European Contingent Staffing Trends€¦ · 3 bn 2 bn 1 bn 0 1950 2050 15-59 0-14 60+ 2011 ......


European and North American Staffing Markets

Source: Staffing Industry Analysts

Size of staffing market 2010 = €91 Billion

Forecast Growth 2011 = 11%

Size of staffing market 2010 = €60 Billion

Forecast Growth 2011 = 12%


European Staffing Market by Sector


23%

50%

12%

4%4%

5%

1% 1%


Agency Temp Employment Has Returned to Growth

Source: Staffing Industry Analysts and US Bureau of Labor Statistics. ABU Netherlands, Pole Emploi France, BAP Germany - Note: Based on change in employment or hours worked as available

Year-Over-Year Change in Temp Employment for Select Countries

US

France

Netherlands

Germany

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Jan-08

Apr-08

Jul-08

Oct-08

Jan-09

Apr-09

Jul-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

Apr-11


Top 10 European Staffing Companies

Rank Company Latest Annual Sales (€m)

Change over prior year

1 Adecco 12,126 +24%2 Randstad 11,343 +10%3 ManpowerGroup 9,281 +17%4 USG People 3,099 +3%5 Hays 1,792 +10%6 Synergie 1,207 +30%7 Groupe CRIT 1,094 +16%8 Trenkwalder 1,000 +27%9 Impellam 983 +13%10 Kelly Services 763 +2%

Source: Company Financials and Staffing Industry Analysts


Staffing Industry Stock Index (SISI) Performance 2009 to 2011

80

90

100

110

120

130

140

150

160

170

180

Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11

SISI MSCI

The Stock Market is Bullish on Staffing

Source: Yahoo Finance and Staffing Industry AnalystsNote: SISI is market capitalization weighted and includes a selection of global staffing stocks. Adecco, Randstad, ManpowerGroup and Robert Half make up approximately ¾ of the index value based on market cap.

SISI

MSCI World Index


Temporary Staffing Growth Forecasts

Source: Staffing Industry Analysts’ Forecast

Country Structural Legislative Economic GDP 2011 GrowthRate

Sweden 4.2% 21%

Germany 2.6% 20%

Italy 1.0% 20%

Austria 2.4% 15%

Norway 2.7% 15%

Denmark 1.7% 14%

☺☺

☺

☺ ☺

☺

☺☺☺





France 1.8% 12%

Finland 3.7% 12%

Belgium 2.4% 12%

Switzerland 1.9% 9%

Netherlands 1.9% 8%

Spain 0.8% 7%

☺

☺

☺

☺☺☺

☺ ☺

☺





Ireland 0.9% 4%

UK 1.7% 3%

Portugal -2.2% 0%

☺☺


Heat Map: Staffing Sector Growth 2010/2011

Sectors UK FR DE NL IT BE ES

Office/Clerical

Industrial

IT

Engineering/Construction

Finance/Accounting

Healthcare

Legal

Clinical/Scientific

Education


+16% or more+11% to 15%+6% to 10%+1% to 5%-5% to 0


EU Agency Workers Directive

• Effective Date: 5 December 2011

• Two main features— Equal treatment for basic working and

employment conditionsMain impact in UK and Ireland

– Agency Workers RegulationsNo impact in Germany and Sweden

— Review of existing staffing legislation— Remove or justify


Restrictions Still in Place


Staffing Company Gross Margin Trends

Average Latest Period Year on Year Comparison

Change

All Companies 24.33% 23.39% +0.94

Very Large Companies* 24.62% 23.80% +0.82

Large Companies* 29.00% 27.29% +1.71

Medium Companies* 18.54% 18.81% -0.27

Small Companies* 33.58% 30.40% +3.18

Highest 55.04% 43.13% +11.91

Lowest 7.60% 7.96% -0.36


*Determined by Annual Revenue: Very Large = over €500m, Large= €50m-€500m, Medium = €5m-€50m, Small = less than €5m


European Staffing Company M&A

• 100 staffing company deals in Europe during 2010

~ Healthcare by far the most active sector (18% of all deals)

~ Recent significant dealso Adecco: Spring & MPS o Manpower: Comsyso Blackstone Private Equity: ICS Nursing and Pulseo Allegis: Aston Carter (IT)o Trenkwalder: Droege Capital GmbH

• US acquirers are establishing themselves in countries where their key US clients need help


Estimated €1.1 Trillion in Contingent Workforce Spend Globally

Source: Staffing Industry Analysts Contingent Workforce Estimate – December 2010

2009 EstimatedGlobal Spending

AgencyTemporary

Workers€203 Billion

Non-agency Contingent Spend,

€881 Billion

Non-Agency Contingent Spend• Independent Contractors• Freelancers• Independent Consultants• Internal Temp Pools• Fixed Term Contracts


AgencyTemps

Non-Agency Contingent Workers


AgencyTemps

Non-Agency Contingent

WorkersTraditional Workers


The Demographic Crisis: It’s Back!

