HRoot global 50 hr service providers rankings and whitepaper 2012

2,499 views
2,401 views

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,499
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
46
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

HRoot global 50 hr service providers rankings and whitepaper 2012

  1. 1. GLOBAL 50 HR SERVICE PROVIDERSRANKINGS AND WHITEPAPER 2012Released by HRoot, Sept. 2012 Contact us: +86-21-5821 5197 +86-21-5821 5127 marketing@hroot.com +86-21-5821 8663 http://hroot.com/rankings/ http://t.sina.com.cn/hrootchina http://linkedin.com/company/hroot
  2. 2. Executive Summary GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Maneuvering the FutureA Vision Statement of the Global HR Service Market in 2011-2012 2011, a year of progress against odds Given the devastation of the European debt crisis, the world economic growth saw a significant slowdown in 2011. Most European countries suffered a plight of negative growth, while emerging economies, however, continued to maintain a high growth momentum, and proved to the powerhouses of global economic growth. Just as IMF pointed out in the latest "World Economic Outlook" report, the global economy is in a dangerous phase, and downside risks increase sharply. In 2012, mainly due to the recession of the euro zone, the global economy is still in dire straits and the growth rate will slow down to 3.25%. High unemployment rate is still an important risk of the global economic recovery, and to compound the problem, theCorporate earnings of Global 50 HR Service economic growth of Chinese is also losing momentum. Providers in fiscal 2011(operating profit) Although the global economy is still problem ridden, the human resources service industry is progressing in leaps and bounds, which can be seen from the list of Global 50 Human Resource Providers 8% 2012. In the Global 50 list in 2011, 11 registered negative growth in 10% Profit-making their annual revenue. By contrast, all the companies on this years 82% Loss-making list have reported revenue growth in this full fiscal year. Particularly, the revenue increase of LinkedIn and Aon Hewitt in this fiscal year hit Others 114.8% and 113.2%. It is worth mentioning that recruitment services accounted for 50% of the total operating revenue of LinkedIn in fiscal 2011. In addition, in the first quarter of 2012, LinkedIn raked in $103 million in its recruitment business, which accounts for 54% of its total revenue of $189 million dollars, a rate higher than the minimum rate of Corporate earnings of Global 50 HR 50% as per the condition of the list were, hence we include it in theService Providers in fiscal 2011(net profit) list as an online recruitment company. In addition, as the only Chinese company that has muscled its way into top ten, the CIIC still maintains 4% 8% high performance, with a strong growth rate of over 33.4%, and is Profit-making ranked as the 8th. In terms of profit, last year 35 of the Global 50 companies were 88% Loss-making profitable while 14 were in the red. While in this year’s Global 50, Others however, 44 enterprises have turned up profits. Among them, 41 companies have achieved net profits. In sum, the human resources service market has seen remarkable increase this year. 1
  3. 3. Executive Summary GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Cheers and Tears Mirroring the global economic turmoil, the Global SAP in December 2011; Taleo Corporation was taken over50 2012 also highlights the quirky changes in the human by ORACLE in February 2012. The 104 Job Bank, whichresources service industry. SFN Group, which ranked the appeared in last year’s Global 50 list, was ranked 51th this12th in the Global 50 list in 2011 was acquired in September year, thus having lost its position in the rankings list, and2011 by Randstad, while SuccessFactors was claimed by the naive company ATA was also flunked out.Table 1: Former Global 50 companies absent from the “HRoot Global 50 HR Service Providers 2012” Rank in 2011 Company Country Main business Reason 12 SFN Group USA Talent dispatch/lease/placement Being acquired 34 Taleo Corporation USA HR management software Being acquired 36 SuccessFactors USA HR management software Being acquired 44 104 Job Bank China Online recruitment Revenue unqualified 46 Fortune Industries USA HR service outsourcing Revenue unqualified 47 Hamilton James & Bruce Australia Headhunting & RPO Revenue unqualified 49 ATA China Talent assessment & test Revenue unqualified 48 DLH Holdings USA HR service outsourcing Revenue unqualified 50 Workstream Canada HR management software Revenue unqualifiedTable 2 New comers of the “HRoot Global 50 HR Service Providers 2012” Revenue in Fiscal Rank in 2012 Company Country Main business 2011($ million) 12 Temp Holdings Japan HR service outsourcing 3,032 13 Pasona Group Japan Talent dispatch/ lease/placement 2,324 16 Synergie SA France Headhunting & RPO 1,875 19 TrueBlue USA Talent dispatch/lease/placement 1,316 25 Meitec Corporation Japan Headhunting & RPO 870 28 Robert Walters UK Headhunting & RPO 820 34 LinkedIn USA Online recruitment 522 35 Fullcast Holdings Japan HR service outsourcing 446 36 Corporate Resource Services USA Talent dispatch/lease/placement 345 46 HRnetOne Group Singapore Headhunting & RPO 203 48 The ReThink Group UK HR service outsourcing 123 2
