Europe: Strategies for Coping with Workforce Challenges Across A Highly Diverse Continent

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1 Concurrent Session: Advanced Practitioner Track THOUGHT LEADERSHIP Wednesday, 16 May 13:40 Beech Suite Europe: Strategies for Coping with Workforce Challenges Across A Highly Diverse Continent Moderator: Sebastian O Connell, UK Director, Randstad Sourceright Panellists: Monique Beersma, Global Purchasing Director Marketing & Professional Services, AkzoNobel Louise Parsons, Resourcing Relationship Manager, Telefónica 2012 Crain Communications Inc

2 Europe: Strategies for coping with workforce challenges across a highly diverse continent Sebastian O Connell, UK director 16th May 2012 CWS Summit, London 2012

3 External Factors Influencing Strategy Global Economic Cycles Labour Laws Globalisation Regional Education Contingent Workforce Strategy Industry Sector Country / Territory Socio-Political Talent Competition Local Culture Demographics 3 16th May 2012 Europe: Strategies for coping with workforce challenges across a highly diverse continent

4 Every Organisation is Unique Structure Organisational Structure Promotion Policy HR, Operationally or Procurement Managed Environment Competing Project Priorities Support from Top Management Buy in From the Business Pace of Organisational Change Diversity of Workforce Perception Image of the Organisation Internal Perception of Contingent Workforce Strategy Business Model HR Model Technology Strategy Future Growth Plans Total Talent Management Strategy Contingent Workforce Strategy Workforce Goals Employment Cost Containment Headcount Cost Savings Flexibility Risk Management 4 16th May 2012 Europe: Strategies for coping with workforce challenges across a highly diverse continent

5 Monique Beersma Global Purchasing Director Marketing & Professional Services CWS SUMMIT 2012 May 15-16, 2012

6 AkzoNobel Key Facts 2011 Revenue 15.7 billion 57,240 employees EBITDA: 1.8 billion* Net income: 0.5 billion 40 percent of revenue from high growth markets Leader in sustainability Revenue by business area EBITDA* by business area * Before incidentals 6

7 Trusted Portfolio of Global Brands 7

8 Excellent geographic spread of both revenue and profits High growth markets are important (40% of revenue) % of 2011 revenue 38% Mature Europe 20% North America 7% Emerging Europe 3% Middle East and Africa 22% Asia Pacific 10% Latin America High growth markets profitability is above average 8

9 Number of employees Monique Beersma -CWS meeting 2012

10 AkzoNobel Strategic Ambition 10

11 AkzoNobel Medium Term Strategic Goals Grow to 20 billion revenues Increase EBITDA each year, maintaining 13-15% margin Reduce OWC/revenues by 0.5 p.a. towards a 12% level Pay a stable to rising dividend Top quartile safety performance Top 3 position in sustainability Top quartile performance in diversity, employee engagement, and talent development Top quartile eco-efficiency improvement rate 11

12 Scope of Work Temporary Labor Geographic Scope Global scope with focus on AkzoNobel most important countries Western Europe: Belgium, France, Italy, Germany, Netherlands, Spain, Sweden, UK; United States and Canada Services in scope include: Temporary Labor: provision of temporary engaged blue and white collar workers; Pay rolling: Cost effective alternative for long term deployed temps; Temp to Hire: Service to recruit permanent personnel from temp pool. 12

13 Current solution for temporary labour (since 2009) Specialty Chemicals Performance Coatings Decorative Paints Master vendor solution MSP (because no MV available) IT, Finance, S&M, Germany Admin USA France Belgium Sweden Netherlands UK Italy Spain Monique Beersma -CWS meeting 2012

14 Key Learnings Invest enough time to explain the chosen model (Master Vendor) Strong cross functional team with both HR and Procurement Develop a objective selection model Explain the benefits (pricing, approach, reporting e.g.) from a cross boarder / international approach Ensure Governance structure is clear from the start and supports the strategy Find a supplier that is able to mirror your organization in account structure and make that clear Implementation Implementation - Implementation

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16 Monique Beersma -CWS meeting 2012

17 CWS Summit 2012 Louise Parsons Resourcing Relationship Manager

18 a unique global profile Telefónica is one of the worlds leading integrated operators in the telecommunication sector, providing communication, information and entertainment solutions

19 Telefónica Europe Ireland UK Germany Czech Republic Slovakia Group Centre Spain

20 Scope of work In Scope Contractors in Professional, Technical, Specialist or Managerial roles Out of Scope Retail & Call Centre Temps Work Package

21 Our European Approach European HR Team Resourcing Centre of Excellence In Country Team In Country Team In Country Team In Country Team In Country Team Resourcing Project Team Led by Resourcing Centre of Excellence with HR leads from each Country A lead from Procurement A lead from Finance Supplier jointly selected to create MSP for Europe

22 Taking a Regional Approach We were aligning around our European HR Strategy Working regionally allows us to do things once maximising resource and knowledge We were future thinking in our approach, thinking regionally and globally Our approach was built to suit the diversity of our business We were all responsible for the decision and results across our whole business Economy of scale

23 Taking a Regional Approach We were one of the first European HR purchases Not all of our functions are regionalised Different levels of understanding Language challenges Time - to get everyone to the same place There is no perfect supplier for everyone you need to have compromise

24 Things to Consider What is the culture of your organisation? Decision by consensus or by mandate? Are all your stakeholders already working in a Regional/Global way? Not everyone will get what they want! Culturally how compliant is your business in each territory? Must Haves Representation from every territory Senior Sponsors locally and regionally A good case for change A partnership approach with your chosen supplier Patience and persistence

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