These days a lot of "Kelly Girls" are men. Once a business that supplied only female clerical help, Kelly Services has expanded to include male and female temporary employees in light industrial, technical, and professional sectors, including information technology specialists, engineers, and accountants. It also places lawyers (Kelly Law Registry), scientists (Kelly Scientific Resources), substitute teachers (Kelly Educational Staffing), nurses and other medical staff (Kelly Healthcare Resources), and teleservices personnel (KellyConnect). Kelly Services assigns some 555,000 temporary employees around the world each year. Chairman Terence Adderley owns a controlling stake in the company.
Kelly caters to customers in three chief regions: the Americas (63% of total sales); Europe, the Middle East, and Africa (EMEA, 19%); and the Asia/Pacific (18%).
The company provides additional personnel in areas such as electronics (Kelly Electronic Assembly Services), merchandising (Kelly Marketing Services), and catering (Kelly Catering and Hospitality). It also offers career transition, outplacement, and human resources consulting services through its Ayers Group division (which makes up its Outsourcing and Consulting Group segment, or OCG).
Like most companies involved in the employment industry, Kelly has seen its balance sheet fluctuate. After experiencing a revenue decline in 2013, the company saw its revenues jump 3% to $5.56 billion in 2014. Profits, however, nosedived 60% from $59 million in 2013 to $24 million in 2014 due to an increase in cost of services and additional selling, general, and administrative expenses.
The revenue growth for 2014 was fueled by a 15% surge in sales from its OCG segment and increases from virtually all other segments. Kelly was also helped by an increase in bill rates in the commercial America region as APAC Services revenue increased to reflect a 10% uptick in the number of hours worked.
Kelly's operating cash flow plummeted by 185% from $115 million in 2013 to a negative cash flow of 70% during 2014. This was the result of $20 million the company paid related to the timing of supplier payments, a $5 million effect of the correction of the error from prior periods, and lower working capital requirements.
The staffing firm's strategy for growth entails maintaining its core strengths in the commercial staffing market, while also growing its professional and technical staffing capabilities. Kelly also plans to recognize additional revenue by growing its Outsourcing and Consulting Group segment and by targeting specialized niche markets which require staffing services.