Core Insights - Motion Recruitment's 2026 Tech Salary Guide reveals that while average tech salaries in the U.S. grew by only 0.8% year-over-year, specialized roles experienced significant salary increases, indicating a divergence in compensation trends within the tech industry [3][4][8] Salary Trends - Average salaries for specialized roles such as LLM developers reached $209,000, while senior data workers earned an average of $178,000 in 2025 [4] - Mid-level AI engineers saw the highest salary increase at 9.2% year-over-year, followed by senior platform engineers at 8.9% and mid-level Salesforce developers at 8.5% [8] - The overall average IT salary remained flat, highlighting the disparity between generalist and specialized roles [3][7] Hiring Dynamics - AI adoption has slowed hiring for entry-level and generalist IT roles, with organizations facing skills shortages and needing to recruit or train specialized talent [5][9] - The demand for specialized skills in data engineering, cybersecurity, and applied AI is driving the strongest compensation growth [5][9] Market Insights - The tech job market is increasingly specialized, with AI-focused roles increasing by 49% and data security roles by 30% [9] - Employers are prioritizing candidates with hands-on experience in AI, data, and cloud infrastructure, as well as those who demonstrate continuous growth through upskilling [5][10] Location Impact - Salary growth varies significantly by location, with remote tech workers experiencing a pay increase of 2.8% compared to a 10% increase in New York City [11] - The tech salary can differ by over 24% between cities, emphasizing the importance of location in compensation [11] Challenges in Hiring - The prevalence of candidate fraud and bots is complicating the hiring process, leading employers to rely more on referral-driven pipelines [12][13] - Companies that do not balance workplace policies with compensation and flexibility risk losing experienced IT talent [12]

Business tops HRO Today’s 2025 Baker’s Dozen Customer Satisfaction RatingsTROY, Mich., Dec. 17, 2025 (GLOBE NEWSWIRE) -- KellyOCG® + Sevenstep, the outsourced solutions business of leading specialty talent provider Kelly® (Nasdaq: KELYA, KELYB), has claimed the No. 1 spot on HRO Today’s 2025 Baker’s Dozen Customer Satisfaction Ratings®: Total Workforce Solutions. The list is a global industry benchmark, ranking the top suppliers of managed services provider (MSP) and recruitment process outsourcing (RPO) so ...

Core Insights - The analysis of Kelly Services (KELYA) stock indicates challenges in its end market, leading to a "Hold" recommendation due to the stock being perceived as overpriced [1]. Company Analysis - The last evaluation of Kelly Services occurred in October 2023, highlighting concerns regarding its market conditions [1]. - The stock's valuation is considered high, prompting a cautious stance from analysts [1]. Analyst Background - Daniel Sereda, the chief investment analyst at a family office, emphasizes the importance of filtering extensive data to identify critical investment ideas [1]. - The investing group Beyond the Wall Investing, led by Sereda, provides insights similar to those prioritized by institutional market participants [1].

Core Insights - The article discusses the stock performance of Kelly Services (KELYA), which was rated as a "Hold" due to challenges in its end market and perceived high valuation [1]. Company Analysis - Kelly Services has faced challenges in its end market, leading to a cautious outlook on its stock performance [1]. - The stock was considered too pricey at the time of the last analysis in October 2023, prompting a "Hold" recommendation [1]. Analyst Background - Daniel Sereda, the chief investment analyst at a family office, emphasizes the importance of filtering vast amounts of information to identify critical investment ideas [1]. - He operates the investing group Beyond the Wall Investing, which provides insights similar to those used by institutional market participants [1].

