From Hard to Harder: A Global Analysis of Staffing Market Complexity

Transcription

1 Tuesday, 15 May 15:15 Nine Kings Suite Concurrent Session: Contingent Market Track From Hard to Harder: A Global Analysis of Staffing Market Complexity Speakers: Barry Asin, President, Staffing Industry Analysts John Nurthen, Executive Director, International Development, Staffing Industry Analysts

2 From Hard to Harder: A Global Analysis of Staffing Market Complexity Background Methodology Analysis Summary Q&A

3 European Contingent Workforce Buyer Priorities Source: Staffing Industry Analysts: Buyer Survey, 2011

4 Communication One Programme One Site One Programme Two Sites One Programme Multiple Sites

5 Culture Clash

6 The Seven Dimensions of Culture Universalism vs. particularism (Importance of rules v relationships?) Individualism vs. collectivism (Functioning in a group or as individuals?) Neutral vs. emotional (Displaying emotions, or hiding them?) Specific vs. diffuse (Do we handle our relationships in specific and predetermined ways, or do we see our relationships as changing and related to contextual settings?) Achievement vs. ascription (Do we have to prove ourselves to receive status, or is status given to us?) Sequential vs. synchronic (Do we do things one at a time or several things at once?) Internal vs. external control (Do we believe that we can control our environment, or do we believe the environment controls us?) Source: Fons Trompenaars, Riding the Waves of Culture

7 Culture Extent of handling of foreign operations Company handles its own Global operations Other domestic firms handle external contracts Foreign firms handle external contracts High Medium Low Domestic Business Extent of global operations Limited foreign functions Integrated across multiple countries Multiple foreign functions Quite similar Moderately similar Not at all similar Degree of similarity between home and host countries One Several Many Number of foreign countries in which a company does business Source: G. Hofstede, Cultures and Organizations: Software of the Mind

8 Global Staffing Market (to scale) Norway Sweden Finland Canada Ireland United Kingdom Netherlands Belgium Denmark Poland United States France Germany Portugal Spain Italy Switzerland Japan Mexico Brazil South Africa Australia Argentina Source: Staffing Industry Analysts

9 Global Staffing Market Regional Characteristics North America 31% of global market Canada US and Canada liberal and mature markets, Mexico less so United States High proportion of professional/executive staffing High MSP usage Mexico Europe Norway 37% of global market Mixture of well Netherlands United Ireland Kingdom established markets in Belgium North, less established Sweden Finland Germany France markets in South and Portugal Switzerland Spain immature EastItaly Agency Work Directive Moderate MSP usage Denmark Poland Rest of World 32% of global market Very disparate but mostly immature and poorly regulated markets Exceptions are Japan, Japan Australia, Singapore and Hong Kong Variable MSP usage Brazil South Africa Australia Argentina Source: Staffing Industry Analysts

10 Complexity Main prohibitions on temporary agency work Reasons Length of Sector Country Licensing Pay Parity for Use Assignment Restrictions ARGENTINA N N Y Y N AUSTRALIA Y Y N N N AUSTRIA Y Y N N N BELGIUM Y Y Y Y Y BRAZIL N N N Y N BULGARIA Y Y Y Y Y CANADA Y N N N N CHINA Y Y Y Y N CZECH REPUBLIC Y Y N Y N DENMARK Y/N Y N N N EGYPT Y N N N N FINLAND N Y Y Y N FRANCE Y Y Y Y N GERMANY Y Y N N Y GREECE Y Y N Y N HONG KONG CHINA Y N N N N HUNGARY Y Y N N N INDIA Y N Y N N IRELAND Y Y N N N ITALY Y Y Y N N JAPAN Y N N N Y Reasons Length of Sector Country Licensing Pay Parity for Use Assignment Restrictions KUWAIT N N N Y N MEXICO Y Y Y Y N NETHERLANDS N Y N N N NEW ZEALAND N N N N N NORWAY Y Y N N N POLAND Y Y Y Y N PORTUGAL Y Y Y N N QATAR Y N N N N ROMANIA Y Y N Y N RUSSIA N N Y Y N SAUDI ARABIA Y N N N N SERBIA Y Y Y Y Y SINGAPORE Y N N N N SOUTH AFRICA* Y N N N N SPAIN Y Y N Y Y SWEDEN N Y N Y N SWITZERLAND Y Y N N N TURKEY Y N N N N UNITED ARAB EMIRATES Y N N N N UNITED KINGDOM N Y N N N UNITED STATES N N N N N *Legislation currently before Parliament will introduce pay parity, reasons for use and limit assignments to 6 months Source: Staffing Industry Analysts

