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1Confidential Report – NOT for Distribution | ©2011 Crain Communications Inc. All rights reserved.
Western Europe
14 March 2012
3pm GMT/ 4pm CET
10am PST/ 1pm EST
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From Easy to Hard: A Look at Global Staffing Market Complexity
Speakers:
John Nurthen General Manager, Europe
Jon Holden VP Sales EMEA, IQNavigator
Sponsored by
2
From Easy to Hard: A Look at Global Staffing
Market Complexity
• Introduction
• Methodology
• Analysis
• Summary
• Q&A– Your questions are welcome!
• Close
©2011 by Crain Communications Inc. All rights reserved.
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CWS Council Members (partial list)
©2011 by Crain Communications Inc. All rights reserved.
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©2011 by Crain Communications Inc. All rights reserved.
Western Europe Buyer Webinar
Sponsored by
From Easy to Hard: A Look at Global Staffing
Market Complexity
Jon Holden
VP Sales EMEA
5
Methodology
©2011 by Crain Communications Inc. All rights reserved.
MSP/VMS
Maturity
Market
maturity
Regulatory
efficiency
Employment
Law Burden
Labour
Market
Efficiency
Political
Stability/
Corruption
Ability to
enforce
contracts
Pricing
Environment
Independent
Contractor
Environment
Trade Union
Influence
6
Considerations
• ‘Complex’ does not = ‘Impossible’
• ‘Not complex’ does not = ‘Easy’
• No weighting in this analysis– But you could weight the results yourself depending on your own
strategy, risk perception, resources and company culture
• Language as a factor
©2011 by Crain Communications Inc. All rights reserved.
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Most Complex
Least Complex
Not Recorded
©2011 by Crain Communications Inc. All rights reserved.
Hot Spots
8
Unknown Markets
• Interesting category in their own right
• Generally, no legislative framework and
staffing industry not organised/
represented
– Only 23 countries have ratified ILO Convention 181
• Most significant markets not included in this study:
– the South American markets of Chile, Colombia and Peru
– the Baltic States of Estonia, Latvia and Lithuania,
– other parts of Eastern Europe such as Slovakia and Slovenia
– the Asian markets of South Korea, Thailand and Malaysia.
©2011 by Crain Communications Inc. All rights reserved.
Here be monsters
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Country
Market
Maturity
Staffing
Market
Regulatory
Efficiency
Employment
Law Burden
Labour
Market
Efficiency
Enforcing
contracts
Pricing
Environment
MSP/VMS
Maturity
Trade Union
Influence
Independent
Contractors
Stability/
Corruption Total
UNITED STATES 4 5 5 5 5 3 5 5 3 3 43
UNITED KINGDOM 5 5 5 5 4 4 4 4 2 4 42
CANADA 4 5 4 5 2 3 4 4 5 5 41
NEW ZEALAND 4 4 5 5 5 2 2 4 4 5 40
HONG KONG, CHINA 4 5 4 5 5 2 2 4 4 4 39
SINGAPORE 4 5 5 5 4 2 3 5 1 4 38
AUSTRALIA 4 5 3 4 4 3 3 4 2 4 36
NETHERLANDS 4 5 2 4 3 4 3 2 3 5 35
IRELAND 3 2 4 4 2 4 3 3 4 4 33
BELGIUM 4 4 3 3 4 3 3 2 3 4 33
AUSTRIA 3 4 2 3 5 3 1 3 4 4 32
FINLAND 2 4 1 4 5 3 1 3 4 5 32
JAPAN 4 3 5 4 3 3 3 2 1 3 31
