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from staffing to integrated talent solutions Linda Galipeau, Executive Board member
Capital Markets Day London Randstad Holding nv November 17, 2015
agenda
November 17, 2015 Capital Markets Day 2015 2
Randstad US Update MSP and RPO Talent Engagement RiseSmart Innovation and
technology
revenue and EBITA composition North America Q3 2015 YTD
November 17, 2015 Capital Markets Day 2015 3
revenue ebita
55% 36%
9%
Staffing Professionals Sourceright
50% 43%
7%
Staffing Professionals Sourceright
Randstad US by business line GP YTD Q3 2015
November 17, 2015 Capital Markets Day 2015 4
Industrial; 23%
Office Clerical; 22%
Sourceright; 11%
Accounting & Finance; 13%
IT; 26%
Engineering; 3% Pharma; 2%
Healthcare; 1%
Position and growth
November 17, 2015 Capital Markets Day 2015 5
largest staffing firms in the U.S. 2014 U.S. staffing revenue ($million)
• US staffing market estimated at $124 billion in 2014
• Top 10 staffing firms represent 29% of total US market share
• Randstad US market share 3.5%
Source: Staffing Industry Analysts
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15ASA 2,6% 6,1% 6,2% 7,9% 5,4% 3,7%BLS 5,2% 5,0% 5,6% 6,4% 5,8% 5,4% 4,1%Randstad Rev -0,3% 3,2% 5,9% 7,0% 5,8% 6,2% 5,0%Randstad GP 1,3% 3,9% 5,2% 7,1% 10,5% 10,8% 9,5%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
Revenue Growth: Year Over Year
ASA based on revenue from ASA Quarterly Sales Survey BLS based on temporary employment growth
Profitable growth trend continues
6
*2015 rolling = q3 ytd ‘15 + q4 ‘14
3%
4%
5%
6%
7%
8%
3.000
3.200
3.400
3.600
3.800
4.000
4.200
2011 2012 2013 2014 2015rolling
EBIT
A %
Gro
ss P
rofi
t pe
r da
y ($
000)
US GP/day vs EBITA% trend
Gross Profit per day EBITA %
-
500
1.000
1.500
2.000
2011 2012 2013 2014 2015rolling
Gro
ss P
rofi
t pe
r da
y ($
000)
GP/day
Commercial Staffing Professional Staffing Sourceright
November 17, 2015 Capital Markets Day 2015
Industrial: market growth and strong demand for RIS
Source: Staffing Industry Analysts
• top 10 firms represent 50% of total US market
• Randstad 5% market share
• market outperformance due to accelerated demand for RIS model by customers
• growth driven by increased usage in existing customers (40%) and new customer wins (60%)
Source: BLS Production, Transportation and Material Moving Occupations. Penetration rates are based on May 2014 data.
-
500
1.000
1.500
2.000
2.500
Largest industrial staffing firms in the US 2014 U.S. Staffing Revenue ($million)
Industrial temp penetration
7 November 17, 2015 Capital Markets Day 2015
Office: limited growth, market remains below prior peak
8
Source: Staffing Industry Analysts
• top 10 represent 37% of total US market share
• Randstad 6% market share
• margin environment stable
• market remains below peak levels
• tal market 2014: $18.5 billion
Source: BLS Office and Administrative Occupation. Penetration rates based on May 2014 data.
- 200 400 600 800
1.000 1.200 1.400
Largest Office/Clerical staffing firms in the US 2014 U.S. Staffing Revenue ($million)
O&A temp penetration
November 17, 2015 Capital Markets Day 2015
IT: strong demand and talent scarcity
November 17, 2015 Capital Markets Day 2015 9
Source: Staffing Industry Analysts
• Top 10 represent 42% of total US market share
• Randstad 4% market share
• Healthy growth and margin environment
• Talent scarcity continues to drive demand
• Market projected to grow 6% (SIA April 2015 forecast)
Source: BLS Office and Administrative Occupation. Penetration rates based on May 2014 data.
