San Francisco, Nashville, Orange County and Tampa FL.
Insight Global is continuing to move forward with its successful formula and plans to continue opening new offices. But it doesn't plan on making acquisitions. "We're just going to continue to grow offices and open new ones," Johnson said. It plans on opening offices in every major U.S. market.
The economic slowdown hasn't had a big effect on the company. "We've been fairly fortunate with a lot of different customers in a lot of different industries," Johnson said.
The company covers a range of technical disciplines, and its clients come from the financial services, government, healthcare, manufacturing, retail, technology and telecommunications sectors.
#5 Pinnacle Technical Resources Inc.
Dallas
2007 revenue: $141.1 million
2006 revenue: $40.1 million
Compound annual growth: 96%
Founded: 1996
Information technology staffing and solutions company Pinnacle Technical Resources Inc. prides itself on achieving guaranteed savings for its clients. According to the company, Pinnacle saved its clients about $15 million in 2007 relative to their 2006 spend.
The Dallas-based company, which ranked No. 5 this year and has been on the fastest-growing companies list all four years, is tracking well for another good year in 2008. "I am looking forward to next year being the banner year for the company," said Nina Vaca, founder of Pinnacle.
The company recently landed two huge big wins that Vaca expects will propel robust growth for the company. Pinnacle recently became the supplier of all 39 Blue Cross Blue Shields plans across the country. Additionally, it was named the prime vendor for PPG KKR, a private equity group that owns more than 56 companies. The company hired additional executives and added 6,000 more square footage, in terms of real estate, to absorb this growth.
Pinnacle employs more than 2,000 contract technology professionals and provides information technology staffing, vendor management solutions and payroll services, and also does call center staffing. The company also has offices in California, Ohio, New York, Texas, and Virginia. Most of the clients Pinnacle works with are in the technology, financial, media, transportation, healthcare, retail and government sectors. Its clients include Verizon Wireless, AT&T, EDS, Pepsico, SBC, Lehman Brothers, Sun Microsystems, WellPoint and Merrill Lynch.
Vaca attributes much of her company's growth to implementing new technologies to bolster the company's internal system. "That's always been the secret to our success – leveraging technology as an enabler to our business, to run our business and to grow our business," she said.
"So, if you sprinkle technology with some new clients, some new expansions in our executive teams … you know we are absorbing the growth," Vaca said. "The entire company is energized with the growth. They feel the essence of ownership in that growth."
#6 Emerald Health Services
Los Angeles
2007 revenue: $61.2 million
2006 revenue: $54.3 million
Compound average annual growth rate: 93%
Founded: 2002
The demand for healthcare professionals is fueling growth at Los Angeles-based healthcare staffing firm Emerald Health Services, said CEO Mark Stagen.
"Obviously there's a huge demand for healthcare professionals, we're in a great industry," Stagen said.
There's also the people and the company's culture.
Stagen said Emerald has three clients – nurses, hospitals and corporate employees. And the company works to take care of all three.
Its hard work led Emerald to the No. 6 spot on Staffing Industry Analysts' list of fastest-growing U.S. staffing firms.
The company provides travel nurses and does some executive search as well. Stagen founded Emerald in 2002 after reading about the shortage of nurses, he had previously been with a broadband engineering firm.
"I just recognized there was a need," he said. "Whenever you have a great industry, there's always room for one more company."
Stagen received the Ernst & Young Entrepreneur of the Year award in 2007 in the business services category in the Los Angeles area, and was one of the finalists for the national awards as well. This year, Stagen is one of 12 judges for the Ernst & Young Entrepreneur of the Year award.
He is also a founding member of NATHO – the National Association of Travel Healthcare Organizations – a new organization designed to help bring the industry together.
Healthcare staffing appears to be countercyclical, faring better in slower economic times. Stagen said the company hasn't been hit by the economic slowdown.
And right now, the company is small. "We still have plenty of opportunities and plenty of room to grow," Stagen said.