11 Research 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 Sources: Staffing Industry Analysts, CIETT, World Economic Forum, The Regulation of Labor, World Bank Governance Indicators, Doing Business

12 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

13 Hot Spots Most Complex Least Complex Not Recorded Source: Staffing Industry Analysts

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

15 Complexity Ranking Staffing Market Regulatory Efficiency Labour Market Efficiency Market Employment Enforcing Pricing MSP/VMS Trade Union Independent Stability/ Country Maturity Law Burden contracts Environment Maturity Influence Contractors Corruption Total UNITED STATES UNITED KINGDOM CANADA NEW ZEALAND HONG KONG, CHINA SINGAPORE AUSTRALIA NETHERLANDS IRELAND BELGIUM AUSTRIA FINLAND JAPAN GERMANY SOUTH AFRICA SWEDEN SWITZERLAND DENMARK BULGARIA Source: Staffing Industry Analysts

16 Staffing Market Regulatory Efficiency Labour Market Efficiency Market Employment Enforcing Pricing MSP/VMS Trade Union Independent Stability/ Country Maturity Law Burden contracts Environment Maturity Influence Contractors Corruption Total FRANCE CZECH REPUBLIC INDIA NORWAY CHINA SERBIA ROMANIA HUNGARY QATAR EGYPT PORTUGAL UNITED ARAB EMIRATES MEXICO POLAND SAUDI ARABIA KUWAIT TURKEY SPAIN BRAZIL RUSSIA GREECE ARGENTINA ITALY Source: Staffing Industry Analysts

17 Best Markets by Category Market Maturity SOUTH AFRICA UNITED KINGDOM NETHERLANDS Regulatory Efficiency NETHERLANDS SWEDEN UNITED STATES Labour Market Efficiency SWITZERLAND SINGAPORE HONG KONG CHINA Employment Law Burden SINGAPORE JAPAN INDIA Source: CIETT Source: CIETT Source: World Source: The Economic Forum Regulation of Labor Political Stability/ Corruption FINLAND DENMARK SWEDEN Source: World Bank Governance Indicators Trade Union Influence CHINA INDIA KUWAIT QATAR SAUDI ARABIA SERBIA SINGAPORE UNITED ARAB EMIRATES UNITED STATES Source: Staffing Industry Analysts Pricing Environment BULGARIA EGYPT GREECE PORTUGAL SERBIA Source: Staffing Industry Analysts Ability to Enforce Contracts NORWAY HONG KONG CHINA FRANCE Source: Doing Business Independent Contractor Environment BULGARIA GREECE ITALY POLAND SERBIA Source: Staffing Industry Analysts MSP/VMS Maturity UNITED STATES UNITED KINGDOM FRANCE Source: Staffing Industry Analysts

18 MSP Adoption Ranking Rank Country 1 US 2 UK 3 Canada 4 France 5 Japan 6 Netherlands 7 India 8 Germany 9 Belgium 10 Australia Rank Country 11 Singapore 12 Ireland 13 Malaysia 14 Puerto Rico 15 Mexico 16 Spain 17 Sweden 18 China 19 Denmark 20 Italy Source: Staffing Industry Analysts: MSP/VMS Global Landscape Report, 2011

19 VMS Adoption Ranking Rank Country 1 US 2 UK 3 France 4 Canada 5 Netherlands 6 India 7 Germany 8 Australia 9 Ireland 10 Belgium Rank Country 11 Puerto Rico 12 Singapore 13 Sweden 14 Mexico 15 Japan 16 Malaysia 17 China 18 Denmark 19 Hong Kong 20 Italy Source: Staffing Industry Analysts: MSP/VMS Global Landscape Report, 2011

