MI on Temp Labor in Northern and Western Europe by john williams

Dragon Sourcing Your Tailored Approach to Emerging Markets

MI on Temp Labor in Northern & Western Europe

Feb, 2018

www.dragonsourcing.com

Methodology, Category Definition & Scope Consultation with Industry Experts

Primary Sources Supplier Interviews

Reports and News/ Articles from Industry specific forums, websites, associations, blogs and publications

Secondary Sources

Analysis

Supplier websites, RFI and company reports

Category Definition

▪

Temporary Staffing Services

Contingent Labor

Temporary Labor

Consulting Firms

▪

Independent Contractors

Professional

Commercial

Report Structure: ▪ Market Overview ▪ Top Suppliers & Market Coverage ▪ Cost Structure ▪ Pricing Structure Countries in scope ▪ Germany ▪ Switzerland ▪ Sweden ▪ France ▪ Italy ▪ Norway ▪ UK

Report on Temp Labor

MARKET OVERVIEW

Industry Overview (1/2) Industry Snapshot

▪ ▪ ▪ ▪ ▪

▪ ▪ ▪ ▪

Global staffing market size: USD 404 billion in 2013 and USD 428 billion in 2016. Industry is projected to grow 6% in 2018 Demand Drivers: Client requirements are evolving continuously and looking for innovative solutions from staffing companies. Clients demand higher value from suppliers apart from cost reduction. Supply Drivers: Deregulation and expansion of temporary staffing agency networks The number of employees with a temporary contract in the European region rose from about 24.5 million in2005 to 26.8 million in 2016 UK, Germany and France are highly industrialized and mature in terms of requirement and services. Staffing industry in UK, though highly fragmented (with about 15,000 firms), is the largest market in Europe, followed by France Growth in the UK is anticipated to drop in 2019 and this is attributed to Brexit Germany has a strong focus on manufacturing and industries with the metal and electrical sector being a major client to temporary employment agencies Sweden: Top 25 firms account for about 93.7% of the total Swedish staffing market Italy: Top 5 firms accounts for about 54% of the total Italian staffing market and industry is expected to grow at a rate faster than the global market

Industry Overview (2/2) Industry Dynamics

Buyer’s view of the Staffing Services Industry

Supplier’s view of Digital Technology Industry

■ Staffing solutions are often viewed as a standard service until and unless the requests are specific to particular need ■ High Buyer Power: There are more number of suppliers providing staffing services, hence client possess greater ability to switch suppliers. Buyer can use the power to build relationship with the suppliers and get better service benefits/discounts.

■ Digital technology industry is likely to be highly attractive to the suppliers. However, if the relative value of account is low, emphasis is on building the supplier-client relationship to leverage further business opportunities. Suppliers are proactive in offering new solutions to their clients and are keen to benchmark costs and margins. ■ On the other hand, if the relative value of account is high, suppliers are likely to place considerable emphasis on responsiveness and service. There is transparency in costs and margins and the supplier is prepared to share future plans with the client.

Industry Trends

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▪ ▪

Mergers & Acquisition: With a positive operating environment across most industry sectors, an increasing number of staffing company owners are seeking to capitalize on their current strong performance. Recently, InGenesis Inc., US healthcare staffing firm, acquired Kelly Healthcare Resources, the healthcare specialty business of Kelly Services Gig economy: Companies are optimistic towards gig economy and engaging freelancers at a high rate Technology Adoption: A Mobile-first, Cloud-based, End-to-end Digital Platform, 'Adia' by the Adecco Group Meets Emerging Opportunities in the Staffing Industry. This new platform is likely to leverage Adecco Group's key strengths in the industry by providing scale, speed and agility to introduce new ways of doing business in the digital economy.