  4. 4. Executive Summary GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012 Making its debut in the list, LinkedIn, an American register much higher traffic than traditional websites. Thenetworking site, is remarkable for its performance. This latest financial results shows that Monster posted $237business networking site, created in the United States million in revenue in Q2 2012, down 12.2% compared within 2002, aims to provide a platform for user to network $270 million in the same period last year. Among the amount,and maintain personal connections, as well as to provide the recruitment revenue fell by 8% to $217 million, comparedrecruitment solutions and customer information service. with $236 million in the same period last year. By contrast,With the growing number of its users, it has become the LinkedIn reported total revenue of $228.2 million in Q2 2012,main channel of the U.S. corporate recruitment. According an increase of 89% compared with $121 million in Q1 lastto the LinkedIn official data disclosure, all the Fortune Global year. Revenue from recruitment business reached $121.6500 companies are using LinkedIn to recruit, or 100% of million, an increase of 107% over Q2 last year. In the face ofthe Fortune Global 500 companies are using social media the robust development of social recruitment, Monster has torecruitment. LinkedIn has more than 2.24 million registered reconsider its strategic alternative, and it has adopted socialusers, while the number of users in the US is close to 65 media to revive its recruitment business.million. In fiscal 2011, LinkedIn’s Revenue topped $522.2 The top three players, Adecco, ManpowerGroup, andmillion, posting an annual growth of 114.8%, while its profits Randstad continue to dominate the market. Adecco registeredgrew by 32%, which makes LinkedIn the fastest growing a revenue growth rate of 15.1%, retaining its leadership incompany in the market of corporate recruitment and notches the pack. Randstad, with a 19.6% increase in its revenue,it to the 34th place on the list. returned to the second place this year. ManpowerGroup fell The rise of social networking sites has caused a huge to the third, but in terms of operating profit and operatingimpact on the traditional recruitment websites. Compared margin, it has still outperformed Randstad. It is worthwith traditional recruitment sites, social networking sites mentioning that Randstad and ManpowerGroup muscled their way back to the Fortune Global 500 ranking. With revenues of $22.56 billion and $22.006 billion, they are ranked 2010-2012 LinkedIn Revenue Composition the 489th and the 500th respectively. So far, the top three human resource services have all made a comeback to the list, a testimony to the strong growth momentum of human resources service in an economic malaise. A study of the Global 50 rankings will suggest the robust growth of HR outsourcing and online recruitment. Among the top 20 fastest-growing companies, nine are human resources outsourcing service providers and three are doing online recruitment. As it is illustrated in a research by the Global Industry Analysts, cost reduction fueled the increase of HR outsourcing business, especially in the outsourcing of payroll management. For enterprises, cost cut appears all the 2009-2011Recruitment Revenue of LinkedIn more important in an era of worldwide recession. Human (million dollars) resources outsourcing market will continues to grow, and will pull in $162 billion in revenue by 2015. In this year’s rankings, Paychex and ADP post operating margins up to 38.3% and 19.6%, securing their the leading positions in the field of human resources outsourcing. At the same time, social networking sites are changing the marketing models of recruitment and headhunting, while the business and product models are undergoing dramatic changes. In the Global 50 list, LinkedIn ranked first in terms of revenue growth, and its recruitment business jumped by as much as 54%; the impact of SNS on traditional recruitment is evident. 3
  5. 5. Executive Summary GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Economic crisis gives rise to M&A opportunities “Every cloud has a silver lining” The economic M&A is riding on the rising tide. It is worth mentioningmeltdown has admittedly wrecked havoc to the world, that the SaaS service model based on cloud computingyet at the same time, the debt crisis in Europe has also technology is changing the competitive landscape of theled to a significant reduction in the cost of mergers human resources software industry.and acquisitions (M&A), and has provided once-in- In the face of the tremendous opportunities clouda-lifetime opportunities for inter-enterprise mergers computing brings, SAP shelled out $3.4 billion in itsand acquisitions. Therefore, those who can