20 Contingent Supply Quadrant High HIGH TEMP USE LOW IC USE South Africa UK HIGH TEMP USE HIGH IC USE Singapore Japan France Australia US Netherlands Belgium New Zealand Hong Kong Germany Canada Use of Temporary Agency Workers Switzerland Brazil Norway Sweden Mexico Hungary Portugal Ireland Austria Finland Czech Republic Italy Denmark LOW TEMP USE LOW IC USE Kuwait Argentina India China UAE Saudi Arabia Turkey Spain Russia Romania Qatar Bulgaria Serbia Egypt LOW Poland TEMP USE Grece HIGH IC USE Low Use of Independent Contractors High Source: Staffing Industry Analysts

21 Trade Union Impact High HIGH INFUENCE LOW COMPLEXITY Germany France Norway HIGH INFLIENCE Italy Hungary HIGH COMPLEXITY Spain Grece Netherlands Japan Sweden Romania Poland Argentina Russia Trade Union Influence UK Canada New Zealand Hong Kong Australia Ireland Switzerland Belgium Denmark Austria South Finland Africa Bulgaria Czech Republic Portugal Mexico Turkey Egypt Brazil LOW US INFUENCE LOW COMPLEXITY Singapore India Serbia China UAE Kuwait Qatar LOW INFLUENCE Saudi HIGH COMPLEXITY Arabia Low Contingent Market Complexity High Source: Staffing Industry Analysts

22 Labour Market Efficiency as a function of Employment Law Burden Good Labour Market Efficiency Poor High GOOD EFFICIENCY HIGH BURDEN Russia Sweden Finland Norway France Spain POOR EFFICIENCY HIGH BURDEN Denmark Switzerland Employment Law Burden Hong Kong Canada UK Australia Czech Ireland Netherlands Republic UAE Belgium Qatar Austria Saudi China Poland Arabia Bulgaria Kuwait Germany Hungary Serbia Portugal Italy Grece Brazil Mexico Egypt Romania Argentina Singapore GOOD EFFICIENCY LOW BURDEN US New Zealand Japan South Africa Turkey India POOR EFFICIENCY LOW BURDEN Low Source: Staffing Industry Analysts

23 Protests against Temporary work ISRAEL SOUTH AFRICA SPAIN POLAND GERMANY TAIWAN

24 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!

25 Staffing Market Clusters 1 Market Type Regions Countries Market Driven Europe UK Non-Europe US, AU, NZ Social Dialogue 2 Western Europe NL, CH, AT, DE Characteristics Rapid AW development, open regulatory environment with limited restrictions, liberal economies favoring flexibility over security Mature with significant degree of AW penetration 3 Nordics SW, NO, DK, FI Low penetration, unique Nordic social model 4 Asia JA Liberal economy but high value on job security 5 Legislator Driven Western Europe FR, BE, LU Penetration varies ranging from low to above average Mediterranean IT, GR, ES, PT Highly regulated weighted towards job security 6 Emerging Markets Eastern Europe Eastern Europe Latin America Latin America Asia IN, CH Nascent industries with AW legally recognised only recently, regulatory policies still in development, economic policies and market dynamics still evolving Source: CIETT

26 Identifying Complex Markets They grow olives They drill for oil They dance salsa

27 Main Causes of Failure Lack of sponsorship No clear ROI for the business Moving too fast Minimal project planning Skimping on appropriate resources Not involving your suppliers Misjudged localization requirements Inadequate budget Not engaging all stakeholders Underestimating change management

28 Global Programme Governance Model Source: Staffing Industry Analysts: Building and Operating a Global MSP Governance Structure, Feb 2012

29 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 many 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

30 All complexity is relative Summary Contingent worker procurement is one of the more complicated procurement categories regardless of geography Complexity multiplies for managers responsible for multi-regional 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 Toto, I ve a feeling we re not in Kansas anymore

31 Any Questions?