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Kelly Services, Inc. (formerly Russell Kelly Office Service and Kelly Girl Service, Inc.) is an American multinational office staffing company.[2][5][6][7] The company places employees at all levels in various sectors including financial services, information technology, and law.[5] Also, its professional services include human resource and management consulting, outsourcing, recruitment, career transition, and vendor management.[2][5] Kelly Services was founded by William Russell Kelly in 1946 and is headquartered in Troy, Michigan.[2][8]

Key Information

History

[edit]

Founded in 1946 by William Russell Kelly, the company was originally named Russell Kelly Office Service.[9][10] Services were provided in-house at the Kelly office. However, as customer offices grew and needed more resources, they began to ask for the Kelly employees to perform the work at their own offices. Temporary workers from Russell Kelly Office Service soon became known as ‘Kelly Girls’.[11] Adelaide Hess Moran, the first Kelly temporary employee to work at a customer’s office, was promptly dubbed the first ‘Kelly Girl’.

The temporary workers, usually female, became known as "Kelly girls",[11] and the company name was changed to Kelly Girl Service, Inc. in 1957.[9] Eventually "Kelly girl" became a widely used term for a temporary worker, regardless of company affiliation or gender. By 1966, the company had expanded to include industrial and technical services divisions and was renamed Kelly Services, Inc.[12]

In 2008, Lynn Noyes was awarded $6.5 million in damages from Kelly Services for failing to promote her because she was not part of the Fellowship of Friends cult.[13]

In 2015, the company reported 8,100 employees, $5.5 billion in revenue,[2][5] making it one of the world's largest staffing firms.[14] In 2018, the company reported $5.5 billion in revenue.[4]

As of 2019, the CEO is Peter Quigley.[1]

In May 2024, Kelly Services acquired Motion Recruitment Partners for $425 million in cash.[15]

See also

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia

Kelly Services

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Kelly Services, Inc. is an American multinational corporation providing comprehensive workforce solutions, including temporary staffing, permanent placement, outcome-based services, and across diverse sectors such as , industrial, , , and .
Founded in 1946 by William Russell Kelly in , , as Russell Kelly Service, the company pioneered the modern temporary staffing industry by addressing post-World War II labor shortages through flexible worker placements, initially branding its employees as "Kelly Girls."
Headquartered in , Kelly operates in over 30 countries, annually connecting more than 450,000 individuals to opportunities while as the leading provider of temporary staffing in the United States.
Over its 75-plus years, the firm has innovated in , evolving from clerical temp services to global talent solutions, earning recognition for industry leadership and supplier networks that support specialized markets.
While sustaining operations amid economic shifts, including recent adjustments to corporate staffing levels to align with evolving client demands, Kelly maintains a focus on bridging talent gaps for businesses worldwide.

History

Founding and Early Development (1946–1950s)

William Russell Kelly founded Russell Kelly Office Service on October 7, 1946, in , , pioneering the modern temporary staffing industry by providing on-demand clerical workers to businesses facing post-World War II labor shortages. After dropping out of the and gaining sales experience, including selling home-study courses, Kelly anticipated an economic boom as returning veterans displaced women from wartime jobs, creating demand for flexible office support like typing, filing, and inventory tasks. The company initially operated by dispatching mostly female temporary workers—later branded as "Kelly Girls"—to client sites for short-term assignments, emphasizing reliability and low overhead to appeal to employers wary of permanent hires amid economic uncertainty. This model addressed immediate needs in expanding offices, with early clients including manufacturers and firms in Detroit's industrial hub. By focusing on skilled but non-permanent labor, Kelly Services filled a niche unmet by traditional agencies, achieving rapid initial growth through word-of-mouth and direct sales. In the early 1950s, the firm expanded beyond by introducing a system in , opening its first branch in , which allowed localized operations while maintaining centralized control over worker screening and placement standards. By 1955, amid broadening demand for clerical services driven by office proliferation, the company rebranded to Kelly Services, Inc., reflecting its evolution from in-house services to a dispatched model and beginning to hire men for certain roles. This period solidified its foundation, with revenues surpassing $1 million annually by the late 1950s, as the temp agency concept proved viable for handling seasonal and overflow work.

Expansion and Innovation (1960s–1980s)

During the , Kelly Services experienced rapid growth, expanding its service offerings beyond clerical temporary staffing to include light industrial, technical, , and roles, which broadened its client base to encompass and sectors. In 1962, the company went public with an offering of 100,000 shares, coinciding with annual revenues reaching $25 million, up from $19.4 million in 1961. This period also marked the beginning of international expansion with the opening of its first office outside the U.S. in , , in 1968. In 1966, the firm rebranded from Kelly Girl Service to Kelly Services, Inc., reflecting the increasing inclusion of male employees in non-clerical positions such as . The 1970s saw further diversification and geographic reach, with the establishment of European operations starting in Paris in 1972 and London in 1973, alongside sales surpassing $100 million by 1973 and reaching $150 million in 1976. A key innovation was the 1976 launch of the Kelly Health Care division through the acquisition of a specialized healthcare staffing firm, extending services into medical and nursing placements. By 1979, the company had offices in all 50 U.S. states and introduced early training programs, including Guided Discovery Learning for word processing and video-based professional development, to enhance worker skills amid rising demand for specialized temporary labor. In the 1980s, Kelly Services accelerated technological and global innovations, developing systems like the 1985 Kelly Dexterity Indexer for assessing industrial workers' manual skills and the 1986 Kelly PC-Pro for testing clerical proficiency in emerging computer applications, which improved placement accuracy and client satisfaction. These efforts supported revenue growth to over $1 billion by 1986, with branch offices expanding to 550 by 1983. International presence strengthened through entries into (1984), via acquisitions in four cities (1988), and the launch of Kelly Scientific Resources in 1987 for specialized scientific staffing. The decade closed with a 1989 reorganization into Kelly Temporary Services and Kelly , streamlining operations for broader workforce solutions.

