Message from SBU Head Staffing
(Global Staffing Business)

Article for Annual Report 2018 (October, 2018)

Entering a New Phase Expanding the Staffing Business

Rob Zandbergen

Rob Zandbergen

Managing Corporate Executive Officer
Head of Staffing Business CEO,
Recruit Global Staffing B.V.

Building a Solid Foundation under Recruit Global Staffing

The current position forms a robust platform on which we will build the future of Recruit Global Staffing. We will continue to develop our Unit Management practices and local competitiveness in the regions we are in. In addition, we intend to more actively engage local management in our Group's development. Connecting the diverse people and cultures with their knowledge and creativity to move our entire organisation forward. In this way, we respect each other's differences and capitalize on our collective skills and capabilities at the same time. This stimulates our unique local brands to engage in the interconnected network to set the future standards supporting each of them to develop unparalleled HR services to their clients all over the world.

Being part of our worldwide HR network provides a collective purpose for all the people in the Recruit Global Staffing family, while remaining primarily focused on local operations. I believe that a joint growth further ambition will stimulate engagement and motivate our people to further build performance through-out the organisation.

Supporting People in Their Personal Development

Within our workforce of approximately twenty thousand employees, we have an abundance of talented people. The people are an essential driver of our performance. Therefore, it is key that our operating companies are known as attractive employers to talented employees enabling them to continuously build and retain the right people capabilities. Throughout our organisation we continuously aim to provide a meaningful impact to our employees by cultivating talent and actively supporting people in their personal development. Our management prioritizes an environment of trust and inspires people to pursue their own ambition as well as the Group's collective purpose of being a meaningful connection between employers and employees that truly matters throughout the world.

Increasing Corporate Value through the Unit Management System

Our Unit Management governance model has been implemented in all our operating companies. It ensures a solid and above market return on our spend and already resulted in superior conversion of gross profit into EBITDA. A next phase of our unit management within our existing operations, will stimulate autonomous and profitable growth further.

In the past years, the Unit Management structure (division into small units delegated with authority) was put in place at subsidiaries acquired with our two important criteria in conducting M&As in Staffing: the first is that the target company agrees to adopt our approach of increasing corporate value through the Unit Management System and the second is that the target company has a good understanding of the methodology itself.

The decision-making and operational processes in our subsidiaries were aligned with the Unit Management principles and people have adopted and embraced the way of working with strong ownership. As a result, the effectiveness and profitability of our organisation has improved. This is typical in a first phase that follows after the implementation of Unit Management. The next step will allow for increased attention for commercial opportunities in the market. This will support autonomous revenue growth as well as further increase our contribution to the society.

Looking at the governance structure in the acquired subsidiaries, in principle, we keep the original management team onboard to run the operation. We assign only a minimum number of personnel to the acquired company to take roles under local management, instead of being put in a supervisory role.

Through the Unit Management System, we will create value for society and deliver a strong financial performance. I am convinced that this course of action will help us to grow the Staffing business into a leading global operation.