1. 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

2. 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 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 term agency work self employed

3. Labor market efficiency is key to competitiveness

4. Companies using agency work accelerate faster out of downturn German research: higher revenue growth when agency work is used

5. Introducing Randstad

6. 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.

7. Ciett Members

8. Key data on the worldwide agency work market in 2012

9. Size of flexible labor remains modest

10. 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

11. 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

12. Our environment: trends and developments

13. Persistent high level of (youth) unemployment especially in Europe recovery of the labor market is slow Source: Eurostat oct/nov 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 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.

14. Already decline of economically active population in Russia, Japan and Germany.. 14 …and will hit the whole of Europe and Eastern Asia 2010-2050 Economically active population Total change 2010-2020 Economically active population Average annual percentage change Source: Deloitte Research/UN Population Division : “Do You Know Where Your Talent Is?”

15. Significant talent gap expected by 2020 and beyond in 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

16. Regulatory trend AW market Source: Randstad, annual report 2013

17. Our answer to changing world of work Better Regulation Fighting rogue agencies Showing our contribution to labour markets

18. Ciett promotes implementation of effective regulation Brazil Remove restrictions on TAW + get outsourcing regulation Brazil Remove restrictions on TAW + get outsourcing regulation Russia Get regulation enforced Russia Get regulation enforced India Get TAW legalised India Get TAW legalised EU Full application Agency Work Directive EU Full application Agency Work Directive China Remove restrictions on TAW China Remove restrictions on TAW Mexico Get C181 ratified Mexico Get C181 ratified Argentin a Get C181 ratified Argentin a Get C181 ratified South Africa Ensure enforcement of new regulation South Africa Ensure enforcement of new regulation Japan Secure new regulation Japan Secure new regulation Turkey Get TAW legalised Turkey Get TAW legalised Indonesia Get TAW legalised Indonesia Get 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

19. 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.

20. tackling undeclared work increases business opportunities

21. the size of undeclared work in % of GDP 6,1 7,5 8,0 9,1 9,7 9,9 12,2 13,0 13,9 14,2 15,0 15,5 16,4 18,6 19,0 21,1 22,1 23,1 23,6 23,8 24,2 25,2 25,5 27,6 28,0 28,4 31,2 europe market type market driven social dialogue legislation driven emerging market rate 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

22. less restrictive regulation on agency work helps to reduce the size of undeclared work

23. Job quality - a shared responsibility

24. 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

25. Our contribution to better labour markets

26. Thank you. Questions?

27. research by Randstad 2007 2010 2012 2013 2014