Source: UN Department of Economic & Social Affairs

World Population by Age Group

6 bn

5 bn

4 bn

3 bn

2 bn

1 bn

01950 2050

15-59

0-14

60+

2011

Europe Population by Age Group

1950 2050

500m

400m

300m

200m

100m

0

15-59

0-14

60+

2011


Contingent Workforce Buyer Survey 2011


Contingent Workforce Buyer Survey

gggg

<€50 million

€50 million -€99 million




>€700 million

Survey Composition Europe: Estimated Annual Spend on Contingent Work

Source: 2011 Contingent Workforce Buyer Survey

31%

25%

19%

10%

10%

4%


Question:What do you think is the “right” or “healthy” proportion of contingent

workers for your organisation today?



Question:What do you think is the “right” or “healthy” proportion of contingent

workers for your organisation ideally?



Question:What is your best estimate as to how much your Organisation’s

expense budget would change if you had no contingent workers?



Supplier Report Card

• How would you rate the overall performance of your primary staffing supplier? B

0%5%

10%15%20%25%

0 1 2 3 4 5 6 7 8 9 10

Detractors Promoters

ExtremelyLikely

ExtremelyUnlikely

Passives

• How likely are you to recommend them to a friend?• Net promoter score: Europe = -8, North America = +26


Buyers Plan Increased Use of Contingent Work

Source: 2008-2011 Contingent Workforce Buyer Survey

Median estimate of Percent of CW

0%

2%

4%

6%

8%

10%

12%

14%

16%

2008 2009 2010 2011 2013 (P)

NA

WE



0%

10%

20%

30%

40%

50%

60%

70%

80%

2004 2005 2006 2007 2008 2009 2010 2011

NA

WE

Buyers More Focused on Contingent Work

Per Cent of Buyers who spent more than 50% of time on CW Issues



Growing Interest in Global Contingent Workforce Programme Management

Per Cent of Buyers who manage CW on a global basis

0%

10%

20%

30%

40%

50%

60%

70%

2008 2009 2010 2011 2013 (P)

NA

WE


Procurement in Lead


Per Cent of Buyers with Procurement taking lead in Staffing Supplier selection

0%

10%

20%

30%

40%

50%

60%

70%

80%

2005 2006 2007 2008 2009 2010 2011

NA

WE


Supplier Management Strategies in Place


Per Cent of Buyers with

strategies in place

82%

70%

63%

50%

46%

44%

40%

38%

37%

36%

35%

35%

31%

30%

30%

16%

Approved supplier list

Consolidating suppliers

Supplier tiering list

Master supplier

VMS

Significant use of domestic outsourcing

Increasing minority suppliers

Independent contractor compliance

Significant use of offshoring

MSP

Try new suppliers

Including SOW/consultants in programme

CW planning part of strategic planning

RPO

HRO

Global CW management



Per Cent of Buyers with

strategies planned over

next two years

Supplier Management Strategies Planned 9%

18%

23%

18%

39%

21%

24%

26%

23%

35%

30%

48%

56%

28%

26%

40%

Approved supplier list

Consolidating suppliers

Supplier tiering list

Master supplier

VMS

Significant use of domestic outsourcing

Increasing minority suppliers

Independent contractor compliance

Significant use of offshoring

MSP

Try new suppliers

Including SOW/consultants in programme

CW planning part of strategic planning

RPO

HRO

Global CW management


Contingent Workforce Buyer Compensation


<€49k

€50-74k

€75-99k

€100-149k

>€150k

Annual Base Salary 2010

Average Annual Base Salary 2010 = €88,200

Average Annual Increase 2009/2010 = 3.7%

13%

26%

26%

27%

8%


Contingent Workforce Buyer Compensation


None<€10k€10-19k€20-29k€30-39k>€40k

Annual Bonus (or other compensation ) 2010

Average Annual Bonus 2010 = €15,279

Median 2010= €10,000

11%

36%

22%

13%

9%

9%


Networking Lunch and Exhibit Time

Sponsored by:

20 June | 12:45 pm | Foyer Okura, Amstel, Heian I, White Leeuw

European Contingent Staffing Trends€¦ · 3 bn 2 bn 1 bn 0 1950 2050 15-59 0-14 60+ 2011 ......

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