Randstad looks to drive market share gains with Tech & Touch strategy
Today, Randstad Holding nv hosts its Capital Markets Day in London. Jacques van den Broek (CEO) will elaborate on how the company is addressing the changing HR landscape via its strategic roadmap, including its new brand promise Human Forward. He will outline the key growth drivers for the future and specifically Randstad’s ability to gain further market share driven by its Tech & Touch strategy. After lunch, van den Broek will provide a deep dive into its digital strategy as an introduction to its showcases in the afternoon. Randstad says its integrated Tech & Touch approach is a key differentiator, creating higher barriers to entry in largely fragmented markets.
Robert Jan van de Kraats (CFO) will update on current trading and outline the company’s financial strategy, focusing on long term value creation. He will also discuss its cost savings target of €90-100m annually by 2019, which includes the previously announced cost optimisation program at Monster and part of the IT savings over time announced at its previous CMD in 2015. In 2018, Randstad expects further progression towards its longer-term 5%-6% EBITA margin target, assuming mid to high single digit sales growth, a continuation of mix changes and an improvement at Monster. Finally, van de Kraats will elaborate in more detail on the company’s capital allocation strategy.
Linda Galipeau (executive board member) will provide an update on the US, both staffing and professionals. Chris Kibarian (CEO Digital Ventures) will discuss the strategic and operational turnaround process at Monster, as well as the strategic rationale and importance of the Monster acquisition for Randstad.
Two of Randstad’s operational managers (Dominique Hermans, MD Tempo-Team Netherlands and Sébastien Hélaine, MD Staffing France) will showcase data driven sales in the Netherlands and France respectively, leading to impressive early results. François Béharel (executive board member) will present its workforce scheduling tool, which drives significant productivity gains and further improves client & candidate satisfaction in large addressable markets, resulting in consistent market share gains.
Lastly, Rebecca Henderson (CEO Randstad Sourceright) will present its Enterprise Clients strategy, which will be a key enabler in improving its wallet share in this segment. This workstream combines Randstad Sourceright with Tech & Touch, freelance platforms and Statement of Work.
In October revenue per working day increased in line with Q3 (+9%) and volumes in November so far indicate a continuation of the trend. Robust growth in Europe continued, driven by further market share gains in most regions.
As stated in the Q3 2017 results press release, for Q4 2017:
- There will be an adverse 2.4% comparison base
- Gross margin is expected to be stable sequentially
- Operating expenses are expected to be stable sequentially
- There will be an adverse 0.5 working day impact year-on-year
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