Globalization and Restructuring (1990s–2010s)

During the , Kelly Services accelerated its globalization strategy through targeted acquisitions and office openings, extending operations beyond into , , and . In 1990, the company acquired Competence ApS, a temporary agency in ; Free-lance Uitzendburo in the ; and Adstaff Associates, Ltd. in , marking early entries into these markets. Further expansions followed in 1991 with the purchases of Xpert , Ltd. in and Acton in . By 1996, Kelly had established subsidiaries in , , , , and multiple European countries, alongside new offices in , the , and that year. This international push supported revenue growth, with sales reaching $1.7 billion in 1992 and climbing to $3.85 billion by 1997. Facing a temporary staffing slowdown, Kelly restructured in 1991 by reorganizing into four specialized temporary help divisions to streamline operations and adapt to market conditions, resulting in earnings falling from $71 million in 1990 to $39 million that year before stabilizing. The company simultaneously diversified its offerings amid rising demand for niche skills, acquiring ComTrain for software training and Your Staff for employee leasing in 1994; Wallace Law Registry for legal temporary in 1995; and Oak Ridge Research Institute for scientific in 1996. Launched in 1995, Kelly Scientific Resources expanded globally, achieving $200 million in revenue with over 70 locations across , , and by 2000. Additional entries included and in 1997, along with scientific offices in and in 1998. Into the 2000s, Kelly's global footprint grew to 2,500 offices across 26 countries by 2003, reflecting sustained emphasis on international operations amid competitive pressures, such as the 1996 Adecco merger challenging positions in the U.S. and . In 2006, it acquired The Ayers Group, a New York-based firm specializing in IT, , and professional staffing, to bolster technical capabilities. Economic downturns, including the 2001 recession, drove demand for flexible staffing as corporate layoffs increased, allowing Kelly to leverage its temporary workforce model without major operational overhauls during that period. By the late , sales exceeded $4 billion annually, underscoring the effectiveness of these and specialization efforts.

Recent Developments (2020–Present)

In response to the , Kelly Services experienced significant declines in 2020, with quarterly drops including 28.73% in the second quarter and 8.82% in the first quarter, driven by reduced demand for temporary staffing amid lockdowns and economic uncertainty. The company implemented cost-saving measures and portfolio adjustments during this period to maintain liquidity and position for recovery. Post-2020, Kelly shifted its revenue mix toward higher-margin, outcome-based solutions such as managed service provider (MSP) programs and recruitment process outsourcing (RPO), reducing reliance on traditional temporary . This strategic realignment, initiated in 2020 and refined in 2025, emphasized specialty segments like , , and managed solutions to enhance competitiveness. In 2022, the acquisition of RocketPower bolstered its RPO capabilities, followed by the $425 million purchase of Motion Recruitment Partners (MRP) in June 2024, which included the Sevenstep brand and expanded and talent solutions, with potential additional earnouts up to $60 million payable in 2025. Financial performance reflected mixed results through 2025, with full-year 2024 at $4.3 billion influenced by acquisitions and dispositions, and trailing twelve-month reaching $4.49 billion by mid-2025. Second-quarter 2025 totaled $1.1 billion, a 4.2% year-over-year increase on a reported basis due to the MRP acquisition, though organic declined amid softening in certain segments. Leadership transitioned in 2025, with Peter Quigley announcing his retirement as president and CEO; Christopher Layden was appointed to the role effective September 2, succeeding Quigley who remained in an advisory capacity during the handover. Kelly was recognized as a Leader and Star Performer in Everest Group's 2025 U.S. Contingent Staffing PEAK Matrix assessment for its capabilities in vendor management and talent delivery.

