Sales Insights: Manpower Staffing

Transcription

1 Sales Insights: Manpower Staffing EXECUTIVE LEADERSHIP CHANGES: ADECCO Robert Crouch replaced Tig Gilliam as the new regional head of North America. Crouch served as CFO of the MPS Group from 2001 until 2010, and had been elected to the MPS board in Crouch played a key role at growing MPS into a company with revenue of $2.2 billion in 2008, according to Adecco. Adecco s president in Colombia was elected last year as director for the Andean region, taking responsibility for operations in Colombia, Ecuador, Venezuela and Peru. Victoria Bethlehem, Adecco s head of HR in Australia and New Zealand, has been promoted to SVP, global head of talent management. She will relocate to Zurich at the end of this year. Christophe Duchatellier, formerly from its Japan operations, named as regional head for Adecco Asia overseeing China, Hong Kong, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam. Also, named Brad Miller as managing director of its Judd Farris brand in Hong Kong. ALLEGIS GROUP Allegis Partners, the retained executive search and advisory services arm of Allegis Group, announced that Douglas G. Hanslip joined the firm as a managing director and head of financial services. Prior to joining the company, Hanslip served as managing director for the financial services practice at Korn/Ferry International. KELLY SERVICES Daniel T. Lis, SVP, general counsel, and corporate secretary, plans to retire effective January 1, Following Lis retirement, Peter Quigley, currently the company s SVP of its global client relationship team, will assume the role of general counsel. James Polehna, VP of investor relations and corporate communications, will add the role of corporate secretary to his areas of responsibility. Kelly s Asia Pacific vice president of global solutions and services, Martin Nicholls, has moved into a new role within its outsourcing and consulting arm. Nicholls, who joined Kelly in 2010 from Talent2, has been appointed vice president of direct hire practices and will lead Kelly s Asia Pacific RPO business from Singapore. For Internal Use Only - 1

2 Dhiran Shantlal, head of Kelly s Asia Pacific business, has been promoted senior vice president. He replaces CS Tiong in this role. RANDSTAD Randstad commented in a company issued press release that it has made several appointments as further evidence of its commitment to invest in and build upon its U.S. brand. Glen Cathey joined Randstad Sourceright s RPO division as its new VP of global sourcing and talent strategy. Previously he served as market vice president of recruiting for Kforce with more than 800 recruiters, achieving more than 30,000 hires annually. Cathey is also the author of Boolean Black Belt, a popular sourcing and recruiting blog that attracts more than 10,000 visitors per month from more than 100 countries. Kristin Kelley, previously VP of marketing for Randstad U.S. Professionals, and originally with Sapphire, was promoted to EVP of marketing for Randstad U.S. Jay Ferguson was named chief legal officer. Ferguson, who has been with Randstad for almost three years, was previously a partner with Duane Morris LLP. He also served as outside counsel to Randstad for nine years. Karen Turner was named president of Randstad Healthcare s Physician division. Prior to this appointment, Turner served as the vice president of product development and strategy at Randstad Sourceright. Before working with Randstad, Turner was a vice president with ZeroChaos, where she was a founding employee and leadership team member. Current Randstad Healthcare president, Cynthia Kinnas, will also take on the role of president of the National Association of Travel Healthcare Organizations effective Jan. 1, Kinnas founded Randstad s travelling nurse staffing company (formerly known as Clinical One) in 1993 and oversees Randstad Healthcare s nursing and allied health division. Randstand s new general director in Mexico is Simone Nijsen, who replaces Alejandro Alvarez. AQUISITION ACTIVITY: ADECCO Adecco has announced a two-year freeze on acquisitions after it spent $216 million on careertransition adviser Drake Beam Morin Inc. last year and 90 million euros ($117 million) on Japan s VSN Inc. in January The Gores Group, a private equity firm, acquired the Glotel North America and Idea Integration Corp. operations from Adecco North America. Terms of the transactions were not announced. Glotel is a mobile communications network services and staffing solutions provider, and was formerly part of Spring Group plc, which was acquired by Adecco in Idea Integration provides information technology solutions in digital strategy, marketing and design and other areas. It also provides managed services. Adecco acquired the firm in 2009 when it bought MPS Group Inc. For Internal Use Only - 2

