Robert Half Inc.: Navigating Challenges in a Booming Professional Services Market

The professional services and accounting talent market is experiencing robust growth, driven by the gig economy, digital transformation, and a surge in demand for specialized skills. According to a report by the Business Research Company, the global employment services market is projected to expand from $1.94 trillion in 2024 to $2.15 trillion in 2025, with a compound annual growth rate (CAGR) of 10.5%. This tailwind presents both opportunities and challenges for industry leaders like Robert Half Inc., a stalwart in the staffing sector.

Financial Performance: A Mixed Bag

Robert Half's 2024 financial results reflect the turbulence of a maturing market. For the full year, the company reported a 9.3% year-over-year decline in total service revenue, settling at $5.796 billion. Q4 2024 was particularly tough, with service revenue dropping 6.1%, including a 10.9% slump in international markets. Most business segments, including finance and accounting (-9.5%), administrative and customer support (-8.8%), and technology (-3.5%), contributed to the decline. However, Protiviti, its consulting arm, bucked the trend with 5.3% revenue growth, underscoring the potential of strategic diversification.

The third quarter of 2025 offered a glimmer of hope. While net income fell to $43 million (from $65 million in Q3 2024), management signaled optimism for sequential growth in Q4 2025, citing improving market conditions. This guidance suggests that Robert Half is navigating near-term headwinds while positioning itself for a rebound.

Strategic Positioning: Strengths and Vulnerabilities

Robert Half's dominance in the professional services sector is evident. In 2024, it generated $6.4 billion in net service revenue, securing its place as a top-tier player in the U.S. and global markets. Its core Finance & Accounting segment remains a cornerstone, contributing $553.4 million in Q3 2025, while Protiviti's 5.3% growth highlights the value of expanding into consulting.

However, the company faces stiff competition. Adecco Group, for instance, overtook Randstad as Europe's largest staffing firm in 2025, and its 2023 revenue ($19.7 billion) dwarfs Robert Half's $6.4 billion. Randstad's 2023 revenue ($29.5 billion) further illustrates the scale gap. That said, Robert Half's focus on high-margin professional services-particularly in accounting and finance-gives it an edge in niche markets where specialized expertise commands premium pricing.

Industry Tailwinds and Strategic Leverage

The staffing industry's growth is fueled by structural trends. The recruitment outsourcing market, valued at $10.3 billion in 2024, is expected to grow at a 9.9% CAGR through 2034, driven by AI and automation streamlining candidate matching. For Robert Half, this means opportunities to enhance its digital platforms and data analytics capabilities, which could improve efficiency and client retention.

Moreover, the AICPA reported "strong" hiring rates in accounting firms in 2025, aligning with Robert Half's core competencies. By leveraging its brand strength and deep industry relationships, the company can capitalize on this demand, particularly as businesses seek agile staffing solutions to navigate economic uncertainty.

Investment Outlook: Caution and Opportunity

While Robert Half's 2024 results highlight the challenges of a slowing market, its long-term prospects remain compelling. The global staffing services market is projected to grow at a 6.53% CAGR through 2033, and Robert Half's strategic emphasis on high-margin professional services positions it to outperform in this environment. Investors should monitor Q4 2025 results closely, as management's guidance for sequential growth could signal a turning point.

In conclusion, Robert Half is navigating a transitional phase in a dynamic industry. Its ability to adapt to market caution while leveraging growth drivers like digital transformation and niche demand will determine its success. For investors, the key is to balance short-term volatility with the long-term potential of a sector poised for expansion.