Business Model and Operations

Core Revenue Streams

Kelly Services generates the majority of its revenue through fees for temporary and contract , permanent placements, outcome-based services, and talent solutions provided via its specialized operating segments. In 2024, reached $4,331.8 million, with services—primarily hourly billing for temporary employees—forming the largest component across segments, supplemented by permanent placement fees and . The Professional & Industrial (P&I) segment contributes approximately 34% of , focusing on temporary , outcome-based solutions, and permanent placements for industrial, office, clerical, and contact center roles, mainly in ; it generated $1,470.7 million in 2024, down 4.5% year-over-year due to reduced hours. The Science, Engineering & (SET) segment, accounting for 33% of , provides specialized and placements in scientific, , IT, and telecom fields, yielding $1,422.8 million in 2024, up 19.5% primarily from the acquisition of MRP Group. Education services, representing 22% of revenue, deliver temporary staffing and permanent placements for U.S. school districts and educational organizations, with $972.3 million in 2024 revenue, reflecting 15.5% growth from heightened demand. The Outsourcing & Consulting Group (OCG) segment, at 11% of revenue, offers process outsourcing (RPO), managed service provider (MSP) solutions, and outsourcing globally, contributing $468.3 million in 2024, up 3% year-over-year.
Segment2024 Revenue ($ millions)% of TotalYoY Change (%)
1,470.733.9-4.5
1,422.832.8+19.5
972.322.4+15.5
Outsourcing & Consulting468.310.8+3.0
Total4,331.8100-
These streams rely on high customer concentration, with the top 100 clients comprising 58% of 2024 revenue and the top 10 accounting for 29%, underscoring dependence on large-scale contracts in , sectors. Permanent placement income, a smaller but fee-based stream, totaled $13.3 million in Q4 2024 alone, embedded within segment revenues.

Organizational Structure and Divisions

Kelly Services, Inc. organizes its operations into three reportable segments as of 2025: Enterprise Talent Management (ETM), Science, Engineering & Technology (SET), and Education. This structure reflects a reorganization implemented in early 2025, which consolidated the prior four segments—Professional & Industrial (P&I), Outsourcing & Consulting Group (OCG), SET, and Education—by merging P&I and OCG into ETM to streamline management and align with strategic priorities evaluated by the chief operating decision maker (CEO). The segments are defined based on the internal organizational components for which discrete financial information is reviewed regularly by executive leadership to assess performance, allocate resources, and make operational decisions. Enterprise Talent Management encompasses temporary staffing, permanent placement, outcome-based solutions, , and consulting services primarily in /clerical, industrial, contact center, and areas. It serves clients across , leveraging brands such as KellyConnect for contact centers and RocketPower for recruitment process outsourcing (RPO) and managed (MSP) programs. This segment generated $520.2 million in service revenue during the second quarter of 2025, representing a core volume driver for the company amid a focus on efficiency post-restructuring. The Science, Engineering & Technology segment specializes in staffing and talent solutions for roles in scientific research, clinical trials, , , , and related technical fields. It includes brands like Motion Recruitment Partners (acquired to bolster IT and capabilities), Softworld, and NextGen, with operations concentrated in the United States and . This division targets high-skill, specialized labor markets, contributing significantly to the company's gross profit through premium-margin placements. Education focuses on providing temporary, permanent, and executive staffing for Pre-K-12 school districts, including educators, therapists, and administrative roles. Operating under brands such as Teachers On Call and PTS Staffing Solutions, it addresses seasonal and ongoing demands in the U.S. public sector. The segment reported organic revenue growth of 5.3% in the second quarter of 2025, driven by expanded contracts and labor shortages in and support services. Supporting these segments is a centralized shared services model handling enterprise-wide functions such as information technology, human resources, legal, and , with costs allocated to segments based on metrics like gross profit or work effort. Corporate overhead, including and governance, is reported separately and excluded from segment metrics to emphasize operational . Following the divestiture of European operations to Gi Group in January 2024, the company shifted to a North America-centric structure, with reassigned to ETM and no remaining international reportable segment. This configuration enhances focus on specialty talent solutions while maintaining flexibility for global outsourcing via OCG elements within ETM.
SegmentPrimary ServicesKey BrandsGeographic EmphasisQ2 2025 Revenue ($M)
Enterprise Talent ManagementTemporary staffing, permanent placement, RPO, MSP, outcome-based solutionsKellyConnect, RocketPower520.2
Science, Engineering & TechnologySpecialized technical staffing, clinical/IT/engineering placementsMotion Recruitment Partners, SoftworldNot specified in Q2 details; prior SET growth noted at 38% in Q4 2024 post-acquisition
EducationEducator/therapist staffing, executive search for schoolsTeachers On Call, PTSNot broken out; 5.3%

Global Presence and Supply Chain

Kelly Services maintains its global headquarters at 999 West Big Beaver Road in , , overseeing operations primarily concentrated in the following the completion of its European business sale to Gi Group Holdings S.p.A. on , 2024. This divestiture, which transferred direct activities in , , and , enabled a strategic shift toward higher-margin segments like , , , and in core markets. Post-sale, the company's International segment footprint diminished significantly, with operations reclassified under the unit. In , Kelly operates extensively across the with multiple offices supporting temporary, contract, and permanent placements, alongside dedicated units like Kelly Government Solutions for federal contracts. Canadian and locations complement this, facilitating cross-border workforce solutions, particularly in manufacturing, logistics, and professional services. operations persist in select markets including , , and , focusing on specialized talent in IT, , and finance. Through its KellyOCG division, Kelly extends indirect global reach via partnerships and recruitment process (RPO), serving clients in over 40 countries without maintaining full everywhere. Annually, this network connects more than 400,000 individuals to opportunities worldwide. Kelly's talent emphasizes ethical sourcing through a vetted of supplier partners who provide contingent workers, adhering to legal, transparent, and compliance-driven standards. Internal roles, such as Talent Supply Chain Consultants, oversee end-to-end processes including requisition fulfillment, timecard , invoicing, and corrections to ensure efficient delivery. For clients, KellyOCG integrates via , combining direct hires, contractors, and freelancers to address volume fluctuations in sectors like and distribution. This model mitigates risks in global talent acquisition by leveraging for matching and compliance, though it relies on partner reliability amid varying regional labor regulations.