GERMANY 4 4 2 2 5 2 3 1 4 4 31
SOUTH AFRICA 5 3 5 2 2 4 2 3 2 2 30
SWEDEN 3 5 1 4 3 2 2 2 3 5 30
SWITZERLAND 3 2 2 5 3 4 1 3 1 5 29
DENMARK 2 5 1 5 3 2 2 3 1 5 29
BULGARIA 1 3 2 3 2 5 1 4 5 2 28
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Country
Market
Maturity
Staffing
Market
Regulatory
Efficiency
Employment
Law Burden
Labour
Market
Efficiency
Enforcing
contracts
Pricing
Environment
MSP/VMS
Maturity
Trade Union
Influence
Independent
Contractors
Stability/
Corruption Total
FRANCE 4 4 1 2 5 3 4 1 1 3 28
CZECH REPUBLIC 2 1 2 3 2 4 1 4 5 3 27
INDIA 1 3 5 2 1 3 3 5 3 1 27
NORWAY 2 4 1 4 5 1 2 1 2 5 27
CHINA 1 1 3 3 4 2 2 5 3 1 25
SERBIA 1 2 2 1 1 5 1 5 5 1 24
ROMANIA 1 3 4 2 2 3 1 2 4 2 24
HUNGARY 2 3 3 2 4 2 1 1 3 3 24
QATAR 1 1 4 4 1 1 1 5 4 2 24
EGYPT 1 1 3 1 1 5 1 4 5 1 23
PORTUGAL 2 2 1 1 4 5 1 1 3 3 23
UNITED ARAB EMIRATES 1 1 3 3 1 3 1 5 3 2 23
MEXICO 3 3 3 1 2 2 2 3 3 1 23
POLAND 1 3 2 3 2 1 1 2 5 3 23
SAUDI ARABIA 1 1 2 3 1 4 1 5 3 1 22
KUWAIT 1 1 4 2 1 3 1 5 2 2 22
TURKEY 1 1 5 1 3 3 1 3 3 1 22
SPAIN 1 2 1 1 3 4 2 1 3 3 21
BRAZIL 3 1 3 2 1 3 1 4 2 1 21
RUSSIA 1 2 1 2 4 3 2 2 3 1 21
GREECE 1 1 2 1 1 5 1 1 5 2 20
ARGENTINA 1 1 4 1 3 4 1 2 2 1 20
ITALY 2 3 1 1 1 2 2 1 5 2 20
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©2011 by Crain Communications Inc. All rights reserved.
Market Maturity
SOUTH AFRICA
UNITED KINGDOM
NETHERLANDS
The Better Markets
RegulatoryEfficiency
NETHERLANDS
SWEDEN
UNITED STATES
Employment Law Burden
SINGAPORE
JAPAN
INDIA
Source: CIETT Source: CIETT Source: The
Regulation of Labor
Source: World Economic
Forum
Labour Market Efficiency
SWITZERLAND
SINGAPORE
HONG KONG CHINA
Source: World Bank
Governance Indicators,
2011
Political Stability/ Corruption
FINLAND
DENMARK
SWEDEN
Source: Staffing Industry
Analysts
Trade UnionInfluence
CHINA
INDIA
KUWAIT
QATAR
SAUDI ARABIA
SERBIA
SINGAPORE
UNITED ARAB EMIRATES
UNITED STATES
Source:
www.doingbusiness.com
Ability to EnforceContracts
NORWAY
HONG KONG CHINA
FRANCE
Source: Staffing Industry
Analysts
Pricing Environment
BULGARIA
EGYPT
GREECE
PORTUGAL
SERBIA
IndependentContractor Environment
BULGARIA
GREECE
ITALY
POLAND
SERBIA
Source: Staffing Industry
Analysts
MSP/VMSMaturity
UNITED STATES
UNITED KINGDOM
FRANCE
Source: Staffing Industry
Analysts
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Identifying Complex Markets
©2011 by Crain Communications Inc. All rights reserved.
13
Spotlight on Italy
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• Relatively young labour market founded in 1997– Less than 100 staffing firms operating
– Fast growing staffing market (+20% in 2011)
– Highest proportion of short term assignments (less than one month)
• Volatile economy: austerity measures– Pervasive influence of organised crime
– Relatively low unemployment
• Talks on labour reform between government, unions and
employers, resumed on 15th February– Multiple labour contracts
– Growth of ‘co-co-pro’s’
– Reforms will be passed with or without union consent
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Spotlight on Argentina
©2011 by Crain Communications Inc. All rights reserved.
