Sponsored by

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From Easy to Hard: A Look at Global Staffing

Market Complexity
Speakers:
John Nurthen
Jon Holden

General Manager, Europe

VP Sales EMEA, IQNavigator

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Confidential Report NOT for Distribution | 2011 Crain Communications Inc. All rights reserved.

14 March 2012
3pm GMT/ 4pm CET
10am PST/ 1pm EST

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.

CWS Council Members

(partial list)

2011 by Crain Communications Inc. All rights reserved.

Western Europe Buyer Webinar

From Easy to Hard: A Look at Global Staffing

Market Complexity
Sponsored by

Jon Holden
VP Sales EMEA

2011 by Crain Communications Inc. All rights reserved.

Methodology

Market
maturity

Regulatory
efficiency

Employment
Law Burden

Labour
Market
Efficiency

Trade Union
Influence

Political
Stability/
Corruption

Ability to
enforce
contracts

Pricing
Environment

Independent
Contractor
Environment

MSP/VMS
Maturity

2011 by Crain Communications Inc. All rights reserved.

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.

Hot Spots

Most Complex

Least Complex
Not Recorded

2011 by Crain Communications Inc. All rights reserved.

Unknown Markets
Interesting category in their own right
Generally, no legislative framework and
staffing industry not organised/
represented

Here be monsters

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.

Country

Market
Maturity

Staffing
Market
Regulatory Employment
Efficiency Law Burden

Labour
Market
Efficiency

Enforcing
contracts

Pricing
MSP/VMS Trade Union Independent Stability/
Environment Maturity
Influence Contractors Corruption

Total

UNITED STATES

43

UNITED KINGDOM

42

CANADA

41

NEW ZEALAND

40

HONG KONG, CHINA

39

SINGAPORE

38

AUSTRALIA

36

NETHERLANDS

35

IRELAND

33

BELGIUM

33

AUSTRIA

32

FINLAND

32

JAPAN

31

GERMANY

31

SOUTH AFRICA

30

SWEDEN

30

SWITZERLAND

29

DENMARK

29

BULGARIA

28

Country

Market
Maturity

Staffing
Market
Regulatory Employment
Efficiency Law Burden

Labour
Market
Efficiency

Enforcing
contracts

Pricing
MSP/VMS Trade Union Independent Stability/
Environment Maturity
Influence Contractors Corruption

Total

FRANCE

28

CZECH REPUBLIC

27

INDIA

27

NORWAY

27

CHINA

25

SERBIA

24

ROMANIA

24

HUNGARY

24

QATAR

24

EGYPT

23

PORTUGAL

23

UNITED ARAB EMIRATES

23

MEXICO

23

POLAND

23

SAUDI ARABIA

22

KUWAIT

22

TURKEY

22

SPAIN

21

BRAZIL

21

RUSSIA

21

GREECE

20

ARGENTINA

20

ITALY

20

10

The Better Markets

Market
Maturity

Regulatory
Efficiency

Labour Market
Efficiency

Employment Law
Burden

Political Stability/
Corruption

SOUTH AFRICA

NETHERLANDS

SWITZERLAND

SINGAPORE

FINLAND

UNITED KINGDOM

SWEDEN

SINGAPORE

JAPAN

DENMARK

NETHERLANDS

UNITED STATES

HONG KONG CHINA

INDIA

SWEDEN

Source: CIETT

Source: CIETT

Source: World Economic

Forum

Source: The
Regulation of Labor

Source: World Bank

Governance Indicators,
2011

Trade Union
Influence

Pricing
Environment

Ability to Enforce
Contracts

Independent
Contractor Environment

MSP/VMS
Maturity

CHINA

BULGARIA

NORWAY

BULGARIA

UNITED STATES
UNITED KINGDOM
FRANCE

INDIA

EGYPT

HONG KONG CHINA

GREECE

KUWAIT

GREECE

FRANCE

ITALY

QATAR

PORTUGAL

SAUDI ARABIA

SERBIA

SERBIA
SINGAPORE

Source:
www.doingbusiness.com

POLAND
SERBIA

Source: Staffing Industry

Analysts

Source: Staffing Industry

Analysts

Source: Staffing Industry

Analysts

UNITED ARAB EMIRATES

UNITED STATES

Source: Staffing Industry

Analysts

2011 by Crain Communications Inc. All rights reserved.

11

Identifying Complex Markets

2011 by Crain Communications Inc. All rights reserved.

12

Spotlight on Italy
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-pros
Reforms will be passed with or without union consent
2011 by Crain Communications Inc. All rights reserved.

13

Spotlight on Argentina
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)

2011 by Crain Communications Inc. All rights reserved.

14

Spotlight on Greece
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
2011 by Crain Communications Inc. All rights reserved.

15

Spotlight on Russia
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

2011 by Crain Communications Inc. All rights reserved.

16

Spotlight on Brazil
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

2011 by Crain Communications Inc. All rights reserved.

17

Spotlight on Spain
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

2011 by Crain Communications Inc. All rights reserved.

18

Protest

2011 by Crain Communications Inc. All rights reserved.

19

Protest

2011 by Crain Communications Inc. All rights reserved.

20

Protest

2011 by Crain Communications Inc. All rights reserved.

21

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.

22

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.

23

Summary
All complexity is relative
Contingent worker procurement is one of the more complicated
procurement categories regardless of geography
Complexity multiplies for managers responsible for multiregional 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

24

Toto, Ive a feeling

were not in Kansas
anymore

Any Questions?

25

Western Europe Buyer Webinar

From Easy to Hard: A Look at Global Staffing

Market Complexity
Sponsored by

Jon Holden
VP Sales EMEA

2011 by Crain Communications Inc. All rights reserved.

26

SAVE THE DATE!

15-16 May 2012
Lancaster Hotel, London
www.cwssummitwe.eu

2007-2011 The London Organising Committee of

the Olympic Games and Paralympic Games Limited

2011 by Crain Communications Inc. All rights reserved.

27

Next European Webinar

Contingent Buyer Case Study

Sponsored by Fieldglass
Wednesday 18 April 2012
10am EST / 3pm GMT / 4pm CET

28