Services and Offerings

Temporary and Permanent Staffing

Kelly Services offers temporary staffing solutions to address short-term workforce needs, such as seasonal demands, special projects, or employee absences, providing employers with screened and trained workers through a streamlined process. These services include contract staffing for project-based roles and temporary-to-hire arrangements that allow evaluation before permanent commitment. The company connects over 450,000 individuals annually to such opportunities, operating as the #1 temporary staffing firm in the United States according to Forbes rankings. For permanent staffing, Kelly provides direct-hire services that place candidates into full-time roles without an initial temporary period, aiming to reduce recruiting time and costs while minimizing internal resource demands like resume screening. These placements span industries including , , , , , and , matching skilled professionals to long-term positions. Direct hire focuses on efficient talent acquisition, leveraging Kelly's global network to source candidates suited for enduring organizational needs. Both temporary and permanent services emphasize flexibility and speed, with temporary options enabling rapid scaling and permanent hires supporting strategic growth. Kelly's approach integrates and expertise to ensure compliance, , and , serving clients across the U.S. and internationally through its solutions model.

Specialized Workforce Solutions

Kelly Services offers specialized solutions designed to address niche talent demands in high-skill sectors, including , , , (collectively known as SETT), and , through tailored , , and retention strategies. These solutions extend beyond general temporary staffing to include placements for project-based needs, hire recruiting for permanent roles, outsourcing (RPO), managed (MSP) programs for contingent optimization, and (SOW) arrangements via statementworX to deliver scalable efficiency and profitability. In the SETT division, Kelly targets specialized roles such as scientists, clinical researchers, mechanical and electrical , IT experts in and cybersecurity, and telecom professionals focused on design and deployment, providing vetted talent to support evolving technical projects and initiatives. Kelly Education, a dedicated under these solutions, specializes in K-12 staffing, recruiting and managing , paraprofessionals, tutors, and therapists to alleviate shortages and administrative burdens for schools and . This division supports over 10,000 educational institutions annually, with demonstrated impacts such as a 42 improvement in fill rates in like , through targeted recruitment and retention programs including the Substitute Educator of the Year Awards. To bolster its technology-focused capabilities, Kelly acquired Softworld, a specialty technology staffing firm, on April 6, 2021, integrating its expertise in IT and engineering placements to expand flexible workforce options like independent contractor sourcing and short-term assignments. Organizational enhancements included the June 22, 2020, appointment of presidents for five specialty business units, including SETT and education, to drive focused leadership in these areas. Independent validation came in October 2024 when Everest Group named Kelly a leader in professional and industrial staffing, highlighting its SOW-driven innovations, contact center proficiency, and resilience in industrial segments as key strengths in delivering specialized talent.

Outsourcing and Consulting Services

Kelly Services delivers outsourcing and consulting services primarily through its KellyOCG division, which focuses on global talent strategies and solutions for organizations seeking to optimize contingent and permanent needs. These services encompass managed programs, , business process handling, and advisory expertise in and , leveraging over 75 years of operational experience to address complex talent challenges. Key outsourcing offerings include the Managed Service Provider (MSP) program, which oversees contingent workforce deployment to achieve cost reductions and operational efficiencies by consolidating vendor management and ensuring compliance across global programs. Recruitment Process Outsourcing (RPO) provides scalable, technology-assisted hiring for permanent roles, integrating human expertise with data analytics to streamline talent acquisition and reduce internal recruitment burdens. targets operational scalability, enabling clients to expand workforces for projects or ongoing functions while enhancing productivity through specialized team management and process optimization. Additional outsourcing solutions feature Services for statement-of-work engagements, allowing access to diverse talent pools without disrupting core business activities; Outsourcing, which extends beyond transactional processing to include compliance and employee support; and Direct Sourcing to cultivate proprietary talent communities for on-demand needs. Independent Contractor Complete facilitates compliant engagement of freelance experts, while Identity Management tracks access for non-employees to mitigate security risks. Consulting services emphasize talent strategy advisory, drawing on and market to guide organizations in HR transformation, integration, and . Supported by proprietary tools like Kelly Helix UX, which provides detailed reporting on contingent worker performance through real-time analytics offering full visibility with outcome-oriented insights, performance indicators for the external workforce, customized dashboards, and enhanced transparency into performance metrics, trends, and utilization, these consultations offer visibility into third-party labor ecosystems, aiding decisions on talent acquisition models such as buy, build, or borrow approaches for blended workforces. In February 2025, KellyOCG integrated permanent hiring capabilities across its offerings, enhancing consulting with advanced technology for end-to-end talent solutions ranking among the top global providers.

