Staffing Business

Part
01
of three
Part
01

Revenue Breakdown: Manpower

The knowledge work business which are associated with outcome-based solutions and consulting services accounts for 6.9% of the company revenue. On the other hand, staffing, permanent recruitment, and other services account for 93.1% of the total revenue. The percentage of total revenue can further be segregated as 4.25% (America), 6.18% (Southern Europe), 7.94% (Northern Europe), and 9.86% (Asia Pacific, Middle East).

Revenue Breakdown by type of Service, Verticals, and Industries Served

  • Manpower Group workforce solutions and services include recruitment, assessment, training, development, career management, outsourcing and workforce consulting across a wide range of industries.
  • Their knowledge economy and revenue is captured and associated with their outcome-based solutions and consulting services includes strategic workforce consulting, expert insights, measurable action plans, pragmatic frameworks, and other strategic expertise.
  • According to Statista, the company generated $9.37 billion in Southern Europe, $5.37 billion in Northern Europe, $4.16 billion in the Americas, and $2.89 billion in Asia Pacific and the Middle East in 2018.
  • According to the 2018 annual report, the company generated revenue from four broad service types — staffing and interim, outcome-based solutions and consulting, permanent recruitment, and other services.
2018 BREAKDOWN OF REVENUE BY SERVICE:
The knowledge work business which is reported as outcome-based solutions and consulting accounts for 6.9% of the company revenue while physical labor services such as staffing and interim, permanent recruitment, and other services account for 93.1% of the total revenue.

Breakdown of revenue by the type of service and region

1. America

The knowledge work business which is reported as outcome-based solutions and consulting accounts for 4.25% of the revenue while staffing and interim, permanent recruitment and other services accounted for 95.75% of the region's revenue.

2. Southern Europe

The knowledge work business which is reported as outcome-based solutions and consulting accounts for 6.18% of the revenue while staffing, interim, permanent recruitment and other services accounted for 93.82% of the region's revenue.

3. Northern Europe

The knowledge work business which is reported as outcome-based solutions and consulting accounts for 7.94% of the revenue while staffing, interim, permanent recruitment and other services accounted for 92.06% of the region's revenue.

4. Asia Pacific and Middle East

The knowledge work business reported as the outcome-based solutions and consulting accounts for 9.86% of the revenue while staffing, interim, permanent recruitment and other services accounted for 90.14% of the region's revenue.

Additional findings and historical revenues

  • In 2017, Manpower Group's services, which included targeted sales, permanent recruitment growth, multi-channel delivery, and centers of recruiting excellence accounted for 63% of the company’s gross profit.
  • Experis, Manpower Group Solutions and Right Management Services, accounted for 37% of the company’s gross profit.

Your Research team applied the following Strategy:

We began our research by looking for investor relations and annual reports from the company's website. Following this, we analyzed the company's financial details on credible business databases such as Hoovers, Owler, Crunchbase, Bloomberg, ZoomInfo, Capital IQ, Statista, and others. We also explored press releases and media articles to find the required information. However, none of the articles on the aforementioned sources provided details regarding the revenue generated by services. They only focused on the company's revenue in general.
The 2018 annual report of Manpower Group provided the latest breakdown of revenues based on the services the company offers and also revenue by regions in which they operate. There was no precompiled estimates of the percent of the physical and knowledge labor revenue. But the service type revenue breakdown provided the basis for calculation and estimation of the percent of physical labor and knowledge business and services revenue.

Triangulation

  • The total revenue in 2018 was $21,991.20 million.
  • By dividing outcome-based solutions and consulting revenue $1,517.20 million and multiplying the value by 100, we arrive at the percentage revenue of knowledge business and services.
  • $1,517.20 ÷ $21,991.20 * 100 = 6.9%
Adding the other three revenue types i.e. staffing and interim, permanent recruitment, and other services we derive the revenue of physical business and services.
  • $19,498.20 + $623.90 + $351.90 = $20,474.00 million
Then, dividing the revenue of physical business and services revenue by the total revenue and multiplying the value by 100, we arrive at the percentage revenue of physical labor services.
  • $20,474.00 ÷ $21,991.20 *100 = 93.1%
Therefore, the knowledge work business which is reported as outcome-based solutions and consulting accounts for 6.9% of the company revenue. And, physical labor services such as staffing and interim, permanent recruitment, and other services account for 93.1% of the total revenue.

