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Manpower Inc. - Staffing Services -
Category Directory
(414)
961-1000
5301
NORTH IRONWOOD ROAD
MILWAUKEE, WISCONSIN 53217
www.manpower.com
Sales
$12
billion
Business Description
We
are a world leader in the employment services industry, offering customers a
continuum of services to meet their needs throughout the employment and
business cycle. Our worldwide network of over 4,000 offices in 66 countries
and territories enables us to meet the needs of our customers in all
industry segments. We provide a wide range of human resource services,
including:
• permanent, temporary, and contract recruitment,
• employee assessment,
• training,
• internal audit, accounting, technology and tax services, and
• organizational consulting services.
We provide services to a wide variety of customers, none of which
individually comprise a significant portion of revenues within a given
geographic region or for us as a whole.
We have a comprehensive system of assessment/selection, training and quality
assurance used by our temporary staffing operations throughout the world.
The system has been developed through a combination of internally designed
and produced materials and materials purchased from external companies
through exclusive contracts. Modifications are made, as necessary, to
reflect differences in language, culture and business practices of each
region or country.
Our
Operations
United States
In the United States, our operations under the Manpower brand are carried
out through both branch and franchise offices. We had 690 branch and 352
franchise offices in the United States as of December 31, 2003. We provide a
number of central support services to our branches and franchises, which
enable us to maintain consistent service quality throughout the United
States regardless of whether an office is a branch or franchise. We provide
customer invoicing and payroll processing of our temporary employees for all
branch offices and a majority of our franchise offices through our Milwaukee
headquarters.
Our franchise agreements provide the franchisee with the right to use the
Manpower® service mark and associated marks in a specifically defined
exclusive territory. In the United States, franchise fees range from 2-3% of
franchise sales. Our franchise agreements provide that in the event of a
proposed sale of a franchise to a third party, we have the right to
repurchase the franchise at the same price and on the same terms as proposed
by the third party. We frequently exercise this right and intend to continue
to do so in the future if opportunities arise with appropriate prices and
terms.
In the United States, our Manpower branch operations are primarily related
to providing temporary employment services. During 2003, approximately 35%
of our United States temporary staffing revenues were derived from placing
office staff, including contact center staff, 43% from placing industrial
staff and 22% from placing professional and technical staff.
We also conduct business in the United States under our Jefferson Wells and
Empower brands. These operations are discussed further in the “Other
Operations” section.
France
We are a leading temporary employment service provider in France. We conduct
our operations in France and the surrounding region through 1,009 branch
offices under the name of Manpower and 69 branch offices under the name
Supplay.
The temporary services market in France is predominately industrial. In
2003, we derived approximately 69% of our revenue in France from the supply
of industrial staff, 16% from the supply of construction workers and 15%
from the supply of office staff.
Europe, Middle East and Africa (excluding France), or EMEA
We are a leading supplier of human resource services throughout this region
and our largest operations are in the Germany, Italy, the Netherlands,
Norway, Spain, Sweden, and United Kingdom. Collectively, we operate through
1,351 branch offices and 55 franchise offices in this region. Our franchise
offices are primarily located in Switzerland, where we own 49% of the
franchise.
Manpower UK is a leading supplier of temporary employment services in the
United Kingdom. As of December 31, 2003, Manpower UK conducted operations in
the United Kingdom through a network of 126 branch offices and also by
providing on-site services to customers who have significant temporary
staffing requirements. During 2003, approximately 43% of Manpower UK’s
revenues were derived from the supply of office staff, including contact
center staff, 23% from the supply of industrial staff, and 34% from the
supply of technical staff.
We also own Brook Street Bureau PLC, or Brook Street, which operates through
a total of 156 branch offices, separate from the Manpower brand. Brook
Street is based in the United Kingdom. Its core business is secretarial,
office and light industrial recruitment, with niche operations in
accountancy, finance and social care recruitment. Brook Street operates as a
local network of branches supported by a national head office and competes
primarily with local or regional independents. Portions of Brook Street’s
revenues are derived from the placement of permanent staff, however the
substantial majority of their revenues are generated from temporary
placements.
Also included in our EMEA operations is Elan, which is a leading IT and
technical recruitment staffing firm. In addition to IT and technical
recruitment, Elan provides Managed Service Solutions to customers, which
enable them to recruit personnel efficiently and achieve ongoing cost
savings. Elan provides IT staffing solutions in 16 countries.
Other Operations
We operate under the Manpower name through 491 branch offices and 24
franchise offices in the other markets of the world. The largest of these
operations are located in Japan, Australia and Mexico, all of which operate
through branch offices, and Canada, which operates through branch and
franchise offices. Other significant operations are located throughout
Central and South America and Asia. In most of these countries, we primarily
supply temporary workers to the industrial, general office and technical
markets.