Leadership and Governance

Founders and Historical Executives

William Russell Kelly founded Kelly Services on October 7, 1946, in , , initially as Russell Kelly Office Service with an investment of $10,000, pioneering the modern temporary staffing industry by providing on-site secretarial and clerical workers, marketed as "Kelly Girls." Born November 21, 1905, in , , Kelly graduated from Gulf Coast Military Academy in 1922 and studied business administration at and the , from which he dropped out in his senior year. Prior to founding the company, he worked as an automobile salesman for Hudson Motors, an accountant at the Great Atlantic & Pacific Tea Company from 1928 to 1938, and as a civilian fiscal management analyst for the U.S. during , where he developed expertise in office procedures and business systems. Under Kelly's leadership as chairman, the company expanded rapidly, achieving $92,000 in sales in its first full year of 1947 and opening its second office in , in 1954; by 1955, it operated 30 licensed branches nationwide and placed approximately 20,000 workers. Innovations included hiring women, older workers, and minorities for temporary roles, with diversification into fields like , , information technology, law, , , and healthcare. The firm reincorporated as Personnel Services, Inc., in in 1952, went public in 1962 with $25 million in revenue and 148 offices, and renamed to Kelly Services, Inc., in 1966 to reflect broader services beyond clerical work; its first international office opened in , , in 1968. Kelly remained chairman until his death from cancer on January 3, 1998, at age 92 in . Richard Kelly, William's brother, joined the company in 1947 and served as a key early executive, notably opening the Louisville branch and contributing to national expansion efforts in the . Limited public records detail other pre-1970s executives, as the company's growth was predominantly driven by the founder's vision and family involvement during its formative decades. Subsequent leadership transitions, such as to Terence E. Adderley as chairman by the early 2000s, marked a shift toward professionalized amid ongoing and diversification.

Current Leadership and Board

Chris Layden serves as President and Chief Executive Officer of Kelly Services, having assumed the role on September 2, 2025, succeeding Peter Quigley. Layden brings over 20 years of experience in the staffing and workforce solutions industry, including prior roles as at Prolink and senior positions at . The executive leadership team includes Troy Anderson as Chief Financial Officer since October 2024, with prior experience as CFO at Universal Technical Institute; Amy Bouque as Chief People Officer, previously at ; Tammy Browning as Group President for Enterprise Talent Management, with over 20 years at Kelly; D. Hugo Malan as President of Kelly , , & Telecom since 2020, who has overseen key acquisitions; Keilon Ratliff as President of the Office of the Presidents Accounts and , with 25 years in staffing; Nicola Soares as President of Kelly Education; and Vanessa Williams as and Corporate Secretary since 2020, with 24 years of legal expertise. The comprises nine members as of September 2025, chaired by Terrence B. Larkin since 2010, who previously served as Executive Vice President, Business Development, General Counsel, and Corporate Secretary at . Layden joined the board concurrently with his CEO appointment. Other directors include:
DirectorTenureKey CommitteesPrincipal Background
Gerald S. Adolph2018; Compensation and ; and Nominating (Chair)Senior Partner, Booz & Co. (1981–2016)
George S. Corona2017N/AFormer President and CEO, Kelly Services (2017–2019)
Robert S. Cubbin2014; Compensation and (Chair); and NominatingFormer President and CEO, Meadowbrook Group (2002–2016)
Amala Duggirala2022; and NominatingEVP and CIO, (2022–present)
InaMarie Felix Johnson2022Compensation and ; and NominatingFormer Chief People and Diversity Officer, (2018–2022)
Leslie A. Murphy2008 (Chair); Compensation and President and CEO, Murphy Consulting (2008–present)
Peter W. Quigley2019N/AFormer President and CEO, Kelly Services (2019–2025)
The board oversees corporate governance, with defined principles emphasizing CEO accountability to the board and director independence.

Corporate Governance Practices

Kelly Services, Inc. maintains a board of directors consisting of nine members, with a majority classified as independent in accordance with Nasdaq Global Select Market standards, despite the company's status as a controlled entity where a trust holds more than 50% of the voting stock. The board size is set between five and eleven directors, determined by board resolution, and all directors are elected annually by shareholders, with vacancies filled by the board until the next annual meeting. Directors are responsible for overseeing business strategy, risk management, chief executive officer performance, executive succession planning, and fostering an ethical corporate culture. The board operates through three standing committees, each composed entirely of independent directors and governed by written charters: the Audit Committee, which assists in financial reporting and internal controls oversight; the Compensation and Talent Management Committee, focused on executive pay and talent strategies; and the Corporate Governance and Nominating Committee, which identifies director nominees, evaluates board composition and leadership, conducts annual board self-assessments, and oversees corporate sustainability strategies including environmental, social, and governance (ESG) initiatives. The Corporate Governance and Nominating Committee meets at least quarterly and has authority to engage external advisors for director searches and governance reviews. Independence is assessed annually by this committee against regulatory standards. Key governance policies include a Code of Business Conduct and Ethics, which mandates legal and ethical compliance aligned with the 's vision, mission, and values, supplemented by an anonymous third-party administered global reporting system for violations accessible to employees, suppliers, and customers in multiple languages. The board collectively enforces adherence to this code and related policies, such as an Policy applicable to directors, executives, and employees. Shareholder communications are facilitated through written submissions to the corporate secretary at the 's . These practices emphasize compliance, oversight, and alignment with interests in a controlled framework.