CALCULATIONS BASED ON REGIONS

America

  • Outcome-Based Solutions and Consulting: $176.9 million
  • Staffing and interim, permanent recruitment and other services: $3,982.40 million
  • Total revenue: $4,159.30 million
  • $176.9 ÷ $4,159.30 *100 = 4.25%
  • America's labor services revenue: $3,982.40 ÷ $4,159.30 *100 = 95.75%
The knowledge work business which is reported as outcome-based solutions and consulting accounts for 4.25% of the company revenue. And, physical labor services such as staffing and interim, permanent recruitment, and other services account for 95.75% of the region's revenue.

Southern Europe

  • Outcome-Based Solutions and Consulting: $579.30 million
  • Staffing and interim, permanent recruitment and other services: $8,792.30 million
  • Total revenue: $9,371.60 million
  • $579.3 ÷ $9,371.6 *100 = 6.18%
  • Southern Europe's labor services revenue: $8,792.3÷ $9,371.6 *100 = 93.82%
Therefore, knowledge work business which is reported as outcome-based solutions and consulting accounts for 6.18% of the revenue while staffing and interim, permanent recruitment, and other services accounts for 93.82% of the region's revenue.

Northern Europe

  • Outcome-Based Solutions and Consulting: $426.20 million
  • Staffing and interim, permanent recruitment and other services: $4,944.30 million
  • Total revenue: $5,370.50 million
  • $426.2 ÷ $5,370.5 *100 = 7.94%
  • Northern Europe labor services revenue: $4,944.3 ÷ $5,370.5 *100 = 92.06%
Hence knowledge work business which is reported as outcome-based solutions and consulting accounts for 7.94% of the revenue while staffing, interim, permanent recruitment, and other services accounts for 92.06% of the region's revenue.

Asia pacific and middle east

  • Outcome-Based Solutions and Consulting: $284.90 million
  • Staffing and interim, permanent recruitment and other services: $2,605.40 million
  • Total revenue: $2,890.30 million
  • $284.9 ÷ $2,890.3 *100 = 9.86%
  • The Asia Pacific and Middle East labor services revenue: $2,605.4 ÷ $2,890.3 * 100 = 90.14%

  • Therefore, the APME knowledge work business reported as the outcome-based solutions and consulting accounts for 9.86% of the revenue while staffing, interim, permanent recruitment, and other services accounts for 90.14% of the region's revenue.
    Part
    02
    of three
    Part
    02

    Adecco Revenue by Vertical, Industry and Service

    Adecco's revenue that comes from Europe accounts for 64% of the total revenue. 76% of the revenue originates from the physical labor and blue-collar jobs.

    REVENUE BREAKDOWN BY TYPE OF SERVICE, VERTICALS AND INDUSTRIES SERVED

    i. Workforce Solutions

    ii. Professional Staffing & Solutions

    iii. Career Transition & Talent Development services

    iv. Total Talent Solutions

    REVENUE DUE TO PHYSICAL LABOR VS KNOWLEDGE ECONOMY

    • Adecco's physical labor and blue-collar jobs are from the General Workforce which includes office and industrial services. It accounts for 76% of the total revenue.
    • Knowledge-based jobs contribute 24% of the revenue which includes Information Technology (IT), Engineering and Technical, Finance and Legal, Medical and Science, Workforce Transformation, and Training and Reskilling.

    REVENUE BY REGION

    • For the year 2018, 64% of the revenue originated from Europe, 18% from North America, 5% from Japan, 3% from Latin America, 3% from Eastern Europe & MENA, 2% from Asia, 2% from Australia and New Zealand, and 1% from India.

    ADDITIONAL FINDINGS AND HISTORICAL REVENUES

    YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGIES:

    In finding the revenue breakdown by vertical/industry and by type of service for Adecco, we started bu reviewing it’s the company websites to locate any reports on revenues. We found Adecco’s 2018 annual report with relevant information. Since revenue was reported in Euros, we converted everything to USD by multiplying 1.11 (current exchange rate). Also, we were able to associate physical labor to the General Workforce of Adecco because that segment was made up of generalist skills and is divided into office and industrial.
    Part
    03
    of three
    Part
    03

    Revenue Breakdown: Randstad

    In regard to revenue breakdown by location, Randstad generates about 17% of its revenues from North America while staffing services contribute up to 50% revenue. In addition to providing HR services, the company also supports industries like healthcare, life sciences, and engineering with training and payroll services.

