Group Professionals Concept Robbin Brugman MD Group Professionals Concept
professionals important aspect in strategic roadmap * * 2009 revenue professionals 2.7 bln. 2
Randstad among leading players in professionals (exclude outplacement at Adecco & Manpower = different service offering ) 2009 M Professional Revenue Professional Gross Profit Professional Gross margin Share of Professional segment in group Revenue Staffing Industry Analysts Revenue ranking 1. Adecco 4.625 1.123 24,3% 28,0% 1 2. Robert Half Int. 2.186 795 36,3% 100,0% 10 3. Manpower 2.662 702 26,4% 22,2% 3 4. Hays 2.762 620 22,5% 100,0% 8 5. Randstad 2.472 604 24,4% 18,9% 2 6. Allegis 1.778 434 24,4% 50,6% 4 7. Michael Page 806 395 49,1% 100,0% 23 8. Advantage 1.124 234 20,8% 78,1% 9 9. K-force 655 206 31,4% 100,0% 28 10. SThree 584 192 33,0% 100,0% 30 11. Hudson 498 188 37,7% 100,0% 36 12. Kelly services 849 166 19,5% 27,3% 5 13. SFN 575 160 27,9% 43,7% 13 14. Brunel 738 152 20,6% 100,0% 26 15. AMN Healthcare 547 147 26,9% 100,0% 31 16. Skilled Group 477 137 28,7% 48,9% 16 17. Robert Walters 338 117 34,8% 100,0% 53 18. Volt 519 85 16,5% 50,6% 18 19. USG people 310 68 22,0% 10,3% 7 20. Harvey Nash 423 68 16,1% 100,0% 45 Subtotal 24.927 6.594 26,5% Others 54.073 14.006 25,9% Total 79.000 20.600 26,1% 3
Randstad Professionals global operations 2009 Revenue 4
split of professionals segments Professionals IT Engineering 1,5% 0,8% 10,9% 1,8% 13% 9% 6% 15% 15% 5% 9% 16% 3,8% 33,2% 51% 6% 26% 29% 12,9% Netherlands France Germany UK North America Other 16,9% 18,2% Healthcare Finance IT Healthcare Education HR Local Specialties Engineering/Technical Accounting/Finance Legal Executive 16% 23% 5% 5% 51% 25% 14% 15% 26% 19% * Figures are based on half year one results 5 11/25/2010 Analyst & Investor days 2010, London/ Professionals
concept advantages 10% Collective learning by combining best practices Concept described and validated Drive performance improvements by concept alignment across current Opcos Drive focused copy & paste roll-out across sectors/segments across Opcos Cost savings by merging companies branding, back-offices, branches, network efficiency Higher visability among candidates (e.g. UK campaign) Cross selling with different segments and countries 6
Professionals concept build on best practices (e.g. Finance) Business model A > Market & Process >... Business model B > Market & Process >... Business model C > Market & Process >... Business model D > Market & Process >... Business model E > Market & Process >... Business model F > Market & Process >... BEST PRACTICE 7
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Professionals Supplements (modules) 9
what s different???? Specialist Credible partner (line manager) > Tenure consultants Mid to High Job level High competitive market Concentrated distribution Value focused Separate perm & temp Candidate focus (buckets & Leads) Sales led culture (every body sells & sales hooks) Individual accountability Team structure Billing managers High performance model Commission/Bonus Recognition/ Awards Open & Strict Field steering (White boards, League tables) Reviews/PEP/PAP 10
credible partner true knowledge mandatory factors but not consistent through opcos desirable value differentiators knowledge of our market relationship with individual consultants deep client understanding properly vetted candidates good quality candidates value for money credibility with line manager straight talking approach ability to positively represent client brand provision of valuable market intelligence 11 11/25/2010 Analyst & Investor days 2010, London/ Professionals
strategic targets Professionals Concept (targets) GP/PE, OP > 10%, GP/FTE Concept alignment to improve operational & financial performance Copy & paste Professionals concept in case of new implementation (time to market) 12
achieve profitable growth by using concepts Grow market Grow GP Grow existing business Grow business as is Achieve profitable growth Grow Randstad share Grow in new business Transfer to optimal business model Copy Randstad models Reduce costs new for Randstad 13
achieve profitable growth by using concepts Grow market Grow GP Grow existing business Grow business as is Achieve profitable growth Grow Randstad share Grow in new business Transfer to optimal business model Copy Randstad models Reduce costs new for Randstad 14
> Control the professional recruitment engine > KPI and process driven approach 15
small packages influence smallest entity Calculation example, per consultant: Perm Interim/Temp Yearly target per consultant : $ 185.000 (A) Average Fee per hour: 20% x $50,- = $ 10,- Average fee per placement : $ 9.000 (B) Average job duration : 26 weeks x 35 hrs Required # placements to meet target : A/B = 21 placements Value placement 26 x 35 x $ 10,- = $ 9.100 Fill rate on validated jobs : 50% Fill rate 60% Required # jobs in a year : 21 * 50% = 42 ($185.000 / 9.100) / 60% = 34 (20 filled) Sales target Companies Client relationships > Fill rate $ 185 K Predict demand Prepare Control Sell 16 11/25/2010 Analyst & Investor days 2010, London/ Professionals
gross profit/fte (actual example) 130 120 110 100 90 Transform - Improved market focus - Transparent Management Steering - Excellence in execution - Higher productivity / FTE 80 70 60 Revenue decreasing - No sales led organization - Low productivity Decrease costs - Shared services - Accommodation - Remuneration Gross Profit FTE 17
gross profit/fte (actual example) 200 180 160 140 Concept alignment - Improved Focus - Strict Management steering 120 100 80 Internal changes -Integration Decrease costs - Locations -Shared services Joint effort - Business scans per Zone - Training management 60 Gross Profit FTE 18
Temp Billing Per Day vs. Avg. Corporate Staff 140 130 120 Index 110 100 90 80 70 60 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Temp Billing Avg. Corporate Staff 19 11/25/2010 Analyst & Investor days 2010, London/ Professionals
improve performance by concept alignment EBITA, GP/PE GP/PE I1 J1 K1 H1 Case 2 Case 1 B1 EBITA 20
concept alignment/ performance index development GP/FTE 200 180 160 140 120 100 80 60 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Accountants Int'l - US Randstad Technologies UK CPE London (former BBT Team) Engineering Canada 21 11/25/2010 Analyst & Investor days 2010, London/ Professionals
Summary Professionals Building Blocks strong concepts - Prof concept defined and validated - Drive performance improvements by concept alignment across current Opcos - Drive focused copy & paste roll-out across sectors/segments across OpCos best people - HR module for professionals (competencies, profile & remuneration) excellence in execution - Drive performance improvements by concept alignment across current OpCos strong brand - Professionals brand integration - Professionals design completed - Joint campaign materials in use - New web platforms implemented - Operational Marketing module for professionals 22