Core Insights - Kelly Education has launched the LEARN Standards, a framework aimed at professionalizing the roles of substitute teachers and paraeducators, developed by Ed.D. credentialed educators and HR experts [1][2] - The LEARN Standards are designed to improve workforce retention, educator engagement, and student learning outcomes through clear competency expectations [1][2] Group 1: Addressing Educational Needs - The increase in teacher absenteeism, from 6% pre-pandemic to 10% currently, highlights the critical role of substitute educators in maintaining instructional quality [2] - Research indicates that structured, standards-based training for substitutes correlates with improved classroom performance and retention rates, yet many districts lack adequate training programs [2][5] Group 2: LEARN Standards Framework - The LEARN acronym encompasses five foundational pillars that guide the professional development of substitute teachers and paraeducators [2] - The framework provides role-specific guidance, emphasizing competencies such as leading instruction, ensuring a safe learning environment, and acting professionally [4][6] Group 3: Benefits of LEARN Standards - Improved retention rates are expected as prepared employees demonstrate higher job satisfaction and longer tenure, reducing turnover costs [5] - Enhanced engagement through benchmarked training equips educators with effective classroom management strategies, moving beyond traditional teaching methods [5] - The standards aim to advance student achievement by ensuring well-trained substitutes maintain educational continuity and effectively implement accommodations [5][7]

Core Insights - The Kelly Global Re:work Report highlights a significant disconnect between executives and employees regarding the adoption and benefits of AI in the workplace [4][6] - Executives view acquiring AI skills as essential for career success, while many employees remain skeptical about the technology's advantages [1][2] Group 1: Executive Perspectives - 69% of executives believe that refusing to adopt AI poses a greater threat to job security than the technology itself [2] - More than half (59%) of executives would consider replacing workers who resist adopting AI tools [2] - Executives acknowledge that AI should enable employees to focus on high-value tasks, yet only 47% of workers report time savings from AI [3] Group 2: Employee Perspectives - Less than half of employees (47%) feel they are benefiting from AI tools, and 32% do not see any advantages [3] - There is a notable gap in trust and understanding of AI's role in enhancing job performance among employees [4][5] Group 3: Implementation Challenges - 80% of executives admit that AI implementation is stalling due to a lack of expertise among teams [3] - Organizations face technical challenges, security concerns, and slow user adoption, which hinder effective AI integration [4] - The report identifies a skills gap as a critical barrier to realizing the full potential of AI in the workplace [4][5] Group 4: Recommendations for Organizations - The report urges employers to address three interconnected gaps: technology, talent, and trust [5] - Recommendations include linking AI fluency to career development, providing hands-on demonstrations to alleviate fears, and establishing feedback loops to align leadership and employee experiences [5][6] - Leaders are encouraged to model AI usage in their roles and foster a culture that promotes AI-driven problem-solving [6]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings [1]