3 ALLEGIS GROUP Allegis Group owns a 50% ownership stake in Talent2. Talent2 was a publicly traded firm on the Australian Stock Exchange, but went private in September of this year. Allegis Group signed an agreement with Morgan & Banks Investments in May to privatize Talent2 by jointly purchasing all shares of the firm. TEKsystems recently announced that it had reached an agreement to acquire Frontline Consulting Services (FCS) Inc., a global integration services firm with core capabilities in Oracle BI/EPM, Oracle ERP, Oracle Fusion Middleware and Software AG/WebMethods technologies. Frontline joins TEKsystems Global Services TM division, which delivers managed, projectbased and outsourced IT services. Allegis entered the Brazilian staffing market by acquiring a minority share of Grupo Empreza, which is based in the Goiania area. Grupo Empreza has grown quite rapidly in the past 2-3 years, especially in terms of number of branches and clients. It started out as a temporary staffing company focused on the agricultural sector in the central region of the country. Now it is working in the retail sector and has opened branches in most major cities. KELLY SERVICES Kelly Services and Temp Holdings Co., Ltd. announced a joint venture agreement to expand both companies presence in north Asia. TS Kelly Workforce Solutions is headquartered in Hong Kong, and Toshio Saburi, executive managing director of Temp Holdings Co., Ltd., has been appointed chief executive officer. In 2010, Temp Holdings and Kelly Services formed a strategic alliance to expand and strengthen both companies competitive positions in the global staffing market. This new joint venture is an evolution of the collaboration between the two companies. PASONA GROUP Mitsubishi Corporation (MC) and Bewith, Inc. (100% owned by MC) have agreed that the Pasona Group will take over a 60% equity interest in Bewith from MC. As a result of this transaction, the Pasona Group and MC will jointly manage Bewith, which specializes in automotive audio systems. RANDSTAD Outsourcing specialist Staffline Group reported that it had acquired Select Appointments Limited, a staffing company providing office and administration staff across the UK. This follows the Oct. 25 announcement that Randstad had disposed of this part of its UK staffing business. The Select brand was originally created in 1983, became part of Vedior in 1999, and was then acquired by Randstad in The non-franchised portion of Select remains part of Randstad s commercial network in the UK having been rebranded as Randstad in For Internal Use Only - 3

4 OPERATIONAL UPDATES: ADECCO MSP Overview Overtook ManpowerGroup Solutions leadership position in Latin America with 51% of the MSP market in Brazil and 42% of MSP market in Argentina. Similarly, Adecco overtook our leadership position in Asia Pacific with 55% of the MSP market in India, 29% of MSP market in Singapore, and 23% of MSP market in Hong Kong. The company also appears to have invested in the local capability of its Beeline VMS technology in India. RPO Overview At the most recent U.S. Oracle OpenWorld event, Adecco RPO and Oracle jointly presented an RPO workshop and introduced the new applicant tracking system, irecruitment, Adecco s RPO division was ranked the #2 Enterprise RPO service provider by HRO Today magazine in its annual ranking of top RPO firms. Executive management roles changes: Lydia Wilson, SVP of business development Kim Daivs, SVP of program management Mir Ali, VP of information technology Elaine Nicol, VP of implementation Adecco RPO has also expanded its products and services to include proprietary candidate relationship management (CRM) technology and services, and proprietary talent supply and demand planning technology and services. Adecco has reorganized to merge its MSP/VMS/RPO business under the brand Pontoon in response to a growing trend to bundle like services due to client/customer opinion that managed services do truly include RPO. According to reports, the Beeline VMS operation will maintain the Beeline brand and operate independently within the Adecco Group. The company expects the combination of Beeline MSP and Adecco Solutions to be completed by year end. Initial leadership information includes the following: Mike Wachholz, global president of Pontoon, has been with Beeline since For Internal Use Only - 4

