randstad france
TRANSCRIPT
Southern European Insight Day
Barcelona May 2015
Randstad France
Randstad France: an integral part of the employment market
May 2015 2 Randstad France - analyst update Barcelona 2015
staffing
integration
training life at work
skills assessments
perm
• Revenue €2.7 billion
• 750 branches
• 3,600 corporate staff
• 1.8 million contracts
• 58,000 temporary workers each
day
• 21,000 perm recruitments in 2014
• 50,000 clients
2
France overview
May 2015 3
• Estimated threshold for staffing job creation: GDP growth > 1.5%
• 150,000 new applicants per year on the market
Randstad France - analyst update Barcelona 2015
overview of labour market
May 2015 4
Active Population – 56.5%
Type of contracts
Unemployment
Randstad France - analyst update Barcelona 2015
the French staffing market
May 2015 5 Randstad France - analyst update Barcelona 2015
• Yet to recover pre-crisis volumes (2007) • 2013 was the second-worst year (after 2009) in recent history • Penetration rate around 2.5% • Current alternative: short-term contracts (x2 in 10 yrs, from 6m to 12m contracts),
even if over-taxed
competitive landscape: the market remains concentrated
May 2015 6
Market share – 2013 (% sales)
Top 5 actors = 79,4% market share
Randstad France - analyst update Barcelona 2015
Randstad 2014: ongoing development of business concepts
May 2015 7
• continue to merge branches into large platforms
• manage CICE as price policy and market share losses • renewed focus on Field Steering
• specific focus & outperformance in Perm
• management changes in Q4 2014
• Inhouse still above competition: Staffing mkt flat, Inhouse +14%
Randstad France - analyst update Barcelona 2015
regulatory environment and outlook
May 2015 8
• 2014: second year of CICE: concept of tax credit
• “Competitiveness Pact”: additional subsidies, based on low salaries and family tax
• End of 2014: Roll-out of ”CDI-TT”. Weak start (IT, growth market). 20,000 contract commitment made by the industry over 3 years
• In 2017, shift of CICE into sustainable decrease in social charges
Randstad France - analyst update Barcelona 2015
Randstad France business mix
May 2015 9
Drivers for change: •Niche segmentation on Professionals •Field steering to focus on SME, despite the huge growth of Inhouse. • Increase of GM after Inhouse transfer (fees) •Acceptance of sharing small part of subsidies to regain market share. •Digitalisation of full process / Virtual branch to serve unusual staffing clients
Revenue mix
Randstad France - analyst update Barcelona 2015
Inhouse business model success
10 May 2015 Randstad France - analyst update Barcelona 2015
Inhouse concept and innovation
One of the main blocks of our mid-term strategy Very strong revenue growth in last 2 years. We currently have over 136 inhouse locations Flagship of our differentiation strategy Two focus areas : • reduce network dependency of large accounts, by redeployment on SME segment
• a typical transfer improves profitability of accounts and doubles the market share after 4 months
Continuation of rapid growth, to strengthen our position. Competitors need time to acquire a similar service
11 May 2015 Randstad France - analyst update Barcelona 2015
Inhouse = 84% of “onsite” branches
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270 actual sites
#450 prospects
9 « competitors »
178 onsite agencies : 150 RIS (84% market share), 17 Adecco Onsite, 11 Inside by Adequat
92 implants : 50 Adecco Onsite, 20 Manpower Onsite, 10 Inside by Adequat
May 2015 Randstad France - analyst update Barcelona 2015
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Randstad Inhouse launched in 2000 - and still growing
May 2015 Randstad France - analyst update Barcelona 2015
The innovation challenge Applying digital technologies to maintain differentiation through innovation: virtual branches, large upstairs branches, extranet, …
14 May 2015 Randstad France - analyst update Barcelona 2015
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Randstad candidate path
Contact with facebook, twitter…
t & registration
Job offer
Competencies
talk
matching
Back Office
Independance
Loyalty
Test on line
visioconf with consultant
Assessment
Mobile app & portail
digital document with portal
planning management app Satisfaction & recommendation
May 2015 Randstad France - analyst update Barcelona 2015
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Randstad client path
digital document, timesheet, …
Steering order status
spection ssional social network
Address needs with candidates preselection
Internet tools
Order
Back Office
Loyalty
Client page on portal Order on line
End of job steering and dashboard client satisfaction measure and candidate
assessment
May 2015 Randstad France - analyst update Barcelona 2015
Summary
● The French economy is gradually recovering, with net job creation a real prospect
● Favourable government subsidies, tax credits and social charge reductions helping to support margins
● Randstad France well-positioned to grow in strategic business lines (Perm, Inhouse) and to improve productivity in higher-margin SME business
● Randstad France carefully balancing profit maximisation vs market share: we are now back in line with market
● Focus on innovation to drive improvements in productivity and client satisfaction
17 May 2015 Randstad France - analyst update Barcelona 2015