SUPPLIER OVERVIEW

Supplier Country Coverage (1/3) Germany

Switzerland

Sweden

France

Italy

Norway

Supporting countries

The Adecco Group

Randstad Holding NV

Manpower Group

PageGroup plc

Alexander Mann Solutions

Gi Group SpA

IK Hofmann GmbH

Persona Services

KÖTTER Services

ZAG Zeitarbeits-Gesellschaft GmbH

Orizon GmbH

Piening GmbH

TEMPTON Holding GmbH

TP (Time Partner) Group Service GmbH

Global Personal Partner AG

Eupro AG

Careerplus AG

das team ag

Hans Leutenegger AG

Induserv Industrial Management Ltd

New Work human resources SA

Academic Work Sweden AB

Lernia Bamanning

Logent

Uniflex Bemanning

Arena Personal

StudentConsulting

Poolia

Total Suppliers for each country

Supplier Country Coverage (2/3) Germany

Switzerland

Sweden

France

Italy

Norway

Supporting countries

Synergie

Groupe Adéquat

Groupe Crit

Expectra

Leader Group

Groupe Actual

Groupe GR

GBO Human Resources

Headline

Umana

Openjobmetis S.p.A.

Porta Futuro

Lavoropiù SpA

Temp-Team AS

People

Fremo Bemanning AS

Mosaique

Activepeople

HIRE Norway AS

Ditt Vikarbyrå AS

De4

Jobzone AS

Hays plc

Robert Walters plc

REED Global

Impellam Group plc

SThree plc

Total Suppliers for each country

Supplier Coverage (3/3) Germany

Switzerland

Sweden

France

Italy

Norway

Supporting countries

Guidant Group

NES Global Talent Limited

Staffline Group PLC

Venn Group

Kelly Services, Inc.

Allegis Group

Robert Half International

Hudson Global, Inc

USG People

Trenkwalder International AG

Cielo

Brunel International

Total Suppliers for each country

Supplier Presence

Total: 165

Supplier Profile (1) Few Suppliers covering all 7 countries in scope

Supplier

The Adecco Group

Randstad Holding NV

Manpower Group

PageGroup plc

Global Revenue (2017)

Focus Industries/ Job Functions

USD 24 billion

Accounting & Finance, Call center & Customer Service, Creative & Marketing, Hospitality, Human Resources, Industrial & Manufacturing, Medical, Office Clerical & Administrative, Retail & Sales, Science, Transportation, Warehousing

USD 22 billion

Call center, Engineering, Finance & Accounting, Healthcare, Non-clinical healthcare, HR, Industrial, Legal, Life Sciences, Marketing, Office & Administration, Technology

USD 20 billion

Aerospace, Agriculture, Chemical, IT, Construction, Energy, Financial Services, Food, Healthcare & Pharmaceuticals, Industrial & Manufacturing, Transportation & Warehousing, Trade, Retail, Hospitality, Administration

USD 1.62 billion

Actuarial, Tax and Treasury, Audit & Consulting, Banking & Financial Services, Buying & Merchandising, Consultancy, Design & Development, Engineering & Manufacturing, Environment & Energy, Executive Search, Finance, Health & Social Care, Life Sciences & Pharmaceuticals, Hospitality & Leisure, Human Resources, Insurance, Legal, Marketing, Offshore, Oil & Gas, Mining, Procurement, Supply chain & Logistics, Property, Construction & Facilities Management, Public Sector & Not-for-Profit, Retail, Sales, Secretarial & Office Support, Technology

Global Employee Strength

EU Presence

Website

33,000

Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK, Turkey

www.adeccogr oup.com

32,280

Andorra, Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.randstad. com

28,000

Austria, Belarus, Belgium, Bolivia, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.manpowe rgroup.com

7,029

Albania, Austria, Belarus, Belgium, Belgium, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Ireland, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.page.com

Source: Supplier Websites

NA â&#x20AC;&#x201C; Not Available

Supplier Profile (2) Few Suppliers covering all 7 countries in scope

Supplier

Global Revenue (2017)

