Kelly Services

To connect people to work by being the most forward-thinking talent solutions company.

Kelly Services SWOT Analysis

Updated: October 5, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Kelly Services was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Kelly Services SWOT analysis reveals a pivotal moment for a legacy leader. The company's core strengths—its global brand, extensive client list, and growing OCG unit—provide a solid foundation for its forward-thinking vision. However, this is weighed down by significant weaknesses, namely margin pressure from its traditional staffing business and legacy technology that impedes agility. The primary path forward is a disciplined acceleration of the existing strategy: double down on high-margin specialty markets and integrated OCG solutions. The greatest threat is not competition alone, but the risk of being outmaneuvered by more technologically advanced players. Success hinges on transforming its vast data asset into an AI-driven competitive advantage and shedding its 'temp agency' perception to truly own the 'talent solutions' category, thereby aligning its market position with its ambitious vision.

Randstad Adecco Group ManpowerGroup Robert Half Allegis Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people to work by being the most forward-thinking talent solutions company.

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Strengths

BRAND: Established global brand recognition and 75+ years of trust
OCG-GROWTH: OCG unit shows strong growth, margin expansion, deep client ties
SCALE: Global footprint and ability to serve large multinational clients
CLIENTS: Long-term relationships with 90% of the Fortune 100 companies
DATA: Massive, proprietary dataset of jobs and talent performance history

Weaknesses

MARGINS: Overall gross margins (~21%) lag higher-value specialty firms
TECH-DEBT: Legacy systems slow down innovation and AI integration efforts
PERCEPTION: Brand still widely perceived as traditional temporary staffing
CYCLICALITY: High exposure to economic cycles, impacting revenue stability
DEPENDENCY: Over-reliance on large P&I segment with lower growth/margins

Opportunities

SPECIALIZATION: Deepen focus on high-demand sectors like tech, life sciences
AI-INTEGRATION: Leverage AI for recruiter efficiency and better talent matching
OCG-EXPANSION: Cross-sell RPO/MSP services into existing staffing clients
GIG-WORKERS: Develop platforms to manage freelance/contractor talent pools
DATA-SERVICES: Monetize workforce analytics and consulting as a service

Threats

COMPETITION: Intense pressure from both large incumbents and agile startups
MACROECONOMIC: Potential for a global recession to significantly reduce demand
AUTOMATION: AI-powered platforms enabling clients to disintermediate agencies
REGULATION: Increasing complexity of labor laws for contingent workers (PRO Act)
TALENT-DIRECT: Social platforms like LinkedIn allow clients to source direct

Key Priorities

SPECIALTY: Accelerate pivot to high-margin specialty talent solutions
EFFICIENCY: Drive operational efficiency via tech/AI to boost low margins
INTEGRATION: Win larger deals by integrating services into OCG offerings
BRAND: Modernize the brand to reflect 'talent solutions' not 'temps'

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Kelly Services OKR

Updated: October 5, 2025 • 2025-Q4 Analysis

This Kelly Services OKR plan is a focused and potent translation of strategy into execution. It rightly prioritizes the highest-leverage activities: dominating profitable specialty niches and scaling the integrated OCG business. The objectives are aspirational yet clear, providing a north star for the entire organization. The key results are largely outcome-driven, effectively connecting daily actions—like deploying AI tools and cross-selling services—to the strategic imperatives of margin expansion and market leadership. This plan creates accountability and, if executed with relentless focus, will accelerate the company's transformation from a legacy staffing firm into a modern, forward-thinking talent solutions powerhouse, directly addressing the core challenges identified in the analysis.

Randstad Adecco Group ManpowerGroup Robert Half Allegis Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people to work by being the most forward-thinking talent solutions company.

OWN SPECIALTY TALENT

Become the #1 choice for high-value specialty talent.

GROWTH: Increase gross profit from Science, Engineering & Tech verticals from 35% to 45% of total GP.
SALES: Launch three new targeted solution offerings for high-demand skill sets with 10+ new logo wins.
TALENT: Decrease average time-to-fill for specialty roles by 20% through curated talent pool growth.
BRAND: Secure top-tier media placements establishing our authority in three key specialty verticals.

DRIVE EFFICIENCY

Power our operations with intelligent technology.

AI: Deploy AI-powered sourcing tools to all recruiters, increasing qualified candidates per day by 30%.
AUTOMATION: Reduce non-essential administrative tasks for recruiters by 5 hours per week via automation.
PLATFORM: Complete migration of top 50 enterprise clients to our new digital talent platform.
COST: Achieve a 5% reduction in operating expenses as a percentage of revenue through tech leverage.

INTEGRATE SOLUTIONS

Win by delivering holistic, high-value OCG solutions.