We also own Jefferson Wells International, Inc., or Jefferson Wells, a
global provider of professional services in the areas of internal audit,
accounting, technology and tax services. Jefferson Wells was acquired in
2001 and operates through a network of 36 branch offices across North
America.
Also included in this segment is The Empower Group, or Empower, an
independent operating division, that provides organizational performance
consulting services to multi-national corporations worldwide. Empower is
headquartered in London and has over 25 branch offices in 12 countries
worldwide. The largest operations are located in Australia, Norway,
Singapore, Sweden, the Netherlands, the United Kingdom and the United
States. As of January 22, 2004, we acquired Right Management Consultants,
Inc., or Right, the world’s largest career transition and organizational
consulting firm. Empower will be merged into Right during 2004.
Competition
Introduction
The temporary employment services market throughout the world is highly
competitive and highly fragmented with more than 15,000 firms competing in
the industry throughout the world. In addition to us, the largest publicly
owned companies specializing in temporary employment services are Adecco,
S.A. (Switzerland), Vedior N.V. (Netherlands), Randstad Holding N.V.
(Netherlands) and Kelly Services, Inc. (U.S.).
Historically, in periods of economic prosperity, the number of firms
operating in the temporary staffing industry has increased significantly due
to the combination of a favorable economic climate and low barriers to
entry. Recessionary periods generally result in a reduction in the number of
competitors through consolidation and closures; however, historically this
reduction has proven to be for a limited time as the following periods of
economic recovery have led to a return in growth in the number of
competitors.
In the temporary staffing industry, competition is often limited to firms
with offices located within a customer’s particular local market because
temporary employees (aside from certain employees in the professional
services segment) are generally unwilling to travel long distances. In most
major markets, competitors generally include many of the publicly traded
companies and numerous regional and local competitors, some of which may
operate only in a single market. Governmental entities or agencies, such as
state employment offices in the United Kingdom and many European countries
may also compete in some markets.
Since customers rely on temporary employment firms having offices within the
local area in which they operate, competition varies from market-to-market
and country-to-country. In most areas, no single company has a dominant
share of the market. Many customers use more than one temporary employment
services provider; however, in recent years, the practice of using a limited
number of temporary suppliers, a sole temporary supplier or a primary
supplier has become increasingly important among the largest customers.
These sole supplier relationships can have a significant impact on our
revenue and operating profit growth as volume reductions by such customers,
whether related to economic factors or otherwise, could have an adverse
effect on our results in any period.
Methods of Competition
Temporary staffing firms act as intermediaries in matching available
temporary workers to employer assignments. As a result, temporary staffing
firms compete both to recruit and retain a supply of workers and to attract
customers to employ temporary employees. Competition is generally limited to
firms having offices located in a specific local geographic market.
Depending on the economy of a particular market at any point in time, it may
be necessary for us to place greater emphasis on recruitment and retention
of temporary workers or marketing to customers. We recruit temporary workers
through a wide variety of means, principally personal referrals and
advertisements and by providing an attractive compensation package in
jurisdictions where such benefits are not otherwise required by law,
including health insurance, vacation and holiday pay, incentive and pension
plans and a recognition program. We also use certain online resources,
through structured relationships, to help in our recruiting efforts.
Methods used to market temporary services to customers vary depending on the
customer’s perceived need for temporary workers, the local labor supply, the
length of assignment and the number of workers required. Depending on these
factors, we compete by means of quality of service provided, scope of
service offered and price. In the temporary staffing industry, quality is
measured primarily by the ability to effectively match an individual worker
to a specific assignment, as well as the rate of and promptness in filling
an order. Success in providing a high quality service is a function of the
ability to access a large supply of available temporary workers, select
suitable individuals for a particular assignment and, in some cases, train
available workers in skills required for an assignment.
An important aspect in the selection of a temporary worker for an assignment
is the ability of the temporary services firm to identify the skills,
knowledge, abilities, and personal characteristics of a temporary worker and
match their competencies or capabilities to an employer’s requirements. We
have developed a variety of proprietary programs for identifying and
assessing the skill level of our temporary workers, which are used in
selecting a particular individual for a specific assignment. The programs
include:
• Ultraskill®—for clerical skills,
• Sureskill—for office automation skills such as word processing,
spreadsheet, and presentation graphics,
• Ultradex—for several important light industrial skills,
• Predicta—for critical general office skills,
• Teleskill—for customer service and contact center skills,
• Linguaskill—for language skills, and
• Phoneskill—for verbal communication skills.
