Indeed acquired Syft, a UK-based staffing platform in 2019. The company has evolved and expanded its services for people seeking flexible work. This platform, which was rebranded as Indeed Flex in April of 2021, became simpler and faster through the synergy of Recruit Group's cutting-edge HR-matching technology and high-quality registered temp staff. Its scope has expanded to the United States. Starting with a soft-launch in September of 2020, and officially launching in 2022. The revenue for Indeed Flex in the fiscal year of 2021 had tripled compared to the fiscal year of 2020. This blog will introduce the overview of this initiative and provide the background behind this platform’s rapid growth.
The Base of Temp Workers is Expanding While Companies Are Suffering From Serious Labor Shortages
As of June 2022, there are over 1.6 million temp workers in the UK, and there has been an increase of 150,000 since 2020. Novo Constare, CEO and co-founder of Indeed Flex, said, “Temporary work is particularly popular among students, who enjoy the freedom to pick and choose the shifts that dovetail with their lectures and deadlines. Many also find that doing a variety of different jobs and meeting different people can be very rewarding, as well as providing valuable, practical experience that will boost their employment prospects once they graduate."
However, according to Novo, the last few years have seen a new trend. There has been a significant increase in the number of employed professionals taking additional temporary jobs. In fact, one in three UK workers (32 percent) are considering this option*1. In the UK, consumer prices rose by 10.1 percent from August 2021*2. Novo said, "As millions of Britons see an increasing proportion of their income swallowed up by the surging cost of living, temping offers an instant way for them to top up their earning power.”
In contrast, it is more difficult for companies to secure human resources due to the decrease in foreign workers following the pandemic and changes to immigration policy. The increase in demand accompanying the economic recovery from the recent pandemic has also been a factor. The UK had a high job vacancy rate of 4.2 percent in July 2022, well above the EU average of 2.9 percent*3. Although companies are raising salaries across the board, this hiring strategy has not been effective, and many companies are suffering from a low number of applicants and a lack of qualified candidates*4.
Temp workers have also become vital to current business needs, according to Novo. "Those taking on extra shifts, or doing temporary work for the first time are also proving to be a lifeline for businesses struggling to find enough staff to fill vacancies. Temp enables employers to fill shifts at short notice and cover staff absences while also providing vital extra support during busy periods,” he said.
*1 Indeed Flex’s data in 2022
*2 Source: Office for National Statistics - UK Consumer Price Index as of July 2022
*3 Office for National Statistics - UK job vacancy rate in May to July 2022 (Released in August)
*4 Source: UK Census in 2021
Tackling The Employment Gap With Cutting-edge HR-matching Technology
Indeed Flex is a staffing platform that makes it possible to dispatch temp workers to sites when they are needed. It makes the process of applying, screening and interviewing far simpler and faster. This enables employers to fill upcoming shifts in a timely manner especially for simple jobs that do not require complex skills. For workers, the time lag between when they start looking for jobs and when they receive a wage becomes shorter, which can provide an added financial benefit for those who need immediate employment.
Registered workers (Flexers) can complete all the processes on the Indeed Flex smartphone app, from applying for and confirming a shift assignment to managing bank account designation for their salary transfers. First, users create a profile, then authenticate their ID cards and work experience through a face-to-face interview with an Indeed Flex team member. Once users are verified, jobs matching search parameters are displayed according to users’ skills, locations, days and hours available to work, and desired hourly wages. When temp workers find a shift that works for them, they can review the job description and easily tap to apply. Once the users’ shifts are confirmed, they can go directly to their workplaces and fulfill their assigned roles. After the work is completed, workers and companies evaluate each other using a five-star rating system. When temp workers obtain positive scores on their reviews, this increases their chances of easily obtaining another shift. Wages are paid directly to their bank accounts every week.
After posting a shift on Indeed Flex, companies can browse Flexer profiles manually or use Indeed Flex’s smart-matching tools to connect with workers who meet their criteria. Companies can also verify the identities of personnel connected via Indeed Flex and manage attendance with the Indeed Flex app. Indeed Flex also offers Indeed Flex+, a complete workforce management solution incorporating vendor management system (VMS) and a fully managed service for companies’ recruitment and staffing needs. With Indeed Flex+, companies can also select the scope of staffing recruitment. Depending on the urgency and work content, they can target the more than 100,000 Flexers to fill shifts in a short period of time, limit applicants to staff who have worked with them in the past, or manually browse and scout Flexers one by one.
Expanding to the U.S. Market With the Synergy of HR-matching Technology and a High-quality Talent Pool
Indeed Flex is expanding to the U.S. market and growing further in the UK, where its former company, Syft, has been available since 2015. In the United States, the labor shortage is even more serious, and the openings rate reached 6.9 percent as of July 2022*5. Indeed Flex is expected to play a big role in closing the gap between temporary job seekers and unfulfilled positions.
Stacey Lane, CEO of Staffmark Group, one of Recruit Group’s companies which operates a staffing business in the United States, is also participating in Indeed Flex U.S. as General Manager to conduct a trial collaboration. “Through the power of collaboration, we're combining great tech and great talent to create more opportunity,” said Stacey. Specifically, with its well-established position in the market, Staffmark supplies its candidates, as well as enterprise clients, to Indeed Flex.
But the synergies within the Recruit Group do not stop there. By making full use of cutting-edge, HR-matching technology, Recruit Group aims to innovate the entire staffing industry’s recruitment and placement process to be simpler and faster. “Together, we're changing the future of work,” said Stacey.
CEO and Co-founder, Indeed Flex General Manager and Vice President of Staffing Solutions, Indeed
After gaining experience in financial markets as a Senior Arbitrage Trader at Chicago-based alternative investment fund Tradelink LLC, Novo co-founded staffing platform Syft in London in 2015. Currently, as the General Manager and Vice President of Indeed's staffing field, he is leading the staffing business of Indeed.
General Manager at Indeed Flex US CEO, Staffmark Group
Stacey joined Staffmark Group in 2000 and has held a number of leadership roles. She serves as CEO where she is responsible for leading Staffmark Group to develop innovative staffing strategies and support hundreds of teams across the United States. A testament to her leadership strengths, Stacey was named to the Staffing Industry Analysts Global Power 150 Women in Staffing list in 2019 and 2020.