Kforce is a corporate matchmaker, placing highly skilled workers with the companies that need them. The specialty staffing firm provides primarily temporary staffing services (and to a lesser extent permanent placement) in such areas as information technology, accounting, and government. It additionally offers Web-based services such as online resumes, job postings, career management information, and interactive interviews. Clients include
1000 corporations as well as small and midsized firms nationwide. The company caters to about 40 different US markets.
The vast majority of Kforce's revenue (about 96%) comes from the provision of temporary staffing services. Direct-hire placements account for the remainder of sales, with fees coming from a percentage of the hired employee's first-year salary.
Kforce operates in three segments: technology; accounting and finance; and government (which it operates through
Kforce Government Solutions
). Its tech segment is its biggest moneymaker, accounting for more than 60% of revenues. The segment recruits programmers, systems analysts, and networking technicians. In 2014 Kforce divested its former health care and life sciences segment.
Serving about 40 major US markets, Kforce operates about 60 field offices across the country; it also has an international office in the Philippines.
As it continues to divest under-performing operations, Kforce posted record-setting revenues of $1.22 billion in 2014. The historic growth for 2014 was fueled by sales increases from all its three segments. (Note: the company restated its 2013 financials due to the divestiture of its former health care and life sciences segment.)
Kforce experienced phenomenal profit growth for the year, with profits skyrocketing from $11 million in 2013 to $91 million in 2014. After posting a paltry $465,000 in operating cash flow in 2013, the company recognized $26 million in cash flow for 2014 due to the additional revenue and profit growth coupled with higher trade receivables related to the timing of collections.
The company looks to divestitures to stay profitable and optimize its business structure. In 2014 Kforce divested its former health care and life sciences segment for a total cash purchase price of $119 million.
Kforce traces its roots to the founding of Romac & Associates in 1966. Romac & Associates merged with Source Services Corporation in 1998. The combined entity changed its name to Kforce, an abbreviation of The KnowledgeForce, in 1999.