Focus Industries/ Job Functions

Business & Professional Services, Defense, Engineering & Manufacturing, Energy, Pharmaceuticals & Life Sciences, Investment Banking, Retail, Retail Banking & Insurance, Technology, Media & Telecommunications

Alexander Mann Solutions

Gi Group SpA

USD 1.8 billion

Public Sector, Manufacturing, Food Production, Warehouse, Logistics

Global Employee Strength

EU Presence

Website

3,500

Belgium, Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.alexander mannsolutions. com

2,900

Albania, Armenia, Azerbaijan, Belarus, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Finland, France, Germany, Greece, Hungary, Italy, Kazakhstan, Lithuania, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey, UK, Ukraine

www.gigroup.c om

Source: Supplier Websites

NA â&#x20AC;&#x201C; Not Available

Supplier Profile (3) Few Suppliers headquartered at Germany

Supplier

Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

IK Hofmann GmbH (Hofmann Personal)

USD 928 million (2016)

Automotive, Energy, Metal, Aerospace, Electrical, Logistics, IT, Medical, Trade and craft industries

23,800

Germany, UK, Austria, Czech Republic, Switzerland

www.hofmann.in fo

Trade, Automotive, Banks & Insurance, Manufacturing, Transport & Logistics, Telecommunications

18,000

Germany, Switzerland

www.persona.de

Automotive, Chemical & Pharma, Utilities, Health Service, Trade, Property Managers, Correctional facilities, Credit Institutions, Mechanical & plant engineering, Museums, Public passenger transport services, Transport & Logistics

18,900

Germany

www.koetter.de/ en

ZAG ZeitarbeitsGesellschaft GmbH

Craft, Industry, Metal Industry, Transport & Logistics, Medicine & Care, Hotel industry & gastronomy, Purchasing & Sales, Staff, Administration & Organization

10,000

Germany

www.zag.de

Orizon GmbH

Industry, crafts & logistics, Office, finances & administration, Engineering, technology and IT

7,254

Germany

www.orizon.de/e n

Piening GmbH

Commercial, Medical, Craft & Assembly, IT, Engineering

7,500

Germany

www.pieningpersonal.de

USD 226 million

Commercial, Business, Industrial Solutions, Medical, Outsourcing, Engineering, Aviation

6,000

Germany

www.tempton.de /de/home

Manufacturing, Trade, Commercial, Health, Technology, Engineering

10,297

Germany

www.timepartner .com

Persona Services

KÖTTER Services

TEMPTON Holding GmbH TP (Time Partner) Group Service GmbH

Source: Supplier Websites

NA – Not Available

Supplier Profile (4) Few Suppliers headquartered at Switzerland Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Global Personal Partner AG

Logistics, Construction, Engineering industries, Production, Pharma, Chemistry, Life Science, Commercial / Retail, Commercial Jobs, Technical industry, Financial Services, Real Estate, Facility Management, Telecommunications, IT, Healthcare, Medicine

Switzerland

www.globalpersonal.ch

Eupro AG

Switzerland

www.eupro.ch/d e

Careerplus AG

Finance, MR, Sales, Construction, Industry, IT, Health Service

150

Switzerland

www.careerplus. ch

Automotive/commercial vehicles, Floor and wall coverings, Call center, Chemical/Pharmaceutical/Biotechnology, Facility Management/Real Estate, Horticulture, Engineering/Architecture, Commercial Jobs, Food industry, Mechanics/machine industry, Medicine, Metal construction/construction, Human Resources, Care/Obstetrics, Radiology, Cleaning/maintenance, Transport/logistics/warehousing, Watch industry

Switzerland

www.team.jobs

Hans Leutenegger AG

Administration, Healthcare/ Medicine, Commercial/ Industrial, Engineering/ Technology, Construction, Chemistry

Switzerland, Germany

www.hansleuten egger.ch/chde/Unternehmen /?oid=52&lang=d e

Induserv Industrial Management Ltd

Construction, Industrial Production, Logistics, Maintenance & Installation

Switzerland

www.induserv.ch /home

New Work human resources SA

Building, Metal, Industrial & Technical, Watchmaking, Commercial, Agricultural and food