seize acquisition of SuccessFactors. Oracle, a competitor ofopportunities, and take actions at appropriate time may SAP, in order to strengthen its advantages in the market,stand the chance to change the position of enterprises in acquired talent management cloud service provider Taleo,the market competition. The global economic slowdown for the price of $1.9 billion in February 2012. Oracle’shas not slowed down mergers and acquisitions between acquisition of Taleo was considered a counter move ofHR service company, on the contrary, many HR service SAP’s acquisition case, which highlights the increasinglycompanies want to enter new geographical reach and intense competition in the human resources softwareto accelerate business growth through mergers and industry.acquisitions. As a result, the human resources industryTable 3 Major M&A events in HR service market, 2011-2012 (selections) Time Event 1/2011 Towers Watson acquired EMB, a property and medical services consulting and software company. 2/2011 Chandler Macleod acquired over 90% of the equity of Ross Human Directions Limited. ManpowerGroup and the Ministry of Industry and Information Technology of the Peoples Republic of 3/2011 China Talent Exchange Center jointly established a joint venture of iTecPower. 4/2011 ManpowerGroup acquired ReachHR, a Guangzhou-based HR service company. 5/2011 Paychex acquired Plan Services, following its acquisition of SurePayroll in December 2010. On Sept. 5, Randstad Group announced its successful acquisition of SFN Group, for approximately $771 9/2011 million. SAP announced the acquisition of HR software maker SuccessFactors for $3.4 billion, a move to expand 12/2011 the companys cloud computing business. The acquisition was completed in February 2012. ADP acquired the payroll management business of Ma Foi Randstad, a branch company of Randstad 1/2012 based in India 2/2012 ORALE agreed to acquire the online recruitment software provider Taleo for about $1.9 billion 2/2012 Kenexa acquired OutStart, a Boston-based software company. 3/2012 ADP acquired the human resources solutions sector of SHPS. 4/2012. Kronos acquired the SME workforce management company SaaShr.com. 4/2012 Kronos acquired the workforce management solution provider SMART. 5/2012 LinkedIn agreed to acquire the career information sharing community SlideShare for $118.75 million. 5/2012 Towers Watson acquired the medical health services company Extend Health. 7/2012 Harvey Nash Group acquired Talent-IT BVBA. 4
  6. 6. Executive Summary GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012 The Global 50 rankings introduce the concept of DuPont analysis and the comparison of the results of the enterprises’analysis for the first time. The DuPont analysis, named after the operations. By intrinsically bringing together a number of ratiosAmerican company that first used it, comprehensively analyzes the that reflect the efficiency and financial conditions of a business,financial conditions of enterprises by examining the relationship it forms a comprehensive index system, and ultimately reflectsbetween several major financial ratios. From a financial point of the consolidated net assets yield. While compiling this year’sview, this is a classical tool to evaluate a companys profitability rankings, we have selected ten indicators on four dimensions toand return on shareholders’ equity. Its underlying methodology make the comparison and to probe into the operating conditions ofis to break down net assets progressively into a number of various HR service providers.financial ratios that are to be multiplied. This helps the in-depthTable 4 Financial analysis indicators used in the “HRoot Global 50 HR Service Providers 2012” Competence indicator Financial ratio Formula Annual revenue growth rate (Current revenue - on revenue) / on revenue Total asset turnover ratio Revenue / average total assets Operating capacity Accounts receivable turnover ratio Revenue / average accounts receivable balance Return on assets (ROA) Net profit/average total assets Operating margin Operating profit/revenue Profitability Net profit margin Net profit/main business income Return on shareholder’s equity (ROE) Net profit/shareholders equity Financial structure Debt-asset ratio Liabilities/total assets Current ratio Current assets/current liabilities Solvency Times interest earned(TIE) EBIT/interest expense First of all, we compare the four indicators of revenue the stronger the long-term solvency of the enterprise is. A note-growth rate, total asset turnover ratio, accounts receivable worthy fact is that among the top ten HR service providers, eightturnover ratio, and return on assets. Among them the annual of them post higher debt-asset ratios than the industry average.revenue growth reflects the increase or decrease in revenues. However, this does not mean that the long-term solvencies ofThe total asset turnover ratio reflects the capacity of operating these companies are weak, but suggests that these enterprisesthe assets of the enterprise as a whole. In general, the faster have the ability