Revenue Performance - Revenue from services in Q3 2025 decreased by 9.9% year-over-year to $935.0 million, with declines in ETM and SET segments, partially offset by growth in the Education segment [149]. - Year-to-date revenue from services increased by 1.9% to $3,201.7 million, primarily driven by the acquisition of MRP [155]. - In the ETM segment, revenue decreased by 13.1% in Q3 2025, primarily due to a 16.4% drop in staffing services [164]. - The SET segment experienced a 9.0% decline in revenue, largely due to reduced demand from U.S. federal government contractors [165]. - Education segment revenue increased by 0.9% in Q3 2025, driven by improved fill rates [166]. Profitability and Expenses - Gross profit decreased by 12.5% to $194.0 million, with a gross profit rate of 20.8%, down 60 basis points from the previous year [151]. - Gross profit for the Enterprise Talent Management (ETM) segment decreased by 15.4% to $96.7 million in Q3 2025, compared to $114.4 million in Q3 2024 [172]. - The Science, Engineering & Technology (SET) segment's gross profit decreased by 11.8% to $77.2 million in Q3 2025, influenced by changes in business mix and higher employee-related costs [174]. - The Education segment's gross profit increased by 2.0% to $20.1 million in Q3 2025, driven by higher revenue volume and lower employee-related costs [175]. - Consolidated total gross profit decreased by 12.5% to $194.0 million in Q3 2025, while year-to-date gross profit increased by 2.3% to $656.0 million [180]. - Total SG&A expenses decreased by 11.2% to $194.4 million, reflecting effective expense management and integration efforts [152]. - SG&A expenses for ETM decreased by 9.2% to $87.6 million in Q3 2025, primarily due to lower employee-related costs [180]. - The SET segment's SG&A expenses decreased by 15.3% to $57.6 million in Q3 2025, attributed to expense management actions [181]. - The Education segment's SG&A expenses increased by 6.3% to $24.5 million in Q3 2025, reflecting costs to support revenue growth [182]. - The company reported a goodwill impairment charge of $102.0 million in Q3 2025, significantly impacting earnings from operations [149]. - ETM reported a profit of $9.1 million in Q3 2025, a decrease of 48.9% compared to $18.0 million in Q3 2024 [186]. Tax and Cash Flow - Income tax expense for Q3 2025 was $46.4 million, compared to a tax benefit of $2.6 million in Q3 2024, primarily due to valuation allowances and impairment charges [154]. - The company's cash, cash equivalents, and restricted cash totaled $35.4 million at the end of Q3 2025, down from $45.6 million at year-end 2024 [196]. - The company believes its cash flow from operations and available liquidity will be sufficient to meet anticipated cash requirements while maintaining adequate liquidity for normal operations [208]. Debt and Liquidity - The debt-to-total capital ratio improved to 9.1% at the end of Q3 2025, compared to 16.2% at year-end 2024, indicating a stronger capital structure [201]. - As of the end of Q3 2025, the company had $150.0 million available on its revolving credit facility and $89.0 million available on its securitization facility [207]. - The securitization facility had $118.4 million in long-term borrowings and $42.6 million in standby letters of credit related to workers' compensation [207]. - The company has additional unsecured, uncommitted short-term local credit facilities totaling $3.1 million, with no borrowings under these facilities as of Q3 2025 [209]. Risk Management - The company entered into a $50.0 million 12-month interest rate swap and a $50.0 million 18-month interest rate swap, locking in fixed rates of 4.772% and 4.468% respectively [218]. - The company has not identified specific plans to repatriate a majority of its international cash balances as of Q3 2025 [206]. - The company continues to provide MSP, RPO, and Functional Service Provider solutions in the EMEA region following the sale of its EMEA staffing operations in Q1 2024 [206]. - The company monitors the credit ratings of its banking partners regularly, assessing the risk of banks not honoring commitments as insignificant [210]. - There have been no significant changes to the company's exposure management and procedures regarding market risk, foreign currency risk, and interest rate risk during Q3 2025 [216]. - The company is exposed to foreign currency risk primarily related to its foreign subsidiaries, with local cash flows generally unaffected by changes in foreign currency rates [217].

Core Insights - Kelly Services reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.21 per share a year ago, representing an earnings surprise of -57.14% [1] - The company posted revenues of $935 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.89%, and down from $1.04 billion year-over-year [2] - The stock has underperformed, losing about 18.2% since the beginning of the year compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.78 on revenues of $1.16 billion, and for the current fiscal year, it is $2.15 on revenues of $4.4 billion [7] - The estimate revisions trend for Kelly Services was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Staffing Firms industry, to which Kelly Services belongs, is currently in the bottom 19% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Korn/Ferry, is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year change of +7.4%, with revenues expected to be $702.98 million, up 4.2% from the previous year [9]

