Interview With The CEO And Executive Board Member: Randstad Holding nv (RAND.AS) - Gregory A. Netland
67 WALL STREET, New York - January 24, 2012 - The Wall Street Transcript has just published its Staffing & Outsourcing Services Report offering a timely review of the sector to serious investors and industry executives. This 31 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Workforce Flexibility Requirements - Stalwarts Look to Acquire Small Caps - Rich Industry Leaders to Acquire Small Cap Competitors - BPO & IT Outsourcing Reduce Labor Costs
Companies include: Accenture (ACN); Adecco (ADEN.VX); Alliance Data Systems (ADS); CGI Group (GIB); CSC (CSC); and many more.
In the following brief excerpt from the STAFFING & OUTSOURCING SERVICES Report expert analysts discuss the outlook for the sector and for investors.
Gregory A. Netland is Chief Executive Officer, Americas, and an Executive Board Member of Randstad Holding nv. After graduating in economics, he joined Sapphire Technologies in 1987. He played a key role in Sapphire's integration with Select Appointments in 1994, and in Select's merger with Vedior in 1999. Mr. Netland was promoted to Chief Operating Officer and Executive Vice President of business development of Vedior North America in 2001, and then, to CEO in 2003. He joined Vedior's board of management in 2007. Mr. Netland was appointed to the Randstad executive board after the merger with Vedior, and is responsible for the combined businesses in the U.S., Canada and Latin America.
TWST: Please start with a brief company history and an overview of Randstad's operations and services today.
Mr. Netland: Randstad was founded over 50 years ago in the Netherlands by a gentleman named Frits Goldschmeding. It was formed as a classic temp staffing organization. Frits remains today the single-largest shareholder of the company, and he just stepped down last year from the supervisory board, so a long history. Most recently in 2008, with the purchase of Vedior, which was the single-largest transaction in the staffing industry, Randstad became the number two HR services organization in the world - roughly 27,000 internal employees, 4,200 branches operating in roughly 40 countries around the world, 2010 revenues were over 14 billion euros. And we're paying, in any given week, over 600,000 temporary employees around the globe.
TWST: What is the overriding business strategy or philosophy driving the company?
Mr. Netland: There is a very specific business strategy. The company is very focused on continuous market share gains. We want to be in the top three in every major market around the world. If you go around the world, you'll see Randstad is typically in the top three. In the Netherlands, we're number one; in France, we're number three; market share is over 25% in certain countries in Europe, of course, much less in the more fragmented markets. But clearly, market share and market position is one of the driving strategies. The philosophy is based on building blocks, which are strong concepts, best people, excellent execution and superior brands. Those building blocks create the foundation for just about everything we do. We have a focus on shaping the world of work, and that focus is on providing added value to our candidates, added value to our clients, and being a leader in the industry, both from a what-we-do perspective and how-we-do-it perspective.
TWST: The company has a global footprint and offers several services. How do the company's overall revenues break down by service and by geographic region?
Mr. Netland: The breakdown at the end of 2010 was roughly 22% France, 20% from the Netherlands, 12% from Germany, 9% Belgium, 6% U.K., 6% Spain, 13% North America, 7% Latin America and Asia Pacific, and 5% would be miscellaneous other European countries. That number changes this year, obviously, with the acquisition of SFN here in the U.S.; the U.S. will, on a go-forward basis, be around 20% of revenue, and everything adjusts accordingly.
In terms of how we break down by service line, we split our world into three large buckets: traditional staffing, professional staffing and HR solutions. Roughly speaking, we have about 50% of our world in the traditional staffing market, white-collar clerical, administrative, industrial; roughly 20% in professionals, and again, that number goes up with the acquisition of SFN; 10% in HR solutions; and then the other 20% is what we call in-house services, which is a master vendor-type program that could be professionals or staffing. One other note, even though our professionals is a smaller percentage, we are the number two professional staffing company in global revenue, so it's a good number for us.
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