5 Nicole Burth, CFO of Pontoon, has been with Adecco since 2005; most recently as CFO of Adecco Solutions. Appears to be based in Switzerland. Doug Leeby, president of Beeline VMS, has been with Beeline since Raluca Thiers, CFO of Beeline VMS, has been with Adecco since Adecco s non-freezone contract staffing (all UAE mainland contract staffing) capabilities enables it to win business with multinational clients with presence inside the freezones. The markets it concentrates on are oil & gas, engineering, IT & telecom, fast moving consumer goods, and media. Adecco has realigned its brand structure in Australia/New Zealand to focus on industries and professions, rather than geographies. Since its acquisition of Ajinkya Services, Adecco has been concentrating on industrial staffing positions in Pune, India. Across all of India, Adecco is focused on managed services and contingent staffing. Adecco launched a new division in Chile for hospitality and events services. Adecco is the first company in HR management with ISO certification in Ecuador. Has launched two new services in Peru: Premium Search to provide executive search Team building consultancy, including internal communication, teamwork, conflict management, and innovation among others Adecco is rebuilding its U.S. presence after missing the boat in the lucrative computer-staffing market. The company struggled to keep up with the American market since doubling its global IT staffing sales to $800 million by acquiring U.S.-based MPS Group Inc. for $1.2 billion in The focus on integrating MPS meant Adecco had its eye off the market. ALLEGIS GROUP MSP Overview Provides MSP and RPO services under consolidated brand of Allegis Group Services; is investing in industry-specific practices within this brand. Damaged our position in India with 18% of the MSP market. Allegis Group Services is promoting to the market that it has been named as the overall top performing MSP based on customer and supplier experience in the Staffing Industry Analysts 2012 VMS/MSP Landscape Report. Allegis entered into a strategic alliance with Wall Chase Partners, an Argentina-based human capital firm. The alliance is aimed at driving RPO and MSP solutions, as well as retained executive search and talent advisory services in Argentina, Chile and Uruguay. For Internal Use Only - 5

6 KELLY SERVICES MSP Overview Reduced ManpowerGroup s market position in Brazil with 26% of the country s MSP market. Also reduced our market position in Asia Pacific with 40% of the market in Singapore and 72% in Malaysia. KellyOCG was named to the MSP Baker s Dozen list by HRO Today magazine, for the second consecutive year. RPO Overview KellyOCG was presented with two awards at the Asia Pacific HRM Congress in Bangalore, India. KellyOCG was recognized as an Organization with Innovative HR Practices and vice president Anthony Raja Devadoss was given the Exemplary Leader Award. It was also named to The Global Outsourcing 100 List by the International Association of Outsourcing Professionals (IAOP ). This is the first year that KellyOCG, which placed 64th in the Leaders category, has been named to the list. Kelly OCG ranked 11th for Enterprise RPO overall rankings in the HRO Today Baker s Dozen. Kelly s business strategy in India includes: Focusing on high value; working only with clients at payroll margin above 8% of monthly CTC per associate. Since it lost the IBM GPS RPO project, its prime focus is on permanent placements (particularly IT and engineering) and its RPO business; the company is currently not targeting contingent work. The company saw gains in revenue, which it believes confirms the importance of KellyOCG s presence in the market, and the value of the segment to Kelly. Professional Technical staffing growth rates continue to outpace commercial rates, Kelly continues to hold costs in check. Tradição, the company Kelly acquired last year in Brazil, has been restructuring its operations and back office areas. Due to administrative issues and poor controls during the merger, it has lost some important clients which Kelly has been working hard to reactivate. The company s CEO is Carla Rebelo, who is a former CFO and controller at Randstad/Vedior. By focusing more on permanent and executive placements, and less on manufacturing/blue collar categories, Kelly plans to grow 30 new large or key accounts and increase penetration of another 30% of current accounts. For Internal Use Only - 6