Financial Performance - Q3 2025 revenue was $935.0 million, a 9.9% decrease year-over-year, primarily due to lower demand in ETM and SET segments, with an underlying revenue decline of approximately 2% after excluding discrete impacts [4][6]. - Operating loss for Q3 2025 was $102.1 million, compared to earnings of $2.6 million in Q3 2024, reflecting non-cash goodwill impairment charges of $102.0 million [5][6]. - Adjusted EBITDA for Q3 2025 was $16.5 million, a decrease of 36.7% year-over-year, with an adjusted EBITDA margin of 1.8%, down 70 basis points [5][6]. - For the 39-week period ended September 28, 2025, revenue was $3.2 billion, a 1.9% increase compared to the same period in 2024, primarily due to the May 2024 acquisition of MRP [7][8]. - The company expects a total year-over-year revenue decline of 12% to 14% for fiscal 2025, with an underlying revenue decline of 4% to 6% [12]. - Adjusted earnings per share for Q3 2025 were $0.18, down from $0.21 in Q3 2024 [7]. - Total revenue from services for the third quarter of 2025 was $935.0 million, a decrease from $1,038.1 million in the third quarter of 2024, representing a decline of approximately 10% [33]. - The Enterprise Talent Management segment generated $487.9 million in revenue for Q3 2025, down from $561.6 million in Q3 2024, reflecting a decrease of about 13% [33]. - The Science, Engineering & Technology segment reported $304.9 million in revenue for Q3 2025, down from $335.0 million in Q3 2024, a decrease of about 9% [33]. - The company reported a goodwill impairment charge of $102.0 million in Q3 2025, significantly impacting net earnings [31]. - Net loss for 2025 was $125.3 million, compared to a net earnings of $31.2 million in 2024, representing a decline of $156.5 million [19]. - Basic earnings per share for 2025 was $(3.56), a decrease of $(4.42) from $0.86 in 2024 [19]. Cash Flow and Assets - Year-to-date free cash flow improved to $87.2 million in 2025 from $15.8 million in 2024 [28]. - Cash flows from operating activities for the 39 weeks ended September 28, 2025, were $94.0 million, compared to $11.9 million in the same period of 2024 [31]. - The company had a net cash used in financing activities of $131.4 million in 2025, contrasting with a net cash inflow of $217.3 million in 2024 [31]. - Cash, cash equivalents, and restricted cash at the end of the period were $35.4 million, down from $40.4 million at the end of the same period in 2024 [31]. - Total current assets decreased to $1,279.8 million in September 2025 from $1,365.5 million in December 2024 [28]. - Total assets decreased to $2,393.1 million in September 2025 from $2,632.3 million in December 2024 [28]. - Working capital decreased to $473.3 million in September 2025 from $539.0 million in December 2024 [28]. Dividends and Share Repurchases - The company declared a quarterly cash dividend of $0.075 per share, payable on December 3, 2025 [9]. - The company anticipates being active with Class A share repurchases in Q4 2025, indicating confidence in its strategy [6]. Operational Efficiency and Cost Management - Adjusted SG&A expenses declined by 9.7% in Q3 2025, reflecting expense optimization initiatives [6]. - The company’s adjusted earnings from operations for Q3 2025 were $4.3 million, compared to $11.7 million in Q3 2024, reflecting a decline of approximately 63% [40]. - Total Adjusted EBITDA for Q3 2025 was $16.5 million, a decline from $26.2 million in Q3 2024, representing a decrease of about 37.0% [44]. - The Adjusted EBITDA margin for Q3 2025 was 1.8%, down from 2.5% in Q3 2024 [44]. - Integration and realignment costs for Q3 2025 totaled $3.5 million, reflecting ongoing efforts to consolidate operations and align processes [53]. - The company plans to continue focusing on market expansion and integration of recent acquisitions to improve operational efficiency and financial performance [49]. Tax and Impairment Charges - The effective income tax rate for Q3 2025 was -44.8%, compared to 140.8% in Q3 2024, reflecting significant changes in tax expense due to goodwill impairment [17]. - The valuation allowance on deferred tax assets in Q3 2025 was $69.7 million, established due to cumulative losses in recent years [52]. - The company incurred a goodwill impairment charge of $83.6 million in Q3 2025, attributed to reduced demand and integration challenges from recent acquisitions [52]. Segment Performance - Revenue from services in the Science, Engineering & Technology segment increased by 13.5% to $944.6 million in 2025 from $832.3 million in 2024 [26]. - The Education segment reported a revenue increase of 5.0%, reaching $717.6 million in 2025 compared to $683.1 million in 2024 [26].