Switzerland

www.newworkhr.ch

Supplier

das team ag

Engineering/ Technology, Administration, Watch

Source: Supplier Websites

NA â&#x20AC;&#x201C; Not Available

Supplier Profile (5) Few Suppliers headquartered at Sweden Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

USD 330 million

Economics & Law, Sales, Hotel, Tourism & Restaurant, Industry & Manufacturing, IT, Office & Administration, Warehouse & Logistics, Marketing & Information, Pedagogy, Customer Service

600

Sweden, Norway, Finland, Denmark, Germany, Switzerland

www.academic work.se

Building construction, Economics & Administration, Trade & Service, Industry & Manufacturing, IT, Warehouse & Logistics, Restaurant, Technique, Health care, Basic Education

155

Sweden

www.lernia.se

USD 165 million (2015)

Automotive, E-commerce logistics, Project Logistics

3,000

Sweden

logent.se/en/ab out-logent

Industries, Logistics, Construction, Electrical & Telecom, Administration & Offices, Sales and Customer Service

5,000

Sweden, Norway, Finland, Germany

www.uniflex.se

Arena Personal

Construction & Real Estate, Economy, Vehicle, HR, Industry & Technology, Office & Administration, Warehouse & Logistics, Sales & Marketing, Transport, Pedagogy

Sweden, Norway

arenapersonal. com

StudentCon sulting

IT, Technology, Finance, Administration, HR, Marketing, Customer service, Sales, Industry, Production, Logistics and transport

Sweden, Norway, Denmark

www.studentco nsulting.com/s e

USD 88 million

Finance & Accounting, IT, Office Support, Human Resources, Sales & Marketing, Life Sciences & Engineering, Legal

1,500

Sweden, Denmark, Finland, Germany

www.poolia.se

Supplier

Academic Work Sweden AB

Lernia Bamanning

Logent

Uniflex Bemanning

Poolia

Source: Supplier Websites

NA â&#x20AC;&#x201C; Not Available

Supplier Profile (6) Few Suppliers headquartered at France Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Synergie

USD 2.2 billion (2016)

Industry, Service sectors, Construction, Transportation & Logistics

3,050

Belgium, Czech Republic, France, Germany, Italy, Luxembourg, Netherlands, Poland, Portugal, Slovakia, Spain, Switzerland, UK

www.synergie.co m/en

Groupe Adéquat

USD 1 billion

Manufacturing, Logistics, Construction, Transportation, Services

1,000

France, Belgium

www.groupeadeq uat.fr

USD 2.4 billion (2016)

Engineering, Technology, Industrial maintenance

6,800

France, Germany, Spain, Switzerland

www.groupecrit.com

Expectra

HR & Legal, Bank, Commercial & Marketing, Accounting & Finance, IT & Telecom, Engineering & Industries, Supply Chain, Digital, Office of Studies, Audit & Accounting, Support Functions

400

France

www.expectra.fr

Leader Group

550

France, Switzerland, Portugal, Luxembourg

www.groupeleade r.com

500

France

www.groupeactual .eu

Supplier

Groupe Crit

Engineering, Technology, Industry

Groupe Actual

Aviation, Agriculture, Audit & Consulting, Automotive, Bank, Insurance & Finance, Construction, Communication & Media, Trade & Distribution, Electronics, Energy, Environment, Hospitality & Catering, Real Estate, Pharmaceutical, Textile, Naval, IT, Logistics, Mechanical, Health, Tourism & Travel

Groupe GR

Consultancy, Auditing, Bank, Legal, Insurance, Real Estate, Food-processing, Distribution, Industry, Luxury Products

France

www.grinternationalprofiles.com/en

GBO Human Resources

Capital Goods, Aviation, Agriculture & Food, Automotive, Construction, Chemistry, Electricity, Household equipment, Energy, IT, Mechanics, Medicine, Metal