to leverage strong.the total asset turnover is, the stronger its operating capacity is. Finally, the liquidity ratio and the interest earned multiplesAccounts receivable turnover ratio is the average number of times reflect the solvencies of the enterprises. Among them liquiditya companys accounts receivable turn into cash within a certain ratio suggests the companys short-term solvencies, while theperiod. In general, the higher the accounts receivable turnover multiple of the interest earned is used to measure the long-termratio is, the faster its capital flows, the stronger the corporate solvency of the enterprise. In general, the higher the interestsolvency is. In the Global 50 rankings, LinkedIn and Aon Hewitt earned multiple enterprise, the stronger the long-term solvencyboast unusual growth rate of 114.8% and 113.2%, which justify is. In the rankings, ADP and CIIC, with the interest earnedtheir positions as the fastest growing companies. CIIC’s total multiples of 225.7 and 112.2, are ranked as companies with theasset turnover ratio reached 8.4, second only to the 11.4 of strongest long-term solvencies.the Corporate Resource Services company, while its accounts In addition, the Global 50 rankings also introduce the conceptreceivable turnover ratio hit a whopping 152.2, testifying to the of industry average, a benchmark of of respective industries ofindustry-leading operational competence of the company. HR services. This approach can be more intuitive and objective Secondly, the three indicators of operating margin, net profit for investors to judge the overall level of the financial condition ofmargin, and return on shareholders’ equity (ROE) reflect the various HR service providers, revealing the risks and the room ofprofitability of enterprises. Among them, the ROE reflects the growth they have. In the rankings, respective industry averagesability of generating profit on shareholders’ investment, and are worked out from the categories of the 59 companies fallthe efficiency of corporate financing and operating activities, and in, i.e., human resources outsourcing, talent dispatch / leasingit is the most important indicator of the DuPont analysis. The / placement services, headhunting services and recruitmentJapanese company Fullcast Holdings ranked first with a ROE process outsourcing, HR consulting, talent managementof 22.2%, while 51job ranked second with 17.6%. In addition, software, online recruitment. The financial data are grouped asfrom the perspective of industry segmentation, human resources per the different categories, and a composite score is worked outoutsourcing, headhunting services and recruitment process by comparative analysis of indicators with the industry average,outsourcing all generate higher ROE than average. and their financial status are graded to reflect the profitability of Thirdly, the debt-asset ratio indicates how much percentage the enterprises in their respective industry.of total assets are raised through borrowing. The smaller the ratio, Meanwhile, as to the exchange rates, this year’s rankings, 5
  7. 7. Executive Summary GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Table 5 Financial ratios averages by industry in the “HRoot Global 50 HR Service Providers 2012” Industry Talent dispatch HR HR service Headhunting & HR Online / lease / management Financial ratio outsourcing RPO consulting recruitment placement software Annual revenue growth rate 16.40% 20.90% 18.50% 41.90% 23.90% 37.40% Total asset turnover ratio 2.9 3.6 2.4 0.9 0.9 0.7 Accounts receivable turnover 21.6 11.9 5.8 5.3 4.4 11.9 ratio Return on assets 5.60% 3.80% 4.00% 4.60% -8.90% 9.70% Operating margin 6.00% 3.00% 3.90% 9.70% -1.60% 19.00% Net profit margin 4.20% 1.70% 2.00% 5.30% -10.90% 15.80% ROE 11.90% 3.30% 8.30% 7.10% -13.20% 13.70% Debt-asset ratio 59.00% 53.90% 42.30% 35.50% 51.90% 35.70% Current ratio 1.3 1.7 2.1 2.6 1.6 2.3 Times interest earned 59.8 15.6 38.3 79.6 21.2 18.7unlike previous ones, adopts the annual average exchange rate At the same time, the human resources industry is also showingbetween the local currency and the US dollar, a calculating new development trends. Corporate managers need to furthermethod used by the ranking of Fortune Global 500 that converts create sound working environment for employees to deliver highthe annual revenue of enterprises of other currencies into U.S. performances and maximize their full potentials. Enterprisesdollars and then rank them. This algorithm excludes the influence should elevate employees sense of identification and loyalty toof fluctuations of interest rate throughout the year on the their enterprises, build sustainable leadership, establish positiverankings, an effort that can reduces errors and has the whole list interactions between employees and enterprises, so that toreflect the development trend of the human resources industry. obtain sustainable development prospects. Therefore, the human In the year ahead, the world economy will be even more resources service providers must make plans ahead of time, seizecomplicated and grimmer with added instability and uncertainty, opportunities for their development, enhance internal power ofwhile the Chinese economy will have more influence on the enterprise development, so as to achieve success in the futureworld. Admittedly, Chinas economic growth rate will slow regardless of the economic turmoil.down, but it is still the main engine of world economic growth. 6
