Volt Information Sciences, Inc. provides staffing services (traditional time and materials-based, as well as project-based).
The company’s staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services and managed staffing services programs supporting primarily administrative and light industrial (commercial), as well as technical, information technology and engineering (professional) positions.
The company’s managed service programs...
Volt Information Sciences, Inc. provides staffing services (traditional time and materials-based, as well as project-based).
The company’s staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services and managed staffing services programs supporting primarily administrative and light industrial (commercial), as well as technical, information technology and engineering (professional) positions.
The company’s managed service programs (MSP) involve managing the procurement and on-boarding of contingent workers from multiple providers.
The company operates in approximately 65 of its own locations and has an on-site presence in over 60 customer locations. Its principal non-U.S. markets include Europe, the Asia Pacific and Canada locations.
Segments
The company operates through North American Staffing, International Staffing, and North American MSP.
North American and International Staffing segments
The company’s two staffing services segments provide workforce management expertise through locations in North America, Europe and the Asia Pacific locations. The company delivers a broad spectrum of contingent staffing, direct placement, staffing management and other employment services. Its contingent workers are placed on assignment with its customers in a broad range of occupations, including manufacturing, assembly, warehousing, industrial, information technology, engineering, pharmaceutical, administrative, accounting and finance.
The company’s contingent staffing services are provided for varying periods of time to companies and other organizations (including government agencies) ranging from smaller retail accounts that may require ten or fewer contingent workers at a time to large strategic accounts that require as many as several thousand contingent workers at a time.
Within its staffing services segments, the company refers to customers that require multi-location, coordinated account management and services delivery in multiple skill sets as strategic customers and to customers that are primarily in a single location with sales and delivery handled primarily from a geographically local team and with relatively few headcount on assignment in one or two skill sets as retail customers. The company provides traditional staffing services. The contingent staff that the company provides often work under the supervision of its customers.
The company’s contingent staffing services enable customers to scale their workforce to meet changing business conditions, complete a specific project, secure the services of a specialist on an as-needed basis, substitute for regular employees during vacation or other temporary absences, staff high turnover positions, or meet seasonal peaks in workforce needs. When requested, it also provides Volt personnel at the customer’s location to coordinate and manage the administration of contingent workers. Many customers rely on the company’s staffing services as a strategic element of their overall workforce, allowing them to meet their fluctuating staffing requirements.
Contingent workers are recruited through proprietary internet recruiting sites, independent web-based job search companies and social networking talent communities through which the company builds and maintains proprietary databases of candidates from which it can fill customer needs. The majority of contingent workers become Volt employees during the period of their assignment and the company is responsible for the payment of wages, payroll taxes, workers’ compensation insurance, unemployment insurance and other benefits.
The company also provides recruitment and direct placement services of specialists in the accounting, finance, administrative, call center, engineering, information technology, pharmaceutical, manufacturing, assembly and industrial support disciplines. These services are primarily provided on a contingency basis with fees earned only if its customers ultimately hire the candidates.
North American MSP
The company’s North American MSP segment consists of managing the procurement and on-boarding of contingent workers and a broad range of specialized solutions that includes managing suppliers and providing sourcing and recruiting support, statement of work management, supplier performance measurement, optimization and analysis, benchmarking of spend demographics and market rate analysis, consolidated customer billing and supplier payment management. The workforce placed on assignment through the company’s MSPs is usually provided by third-party staffing providers (associate vendors) or through its own staffing services. In most cases, the company is required to pay associate vendors after it receives payment from its customer. Its staffing services businesses also act as a subcontractor or associate vendor to other national providers in their MSPs. The company’s MSPs are typically administered through the use of vendor management system software (VMS) licensed from various VMS providers.
In addition, the company’s North American MSP segment provides payroll service solutions, as well as recruitment process outsourcing for its customers. With its payroll service solution (also known as referred services), the customer refers an individual to it, it employs the individual and the individual works on an assignment for the customer at the customer’s worksite. The company manages and administers the individual’s payroll, payroll taxes, workers’ compensation and benefits.
Business Strategy
The key elements of the company’s strategy are to strengthen the focus on sales and delivery performance across a spectrum of service offerings for maximum competitive advantage; improve talent acquisition and delivery with a more focused, customized, agile delivery approach by integrating recruiting tools to increase its speed to match candidates and to mobilize data analytics to drive strategy around job postings; drive further efficiencies, and productivity by optimizing technology to drive performance through increased integration of available digital tools, reporting and processes and migrating from manual, customized processes to automated, standard processes; and re-establishing its sales culture by realigning the sales teams based upon client buying patterns with an emphasis on building client relationships.
Customers
The company serves multinational, national and local customers, providing staffing services (traditional time and materials-based, as well as project-based) and MSP.
Intellectual Property
VOLT is the principal registered trademark for the company’s brand in the United States. ARCTERN, REMOTEHIRE and VOLTSOURCE are other registered trademarks in the United States. The company also owns and uses common law trademarks and service marks.
Seasonality
The company’s staffing services revenue and operating income are typically lowest in its first fiscal quarter (year ended October 31, 2021) due to the holiday season and are affected by customer facility closures during the holidays (in some cases for up to two weeks) and closures caused by severe weather conditions. The demand for its staffing services typically increases during its third and fourth fiscal quarters when customers increase the use of its administrative and industrial labor during the summer vacation period. The first few months of the calendar year typically have the lowest margins as employer payroll tax contributions restart each year in January. Margins typically increase in subsequent fiscal quarters as annual payroll tax contribution maximums are met, particularly for higher salaried employees.
History
Volt Information Sciences, Inc. was founded in 1950. Th company was incorporated in 1957.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