France, UK , Belgium , Luxembourg , Spain , Poland , Germany, Switzerland, Austria , Romania

www.gbohumanresources.c om

Headline

Trade, Industry, Life Sciences, Banking, Construction, Naval, Agriculture, Energy, Food & Beverage, Pharmaceutical, Cosmetics, Luxury Goods, Digital Communication, Property

France

headline.fr

Source: Supplier Websites

NA – Not Available

Supplier Profile (7) Few Suppliers headquartered at Italy Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Information and communications technology, Health, Personal Services, Fashion & Luxury, Tourism & Catering, Agriculture & Food, Renewable Energy, Public Administration

800

Italy

www.umana.it

Openjobmet is S.p.A.

USD 512 million

Naval, Industrial, Family Care, Retail Trade, Bank & Finance, Health, Information and communications technology, Hotel, Restaurant & Catering, Agro – Industrial

570

Italy

www.openjobm etis.it/en

Porta Futuro

Italy

www.portafutur obari.it

Lavoropiù SpA

Italy

www.lavoropiu. it

Supplier

Umana

Engineering, Industrial, Information Technology, Technology

Healthcare, Agriculture, Pharmaceutical, Fashion, Sales, Retail Trade, Hotel, Restaurant & Catering

Source: Supplier Websites

NA – Not Available

Supplier Profile (8) Few Suppliers headquartered at Norway Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Temp-Team AS

Administration, Sales, Marketing, Accounting, Salary, Economics, Warehouse, Production, Logistics, School, Catering, Tourism, IT, Mechanical, Electrical, Wood, Engineering

Norway

www.tempteam.no

People

Building & Construction, Logistics & Transport, Industry & Engineering, Health, Education & Training, Office and administration

Norway, Sweden

people.no

Fremo Bemanning AS

Norway

fremobemanni ng.no

Mosaique

Oil, Engineering, Management, Consulting, Finance, IT, Technology

Norway

www.mosaique .no

Activepeope

Information Technology, Electrical, Mechanical, Technology, Industry, Administration

Norway

www.activepeo ple.no

HIRE Norway AS

Construction, Mechanical, Woodworking, Technical Engineering, Engineering / Engineering, Sales, Management, Cleaning

Norway

www.hire.no

Ditt Vikarbyrå AS

Office, Administration, Accounting, Finance, Sales, Store, Logistics, Transportation, Canteen, Service, Information Technology, Engineering

Norway

www.dittvikarb yra.no

De4

Insurance, Oil & gas, Retail trade, Tourism, Energy, Property & construction

Norway

www.de4.no

Administration, Banking & Financial, Construction, Engineering, Health, Hospitality, Information Technology, Technology, Naval, Food

Norway

www.jobzone.n o

Supplier

Jobzone AS

Property, Warehouse, Electrical, Industry, Food, Healthcare, Construction

Source: Supplier Websites

NA – Not Available

Supplier Profile (9) Few Suppliers headquartered at UK Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

USD 1 billion

IT, Accountancy & Finance, Construction & Property, Engineering, Office Support and Others

Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, UK

www.haysplc.c om

Accounting, Banking, Engineering, HR, IT, Legal, Sales & marketing, Supply chain and support fields

3,700

Belgium, France, Germany, Ireland, Luxembourg, Portugal, Spain, Switzerland, Netherlands, UK

www.robertwalt ers.com

REED Global

Accountancy, Actuarial, Banking, Business Support, Education, Engineering, Finance, Health & Care, HR, Insurance, Legal, Procurement & Supply Chain,

2,982

UK, Ireland, Czech Republic, Hungary, Poland, Malta, Turkey

www.reedglob al.com

Impellam Group plc

Accounting, Education, Administration, Legal, Health, Engineering, Technology, Commercial, Manufacturing, Warehouse