  8. 8. HRoot Global 50 Human Resources Service Providers 2012 GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue in Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business Fiscal 2011 Fiscal 2010 in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) ($ million) ($ million) ($ million) 2011 Talent dispatch/lease/ ― 1 1 Adecco 28,567 24,822 15.1% 1,061 887 3.7% placement Talent dispatch/lease/ ↑ 2 3 Randstad 22,560 18,865 19.6% 347 454 1.5% placement Talent dispatch/lease/ ↓ 3 2 ManpowerGroup 22,006 18,867 16.6% 524 -122 2.4% placement ― 4 4 ADP HR service outsourcing 9,880 8,928 10.7% 1,933 1,863 19.6% Talent dispatch/lease/ ― 5 5 Kelly Services 5,551 4,950 12.1% 58 38 1.0% placement ― 6 6 Hays Headhunting & RPO 5,222 4,156 25.7% 183 124 3.5% ↑ 7 11 Aon Hewitt HR consulting 4,501 2,111 113.2% 448 234 10.0% ― 8 8 CIIC HR service outsourcing 4,484 3,362 33.4% 55 43 1.2% ↓ 9 7 Mercer HR consulting 3,782 3,478 8.7% / / / Talent dispatch/lease/ ↓ 10 9 Robert Half 3,777 3,175 19.0% 250 115 6.6% placement ↓ 11 10 Towers Watson HR consulting 3,259 2,388 36.5% 313 164 9.6% → 12 / Temp Holdings HR service outsourcing 3,032 2,771 9.4% 106 67 3.5% Talent dispatch/lease/ → 13 / Pasona Group 2,324 2,257 3.0% 32 45 1.4% placement ↓ 14 13 Paychex HR service outsourcing 2,230 2,084 7.0% 854 725 38.3% ― 15 15 Insperity HR service outsourcing 1,976 1,720 14.9% 57 37 2.9% → 16 / Synergie SA Headhunting & RPO 1,875 1,650 13.6% 57 46 3.0% ↓ 17 14 Impellam Group HR service outsourcing 1,757 1,720 2.2% 54 47 3.1% ↓ 18 16 Michael Page International Headhunting & RPO 1,635 1,285 27.2% 138 137 8.4% Talent dispatch/lease/ → 19 / TrueBlue 1,316 1,149 14.5% 48 28 3.6% placement ↑ 20 21 Chandler Macleod Group HR service outsourcing 1,168 817 43.0% 29 22 2.5% ↓ 21 18 Kforce Headhunting & RPO 1,111 991 12.1% 45 35 4.0% Talent dispatch/lease/ ↓ 22 19 CDI Corporation 1,060 926 14.4% 20 -0.3 1.9% placement ↓ 23 20 Monster Online recruitment 1,040 914 13.8% 77 -42 7.4% ↓ 24 22 Hudson Headhunting & RPO 934 795 17.5% 17 -6 1.9% → 25 / Meitec Corporation Headhunting & RPO 870 760 14.5% 71 32 8.1% 7
  9. 9. HRoot Global 50 Human Resources Service Providers 2012 GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue in Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business Fiscal 2011 Fiscal 2010 in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) ($ million) ($ million) ($ million) 2011 ↓ 26 24 Sthree Headhunting & RPO 842 733 14.8% 47 33 5.5% ↓ 27 26 Korn/Ferry International Headhunting & RPO 827 776 6.5% 83 3 10.0% → 28 / Robert Walters Headhunting & RPO 820 654 25.4% 25 20 3.0% HR management ↓ 29 23 Kronos 800 741 8.0% / 221 / software ↓ 30 25 Harvey Nash Group Headhunting & RPO 655 652 0.5% 10 10 1.5% Talent dispatch/lease/ ↓ 31 29 On Assignment 597 438 36.3% 44 3 7.4% placement ↓ 32 27 Heidrick & Struggles Headhunting & RPO 554 513 8.0% -11 18 -2.0% ↓ 33 28 Resources Connection HR consulting 546 499 9.3% 51 -2 9.4% → 34 / LinkedIn Online recruitment 522 243 114.8% 26 20 5.0% → 35 / Fullcast Holdings HR service outsourcing 446 444 0.5% 20 16 4.5% Talent dispatch/lease/ → 36 / Corporate Resource Services 345 218 58.5% 0.4 -0.3 0.1% placement ↓ 37 30 SEEK Limited Online recruitment 345 282 22.3% 97 119 28.1% ↓ 38 31 Barrett Business Services HR service outsourcing 315 273 15.3% 4 8 1.2% ↓ 39 33 Talent2 International HR service outsourcing 306 243 25.9% 16 11 5.2% HR management ↓ 40 37 Kenexa 283 196 44.1% 2 -0.3 0.7% software HR management ↓ 41 35 The Ultimate Software 269 228 18.2% 16 8 6.1% software ↓ 42 32 Clarius Group Headhunting & RPO 267 266 0.4% -7 5 -2.6% ↓ 43 38 Hydrogen Headhunting & RPO 242 191 27.1% 6 4 2.5% ↓ 44 41 Humanis Group Headhunting & RPO 222 130 70.8% -2 -3 -0.9% ↓ 45 39 51job Online recruitment 218 165 32.1% 70 41 32.1% → 46 / HRnetOne Group Headhunting & RPO 203 141 44.1% 26 18 12.8% ↓ 47 42 Dice Holdings Online recruitment 179 129 38.9% 55 32 30.7% → 48 / The ReThink Group HR service outsourcing 123 86 42.0% 3 2 2.7% HR management ↓ 49 43 Saba Software 117 110 6.5% -6 3 -5.2% software HR management ↓ 50 45 ClickSoftware Technologies 87 71 22.6% 15 10 16.8% software 8
  10. 10. HRoot Global 50 Human Resources Service Providers 2012, Sub-Rank Companies GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue in Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business Fiscal 2011 Fiscal 2010 in Fiscal 2011 in Fiscal 2010 margin in 2011 2010 growth ratelower ($ million) ($ million) ($ million) ($ million) Fiscal 2011 ↓ 51 44 104 Job Bank Online recruitment 80 78 2.3% 9 10 10.9% HR management → 52 / Cornerstone OnDemand 73 44 67.0% -19 -13 -26.4% software ↓ 53 46 Fortune Industries HR service outsourcing 64 61 6.0% 2 1 2.9% ↓ 54 47 Hamilton James & Bruce Headhunting & RPO 56 49 14.7% 0.4 -3 0.7% Talent assessment/testing ↓ 55 49 ATA 48 36 34.1% 3 -4 6.9% service ↓ 56 48 DLH Holdings HR service outsourcing 42 41 2.6% -4 -4 -10.1% → 57 / Prime People Headhunting & RPO 20 22 -8.7% 1 2 7.1% HR management → 58 / NetDimensions 12 8 48.2% 1 0.2 4.9% software HR management ↓ 59 50 HRsoft 8 10 -23.0% -1 -13 -8.2% software 9