7 According to a recently published Bersin and Associates case study, Kelly has abolished performance scores within its organization. The company s leaders, from HR and from the business, collaborated and analyzed the entire process to jointly make the decision. RANDSTAD MSP Overview Has begun focusing on supply within an MSP. Randstad s staffing business has a centralized function to supply and dedicate service fulfillment to MSP programs for which it is a supplier. It does this to drive competitive performance in not only its MSP programs but ours and others. With 27% of the MSP market, Randstad has reduced our market position in Argentina. Already dominating in the Netherlands, Randstad recently modified and standardized service capability in Europe, further diminishing our leadership position in many parts of the region most notably, with 38% of the MSP market in France, 43% of MSP market in Belgium, 68% of MSP market in Spain, 60% of MSP market in Poland, and 76% of MSP market in Portugal. Randstad Sourceright was recognized as the top Managed Service Program (MSP) provider by HRO Today on its annual MSP Baker s Dozen list. RPO Overview Randstad Sourceright s pricing models have two approaches: A blended and uniform price-per-hire for all the countries/regions involved A differential price-per-hire based on a matrix-based arrangement with two to three dimensions, typically influencing pricing, becoming the axes of the matrix Randstad Sourceright ranked 4th in the most recent HRO Today Baker s Dozen for RPO providers. Randstad Sourceright announced that it had been designated as a Leader and Star Performer in the Everest Group PEAK Matrix. IQNavigator (IQN) announced a strategic partnership with Randstad Sourceright in an alliance tailored to provide flexible and comprehensive solutions for large global enterprises to better source and manage their non-employee extended workforce. IQN s award-winning SaaS application platform for sourcing is being touted as an ideal complement to Randstad Sourceright s workforce management solutions. Through this partnership, the two will offer global companies an integrated and complete solution. Adcorp, South Africa s largest provider of temporary employment services, has committed to run Randstad s African operations through a cross-referral of work, which has already begun, across respective geographies serviced by Adcorp and Randstad. For Internal Use Only - 7

8 Randstad announced restructuring in the Dutch and German markets. In the Netherlands, the focus is on brand consolidation and the removal of excess regional management and support staff for the Randstad brand only. In Germany, the restructuring includes brand and staff consolidation. Randstad has introduced a global policy in India that states it will not sign clients below 6% gross profit. It has also more focused on government projects. Additionally the company has rolled out Randstad Inhouse Services (RIS) for its Indian clients. The service is available to companies across sectors, but is of special focus for companies in the logistics and manufacturing/engineering sectors organizations that are followers of process and processdriven change. The service is already in the implementation stage at a few companies. Randstad opened a new branch office in Chengdu, marking its first entry into the talent market of western China. Since Randstad s 100% acquisition of RH Internacional, a company with which it already had a joint venture, it has opened approximately 20 branches across Brazil. Also in Brazil, it has invested heavily in setting up a professional division and IT specialty business lines in São Paulo. Randstad is developing a niche by targeting professional permanent placement to the mining industry at north of Chile. Consultants in Chile are now working under a new 360 process: prospect + sales + develop + billing. ROBERT HALF Robert Half has built out and enhanced the small business center section of its website to support its increased focus on the SMB market. The section provides links to a variety of external sites and Twitter tags that serve as good resources for SMBs. Additionally, it features special offers for small businesses such as accounting and tax help. USG PEOPLE MSP Overview Not a big competitor for global MSP opportunities; however, USG has increased its sales and delivery capability in parts of Europe, most often winning local deals in Netherlands, Belgium and France MARKETING& THOUGHT LEADERSHIP ADECCO Adecco is promoting itself as a good corporate citizen by focusing on youth CSR initiatives. For instance, in France the company is specifically targeting youth years old for its apprenticeship contract salary program, a work arrangement that allows younger workers to train for a period of time and then work at a client, train, work, etc. For Internal Use Only - 8