UK, Germany , Switzerland

www.impellam. com

SThree plc

USD 1.2 million

Banking & Finance, Energy & Natural Resources, Accountancy, Information Technology, Engineering, Pharmaceutical & Biotech, Oil & Gas, Healthcare, Marketing, Procurement & Supply Chain

Belgium, France, Germany, Ireland, Luxembourg, Netherlands, Norway, Spain, Switzerland, UK

www.sthree.co m/en

Guidant Group

Office, Administration, Accounting, Finance, Sales, Store, Logistics, Transportation, Canteen, Service, Information Technology, Engineering

www.guidantgr oup.com

NES Global Talent Limited

Oil & Gas, Power, Life Sciences, Construction & Infrastructure, Manufacturing, Mining, Chemicals, IT

670

UK, France, Poland, Netherlands, Norway

www.nesgt.co m

Staffline Group PLC

Accounting,, Transportation, Technology, Manufacturing, Engineering, Marketing, Agriculture, Finance

www.staffline.c o.uk

Venn Group

Engineering & Infrastructure, Finance, Government & Not for Profit, Healthcare & Life Sciences, Housing, Legal, Technology

www.venngrou p.com

Supplier

Hays plc

Robert Walters plc

Source: Supplier Websites

NA â&#x20AC;&#x201C; Not Available

Supplier Profile (10) Few Suppliers headquartered at other locations and serving any of the 7 countries in scope Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Kelly Services, Inc.

USD 5.3 billion (2016)

Life Science, Energy, High-Tech, Finance & Insurance, Consumer Goods, Automotive, Manufacturing

8,100

Belgium, Denmark, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Switzerland, UK

www.kellyservi ces.com

Allegis Group

USD 16 billion

Administration, Accounting, Finance, Sales, Store, Logistics, Transportation, Canteen, Service, Information Technology, Engineering

Belgium, France, Germany, Ireland, Netherlands, Poland, Sweden, Switzerland, UK

www.allegisgro up.com

Robert Half International

USD 5.2 billion (2016)

Accounting & Finance, Office & Administrative, Technology & IT, Executive Search, Legal, Creative Marketing

16,100

Austria, Belgium, France, Germany, Luxembourg, Netherlands, Switzerland, UK

www.roberthalf .com

Hudson Global, Inc.

USD 100 million (2016)

Accounting, Education, Administration, Legal, Health, Engineering, Technology, Commercial, Manufacturing, Warehouse

Belgium, Czech Republic, Denmark, France, Germany, Ireland, Luxembourg, Netherlands, Norway, Poland, Slovakia, Spain, Sweden, Ukraine, UK

www.hudson.c om

USG People

Industry, Corporate Services, Transport, Trade, Public sector, Construction

France, Netherlands, Belgium, Germany

www.usgpeopl e.com

Trenkwalder International AG

USD 888 million (2016)

Commercial, Business, Industrial Solutions, Medical, Outsourcing, Engineering

50,000

Austria, Germany, Switzerland, Liechtenstein, Hungary, Czech Republic, Poland, Slovakia, Romania, Slovenia, Serbia, Croatia, Bulgaria, Montenegro, Greece, Bosnia Herzegovina, Turkey

www.group.tre nkwalder.com/ de

Healthcare, Life Sciences, Financial & Business Services, Engineering, Consumer Brands, Technology & Media

Armenia, Slovakia, Belgium, Iceland, Bulgaria, Czech Republic, Denmark, Georgia, Finland, France, Norway, Germany, Greece, Hungary, Poland, Ireland, Israel, Italy, Portugal, UK, Moldova, Netherlands

www.cielotalen t.com

USD 982 million

Mining, Energy, Infrastructure, Oil & Gas, Engineering, High-tech, Automotive, Construction, Manufacturing, Finance, IT & Telecom, Legal, Healthcare, Marketing & Communication, Rail, Pharma, Electrical, Aerospace, Shipbuilding, Machinery & Plant, Energy & Power plant