  11. 11. GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012 Former Global 50 companies absent from the “HRoot Global 50 HR Service Providers 2012”Rank in Company Country Main business Reason201112 SFN Group Talent dispatch/lease/placement Being acquired34 Taleo Corporation HR management software Being acquired36 SuccessFactors HR management software Being acquired44 104 Job Bank Online recruitment Revenue unqualified46 Fortune Industries HR service outsourcing Revenue unqualified47 Hamilton James & Bruce Headhunting & RPO Revenue unqualified49 ATA Talent assessment & test Revenue unqualified48 DLH Holdings HR service outsourcing Revenue unqualified50 Workstream HR management software Revenue unqualified New comers of the “HRoot Global 50 HR Service Providers 2012”Rank in Revenue in Fiscal Company Country Main business2012 2011($ million)12 Temp Holdings HR service outsourcing 3,03213 Pasona Group Talent dispatch/ lease/placement 2,32416 Synergie SA Headhunting & RPO 1,87519 TrueBlue Talent dispatch/ lease/placement 1,31625 Meitec Corporation Headhunting & RPO 87028 Robert Walters Headhunting & RPO 82034 LinkedIn Online recruitment 52235 Fullcast Holdings HR service outsourcing 44636 Corporate Resource Services Talent dispatch/lease/placement 34546 HRnetOne Group Headhunting & RPO 20348 The ReThink Group HR service outsourcing 123 10
  12. 12. GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012 Financial analysis indicators used in the “HRoot Global 50 HR Service Providers 2012”Competence indicator Financial ratio Formula Annual revenue growth rate (Current revenue - on revenue) / on revenue Total asset turnover ratio Revenue / average total assetsOperating capacity Accounts receivable turnover Revenue / average accounts receivable balance ratio Return on assets (ROA) Net profit/average total assets Operating margin Operating profit/revenueProfitability Net profit margin Net profit/main business income Return on shareholder’s equity Net profit/shareholders equity (ROE)Financial structure Debt-asset ratio Liabilities/total assets Current ratio Current assets/current liabilitiesSolvency Times interest earned(TIE) EBIT/interest expense Financial ratios averages by industry in the “HRoot Global 50 HR Service Providers 2012” Industry Talent dispatch HR HR service Headhunting & HR Online / lease / managementFinancial ratio outsourcing RPO consulting recruitment placement softwareAnnual revenue growth rate 16.40% 20.90% 18.50% 41.90% 23.90% 37.40%Total asset turnover ratio 2.9 3.6 2.4 0.9 0.9 0.7Accounts receivable turnover 21.6 11.9 5.8 5.3 4.4 11.9ratioReturn on assets 5.60% 3.80% 4.00% 4.60% -8.90% 9.70%Operating margin 6.00% 3.00% 3.90% 9.70% -1.60% 19.00%Net profit margin 4.20% 1.70% 2.00% 5.30% -10.90% 15.80%ROE 11.90% 3.30% 8.30% 7.10% -13.20% 13.70%Debt-asset ratio 59.00% 53.90% 42.30% 35.50% 51.90% 35.70%Current ratio 1.3 1.7 2.1 2.6 1.6 2.3Times interest earned 59.8 15.6 38.3 79.6 21.2 18.7 11
  13. 13. GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012 Notes:1. Conditions on entrants: The revenues of human resources service providers shall account for over 50% of their revenues, and thelisted companies can provide financial data audited by third-party audits or notarized by the government departments. Therefore, listedcompanies such as Oracle, SAP, Kingdee, Yonyou are not presented as as their software business did not generate more than 50%of their total revenues. DDI, HayGroup, and Career International, are absent from the rankings as they have not gone public or theirfinancial data are not available, albeit they specialize in human resources services.2.The data adopted in the ranking come from below sources:(1) Financial reports of 2011 announced by each listed company;(2) Financial information of 2011 announced by the stock exchanges where the companies are traded;(3) The data of unlisted companies are provided by third-party auditors or financial statements approved by the governmentdepartments available to HRoot.3. The annual financial data in the rankings are divided by the fiscal year involved in the financial reports rather than the calendar year.4. The rankings take the US dollar as the standard currency. Financial data of non-US companies are converted into US dollars at theaverage exchange rate of a whole year ending on the last day of their fiscal years. The exchange rates are listed as follows: GBP1 toUSD1.6039; Euro1 to USD1.3905; AUD1 to USD1.0480; SGD1 to USD0.7952; RMB1 to USD0.1548; HKD1 to USD0.1285, NTD1 toUSD0.0342; JPY1 to USD0.0125. 5. The slash mark, or “/”, means no data. 6. The financial data of Mercer are sourced from the 2011 annual financial report of its parent company, Marsh & McLennan. 