- 500
1.000 1.500 2.000 2.500 3.000 3.500
Largest IT staffing firms in the US 2014 U.S. Staffing Revenue ($million)
computer & mathematical temp penetration
Source: U.S. Bureau of Labor Statistics and Staffing Industry Analysts
cumulative employment growth, projected through 2022
agenda
November 17, 2015 Capital Markets Day 2015 10
Randstad US Update MSP and RPO Talent Engagement RiseSmart Innovation and
technology
RPO market growth
November 17, 2015 Capital Markets Day 2015 11
source: NelsonHall 2015
global RPO market to more than double by 2019, reaching $6.7bn
Region
Market Size 2014 ($m)
Proportion (%)
Growth over 2015
(%)
Market Size 2015
($m)
CAAGR 2014-2019
(%)
Market Size 2019
($m)
North America 1480 45 18 1746 17.0 3250
EMEA 1104 34 13 1251 15.6 2275
- U.K. 719 22 17 841 16.9 1570
- Rest of EMEA 385 12 6 410 12.9 710
Asia Pacific 599 18 6 635 9.3 935
Central & South America 96 3 20 115 20.2 241
Total 3279 100 14.3 3748 15.4 6701
multi-country RPO
November 17, 2015 Capital Markets Day 2015 12
MSP market growth estimates (spend under management)
November 17, 2015 Capital Markets Day 2015 13
• Global MSP spend under management growth estimated at 15% in 2014 (SIA)
• Randstad outpacing market in SUM growth
• US market most mature with estimated 7% growth in 2014 (SIA)
• MSP penetration of US temporary staffing market estimated at 45-50% (SIA)
• 45% of MSP programs are multi-country (regional 33% & global 12%). Multi-country adoption is likely to increase
Source: Everest Group Research ‘Managed Service Provider – Mastering the winds of change
$Bn
the challenge our clients face: complexity
• Managing multiple outsourcing solutions
• Managed Service Programs • Recruitment Process Outsourcing
• Technology tools • Varying levels of local and global
coordination
• Engaging contingent workers and contractors
• Recruiting and managing traditional employees
• Aligning multiple human capital functions with common business goals
November 17, 2015 Capital Markets Day 2015 14
Decentralized • Several suppliers
• Procurement done on an ad-hoc basis
• Management done internally
Preferred Suppliers • Selective set of
suppliers selected
• Contracts in place
• Service level agreements (SLA’s) in place
Master Vendor • One supplier (possibly
managing 2nd and 3rd tier suppliers)
• One point of contact
• Direct cost savings on bill rate and usage
• Customized SLAs and process
Managed Service Provider (MSP) • Contingent workforce
spend under management
• One contact point
• Direct cost savings on bill/rate usage
• Customized SLA’s and process
• Non-compliant spend elimination
• Total cost of ownership savings
Total Talent Management • Total workforce spend
under management
• Complete workforce visibility
• Direct cost savings on bill rate and usage
• Customized SLA’s and process
• Non-compliant spend elimination
• Increased total cost of ownership savings
• Additional productivity and process savings
• High degree of value added services
Time
Value
models converge to respond to client’s need for a comprehensive view
November 17, 2015 Capital Markets Day 2015 15
increasing service sophistication
Source: Staffing Industry Analysts
agenda
November 17, 2015 Capital Markets Day 2015 16
Randstad US Update MSP and RPO Talent Engagement RiseSmart Innovation and
technology
from recruiting to talent engagement
seeking
know nothing
very passive not interested
How much we know about the candidate
Cand
idat
e Se
ekin
g?