• Temporary staffing penetration rate of only 0.4% (in 2009)
• Many people work without having a contract
• Towards bottom of rankings in both World Bank Governance
Indicators (political stability/corruption) and Global
Competitiveness Report (labour market efficiency)
15
Spotlight on Greece
©2011 by Crain Communications Inc. All rights reserved.
• Staffing market unregulated until 2001– Tiny and immature staffing market
– Temporary staffing penetration rate of 0.1% (in 2009): the lowest
measured rate
– Among the most inefficient staffing markets from a regulatory
perspective (according to CIETT)
• Government on brink of bankruptcy– Unemployment at 19%
– Second EU bailout conditional on further cuts to the minimum wages,
annual salaries and pensions
– Greek economy forecast to contract by 4.5% this year
– Private sector workers have already suffered a 14% loss in annual
income due to emergency taxes
16
Spotlight on Russia
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• Economy liberalised 21 years ago– Non-standard employment only began to grow from 1994
– Very high burden of employment law (85th out of 85 countries in ‘The
Regulation of Labor’)
– Most unstable and corrupt country of those we assessed
• 12% of workforce working on a temporary basis – But much smaller market for agency workers
– Thriving black market for temporary labour
– Strong union opposition
– State Duma passed a bill banning agency labour in May 2011 but law is
subsequently in limbo
– Employee leasing popular
17
Spotlight on Brazil
©2011 by Crain Communications Inc. All rights reserved.
• 5th largest country in the world (by geography and population)
• Agency temps may only be hired to substitute for permanent
staff or during busy periods– Term limit on length of temporary assignments
– Staffing companies are pseudo-outsourcing firms
• Difficult/bureaucratic business environment and challenges
with contract enforcement
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Spotlight on Spain
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• High unemployment currently at 23%– Quarter of the workforce employed on a temporary basis (not through
an agency)
– Skilled workers looking for work abroad
• Radical labour reform underway– Royal Decree Law currently being processed in Parliament
– Easier to terminate and decrease in severance pay
– Rights to temporarily suspend employment contracts
– Arbitrary reduction or extension of working hours by 5%
• Strong trade union influence causing unrest
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Protest
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Protest
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Protest
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Even Complex Markets have Redeeming Features
• In relatively immature staffing markets, the pricing
environment for temporary labour will likely be quite
benevolent
• In developing economies, trade union influence is likely to be
restricted
• In underdeveloped staffing markets, the use of independent
contractors will be quite widespread and the regulations
relating to the use of independent contractors will be quite
relaxed – perhaps even non-existent
©2011 by Crain Communications Inc. All rights reserved.
23
The Black Market
• Many developing economies have
a thriving black market for
contingent workers
– i.e. Mexico, Russia, Middle East
• Undermines credible, professional
suppliers
• Inhibits social acceptance and
creates union opposition
• Make sure your suppliers are properly licensed!
©2011 by Crain Communications Inc. All rights reserved.
24
Summary
“Toto, I’ve a feeling
we’re not in Kansas
anymore”
• All complexity is relative– Contingent worker procurement is one of the more complicated
procurement categories regardless of geography
– Complexity multiplies for managers responsible for multi-
regional or global contingent workforce programmes
• Local expertise is the key to unlocking the most
complex staffing markets– In-house expertise to ensure you understand and
respect the local language and culture
– Professional legal expertise to ensure your
programme is legally compliant
– Supplier expertise
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Any Questions?
26
©2011 by Crain Communications Inc. All rights reserved.
Western Europe Buyer Webinar
Sponsored by
From Easy to Hard: A Look at Global Staffing
Market Complexity
Jon Holden
VP Sales EMEA
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