PIPELINE: Increase the pipeline of integrated OCG deals (MSP + RPO/Services) by 40% year-over-year.
CROSS-SELL: Convert 15% of top-100 P&I-only clients into new OCG services contract holders.
RETENTION: Achieve a client retention rate of 98% for multi-service OCG enterprise accounts.
PROFIT: Increase OCG's contribution to total company gross profit from 25% to 30%.

MODERNIZE BRAND

Shift perception from 'temps' to 'talent leader'.

MESSAGING: Retrain 100% of the sales team on the new value proposition and integrated solutions.
CONTENT: Publish 12 data-driven workforce insight reports that achieve 1M+ impressions in target media.
AWARENESS: Increase unaided brand awareness as a 'strategic talent solutions provider' by 10% in surveys.
EXPERIENCE: Redesign the digital candidate journey to improve talent NPS scores from +40 to +55.

METRICS

Gross Profit Growth Rate: 8%
OCG Revenue as % of Total: 22%
Client Net Promoter Score (NPS): +50

VALUES

Be a good person
Do the right thing
Help others succeed
Deliver on our promises

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Kelly Services Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Kelly Services Q1 2025 Earnings Report & Investor Presentation
Kelly Services 2024 Annual Report (10-K Filing)
Staffing Industry Analysts (SIA) Global Staffing Market Report 2024
Public statements and interviews from CEO Peter Quigley
Analysis of competitor financial reports (Randstad, Adecco)
Customer reviews from G2 and other B2B software review sites

Randstad Adecco Group ManpowerGroup Robert Half Allegis Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people to work by being the most forward-thinking talent solutions company.

Toggle Theme

What Went Well

OCG: Continued strong GP growth in the high-margin OCG segment
COSTS: Disciplined cost management protected profitability amid soft revenue
SPECIALTY: Education and other specialty practices showed resilient demand
CASH-FLOW: Maintained healthy operating cash flow and a strong balance sheet
STRATEGY: Clear, consistent messaging on the specialty transformation strategy

Not So Well

REVENUE: Overall revenue declined year-over-year due to macroeconomic softness
P&I: The large Professional & Industrial segment saw significant demand drops
CONVERSION: Lower demand for permanent placement fees impacted margins
EUROPE: Economic weakness in Europe created significant revenue headwinds
GUIDANCE: Forward-looking guidance reflected continued market uncertainty

Learnings

DIVERSIFICATION: OCG and specialty focus provides critical stability
MACRO: The business remains highly sensitive to global economic sentiment
AGILITY: Cost controls must be agile to react to rapid demand shifts
CLIENTS: Enterprise clients are consolidating vendors, favoring partners
VALUE: Clients will pay for value (OCG) even in a downturn

Action Items

SALES: Double down sales focus on high-performing specialty verticals
OCG: Accelerate cross-selling OCG solutions to existing P&I clients
TECH: Fast-track investments in tech that drive recruiter productivity
OPERATIONS: Continue to optimize the real estate footprint and overhead
MARKETING: Launch campaigns highlighting high-value, recession-proof services

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Kelly Services Market

AI-Powered Insights

Claude

Gemini

GPT

Kelly Services Q1 2025 Earnings Report & Investor Presentation
Kelly Services 2024 Annual Report (10-K Filing)
Staffing Industry Analysts (SIA) Global Staffing Market Report 2024
Public statements and interviews from CEO Peter Quigley
Analysis of competitor financial reports (Randstad, Adecco)
Customer reviews from G2 and other B2B software review sites

Founded: 1946, by William Russell Kelly
Market Share: Approx. <1% of the highly fragmented global staffing market.
Customer Base: Fortune 500 enterprises to small businesses across various industries.
Category:
Workforce Solutions
SIC Code: 7361 Employment Agencies
NAICS Code: 561311 Employment Placement Agencies
Location: Troy, Michigan
Zip Code: 48084
Congressional District: MI-11 FARMINGTON
Employees: 6600

Competitors

Randstad Request Analysis

Adecco Group Request Analysis

ManpowerGroup View Analysis

Robert Half View Analysis

Allegis Group Request Analysis

Products & Services

No products or services data available

Distribution Channels

Kelly Services Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Kelly Services Q1 2025 Earnings Report & Investor Presentation
Kelly Services 2024 Annual Report (10-K Filing)
Staffing Industry Analysts (SIA) Global Staffing Market Report 2024
Public statements and interviews from CEO Peter Quigley
Analysis of competitor financial reports (Randstad, Adecco)
Customer reviews from G2 and other B2B software review sites

Problem

Companies struggle to find quality talent.
Hiring processes are slow and expensive.
Lack of workforce planning and flexibility.