    REVENUE BY LOCATION

    The total revenue for Randstad in 2018 was 23,812 million Euros. The company’s revenue by location is broken down as follows:

    TYPES OF SERVICE

    — Staffing: Revenue contribution in 2018 was 52.25%
    — In-house services: Revenue contribution in 2018 was 22.53%
    — Professionals: Revenue contribution in 2018 was 20.70%
    — Global businesses: Revenue contribution in 2018 was 4.95%

    TYPE OF LABOR

    According to Randstad's 2018 annual report, the revenue mix of white-collar to blue-collar jobs is about 50-50. Therefore, the company’s revenues in terms of labor are segmented as follows
    • Physical Labor: 50%
    • Knowledge Labor: 50%

    INDUSTRIES SERVED

    Randstad provides staffing services to the following industries:

    RESEARCH STRATEGY:

    In researching revenue breakdown of Randstad, we used information from the company's annual reports for 2017, 2018 and the first quarter's report for 2019. The information that we found included revenue breakdown by location since the company has a global presence in North America, Europe, Asia and other parts of the world. The information also included the breakdown of the revenue by services. We were, therefore, able to triangulate revenue percentages by services using the revenue breakdowns and the overall company revenue. The triangulation was as follows:
    Revenue percentage = revenue of an individual service / overall company revenue x 100;
    Staffing = (12,441 / 23,812) x 100= 52.25%
    In-house Services = (5,300 / 23,812) x 100 = 22.53%
    Professionals = (4,929 / 23,812) x 100 = 20.70%
    Global Businesses = (1,144 / 23,812) x 100= 4.95%
    We also calculated the revenue percentages for labor using statements in the 2017 and 2018 annual reports which stated that Randstad tries to keep a revenue-mix of 50-50 between blue-collar and white-collar jobs.
    However, we were unable to obtain information on the revenue mix for staffing vertical (hospitality and call centers) which the company refers to as contact centers in their annual reports and also the revenue mix for industries that Randstad provides services. In our quest to find this data, we reviewed Randstad's annual reports on its website. The only available information found was a list of industries that Randstad serves including Engineering/Construction, IT, Finance, Life Science to name a few. However, there was nothing about the revenue generated. Most of the revenue information was about the Human Resource and Staffing industry.

    We then explored press releases and SEC filings by Randstad on its financial performances from 2014 to 2016, but information on revenue by industries served and from staffing was not available. The press releases only mentioned purchases that Randstad was going to make and the expected revenue which included Monster in the United States.

    We also looked at the company's LinkedIn page where we found information about the industries that they serve. With that information, we were hoping to find individual companies that are using Randstad services, but the triangulation was not possible since the names of clients were not available. However, we were able to identify the industries they serve. Other sources we checked for the information included Crunchbase, Craft, and social media pages, but information from these sources only showed industries served and services provided.
    Sources
    Sources

    From Part 01
    Quotes
    • "Creating a workforce strategy takes an outside-in approach to harness meaningful insight, knowledge and street smarts about the trends that are changing the world of work and accurately predicting how they will impact your business strategy. And it takes an inside-out approach to understand the right work models and people practices to ignite the passion and human potential within your organization, while uncovering the gaps between aspiration and reality. A successful strategy leverages these two views to understand the sequence of workforce priorities, the investment choices and the necessary trade-offs to deliver results. That is why organizations turn to ManpowerGroup Solutions' Strategic Workforce Consulting and our global capabilities, workforce expertise and unique view of the world of work to help develop an actionable, pragmatic workforce strategy that aligns to their business strategy. "
    Quotes
    • "In 2018, Manpower Group generated revenue of 2.89 billion U.S. dollars in Asia, the Pacific, and the Middle East."
    From Part 02
    Quotes
    • "Adecco Group AG provides human resource services such as temporary staffing, permanent placement, outsourcing, career transition or outplacement, and related services. Its business lines include office, industrial, Information Technology, engineering and technical, finance and legal, medical and science, as well as solutions involving career transition and talent development, managed service programmes, recruitment process outsourcing, and vendor management system. "