7. The financial data of Aon Hewitt refer to the Fiscal 2011 data of the HR solutions business of Aon Corporation.8. In 2011, LinkedIn generated over 50% of its revenue from its recruitment services and in the first quarter of 2012, its recruitmentservice generated $103 million in revenue, accounting for 54% of its total revenue of $189 million. As its revenue of human resourcesservices accounted for more than 50% of its total revenue, LinkedIn is qualified as an entrant in the rankings.9. Insperity was formerly named Administaff. 10. DLH Holdings Corp.was formerly named TeamStaff. 11. Monster is the parent company of ChinaHR.com. 12. SEEK is the parent company of zhaopin.com.13.Total Revenue is the operating income of the companies in the sales of goods or services, and other operations, including the basicoperating revenue and other operating income. It is an important part of corporate cash inflows, the operating results of the enterprise.Therefore, the rankings refer to the total revenue of the enterprises.14. The data of industry averages are calculated as per the industry categories the 59 companies fall into, i.e., human resourcesoutsourcing, talent dispatch/lease/placement services, executive search services, recruitment process outsourcing, human resourceconsulting, human resource management software, and online recruitment.15. Interpretations of financial ratiosCompetence indicator Financial ratio Formula Annual revenue growth rate (Current revenue - on revenue) / on revenue Total asset turnover ratio Revenue / average total assetsOperating capacity Accounts receivable turnover ratio Revenue / average accounts receivable balance ROA (return on assets) Net profit / average total assets Operating margin Operating profit / RevenueProfitability Net profit margin Net profit / main business income ROE, return on shareholder’s equity Net profit / shareholders equityFinancial structure Debt-asset ratio Liabilities / total assets Current ratio Current assets / current liabilitiesSolvency TIE (times interest earned) EBIT / interest expense 12
  14. 14. GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012 Notes:(1) Annual revenue growth rate gauges the ratio of the difference between the revenues of Fiscal 2011 and Fiscal 2010 to the latter. Itillustrates how fast the revenue is changing.(2) The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. This ratio considers allassets, current and fixed. Those assets include fixed assets, like plant and equipment, as well as inventory, accounts receivable, as wellas any other current assets. The fast the turnover of a company, the stronger its operating capacity is. (3) Accounts receivable turnover ratio refers to the number of times that accounts receivable amount is collected throughout the year.The average accounts receivable looks at the accounts receivable balance at the beginning of the year as well as the end of the year.A high accounts receivable turnover ratio indicates a tight credit policy. A low or declining accounts receivable turnover ratio indicates acollection problem, part of which may be due to bad debts. Yet an extremely high ratio can mean that the company is under the heavydebts that may curb the increase of its sales amount and profit. (4) ROA, or return on assets, is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to howefficient management is at using its assets to generate earnings. Calculated by dividing a companys annual earnings by its total assets,ROA is displayed as a percentage.(5) Operating margin is a measure of profitability that indicates how much of each dollar of revenues is left over after both costs ofgoods sold and operating expenses are considered.(6) Net profit margin tells how much profit a company makes for every one dollar. The higher a companys profit margin compared to itscompetitors, the better. (7) ROE, or Return on shareholder’s equity, is the amount of net income returned as a percentage of shareholders equity. Return onequity measures a corporations profitability by revealing how much profit a company generates with the money shareholders haveinvested.(8) Debt-asset ratio is total liabilities divided by total assets. The debt asset ratio shows the proportion of a companysassets which arefinanced through debt. Companies with high debt/asset ratios are said to be "highly leveraged," and could be in danger if creditors startto demand repayment of debt.(9) Current ratio suggests the companys ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash,inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. (10) Multiples of interest earned is a metric used to measure a companys ability to meet its debt obligations. It is calculated by takinga companys earnings before interest and taxes (EBIT) and dividing it by the total interest payable on bonds and other contractual debt.It is usually quoted as a ratio and indicates how many times a company can cover its interest charges on a pretax basis. The higher theTIE, the more ability the company has to pay its long-term debts.16. The column of “Ranking higher/lower” illustrates with signs, of which an upward arrow means the company ranks higher thanbefore and a downward arrow means the opposite; a bar means staying unchanged while an arrow pointing right means the company isa new entrant to the rankings.17. The national flags in the ranking lists represent the below countries: USA Australia UK The Netherlands France China Japan Canada Singapore Israel Switzerland 13