Financial Performance

Historical Financial Milestones

Kelly Services was founded in 1946 by William Russell Kelly in , Michigan, as Russell Kelly Office Service, initially focusing on temporary office staffing. In its first full year of operation, 1947, the company recorded sales of $92,000. By 1953, sales had exceeded $1 million, reflecting early expansion through additional branch offices. The company went public in 1962, offering 100,000 shares while Russell Kelly retained two-thirds ownership, with shares initially traded over-the-counter. This transition supported further growth, including international expansion starting with a office in 1968. Revenue reached $19.4 million by 1961 and $25 million in 1962. Subsequent decades marked rapid scaling, driven by diversification into industrial, technical, and healthcare staffing. Key revenue thresholds included:
YearRevenue Milestone
1973Exceeded $100 million
1976$150 million
1978Topped $250 million, coinciding with relocation to a new headquarters in
1986Surpassed $1 billion
1993Reached $2 billion
1995$2.7 billion
1996Exceeded $3 billion
1997$3.85 billion, with earnings of $80.8 million
Acquisitions bolstered these gains, such as the 1976 purchase of , Inc., launching healthcare services, and 1994-1995 deals including Your Staff, Inc., ComTrain, and Wallace Law Registry, which expanded specialized offerings. A 1991 economic slowdown temporarily reduced earnings to $39 million from $71 million in 1990, but recovery followed with broadened services. In 2020, Kelly Services' revenue fell 15.7% to $4.52 billion amid the , which sharply curtailed demand for temporary and contract staffing across industries. The company rebounded in , with revenue growing 8.7% to $4.91 billion and net income reaching $156.1 million, bolstered by economic reopening and increased hiring needs. Revenue continued to rise modestly in 2022 to a peak of $4.97 billion, though net income shifted to a $62.5 million loss due to higher operating costs and investments in specialized services. By 2023, revenue declined 2.6% to $4.84 billion, with net income of $36.4 million, reflecting softening temporary staffing volumes amid economic uncertainty. In 2024, revenue dropped further by 10.4% to $4.33 billion—a headline decline driven by the divestiture of European staffing operations—yielding a net loss of $0.6 million after $86.3 million in non-cash impairments; however, organic revenue grew 0.5%, and adjusted EBITDA rose 31% to $143.5 million (3.3% margin), indicating improved operational efficiency and a pivot to higher-margin North American IT and engineering segments. Early 2025 results showed stabilization, as Q2 revenue increased 4.2% year-over-year to $1.1 billion (despite a 3.3% organic decline), with jumping to $19.0 million from $4.6 million in Q2 2024, supported by acquisitions such as Motion Recruitment Partners. These trends underscore the cyclical nature of the staffing industry, with recovery giving way to moderated demand influenced by , interest rates, and client caution, offset by Kelly's strategic refocus on profitable niches that more than doubled adjusted EBITDA margins since 2020.

Market Position and Stock Performance

Kelly Services maintains a mid-sized presence in the and solutions sector, with trailing twelve-month of $4.50 billion as of 2025, primarily derived from temporary , permanent placement, and outsourcing services in following its 2024 divestiture of European operations. This scale positions the company below dominant global players like , Adecco, and , which generate annual exceeding $20 billion each, reflecting Kelly's more focused U.S.-centric operations and narrower amid a competitive landscape valued at hundreds of billions globally. The firm's of approximately $440 million underscores its relatively modest valuation compared to larger peers with multi-billion-dollar caps, influenced by industry headwinds such as declining temporary demand and a U.S. penetration rate dipping to 1.57% in May 2025. Kelly's Class A shares (NASDAQ: KELYA) traded at $12.28 in October 2025, supporting the $0.44 billion market cap amid ongoing volatility tied to macroeconomic pressures on hiring. Second-quarter 2025 results showed of $1.10 billion, up slightly year-over-year but missing analyst expectations, with shares declining in pre-market trading post-release; profits surged 313% to $19 million due to one-time gains, though management projected a 5-7% drop for the second half of the year from reduced federal contracting and softer demand. Over the , the company posted a net loss of $6.30 million, or -$0.19 per share, with a negative net margin of 0.14% but positive of 5.65%. The offers a forward of 2.39%, with a quarterly payout of $0.075 per share, providing modest amid uncertainty; analysts anticipate Q3 2025 revenue of $1.10 billion and full-year figures around $4.68 billion, with EPS growth projected at 17.55% to $2.88 in the following year.