As for Emerald's future, Stagen said the plan is to do more of the same and keep growing the company.
"I'd love to be the largest travel nurse company in the country. I think that would be great," he said.
#7 The Delta Companies
Dallas
2007 revenue: $40.8 million
2006 revenue: $25.3 million
Compound annual growth: 92%
Founded: 1997
CEO Jeff Bowling was coaching college baseball when he was recruited into the staffing industry. That was in 1996. He purchased the company (then a $4 million firm) in 2003, changed the name and is now leading one of the top ten fastest-growing U.S. staffing firms.
The Delta Companies provide permanent and temporary physicians and allied healthcare professionals through five companies: Delta Physician Placement, Delta Allied Placement, Delta Locum Tenens, Delta Flex Travelers and Liquid Medical Recruiting.
Bowling attributes growth to "the industry wave that we are riding – the demand is never ending" and "the retention of great people internally". The company has been on the list all four years, and moved up to the No. 7 spot from No. 10 spot in 2007, No. 17 in 2006 and No. 21 in 2005.
Delta continued to ride this wave in 2007 also, with accelerated growth in travelers and locum tenens, especially in the areas of specialties within emergency medicine, hospitalists for locums and within pharmacy on the travelers side.
Marc Bowles, chief marketing officer with Delta, said the company is tracking just under $60 million for 2008. In terms of what worked well for the company in 2007, it was a combination of keeping both customers and internal employees happy. Delta's management knows that happy employees lead to happy customers.
"We realized that a huge piece of our retention was in educational offerings – from finance to health, wellness and spiritual things," Bowles said. "We looked at the market and realized that we are not only competing with the staffing companies in Dallas, but with the entire Dallas market. So in order to that, we had to raise our benefits up."
Delta is offering matching 401(K) contributions to its employees. The company also provides its employees a defined career path so the employees know where they are going to be in six months to a year within the company.
Of course, another element is an emphasis on the customer experience and learning from the customers what the company can do to enhance their experience and how Delta can improve its service offerings. "So it was a nice well-balanced approach in looking at what our employees needed and what our customers want," Bowles said.
#8 Salo LLC
Minneapolis
2007 Revenue: $42.0 million
2006 Revenue: $31.0 million
Compound annual average growth over five years: 89%
Founded: 2002
There are no individual offices at Salo LLC, but you will find treadmills.
Salo, a Minneapolis-based finance and accounting and human resources staffing firm, is located in a warehouse-style space with desks at one end and, at the other, video games, a pool table and a bank of treadmills that serve as workstations. There's also a meditation room with soft lighting, music and a massage chair.
The company is taking part in a study on workplace movement by the Mayo Clinic. In addition to the treadmill workstations, several conference room tables have been replaced by groups of facing treadmills. Mayo researchers stop by to take blood samples and monitor progress.
Salo's participation has been featured on "Good Morning America."
John Folkestad, a co-founder of Salo, said the treadmills and the games keep the energy level up, so employees don't have the lulls during the day. They also bring more focus and productivity, he said.
And "the beauty is, lastly, people have been losing weight," Folkestad said.
Amy Langer, co-founder of Salo, said the idea for the treadmill workstations began after she saw such a workstation in a magazine. Ultimately, the company got involved in the Mayo study.
No one in the company has his or her own office. "Everybody is just open," Langer said. "We change seats often … it's just kind of a different place."
The company's divisions include NumberWorks, which handles staff-level contract finance and accounting placements; Oberon, which handles senior-level human resources contract placement; Salo Search, which provides senior-level search; and Salo Project, which provides senior-level finance contract placements.
Folkestad said the company's future plans include continued growth. "Right now, our plan is to continue to expand synergistic business in our local market," he said.
#9 AllTek Holdings
Pittsburgh
2007 revenue: $12.0 million
2006 revenue: $15.9 million
Compound annual growth: 86%
Founded: 2002
J. David Cepicka, CEO of AllTek Holdings, learned the ropes of running a staffing business from his mother who ran a traditional light industrial firm. In 1993, both Cepicka and his sister, Susan Sisk, joined their mother's firm. While he learned a lot, light industrial staffing did not catch his fancy too much. He had set his eyes on professional staffing.
