winning in US commercial staffing

Transcription

1 winning in US commercial staffing Traci Fiatte, President Randstad General Staffing USA Capital Markets Day London Randstad Holding nv

2 agenda introduction and definitions US market and Randstad General Staffing US how did we get here? history and methods going forward ber 230, 2014 third quarter results roadshow version

3 what is winning? WINNING Profitable Sustainable Growth that outperforms the market 3

4 US market growth 40% 30% 20% 10% 0% -10% P 2015P Office Segment: GM environment stable 2014 market revenue projected at 98% of 2008 total market 2014: $18.4 billion -20% -30% -40% -50% -60% -70% Office/Clerical Industrial Direct Hire Temp-to-hire Industrial Segment GM environment stable 2014 projected at 132% of 2008 total market 2014: $31.3 billion (includes construction) Source: Staffing Industry Analysts 4

5 Randstad s position in the US market $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Largest industrial staffing firms in the US 2013 U.S. Staffing Revenue ($million) Source: Staffing Industry Analysts $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Largest office/clerical staffing firms in the US 2013 U.S. Staffing Revenue ($million) 5

6 growth vs. market Growth Direct Hire L4Q 14 Market -15% -58% 23% 29% 10% 9% 7% Randstad -21% -48% 41% 73% 34% 23% 25% * Staffing Industry Analysts blue = outperformed market red = did not Growth Commercial Staffing (temp) L4Q 14 Market -8% -25% 19% 13% 6% 4% 4% Randstad Revenue -7% -29% 31% 9% 3% -3% 6% Randstad GM -15% -28% 36% 8% 3% 4% 8% 6

7 50% 40% 30% 20% 10% 0% -10% -20% -30% Randstad General Staffing and the market Industrial Staffing growth P 25% Market Randstad Revenue Randstad GP 15% Office/Clerical Staffing growth 5% -5% P 80% 60% 40% 20% 0% -20% -40% -60% -80% Direct Hire growth L4Q '14-15% -25% -35% Market Randstad Revenue Randstad GP Market Randstad 7

8 how did we get here? segmentation delivery model field steering 8

9 segmentation and delivery models 136 Industrial Units 66 Mixed Units 133 Office Units 11 MSP Delivery Centers 63 Preferred Client Units 304 Inhouse Locations 2 Remote Recruiting Centers 9

10 field steering combines four related dimensions standards on activities and field expectations reporting and transparency incentive comp plan headcount alignment and adjustment 10

11 field steering aims to optimize productivity using three levers strong market mapping well-qualified databases increase volume clear focus specific target setting activities & conversion leadership: - clear objectives, specific targets - consistent follow-up - challenging and coaching to improve clear growth model/ decision framework reliable GP/FTE overview down to smallest entity needed consistency needed for changes to deliver results no managing averages, be sure to timely add FTEs as well manage FTEs improve margin 11

12 field steering psychology and risk of managing averages An average operating company An average operating company Where would any manager tend to focus? As time is scarce, managers tend to focus on underperforming districts and branches Operating company Operating company District District I II Branch/team Branch/team C D Unit/consultant Unit/consultant 5 6 What improvement potential would they have overlooked? At the risk of overlooking potential at other underperformers and opportunities to invest in / learn from top performers That s why we like to draw our company upside down That s why we should focus primarily on operational level. Average performance at higher levels is only a consequence Operating company Unit/consultant District I II Branch/team Branch/team A B C D District Unit/consultant Operating company top performer top performer 12

13 activities (dotted) to leading indicators (solid) correlation 13

14 profitable growth trend continues Sep YTD Revenue per day ($M) revenue per day vs OPEX trend L4Q '14 Rev/Day OPEX % EBITA % 50% 40% 30% 20% 10% 0% 05% 04% 03% 02% 01% 00% -01% Opex (%) Ongoing improvements in EBITA due to: fee growth segmented delivery mix shift EBITA vs GP$/FTE Trend GP$/FTE -02% L4Q '14 GP$/FTE EBITA % - 14

15 continued accelerated growth in perm fees Millions % 6.5% % 4.5% % % % 5 0.5% annualized Fees Fees % of GM L4Q % 15

16 timeline Field steering refined, segmentation of branches acquisition Driving growth in new population acquisition Delivery models / MDCs SFN integration Application of RGS delivery models to SFN business (RIS, RCS, MDC, segmented branches) Winning in industrial, inhouse & perm

17 going forward 17

18 managing through the cycle temp penetration rate Temp Penetration Rate 2.20% 2.10% 2.00% 1.90% 1.80% 1.70% 1.60% 1.50% 1.40% 1.30% Jan ' % Oct' % 1.20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

19 what s next? headcount field steering retention & leadership predictive success analytics hyper focus field steering continued growth in perm 19

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