Solution

On-demand access to a vetted talent pool.
Outsourced recruitment (RPO) & mgmt (MSP).
Workforce analytics and advisory services.

Key Metrics

Gross Profit Growth
Fill Rate & Time-to-Fill
Client & Talent Satisfaction (NPS)

Unique

Holistic solutions from temp to consulting.
75+ years of proprietary placement data.
Global scale with local market expertise.

Advantage

Embedded client relationships via OCG.
Brand trust built over decades.
Unique dataset to train predictive models.

Channels

Enterprise Direct Sales
Digital Inbound Marketing
Global Branch Network

Customer Segments

Large Enterprise (Fortune 500)
Mid-Market Companies
Specialized industries (STEM, Education)

Costs

Recruiter salaries and commissions.
Technology and platform investments.
Marketing and brand development.

Kelly Services Product Market Fit Analysis

Updated: October 5, 2025

Kelly Services provides companies with strategic workforce agility. It delivers specialized talent faster using proprietary data insights, helping businesses build a flexible workforce that accelerates innovation and reduces hiring costs. This isn't just staffing; it's a competitive advantage delivered through a forward-thinking talent strategy that adapts to any market condition, ensuring clients always have the right people.

SPEED: Access specialized, vetted talent faster than any other channel.

INSIGHT: Leverage our unique data for smarter workforce decisions.

AGILITY: Build a flexible talent strategy that adapts to market shifts.

Before State

Struggling to find specialized talent fast
High costs from inefficient hiring process
Lacking visibility into workforce analytics

After State

Access to curated, on-demand talent pools
Predictable, optimized talent spend
Data-driven workforce planning & strategy

Negative Impacts

Project delays and missed revenue targets
High talent acquisition costs, low ROI
Reactive, chaotic approach to hiring needs

Positive Outcomes

Accelerated project timelines & innovation
Reduced hiring costs by 15-20% via MSP/RPO
Strategic alignment of talent to goals

Key Metrics

Customer Retention Rates - 85% for key enterprise accounts

Net Promoter Score (NPS) - Varies by segment, avg. +40

User Growth Rate - Flat to low single-digit talent pool growth

Customer Feedback/Reviews - 4.1 stars on G2 across 200+ reviews

Repeat Purchase Rates) - High within contract-based OCG services

Requirements

Deep integration with client HRIS/VMS
Trust in outsourced talent management
Executive buy-in for strategic partnership

Why Kelly Services

Dedicated account management & consulting
Proprietary tech for matching & analytics
Global delivery and compliance expertise

Kelly Services Competitive Advantage

AI matching on 75+ years of placement data
Holistic view from temp to full-time exec
OCG combines tech, people, and process

Proof Points

90% of Fortune 100 companies are clients
Managed $5B+ in client contingent spend
Placed millions of people in jobs globally

Kelly Services Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Kelly Services Q1 2025 Earnings Report & Investor Presentation
Kelly Services 2024 Annual Report (10-K Filing)
Staffing Industry Analysts (SIA) Global Staffing Market Report 2024
Public statements and interviews from CEO Peter Quigley
Analysis of competitor financial reports (Randstad, Adecco)
Customer reviews from G2 and other B2B software review sites

Strategic pillars derived from our vision-focused SWOT analysis

Dominate high-margin talent fields; exit commodity.

Lead with integrated OCG & advisory services.

Embed AI-driven platforms for speed & insight.

Align global operating model for enterprise clients.

What You Do

Provides comprehensive workforce solutions and talent management.

Target Market

Companies seeking specialized talent and strategic workforce consulting.

Differentiation

Breadth of services from temp staffing to full-scale RPO.
Long-standing brand reputation and global reach.

Revenue Streams

Temporary staffing markups
Permanent placement fees
Subscription/management fees for RPO/MSP

Kelly Services Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Kelly Services Q1 2025 Earnings Report & Investor Presentation
Kelly Services 2024 Annual Report (10-K Filing)
Staffing Industry Analysts (SIA) Global Staffing Market Report 2024
Public statements and interviews from CEO Peter Quigley
Analysis of competitor financial reports (Randstad, Adecco)
Customer reviews from G2 and other B2B software review sites

Company Operations

Organizational Structure: Business units aligned by specialty: P&I, OCG, and International.
Supply Chain: Global network of recruiters, talent pools, and partner agencies.
Tech Patents: Focus on proprietary processes and data models, not extensive patents.
Website: https://www.kellyservices.com

Top Clients

Board Members

Kelly Services Competitive Forces

Threat of New Entry

MODERATE: Low barriers to entry for small, localized staffing agencies. However, achieving global scale and enterprise trust requires significant capital and time.

Supplier Power

MODERATE to HIGH: In-demand, skilled talent (the 'suppliers') have significant power, commanding higher wages and better terms, especially in tech and healthcare.