9 To boost its credibility as a workforce expert, Adecco released a poll on hiring and older workers. Adecco s Mature Workers Survey was conducted by Braun Research in the U.S. In 2013, Adecco will start the third year of its three-year sponsorship agreement with Melbourne-based soccer club, Melbourne Victory. Initially announced in 2010, Adecco s sponsorship agreement with the Davis Cup runs through The company is the official HR sponsor of the Davis Cup and the Fed Cup and, in addition to on-site banners and hospitality, will sponsor the on-court speed serve package for both competitions. The International Olympic Committee (IOC) and Adecco announced an extension of its IOC Athlete Career Program agreement. In addition, during the Paralympic Games, the International Paralympic Committee (IPC) and Adecco Group extend their agreement to deliver the IPC Athlete Career Program for an additional eight-year term. Adecco s marketing investment is much larger than ManpowerGroup s in Mexico, which is also bigger than it was last year. ALLEGIS GROUP Allegis Group and Agile-1, in partnership with Staffing Industry Analysts, announced the creation of the Certified Contingent Workforce Professional (CCWP) program. This is the first accredited certification course available to HR, procurement and staffing professionals who manage contingent labor. The first administration of the 12-module course will be held December 5-6 in the U.S. Allegis TEKsystems brand announced it will be rebranding to more clearly communicate capabilities. The company is organizing its new branding messaging around client needs. In addition to updating messaging, TEKsystems redesigned its visual identity. KELLY SERVICES Kelly has become more aggressive about candidate attraction on its Facebook page. Several videos and pieces of content are designed to position Kelly as the job placement expert and bring individuals into their intake process. Kelly has been recognized by Staffing Industry Analysts for the Best Use of Facebook. The findings are part of the recent research conducted by Scanlon.Louis, in partnership with SIA, to identify best practices in social media in the staffing ecosystem. Kelly Services OCG launched a new white paper titled Don t Manage Me, Understand Me, on the management of the Gen Y workforce. The paper compares and contrasts differences between generations and makes recommendations on how organizations can best tap into this resource. Note that this paper is also being promoted under the general Kelly Services brand. For Internal Use Only - 9

10 RANDSTAD To engage Formula 1 (F1) fans, Randstad India launched an interactive online game as part of its ongoing F1 sponsorship the Randstad F1 Challenge. Randstad invited people to play the game to record the fastest lap time and win tickets to the race. Since individuals had to fill out a short web form, Randstad used the game as a way to collect valuable candidate information. Randstad has spent a lot of money on marketing initiatives in Brazil to become the market leader in the Brazilian staffing marketing in the next 5-10 years. In Argentina, Randstad undertook an extensive advertising campaign to announce the change of Sesa Select to Randstad Holding as part of its local expansion strategy. By contrast, Randstad in Uruguay is represented by Sesa Select, where it has recently opened offices. Randstad has launched an HR guide that aims to help employers keep up to date with changes in workplace legislation and HR practices. Randstad Australia and New Zealand CEO Fred van der Tang considers the WorkPocket product a free HR resource on topics such as industrial relations, health and safety, talent attraction and dispute resolution, which would be updated annually. Randstad Sourceright partnered with the Talent Board to support the 2012 Candidate Experience Awards (CandEs) as a first-time gold level sponsor. The CandEs are designed to recognize organizations that produce outstanding candidate experiences. The program consists of three survey rounds that capture and evaluate employers recruitment processes and practices through the entire recruitment cycle and candidate experience. ROBERT HALF Robert Half International has been consistent when it comes to discussing work trends throughout the Middle East. James Sayer, director of Robert Half UAE, has been instrumental at keeping the brand at the forefront through multiple interviews and key advertising initiatives including local press, radio and online recruitment tools (Arabian Business, The National, 7days, Zawya and Dubai Eye). RHI partnered with Financial Executives International (FEI) to benchmark the finance function in North America. The 50 question survey was conducted with more than 260 financial executives from across North America from public and private companies of all sizes in 35 different industries. RHI released its Q4 professional employment report. To compete with MEOS, the report is billed as the first of its kind to focus exclusively on professional level hiring and it measures: hiring projections by profession, region and industry; the challenge in finding skilled professionals; executives confidence in their companies growth prospects. For Internal Use Only - 10