"I started with doing light industrial recruiting," Cepicka said. "Then we tried to do a technical division that was mildly successful but it did not take off. We still have that brand here in Pittsburgh. It is a strong brand presence because it has some large companies as clients. So we got branded as light industrial company and breaking into professional got hard for us."
As a result, Cepicka founded AllTek Holdings in 2002, focusing on placing engineers, designers and drafters. Then in 2004, he expanded further and spun out two other companies, all under the AllTek umbrella – e-STAFF Consulting Group Inc., which specializes in information technology, and AccountStaff Inc., which places finance and accounting professionals. All companies place on contract, contract-to-hire and direct hire basis.
Cepicka attributes the success of his company to solid infrastructure, hiring the right people and holding on to them. With his sister managing the back office, Cepicka focuses on keeping the turnover in his company to a minimum.
"What I have done correctly is hire the right people and make sure that I am not looking over their shoulders," Cepicka said. "I give them the tools to succeed and give them advice when they need it."
He is optimistic about the growth of the company going forward. The company recently broke ground for an 11,000-square-foot building, a jump from its present 7,000-square-foot area, to house the growth. However, Cepicka is already wondering if the new building should have been bigger.
"The next step is to become a national staffing group," he said. "We will pick a particular niche, we haven't figure out what that niche is going to be yet, and we are going to try to sell that to Fortune 500 or midlevel companies throughout the country."
#10 Medical Solutions Inc.
Omaha NE
2007 revenue: $30 million
2006 revenue: $18 million
Compound annual growth: 86%
Founded: 1997
It was 2001 when Scott Anderson and his partner, Dale Williams, read the writing on the wall about healthcare staffing and decided to sell their information technology staffing business to focus on travel nurse staffing. While it was pretty clear to them that healthcare staffing is where the growth is, the two made sure that they didn't just ride the wave – planning ahead was critical for them.
"My personal background is in banking and finance," Anderson said. "As a result, we have a very strong financial picture and budget. We always have a five-year pro forma looking outward and obtaining those goals."
The company also keeps its focus in terms of its service offerings and expands its repertoire only after mastering one set of specialties. By the end of 2007 they branched out into allied and international recruiting.
Although international recruiting for nurses is a tough business right now, with no visas available to bring them into the United States, Anderson views this as investment for years to come.
"The truth of the matter is that there is a fraction of regular nurses that are going into traveling. With our growth, what we are doing is that we are taking from our competitors," Anderson said. "After a point we are going to need to get outside supplementation for nurses. About 20% to 25% of our nurse flow is going to be coming from the overseas. So we have a few years to get our act together on the international side."
Another strategy that has worked for Medical Solutions is hiring like-minded people that will fit well into the company culture. And what is the culture?
"We have a full-blown break room with foosball table, card table, plasma screen TV," Anderson said. "We have foosball tournaments all the time. We have barbecues outside that we use and we are dressed casual. We have a full-time concierge on the staff who does nothing but handle the personal affairs of the staff – from picking up dry cleaning, returning things to Wal-Mart, getting your tags renewed. We go out on monthly outings and we do this during work hours. We do a lot of celebrating and fun in the office.
"The culture of the company is one that is exciting and appreciative," Anderson added. "We have an environment that works really well with honesty and integrity at the cornerstone of it for a person who likes a very lively environment."
The company also offers its employees a chance to try out their more creative skills. Medical Solutions is doing a campaign called the "Restless Nurse Syndrome," which is a fake, comic documentary that portrays the life of a travel nurse. It's a marketing campaign to create brand awareness. And all the actors and producers are employees of Medical Solutions.
The strategy appears to be working. With about 106 internal employees, the company has so far lost only three people voluntarily in the past four years. |