Kelly's mixed bag of results

Signal Summary: Kelly Services just proved that even staffing giants can't escape today's hiring headwinds, while Bullhorn keeps gobbling up Salesforce competitors and healthcare staffing discovers the magic of micro-influencers. Plus, why waiting 45 minutes for a retest was a bad idea.

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HERE’S WHAT HAPPENED LAST WEEK ↓

SIGNAL 1
Kelly meets real margin squeeze

The mixed bag: Kelly's Q2 revenue hit $1.1 billion, up 4.2% year-over-year but down 3.3% organically - basically growth powered entirely by last year's acquisition shopping spree.

What's really happening:

• Adjusted EBITDA dropped 8.7% to $37.0 million with margins squeezed to 3.4%

• Company expects 5-7% revenue decline in Q3 driven by reduced federal contractor demand

• Education segment actually grew 5.6% while everything else struggled

The disconnect: Kelly's calling it "aligning resource levels with demand" - corporate speak for "we're cutting costs because clients aren't hiring like they used to."

Signal → Strategy: Consider launching an education staffing division - capitalizes on the one growing segment Kelly identified.

Go deeper: Kelly Q2 2025 Earnings Report

SIGNAL 2
Bullhorn swallows another Salesforce competitor

The acquisition: Bullhorn just acquired TargetRecruit, expanding their Salesforce user base to nearly 150,000 users.

Why this deal matters:

• TargetRecruit specializes in locums and per diem, two of healthcare's fastest-growing segments

• Building a successful Salesforce recruitment ISV is "incredibly hard, especially in the middle office"

• TargetRecruit customers get instant access to Bullhorn's AI tools and established marketplace

The coming storm: Every remaining Salesforce-based recruitment platform is now looking over their shoulder wondering if they're next on Bullhorn's acquisition list.

Signal → Strategy: If your ATS vendor feels shaky about competing with Bullhorn's expanding ecosystem, schedule a Bullhorn demo before your next renewal cycle hits.

Go deeper: Bullhorn Acquires TargetRecruit Press Release

SIGNAL 3
Healthcare staffing discovers influencer marketing isn't just for lip gloss

The breakthrough: Fusion Medical Staffing successfully used nurse influencers like "Nurse John" with millions of followers to drive brand awareness and leads - turns out there's an influencer for everything, even IV insertions.

What's working:

• Micro-influencers (5,000-25,000 followers) provide more targeted, trusted audiences than macro-influencers

• Video content significantly outperforms static graphics across all platforms

• Direct affiliate programs convert influencer followers into recruiter leads through custom landing pages

The reality check: Most healthcare staffing firms are scared to start and lack dedicated social media resources - classic "analysis paralysis" while competitors build relationships.

Signal → Strategy: Launch micro-influencer partnerships with traveling nurses in your top specialties. Start with $500 budgets and authentic relationship building.

Go deeper: Bringing Influencer Marketing to Staffing Podcast

RECRUITING CONFESSIONAL
When breathalyzers don't lie (but contractors do)

Recruiting Confessional A weekly series featuring anonymous stories from recruiting and staffing professionals. Submit yours here.

The Setup: Converting a contractor to full-time. Standard procedure drug test at 8:00 AM. What could go wrong?

The Disaster: Initial breathalyzer hits .08 - right at the legal limit. Contractor insists the machine is broken, demands a retest. We wait 45 minutes. Second test? .11.

At 8:45 in the morning…

Apparently someone took "hair of the dog" a little too literally during our waiting period.

Have a story? Submit it here

WEEKLY POLL

SHARE THE SIGNALS
3 people you should share these signals with:

1. Your VP of Sales who’s wondering if you should open an Education division

2. That healthcare recruiter who thinks TikTok is just for dancing teenagers

3. Your CFO who needs to see concrete ROI from social media investments