from staffing to integrated talent solutions - randstad/media/files/r/randstad-ir/documents... ·...

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


revenue ebita

55% 36%

9%

Staffing Professionals Sourceright

50% 43%

7%

Staffing Professionals Sourceright

Randstad US by business line GP YTD Q3 2015


Industrial; 23%

Office Clerical; 22%

Sourceright; 11%

Accounting & Finance; 13%

IT; 26%

Engineering; 3% Pharma; 2%

Healthcare; 1%

Position and growth


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


• 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


• top 10 represent 37% of total US 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


IT: strong demand and talent scarcity



• Top 10 represent 42% of total US 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



technology

RPO market growth


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


MSP market growth estimates (spend under management)


• 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


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


increasing service sophistication


agenda



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


the shifting landscape of talent engagement

the Uber generation

evolving contingent workforce models

unrelenting technology innovation

the rise of the sourcing center


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


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


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


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


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


agenda



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


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


Drive innovation in Randstad group

by investing in HR technology companies

Shape the world of work

Randstad Innovation Fund


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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