Source
Match
Cultivate
know everything
Attract
November 17, 2015 Capital Markets Day 2015 17
the shifting landscape of talent engagement
the Uber generation
evolving contingent workforce models
unrelenting technology innovation
the rise of the sourcing center
November 17, 2015 Capital Markets Day 2015 18
speed to match: • If you don’t find me
first, you’re too late
speed to match: if you don’t find me first, you’re too late
Speed: Fully automated matching and ranking
Intelligence: Leverage analytics to improve the quality of the match
Efficiency: Increase efficiency and reduce candidate search time
Sources: Focus on ‘high conversion’ sources
November 17, 2015 Capital Markets Day 2015
staffing firms will increasingly compete on speed to match and GP/PE
20
traditional candidate sourcing print, online jobboard postings, some social, job fairs and referrals
November 17, 2015 Capital Markets Day 2015 21
evolution of candidate sourcing advanced search logic, human data retrievel (social media, websearch)
Candidate : identification, Connection and Engagement November 17, 2015 Capital Markets Day 2015 22
talent sourcing by skill level
• low mid high
November 17, 2015 Capital Markets Day 2015 23
the leader in contemporary career transition services
Layoffs of 50 EE or more have averaged over 1 million employees annually since 1996
the “new normal” for business
25
Annual Involuntary Employee Separations
1996 1998 2000 2002 2004 2006 2008 2010 2012
550,000
1,100,000
1,650,000
2,200,000
Acquisitions
Rightsizing
Downsizing
Mergers
Layoffs
Restructuring
Source: BLS.gov
November 17, 2015 Capital Markets Day 2015
Randstad’s outplacement opportunity
Market potential : >$2B (est.) - Career Transition $ 900 M
Market potential : >€1 B (est.) -France: € 450M -NL: € 360M -Belgium: € 70M -Italy: € 28M -Spain: € 21M
North America Europe APAC
Market potential : $1B (est.) -Australia: AUS$ 250 M
Japan
Australia
November 17, 2015 Capital Markets Day 2015 26
agenda
November 17, 2015 Capital Markets Day 2015 27
Randstad US Update MSP and RPO Talent Engagement RiseSmart Innovation and
technology
technology is an integral part of our strategy
November 17, 2015 28
HR technology • being the most agile integrator of
technology & services
Randstad innovation fund • capturing trends & future business Org
TTA
Tech
ABFS
M&A
today
goals
Tech
shape the world of work • optimal workforces for
clients • the best jobs for
candidates
grow to 5-6% EBITA • profitable growth • improve margin • increase productivity
Our Strategy – Innovation
Capital Markets Day 2015
unbundling Randstad
November 17, 2015 29
RPO
Payrolling
Onboarding/ Training
Staffing Professionals HR Solutions
MSP
Gigs
Industries Call Center
Finance/Accounting
Industrial
Engineering
IT
Marketing
Legal
Healthcare
Call Center
Industries
Temporary
Permanent
Talent network / community
Temporary
Permanent
Outplacement
Capital Markets Day 2015
Outplacement
unbundling Randstad
November 17, 2015 Capital Markets Day 2015 30
RPO
Payrolling
Onboarding/ Training
Staffing Professionals HR Solutions
MSP
Gigs
Industries Call Center
Finance/Accounting
Industrial
Engineering
IT
Marketing
Legal
Healthcare
Call Center
Industries
Temporary
Permanent
Talent network / community
Temporary
Permanent
mapping technology companies
31
Employer Talent
sourcing
screening
selecting
performance
compensation & benefits
planning
training
retention
succession
acquiring
managing & developing
Matching
Employee referral
Crowdsourcing platform Online platform
Job distribution
Online chat events
Reference checks
Recruitment platform
Outplacement
November 17, 2015 Capital Markets Day 2015
Drive innovation in Randstad group
by investing in HR technology companies
Shape the world of work
Randstad Innovation Fund
November 17, 2015 Capital Markets Day 2015 32
HR Technology is an emerging industry sector, aimed to: Improve HR Processes: Productivity Expand Client offerings: Quality of Client proposal Create new business segments and concepts: Advanced Delivery
Our Strategy – Innovation
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