11 REGIONAL OBSERVATIONS ADECCO Colombia It is targeting its efforts toward the SMB market by offering BPO services. It is also focusing on permanent placement, and has a national structure in place to coordinate the entire selection process. All recruiters, psychologists and commercial staff have a commission sales plan tied to the company s overall monthly and quarterly results. Adecco has been raising its permanent placement fees, but even with the raise they are still below Manpower s. Mexico Adecco has a program named Adecco is your Coach through which it shares videos, articles, webinars and recruitment events, to job seekers. Adecco is more advanced with its mobile applications than Manpower. The company has opened 10 offices in the last year; it now has 80 total offices. Adecco is enhancing business relationships with its strategic partners in Japan. In Bandai it is undergoing staffing supplier consolidation In Lixil it is changing its model from direct-hire to outsource In Adecco Korea s permanent business line it offers two types of executive search services: permanent and freelance positions. The differences in incentive systems and/or business operation systems lead to conflicts among the employees across both lines. In India, Adecco has stopped signing clients at lower rates and is sending letters regarding service charge increases; it is effectively abandoning its SMB vertical. In the U.S., however, Adecco has expressed a concerted effort to target the SMB market and to pick up the pace in the IT space. The company is closing 15% of its branches and releasing 530 full-time employees in its French organization. ALLEGIS GROUP Allegis has entered Hong Kong under the Allegis Talent2 brand. In the U.S., Allegis operates its sales team with a hub concept that appears to be similar to Manpower s metro strategy. It also checks in candidates and associates daily to always have backups available. For Internal Use Only - 11

12 KELLY SERVICES Kelly does well against Manpower because of its white collar brand name, which is well established in metropolitan markets; its back office synergies (e.g. online timesheeting/award interpretation); and its KellyOCG brand name recognition among procurement executives. Despite Kelly s highly structured onboarding and sales development processes in Malaysia, its incentive structure is not competitive and its attrition rate is 25-30%. U.S. Kelly Services received recertification of the Gold Seal of Approval (TM) from The Joint Commission. The Joint Commission s certification program offers an independent, comprehensive evaluation of a staffing firm s ability to provide competent staffing services. This is of importance as it relates to Kelly s credibility in the healthcare space. Many of Kelly s 8,000 employees were told they could begin using their personal iphones for work purposes about 18 months ago. Kelly appears to have many more sales people and others (e.g. account execs and branch managers) actively selling within a market than it did before. The company also has more program teams, relationship managers, and structured regional recruiting efforts. PASONA GROUP Pasona is taking three steps in Japan: Strengthening its government business, especially for administration centers Creating the synergy between its government business and its outplacement services Becoming very aggressive on price in RFPs for staffing In Singapore, Pasona is moving into staffing for government bodies, with increased activities in government tenders. RANDSTAD Randstad s operations in Brazil and Portugal are run by the same management team. The CEO of Randstad Brazil is Mario Costa and the commercial/operations director is Luis Gonzaga. Randstad is strengthening its outsourcing model for light-industry in north Tokyo, Japan. Middle East Good traction in some Middle East countries (UAE/KSA/QATAR). It is targeting key construction and engineering industry projects within Abu Dhabi, Saudi Arabia and Qatar. This has always been a strong area for Randstad Middle East as they have been very successful particularly in Qatar for 8+ years. For Internal Use Only - 12

13 On the back of providing technical staff to construction and engineering clients, it also has had success in sales and marketing, IT, finance and administration. Randstad is currently still not legally allowed to provide contingent staff within the region due to licensing; however, there are signs that it is looking into its options. Randstad is growing in North America, Asia and Latin America and a gradual slowdown in Europe. Revenue growth strengthened across Asia, where Japan maintained strong performance, and Latin America. Seasonal patterns remained visible in Europe; U.S. did well. Focus is on profitability above market share, and on stringent cost control. At the end of the second quarter, Randstad operated a network of 38 fewer locations than in the previous quarter, as it continued to optimize its branch network in countries such as North America, Germany, the United Kingdom and the Netherlands. During the same period, the company opened approximately 20 in-house locations, mainly across Europe. Consolidation of 200+ small branches in France into 75 larger branches. Continuing to invest in Japan and in emerging markets, including China and Latin America. ROBERT HALF Robert Half has strong brand name recognition in the Australia/New Zealand market. Its standardized processes and well-established teams that recruit across multiple sectors and senior management support on major accounts are listed among the company s strengths. High staff turnover and its focus on end-to-end recruitment, with no alternative solutions such as MSP, are not well received. For Internal Use Only - 13