Controversies and Criticisms

Kelly Services has encountered multiple lawsuits alleging violations of wage and hour laws, particularly involving the misclassification of employees as exempt from requirements under the Fair Labor Standards Act (FLSA). In Gaffers v. Kelly Services, Inc. (filed in the U.S. District Court for the Eastern District of and appealed to the Sixth Circuit in 2018), plaintiffs, including over 1,600 virtual call center employees, claimed the company underpaid them by treating home-based roles as exempt despite duties that allegedly qualified them for . The case highlighted disputes over whether employees' primary tasks involved non-exempt activities like routine customer interactions, leading to demands for back pay and . A related class action settlement in 2023 addressed similar misclassification claims for recruiter positions, with Kelly agreeing to pay $3.15 million to resolve allegations of denying to approximately 247 employees classified as exempt. Plaintiffs argued that recruiters' administrative and duties did not meet FLSA exemption criteria, prompting federal court approval of the payout after preliminary review. Broader tracking of such cases indicates Kelly has faced at least 17 wage and hour violation lawsuits since 2009, resulting in over $20 million in combined penalties and settlements, often centered on temporary and remote staffing roles. In addition to wage disputes, Kelly has defended against claims. A 2008 federal private lawsuit resulted in a $2.06 million payment for alleged practices. Another case, Noyes v. Kelly Services (2005, appealed to the Ninth Circuit), involved a failure-to-promote claim under Title VII, where the plaintiff challenged the company's promotion decisions in April 2001 as discriminatory. In Smith v. Kelly Services Inc. (2020, Third Circuit), a temporary employee sued after termination for violating a "no-touch" policy by contacting a , alleging pretextual firing amid concerns, though the district court granted to Kelly. Kelly has also pursued enforcement of non-compete agreements against departing employees. In Kelly Services v. DeSteno et al. (2019, Court of Appeals, petitioned to U.S. ), the company successfully obtained attorneys' fees after suing former recruiters for breaching one-year non-compete clauses by joining a competitor, with the court upholding contractual remedies. Separately, a 2017 private settled for $6.75 million over employment screening violations, reportedly involving improper background check disclosures under the . In , a 2023 PAGA-only action in Orange County accused Kelly Services Global of Labor Code breaches, including failure to provide meal and rest breaks and accurate wage statements, though outcomes remain pending. These cases reflect recurring scrutiny of Kelly's classification and compliance practices in the staffing sector, with settlements often avoiding admissions of liability.

Employee Relations and Workplace Issues

Kelly Services, a global staffing firm, has encountered numerous employee complaints and legal actions related to and hour practices, particularly concerning temporary and virtual workers. In , the company settled a federal class-action for $11 million over allegations of and hour violations involving failure to pay for off-the-clock work, such as login times and technical troubleshooting. Similarly, a 2016 lawsuit accused Kelly of withholding from home-based customer care agents by not compensating for pre-shift and post-shift activities, in violation of federal and state laws. In , a 2023 PAGA-only action alleged failures to provide meal and rest breaks, accurate statements, and timely pay upon separation, though the case focused on representative claims without individual penalties. Discrimination claims have also arisen against Kelly Services. A 2005 Eighth Circuit case involved age and retaliation claims after an employee's termination, though the upheld for the company. In 2008, a federal lawsuit resulted in a $2.06 million settlement for . A jury awarded $6.5 million in 2008 to an employee alleging due to a supervisor's favoritism toward members of a specific religious group. More recently, in October 2025, a federal ruled that two former Black managers must arbitrate claims of race-based termination after disclosing vendor information, enforcing the company's agreement. Additionally, a 2017 Tenth Circuit addressed Americans with Disabilities Act and claims by a temporary employee, but details on resolution remain tied to underlying district proceedings. The company has faced scrutiny from the (NLRB) over unfair labor practices. In a 2019 NLRB decision (Case 04-CA-171036), Kelly Services was found to have violated Section 8(a)(1) of the National Labor Relations Act by maintaining an overly broad confidentiality rule that employees reasonably construed as prohibiting protected concerted activities, such as discussing wages. Other NLRB cases, including those from 2017 (e.g., 15-CA-201394), involved amended complaints related to employee , though specific outcomes emphasized remedial orders rather than broad changes. These incidents reflect recurring tensions in employee relations for staffing firms, where temporary worker classifications can complicate protections under labor laws, but Kelly has often resolved disputes through settlements or without admitting liability.

Client and Operational Complaints

Clients of Kelly Services, primarily employers seeking temporary staffing solutions, have occasionally reported dissatisfaction with the reliability and competency of assigned workers, leading to operational disruptions. In one documented case involving Allina Healthcare, a client criticized Kelly for placing operators lacking adequate in scheduling tasks, which resulted in frequent errors and contributed to the cancellation of contracts due to service failures. Operational shortcomings have also surfaced in legal contexts, where mismatches between worker skills and job requirements exposed vulnerabilities in Kelly's placement processes. A wage-hour class action lawsuit filed against Kelly in California highlighted unsuitable assignments, prompting industry commentary on the need for stricter client selection and assignment vetting to mitigate risks such as performance deficiencies that could erode client trust. While direct public complaints from major corporate clients remain scarce—likely due to the B2B nature of disputes, which are often settled confidentially—aggregate client satisfaction metrics indicate room for improvement. Kelly's overall score stands at 62 out of 100, reflecting moderate feedback on service delivery from users including employers. These issues underscore broader operational challenges in the temporary staffing sector, including timely matching of talent to client needs amid fluctuating demand.