Buyer Power

HIGH: Clients (buyers) can easily switch between many staffing providers. Large enterprises leverage their volume to negotiate lower fees and demand more value.

Threat of Substitution

HIGH: Clients can substitute agencies with internal talent acquisition teams, direct sourcing via platforms like LinkedIn, or AI-powered hiring technologies.

Competitive Rivalry

HIGH: Fragmented market with thousands of competitors. Key rivals (Randstad, Adecco) have similar scale, while niche firms compete fiercely on specialty.

Analysis of AI Strategy

Updated: October 5, 2025 • 2025-Q4 Analysis

The Kelly Services AI SWOT analysis underscores a critical imperative: transforming its data liability into its greatest asset. The company possesses an enviable, proprietary dataset—the fuel for any world-class AI engine. This is its definitive strength. However, this potential is currently locked behind legacy technology and a potential shortage of specialized AI talent. The opportunity is not merely to use AI for internal efficiency but to create new, high-margin revenue streams by offering predictive talent analytics to clients. The primary threat is existential: nimble, AI-native competitors could disintermediate Kelly Services by providing better, faster, and cheaper matching. The strategic conclusion is clear: an aggressive, well-funded initiative to modernize the tech stack and build or acquire AI capabilities is not optional; it is essential for survival and leadership in the next decade of talent solutions.

Randstad Adecco Group ManpowerGroup Robert Half Allegis Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people to work by being the most forward-thinking talent solutions company.

Strengths

DATA: Massive proprietary dataset of candidates, roles, and outcomes for AI
CLIENTS: Access to enterprise clients for piloting and scaling AI tools
PROCESS: Deep understanding of hiring workflows to apply AI effectively
SCALE: Global reach allows for deploying AI solutions across markets
TRUST: Brand trust can ease client adoption of new AI-driven HR tech

Weaknesses

TECH-DEBT: Aging infrastructure hinders rapid development and AI integration
TALENT-GAP: Scarcity of in-house AI and machine learning engineering talent
DATA-STRUCTURE: Legacy data may be unstructured, requiring costly cleanup
CULTURE: Risk-averse culture may slow adoption of disruptive AI innovation
INVESTMENT: Potentially under-investing in AI R&D compared to tech startups

Opportunities

SOURCING: AI can automate sourcing, screen 10x more candidates effectively
MATCHING: Predictive algorithms to match candidates with higher success rates
ANALYTICS: Offer clients predictive workforce planning and skills gap analysis
EFFICIENCY: Use generative AI to create job descriptions and candidate comms
PRICING: AI-driven dynamic pricing models to optimize margins on placements

Threats

STARTUPS: AI-native startups threaten with superior tech and lower overhead
DISINTERMEDIATION: Clients adopt AI tools to build their own direct talent pools
BIAS: Risk of algorithmic bias leading to reputational and legal damage
REGULATION: Evolving AI governance and data privacy laws create complexity
COST: High cost of developing/acquiring cutting-edge AI technology

Key Priorities

EFFICIENCY: Deploy AI to radically improve recruiter speed and efficiency
INSIGHTS: Develop AI-powered analytics as a premium service for clients
INTEGRATION: Modernize tech stack to enable seamless AI tool integration
GOVERNANCE: Establish a strong AI ethics and governance framework

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Kelly Services Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Kelly Services Q1 2025 Earnings Report & Investor Presentation
Kelly Services 2024 Annual Report (10-K Filing)
Staffing Industry Analysts (SIA) Global Staffing Market Report 2024
Public statements and interviews from CEO Peter Quigley
Analysis of competitor financial reports (Randstad, Adecco)
Customer reviews from G2 and other B2B software review sites

Profit: $54.5 Million Net Income (TTM)

Market Cap: $750 Million (approx.)

Stock Performance

Annual Report: Available on Kelly Services Investor Relations website.

Debt: $18 Million (Total Debt, recent reporting)

ROI Impact: Transformation costs may suppress short-term ROI for long-term gain.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Legacy Transformer

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Kelly Services is a legacy leader undergoing a necessary transformation. Its ambition is category-shaping but constrained by the achievability challenges of a large, mature organization. The SWOT is balanced, reflecting significant opportunities offset by intense threats. The OKRs are strong and focused, representing the best lever for change. AI potential is high due to data assets, but realization is distant. The low growth multiplier reflects the difficulty of turning a large ship in a competitive, cyclical market.

SWOT Factors

Upside: 68.0 Risk: 72.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Aggressively scale the high-margin OCG business unit.

Execute AI-driven efficiency gains in the core P&I business.

Successfully rebrand to attract higher-value enterprise work.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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