Randstad Spain. Southern European Insight Day. May 2015 Barcelona

Transcription

1 Randstad Spain Southern European Insight Day Barcelona

2 Index 1 Economy & Labor Market 2 Legal Frame 3 HR Service Markets Competitive Landscape 4 Our company 5 Next Steps 2

3 Index 1 Economy & Labor Market 2 Legal Frame 3 HR Service Markets Competitive Landscape 4 Our company 5 Next Steps 3

4 Economy & Labour Market Positive economic cycle impacting labour market Dramatic change of trend started in 2008 coming to an end in 2014 Main stoppers for recovery are Public Debt and Strong Unemployment (+ Activity Rate) Unemployment Rate is linked to a high volume of informal economy Stabilization has come through salaries devaluation & trade balance (Internal Demand still to improve) Source: National Institute of Statistics and Central Bank of Spain 4

5 Economy & Labour Market CLUs give sustainability to the positive trend Internal & External devaluation Right evolution of ULC vs. Europe Global decisions about production already affecting positively Source: Eurostat, OECD 5

6 Economy & Labour Market Although the Labour Market is still very weak Population > 16 years Actives Employed Unemployed Inactives Activity rate = 59,45 Unemployment rate = 23,78 (Actives/Population>16 years x 100) (Unemployed / Actives x 100) Source: National Institute of Statistics, EPA 2015 / Q1 6

7 Economy & Labour Market And penetration & temporary rates Benchmark are not attractive Penetration Rate Temporary Rate *Source: Eurostat 2013, Eurociett

8 Economy & Labour Market One of the largest potentials in Europe for our activities Competitive ULCs Penetration Rate Economy Unemployment Rate Activity Rate 8

9 Index 1 Economy & Labor Market 2 Legal Frame 3 HR Service Markets Competitive Landscape 4 Our company 5 Next Steps 9

10 Evolution of the legal frame Complex and dynamic regulatory system Mr. Suarez (Moderate Governments) Mr. Gonzalez (Socialist Governments) Mr. Aznar (Conservative Governments) Mr. Zapatero (Socialist Governments) Mr. Rajoy (Conservative Government) Transition to democracy Europe Unemployment Terrorism Development Decentralisation Temporality Unemployment Debt / Deficit Consensus & Building Blocks Reduction of Unemployment Harmonisation with Europe Reduction of Temp Rate Increase Open Ended Contract Objective use of Temp contracts Collective bargaining 1 st General Labour Law of Democracy approved Liberalization of Temporary Contracts Labour Flexibility Restrictions to Temp Contracts New Open Ended Contract Formulas New limitations to Temp Contracts Stimulus to open-ended contracts Limitation to temp contracts CLAs negotiation Collective Dismissals Internal Flexibility New contracts TWAs not allowed Legalization of TWAs Equal Pay Law & Restrictions for TWAs Unclear elimination of restrictions for TWAs Public-Private Collaboration Unemployment Rate 10 Penetration Rate

11 Legal Frame Hot Topics: Threats & Opportunities No major legal frame changes in the coming future expected Penetration Rate to increase up to 0.8% just with positive Economic Trend Staffing Market to double from >2.0 bio to >4.0bio Penetration Rate in existing markets New markets (Closed Activities) Salaries Increase Main Threats New limitation to Temporary Contracts Limitation of applicability of Outsourcing CLAs. Public competition in staffing market Main Opportunities Real opening of restricted sectors Prosecution of Informal Work and bad practices Public Private Collaboration Impa ct Low Med? Impa ct High High Low 11

12 Index 1 Economy & Labor Market 2 Legal Frame 3 HR Service Markets Competitive Landscape 4 Our company 5 Next Steps 12

13 Competition Landscape «Traditional» Competitors (based in 2013 figures*) Randstad Adecco Manpower Flexiplan Eurofirms Synergie Iman # 1 Position in the HR Services Market (total portfolio) # 1 Position in the Staffing Activities 13 * Randstad estimation based in last public annual accounts projections

14 Competition Landscape «Traditional» Competitors (Last 8Qs) 25% 20% 15% USG Dis-synergies mainly 10% caused by closed activities 5% linked to risk or 0% -5% profitability reasons -10% (Agriculture and others) -15% Sales Growth Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Randstad Randstad (exc. Disynergies USG) Closest Peer Ambition 14

15 Competition Landscape Perm Professionals Competitors* 2% 4% % 8,5% * Randstad estimation based in last public annual accounts projections and market information