We believe that our assessment systems enable us to offer a higher quality
service by increasing productivity, decreasing turnover and reducing
absenteeism.
It is also important to be able to access a large network of skilled workers
and to be able to “create” certain hard-to-find skills by offering training
to available workers. Our competitive position is enhanced by our ability to
offer a wide variety of skills, in some of the most important market
segments for temporary work, through the use of training systems.
We have developed the Global Learning Center, or GLC, an on-line university
for our permanent employees and temporary workers. The GLC provides skills
training, assessment and other career-related services. Students of the GLC
have access to Skillware® training, which trains office workers on over 50
different applications from a variety of developers including Microsoft and
Lotus. Skillware® training is also available to prepare workers for
positions in contact centers, banks and other organizations where
transaction processing skills are required, and to improve general office
skills such as spelling, punctuation and keyboard skills. Students can also
select from more than 1,500 courses in the areas of client server,
programming, Internet development, and business skills. The training
prepares technical employees for certification testing by guiding them
through E-Commerce, Visual Basic, C++ Programming, COBOL, JAVA, SAP,
PowerBuilder, IEEE LAN Architecture and more. This training is available in
a number of different languages, including English, Finnish, French, German,
Greek, Italian, Japanese, Portuguese and Spanish.
We continue to evolve a thoughtful and comprehensive approach to our
web-based service offerings for candidates, employees, customers and
prospective customers. In doing so, we continue to evaluate the need to
enhance existing services or products, develop new products, or enter into
key strategic relationships with outside providers to offer optimal value
propositions in our market segments.
We currently use and offer UltraSource and the next generation of the
product, UltraSource 02, which are proprietary, Internet-based comprehensive
order management systems. These advanced web-based tools provide efficiency
to our major customers, subcontractors and internal operations by managing
the order workflow.
Although temporary staffing firms compete in a local market, for
administrative purposes, the largest customers demand national, and
increasingly global, arrangements. A large national or multi-national
customer will frequently enter into non-exclusive arrangements with several
firms, with the ultimate choice among them being left to its local managers;
this effectively limits competition to the few firms, including us, with
large branch networks. National and multi-national arrangements, which
generally have agreed-upon pricing or mark-up on services performed,
represented approximately 40% of our sales in 2003.
The temporary employment services industry is closely regulated in all of
the major markets in which we operate, except the United States and Canada.
Temporary employment service firms are generally subject to one or more of
the following types of government regulation:
• regulation of the employer/employee relationship between the firm and its
temporary employees,
• registration, licensing, record keeping and reporting requirements, and
• substantive limitations on the operations or the use of temporary
employees by customers.
In many markets, the existence or absence of collective bargaining
agreements with labor organizations has a significant impact on our
operations and the ability of customers to use our services. In some
markets, labor agreements are structured on an industry-wide, rather than
company-by-company, basis. Changes in these collective labor agreements have
occurred in the past and are expected to occur in the future and may have a
material impact on the operations of temporary employment services firms,
including us.
In many countries, including the United States and the United Kingdom,
temporary employment services firms are considered the legal employers of
temporary workers. Therefore, laws regulating the employer/employee
relationship, such as tax withholding or reporting, social security or
retirement, anti-discrimination and workers’ compensation, govern the firm.
In other countries, temporary employment services firms, while not the
direct legal employer of temporary workers, are still responsible for
collecting taxes and social security deductions and transmitting such
amounts to the taxing authorities.
In many countries, particularly in continental Europe, entry into the
temporary employment market is restricted by the requirement to register
with, or obtain licenses from, a government agency. In addition, a wide
variety of ministerial requirements may be imposed, such as record keeping,
written contracts and reporting. The United States and Canada do not
presently have any form of national registration or licensing requirement.
In addition to licensing or registration requirements, many countries impose
substantive restrictions on the use of temporary employment services. Such
restrictions include regulations affecting the types of work permitted, the
maximum length of a temporary assignment, wage levels or reasons for which
temporary workers may be employed. In some countries special taxes, fees or
costs are imposed in connection with the use of temporary workers. For
example, temporary workers in France are entitled to a 10% allowance for the
uncertain duration of employment, which is eliminated if a full-time
position is offered to them within three days. In some countries, the
contract of employment with the temporary employee must differ from the
length of assignment.
In the United States, we are subject to various federal and state laws
relating to franchising, principally the Federal Trade Commission’s
Franchise Rules and analogous state laws. These laws and related rules and
regulations impose specific disclosure requirements. Virtually all states
also regulate the termination of franchises.
Staffing Companies in the
Directory
Adecco
CDI Corp.
Kelly Services
Manpower
MPS Group
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