10,000

Netherlands, Germany, Belgium, Austria, Czech Republic, Switzerland

www.brunelinte rnational.net/e n

Supplier

Cielo

Brunel International

Source: Supplier Websites

NA – Not Available

PROCUREMENT MODELS

Evolution of Staffing Services 1990s to 2008

2008 to Present

Decentralized

Preferred Suppliers

Master Vendor

■ Several suppliers ■ Procurement done on an ad-hoc basis ■ Management done internally

■ Selective set of suppliers ■ Contracts in place ■ Service level agreements (SLA's) in place

■ One supplier (possibly managing second and third tier suppliers) ■ One point of contact ■ Direct cost savings on bill rate and usage ■ Customized SLA's and process

Managed Service Provider (MSP)

Total Talent Management

■ Contingent workforce spend under management ■ One point of contact ■ Direct cost savings on bill rate and usage ■ Customized SLA's and process ■ Non-compliant spend elimination ■ Total cost of ownership savings

■ Total workforce spend under management ■ Complete workforce visibility ■ Direct cost savings on bill rate and usage ■ Customized SLA's and process ■ Non-compliant spend elimination ■ Increased total cost of ownership savings ■ Additional productivity and process savings ■ High degree of value added services

Engagement Models Typical Engagement Models

▪ ▪ ▪

Prevalent engagement models in the staffing industry are Master Vendor, Vendor Neutral and Hybrid Engagement models vary based on the client requirement and supplier’s position in the client’s portfolio Suppliers are willing to attain Preferred (PSL) status as one of a number of suppliers Client Requirement – Scenario Permanent Recruitment Services

Best-in-Class Engagement Model Recruitment Process Outsourcing

Temporary and/or Permanent

Managed Services

Contingent workers and supply chain management

Statement of Work

▪ Latest Trends

▪

Companies have started adopting Internally Managed Programs (IMPs) to Optimize Contingent Labor. Adoption rate currently is around 33% globally. Internally Managed Program (IMP) is viewed as the contingent workforce management (CWM) approach of the future. Buyers are looking for more strategic business partner value, true vendor neutrality, effective benchmarking and reporting, best practices and expanded supply chain options with digital platforms

Pricing Models Available Pricing Models

▪ ▪

Pricing models depend of the structure of the proposition, however typically a mark-up pricing model is widely adopted Various pricing models used in the industry are One-time Fee/ Fixed Fee pricing model, Hourly Fee pricing model and Mark-up pricing model: Price is calculated based on the pay rate to the candidate, pass through costs and profit (i.e.: Pay rate + Markup including Pass through costs like taxes, Fixed Pass through costs, Gross Profit)

Client Requirement – Scenario

Best-in-Class Pricing Model

Vendor-neutral managed service provider(MSP)

Percentage of spend under management

Managed Service Provider (MSP)

Gain-share pricing model

Managed Service Provider (MSP)

Cost plus pricing model

Cost Structure Size and Scalability of the Account from Supplier’s Perspective plays a big role in the total cost

▪ ▪

▪

Cost involved in the sourcing of candidates holds a major share in the overall cost. Higher demand volumes reduces cost The mark-up percentage depends on a variety of factors including types of workers and skill sets, market demand, buyer's knowledge, duration of assignment, volumes of business, statutory expenses etc. Typical markups range from as low as 20% to 50% or more. Factors like statutory expense rates don’t provide room for negotiation. On the other hand, buyers can negotiate on the benefits.

Key Insights

▪ ▪ ▪

Suppliers develop cost model based on the client’s anticipated volume and knowledge relative to the applicable billing rates Staffing agencies are willing to work on custom cost model for each client depending on the RFP structures, , differing rate management approaches, volume of business, etc. Continuous evolution of industry demands, rapid changes in the digital marketplace and economy, high competitive nature of the industry, very less barriers to entry into the industry are considered to be the major drivers for agencies to develop custom cost model