16 Market Trend Employer driven vs. Candidate driven Employer Driven Market Candidate Driven Market Professionals Outsourcing Employer Driven Market Employer Driven Market Staffing 16

17 Index 1 Economy & Labor Market 2 Legal Frame 3 HR Service Markets Competitive Landscape 4 Our company 5 Next Steps 17

18 Company Lifeline Total History Incorporation of Randstad Spain (Staffing) 1 st Acquisition: Tempo Grup (Staffing) Boost Plan Integration Vedior GAP Professionals (Perm) Start Operations in Barcelona Acquisition of Umano (Outsourcing) Divestment in Logistics & Call Centres Strong Recession Outplacement HR Solutions Integration USG 18

19 Company Lifeline Zoom-In Last 5 years strategy GAP1 GAP2 GAP Efficiency & Control Focus in Core Products Efficiency & Control Manage Downturn (Recovery Rates) Technology working for efficiency Investment in Talent Development Outside-In Approach (Differentiation) Service Culture Focus in Active Customers From Staffing to Total HR Offering Total HR Offering (Product Mix) Different Approach per product (segmentation adapted: New Service Delivery Models vs. New USPs) Central Functions: Accountability & SLAs Technology working for service level Further Investment in Talent Development and Employee Engagement Outside-In Approach Service Culture 19

20 Product Product Positioning Way to Total HR Service Offering #1 #1 Top10 Outsourcing HR (TPO, RPO, HRO) Outsourcing Labour intensive Others IT Outsourcing Others Inhouse Staffing Direct Payroll Interim Professionals Others Employer Branding Individual Outplacement Colective outplacement Talent Development Employee Engagement SMEs Out Top3 InPlacement E-learning HR Consulting Perm-middle Subsid. Managm. Other Perm-Professionals Top10 SMEs Training Executive search Perm-staffing Top3 20 #1

21 Product Positioning Different approach per product Outsourcing HR (TPO, RPO, HRO) Outsourcing Labour intensive Productization Others Analysis Markettshare IT Outsourcing Growth Others Inhouse Exit barriers Direct Payroll Platform Staffing Efficiency (SDMs) Differentiation SME Interim Professionals Growth Individual Outplacement Collective outplacement Productivity (tools) Positioning Others Reactive Employer Branding Leverage Talent Development Appraisal Systems Development Centers Talent Pools Employee Engagement Consultancy InPlacement HR Consulting Specialized Unit E-learning e end to end Perm-middle Organization Subsid. Managm. Risk Control Other Perm-Professionals Boost 21 Training Positioning Executive search Out Perm-staffing Growth-ABFS Blended approach

22 Strategic Approach Our building blocks Differentiation Product Menu Efficiency (SDMs) Product Tech for Efficiency Tech for Differentiation Gaps of Talent Logistics (Speed SLAs) Security Technology Talent Atraction (Emp. B) Retention (Emp. Engagemt) Capacity Mobility Ambition Costs (Retribution) Productivity (Training & Dev.) Cross Selling HO Organisation BTL Differentiation ATL Priorities Relationship Mgt. Physical Network Organization Brand & Communication Digital Consultive Selling Org. Combinations Content Generation Commecial Material Logistics 22

23 Strategic Approach Our Implementation System (from concepts to actions) Planning & Execution Steering System 23

24 Strategic Approach Innovation & Technology Increase Capacity Tools for Internal Efficiency & SDMs Tools for Customer Service STI QR Code OCA Center (e-contracting) 24

25 Strategic Approach Innovation & Technology From 15% to 25% total revenue impacted Loyalty close to 100% Growing catalogue (over 25 functionalities covered) 25

26 Index 1 Economy & Labor Market 2 Legal Frame 3 HR Service Markets Competitive Landscape 4 Our company 5 Next Steps 26

27 Next Steps 1. Completing the Product Portfolio 2. Developing Consultative Knowledge Capacity 3. Widening ICT delivery capacity 4. Avoiding turnover of staff in the upper cycle 5. Finishing the implementation of the Outside-In approach 6. Adapting the distribution model 7. Developing our new SDMs for Staffing, Training & Perm 8. Leverage Cross-Selling 9. Reaching our profitability targets 10.Influencing the legal development 27

28 Key Take Aways 1. Positive Economy trend sustainable Competitive economy 2. Strong Potential of the market (Penetration rate + Economic Growth) 3. Reduced impact of potential legal changes 4. Concentration of the HR Markets 5. Good trend of Randstad to Total HR Service Supplier 6. Solid strategy and methodology of implementation and steering 28