Annemarie Muntz Ciett President & Director Public Affairs Randstad Group World Leaders in Recruitment Conference, 24 September 2014 The Way to Work: private employment services preparing for changing realities
Dec 24, 2015
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
Companies using agency work accelerate faster out of downturn
German research: higher revenue growth when agency work is used
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.
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
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
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.
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
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