Economic and Workforce Impact

Contributions to Labor Market Flexibility

Kelly Services, established in by William Russell Kelly in , , pioneered the temporary staffing model by deploying on-site clerical workers—initially branded as "Kelly Girls"—to meet short-term business needs, particularly for tasks amid postwar labor shifts. This approach decoupled workforce scaling from permanent hiring, enabling employers to adjust staffing levels swiftly without the administrative and financial burdens of full-time contracts, thus introducing a foundational mechanism for labor market adaptability. By , the service addressed immediate gaps in administrative roles, setting a precedent for flexible labor deployment that spread globally as the company expanded. The company's temporary and contract solutions contribute to labor market flexibility by allowing firms to respond to demand fluctuations, such as seasonal surges or project-based requirements, with minimal and reduced fixed costs—estimated savings of up to 20-30% on benefits and compared to permanent hires in variable-demand sectors. Kelly's network, spanning industries like , , IT, and , provides access to pre-vetted specialized talent, facilitating rapid upskilling without internal overhead; for instance, in and , this model supports just-in-time workforce adjustments to match production cycles. Economic analyses of agencies affirm that such intermediaries lower hiring barriers and enhance employer , correlating with faster job matching and reduced durations during recoveries. Broader empirical evidence from the staffing sector, where Kelly operates as a leader with over $4.3 billion in 2024 revenue, underscores contributions to market dynamism: temporary roles account for flexible transitions, with 20% of participants citing schedule adaptability as a primary draw, aiding overall labor mobility amid economic volatility. This flexibility extends to global operations, where Kelly's and help multinational firms navigate regulatory variances and skill shortages, promoting efficient without overstaffing risks. Industry reports link temp agency growth to increased GDP resilience, as flexible staffing buffers against downturns by enabling quick contractions—evident in post-2008 and recoveries where contingent workers filled 64% of transitional roles.

Criticisms of the Temporary Staffing Model

Temporary workers placed through staffing agencies typically earn lower wages than comparable permanent employees performing similar roles, with studies indicating a wage penalty of approximately 10-20% after controlling for factors like experience and occupation. This disparity arises because agencies often mark up client payments by 20-50% to cover their fees, retaining the difference while paying workers minimally, which incentivizes suppression of base pay to maximize agency margins. Additionally, temporary positions rarely include benefits such as health insurance, retirement contributions, or paid leave, leaving workers without protections that permanent roles provide and increasing their vulnerability to financial instability. The model fosters job insecurity, as contracts are short-term and renewable at the agency's discretion, leading to inconsistent and income volatility; surveys of temp workers reveal that over 40% experience periods of between assignments, exacerbating risks. links entry into temporary employment with poorer outcomes, including higher rates of stress and depression, due to and perceived stigma compared to permanent staff. Firms' reliance on temps also correlates with reduced investment in for those workers, limiting development and long-term , as agencies prioritize quick placements over advancement. Critics argue the temporary model enables "permatemping," where companies indefinitely cycle workers through agencies to evade obligations like full benefits or conversion to permanent status after probationary periods, as seen in U.S. labor practices where such arrangements affect millions annually. This practice contributes to broader wage stagnation, as it diminishes workers' and allows employers to externalize costs, with data showing temp-heavy sectors experiencing slower productivity growth, particularly in skilled industries. Reports from worker surveys highlight associated risks of exploitation, including wage theft and unsafe conditions, with temporary employees overrepresented in low-wage, hazardous jobs lacking oversight. While industry advocates emphasize flexibility, these structural features prioritize employer cost savings over worker stability, perpetuating inequality as evidenced by higher rates among temps.

Broader Societal Effects

The temporary staffing model exemplified by firms like Kelly Services, which employs over 700,000 workers annually across , , and other sectors, has facilitated labor market entry for low-skilled and hard-to-employ individuals, potentially aiding short-term reduction and economic flexibility during recoveries. Empirical analyses indicate that temporary agency placements can yield higher subsequent earnings for low earners compared to direct spells, suggesting a pathway out of for some demographics over longer horizons, though initial wages remain lower. This aligns with causal mechanisms where agencies bridge mismatches and provide proxies, enhancing aggregate workforce adaptability without firms bearing full hiring risks. However, broader evidence reveals systemic drawbacks, including exacerbated income inequality through persistent wage penalties—temporary workers face 10-20% lower pay than permanent counterparts, with slower career progression and earnings stagnation compounding over the life course. Studies attribute this to dual labor market dynamics, where agency intermediation traps workers in precarious roles, elevating risks upon contract end and reducing access to benefits like coverage, which erodes financial stability. declines and material deprivation rise among temporary employees, particularly low-income groups, as agencies often shift liability for poor conditions to workers while client firms externalize costs. These patterns contribute to societal polarization, with temporary correlating to widened racial and educational gaps, as marginalized communities disproportionately enter such roles amid inadequate protections. While industry advocates highlight flexibility, peer-reviewed findings underscore net negative productivity effects in skilled sectors and diminished , challenging claims of unalloyed efficiency gains. Sources like labor NGOs may amplify worker-side narratives, yet converging academic consensus from outlets such as and NBER affirms causal links to inequality persistence absent regulatory offsets.

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