Annemarie Muntz Ciett President & Director Public Affairs Randstad GroupWorld Leaders in Recruitment Conference, 24 September 2014

The Way to Work: private employment services

preparing for changing realities

Flexibility is here to stay

Clear correlation between competitiveness and labor market efficiency

Companies using structural flexibility are more competitive and accelerate faster out of downturn

2

10%

15%

20%

25%

30%

35%

40%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Shar

e in

% o

f to

tal

empl

oym

ent

Year

United States

Canada

Japan

EU-Anglosaxon

EU-Rhineland

Scandinavia

EU-Francophone

EU-Mediterranean

Eastern Europe

flexible labor relations

Outcome Randstad annual Flexibility@work report 2013:• Growth or decline of different types of flexible labor attributed to changes in local society,

economic structures, institutions and legislation (mostly stable between 20 and 25% of total employment)

• Structural growth of agency work: penetration rates moving up over last decade but still small part of flexible labor relations and total employment (in average 1 to 3%)

• Flexible labor in general, and agency work in particular, facilitate transitions to employment and bring new non-traditional labor market participants to the labor market

• Strong correlation between the share of flexible labor and economic growth, particularly with respect to fixed-term contracts and agency work 

fixed termagency workself employed

Labor market efficiency is key to competitiveness

Companies using agency work accelerate faster out of downturn

German research: higher revenue growth when agency work is used

Introducing Randstad

Ciett in a nutshell

The only authoritative voice for the private employment services industry

since 1967 with members from 50 countries

Regrouping 137,000 staffing agencies with 624.500 internal staff, including 8 of the largest

firms as a direct corporate member

Employing 11.5 million agency workers each day (FTE), and 36 million a year (headcount)

Represents the full spectrum of HR services: temporary agency work, recruitment, interim

management, executive search, outplacement, training

Working closely with stakeholders, including as official social partner for the agency work sector in the EU.

Ciett Members

Key data on the worldwide agency work market in 2012

Size of flexible labor remains modest

What drives the private employment services industry?

Regulation• Enabling us to operate,

lifting restrictions• International standards:

ILO C181, EU Directive

Continued need for flex• Giving workers and

businesses freedom to adapt to their needs

Long term objectives

To protect and promote the interests of private employment agencies in order to enhance their sustainable growth

To create the most suitable legal environment for the private employment services industry to operate in

To promote and increase quality standards within the private employment services industry

To improve the understanding of the reality of the private employment services industry, especially by gaining recognition for its positive contribution to a better functioning labour market

Our environment: trends and developments

0%

2%

4%

6%

8%

10%

12%

European Union 10.9%

United States 7.0%

Japan 4.0%

Persistent high level of (youth) unemploymentespecially in Europe recovery of the labor market is slow

Source: Eurostat oct/nov 2013

2005 2006 2007 2008 2009 2010 2011 2012 2013

United States European Union Japan

0.07 0.109 0.04

0.141

0.236

0.068

all ages

age group 15-24

Where the US labor market has been recovering since early 2011, the European labor market is lagging and showing only recently signs of recovery.

The 2008 financial crisis hit especially the US employment fast and hard. In Europe the response was slower. The Japanese labor market remained relatively stable.

Already decline of economically active population in Russia, Japan and Germany..

14

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

…and will hit the whole of Europe and Eastern Asia2010-2050

Economically active populationTotal change

2010-2020

Economically active populationAverage annual percentage change

Source: Deloitte Research/UN Population Division : “Do You Know Where Your Talent Is?”

Significant talent gap expected by 2020 and beyondin countries with no talent shortage trend, employability is the challenge

Based on: WEF Global Talent Risk report, 2011

Talent gap trend

2013 > 2020 > 2030 none or low medium strong

Employability challenge medium strong

Note: colour codes based on compound annual growth rates of talent supply and demand by 2020 and 2030

Regulatory trend AW market

Source: Randstad, annual report 2013

Our answer to changing world of work

Better Regulation

Fighting rogue agencies

Showing our contribution to

labour markets

Ciett promotes implementation of effective regulation

BrazilRemove

restrictions on TAW + get outsourcing regulation

RussiaGet

regulation enforced

IndiaGet TAW legalised

EUFull application Agency Work

Directive

ChinaRemove

restrictions on TAW

MexicoGet C181

ratified

Argentina

Get C181 ratified

South AfricaEnsure

enforcement of new

regulation

JapanSecure new regulation

TurkeyGet TAW legalised

IndonesiaGet TAW legalised

Labour markets become more and more complex, but too many countries still have stifling regulation, restricting PrES to play their role as labour market intermediaries

Ciett & its members promote fair recruitment practices

Ciett is one of the main partners in the ILO Fair Recruitment Initiative• 5 year programme focused on India, Nepal, Bangladesh and migration routes to Lebanon &

Jordan• UK gov funded • Project goals include creating international benchmarks, updating Ciett code of conduct

which binds all members.

Many members set up their own initiatives, such as the REC Good Recruitment Campaign, establishing a quality standard for members and inviting user companies to pledge using only quality REC recruiters.

Fighting rogue agencies & promoting fair recruitment is key to protect workers and build a positive image of our industry as the go-to partner in the changing world of work.

tackling undeclared work increases business opportunities

the size of undeclared workin % of GDP

6,17,5

8,0

9,1

9,7

9,912,2

13,0

13,0

13,0

13,914,2

15,0

15,516,4

18,6

19,0

21,1

22,1

23,1

23,6

23,8

24,2 25,2

25,5

27,6

28,0

28,428,4

31,2

europemarket typemarket drivensocial dialoguelegislation drivenemerging marketrate of undeclared work

data 2013, derived from Schneider

6,6

10,8

north america

8,0

9,4

oceania

8,1

japan

source: randstad flexibility@work 2014

less restrictive regulation on agency work helps to reduce the size of undeclared work

Job quality - a shared responsibility

What do we deliver as labour market intermediaries?

• Labour-market intelligence providers • improve evidence-based policy

• Matchmakers • reduce unemployment & improve transparancy

• Transition agents • help to make the labour markets more fluid

• Career managers• advise, guidance and training

• Administrators • increase competitiveness of companies

• Partnering with public employment services• Contributing to a better functioning labour market

Our contribution to better labour markets

Thank you. Questions?

research by Randstad

2007

2010

2012

2013

2014