  15. 15. HRoot Global 50 Human Resources Service Providers 2012 (by Country) GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 Talent dispatch/lease/ ↓ 3 2 ManpowerGroup 22,006 18,867 16.6% 524 -122 2.4% placement - 4 4 ADP HR service outsourcing 9,880 8,928 10.7% 1,933 1,863 19.6% Talent dispatch/lease/ - 5 5 Kelly Services 5,551 4,950 12.1% 58 38 1.0% placement ↑ 7 11 Aon Hewitt HR consulting 4,501 2,111 113.2% 448 234 10.0% ↓ 9 7 Mercer HR consulting 3,782 3,478 8.7% / / / Talent dispatch/lease/ ↓ 10 9 Robert Half International 3,777 3,175 19.0% 250 115 6.6% placement ↓ 11 10 Towers Watson HR consulting 3,259 2,388 36.5% 313 164 9.6% ↓ 14 13 Paychex HR service outsourcing 2,230 2,084 7.0% 854 725 38.3% - 15 15 Insperity HR service outsourcing 1,976 1,720 14.9% 57 37 2.9% Talent dispatch/lease/ → 19 / TrueBlue 1,316 1,149 14.5% 48 28 3.6% placement ↓ 21 18 Kforce Headhunting & RPO 1,111 991 12.1% 45 35 4.0% Talent dispatch/lease/ ↓ 22 19 CDI Corporation 1,060 926 14.4% 20 -0 1.9% placement ↓ 23 20 Monster Online recruitment 1,040 914 13.8% 77 -42 7.4% ↓ 24 22 Hudson Headhunting & RPO 934 795 17.5% 17 -6 1.9% ↓ 27 26 Korn/Ferry International Headhunting & RPO 827 776 6.5% 83 3 10.0% HR management ↓ 29 23 Kronos 800 741 8.0% / 221 / software Talent dispatch/lease/ ↓ 31 29 On Assignment 597 438 36.3% 44 3 7.4% placement ↓ 32 27 Heidrick & Struggles Headhunting & RPO 554 513 8.0% -11 18 -2.0% ↓ 33 28 Resources Connection HR consulting 546 499 9.3% 51 -2 9.4% → 34 / LinkedIn Online recruitment 522 243 114.8% 26 20 5.0% Talent dispatch/lease/ → 36 / Corporate Resource Services 345 218 58.5% 0 -0 0.1% placement ↓ 38 31 Barrett Business Services HR service outsourcing 315 273 15.3% 4 8 1.2% HR management ↓ 40 37 Kenexa 283 196 44.1% 2 -0.3 0.7% software HR management ↓ 41 35 The Ultimate Software 269 228 18.2% 16 8 6.1% software ↓ 47 42 Dice Holdings Online recruitment 179 129 38.9% 55 32 30.7% HR management ↓ 49 43 Saba Software 117 110 6.5% -6 3 -5.2% software 14
  16. 16. HRoot Global 50 Human Resources Service Providers 2012 (by Country) GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 - 6 6 Hays Headhunting & RPO 5,222 4,156 25.7% 183 124 3.5% ↓ 17 14 Impellam Group HR service outsourcing 1,757 1,720 2.2% 54 47 3.1% ↓ 18 16 Michael Page International Headhunting & RPO 1,635 1,285 27.2% 138 137 8.4% ↓ 26 24 Sthree Headhunting & RPO 842 733 14.8% 47 33 5.5% → 28 / Robert Walters Headhunting & RPO 820 654 25.4% 25 20 3.0% ↓ 30 25 Harvey Nash Group Headhunting & RPO 655 652 0.5% 10 10 1.5% ↓ 43 38 Hydrogen Headhunting & RPO 242 191 27.1% 6 4 2.5% → 48 / The ReThink Group HR service outsourcing 123 86 42.0% 3 2 2.7%Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 ↑ 20 21 Chandler Macleod Group HR service outsourcing 1,168 817 43.0% 29 22 2.5% ↓ 37 30 SEEK Limited Online recruitment 345 282 22.3% 97 119 28.1% ↓ 39 33 Talent2 International HR service outsourcing 306 243 25.9% 16 11 5.2% ↓ 42 32 Clarius Group Headhunting & RPO 267 266 0.4% -7 5 -2.6% ↓ 44 41 Humanis Group Headhunting & RPO 222 130 70.8% -2 -3 -0.9%Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 → 12 / Temp Holdings HR service outsourcing 3,032 2,771 9.4% 106 67 3.5% Talent dispatch/lease/ → 13 / Pasona Group 2,324 2,257 3.0% 32 45 1.4% placement → 25 / Meitec Corporation Headhunting & RPO 870 760 14.5% 71 32 8.1% → 35 / Fullcast Holdings HR service outsourcing 446 444 0.5% 20 16 4.5% 15
  17. 17. HRoot Global 50 Human Resources Service Providers 2012 (by Country) GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 → 8 8 CIIC HR service outsourcing 4,484 3,362 33.4% 55 43 1.2% ↓ 45 39 51job Online recruitment 218 165 32.1% 70 41 32.1%Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 Talent dispatch/lease/ ↑ 2 3 Randstad 22,560 18,865 19.6% 347 454 1.5% placementRanking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 → 16 / Synergie SA Headhunting & RPO 1,875 1,650 13.6% 57 46 3.0%Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 Talent dispatch/lease/ - 1 1 Adecco 28,567 24,822 15.1% 1,061 887 3.7% placementRanking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 → 46 / HRnetOne Group Headhunting & RPO 203 141 44.1% 26 18 12.8%Ranking Total revenue Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business in Fiscal 2011 Fiscal 2010 ($ in Fiscal 2011 in Fiscal 2010 margin in Fiscal 2011 2010 growth ratelower ($ million) million) ($ million) ($ million) 2011 HR management ↓ 50 45 ClickSoftware Technologies 87 71 22.6% 15 10 16.8% software 16
  18. 18. HRoot Global 50 Human Resources Service Providers 2012 (by Industry) GLOBAL 50 HUMAN RESOURCES SERVICE PROVIDERS 2012Ranking Total revenue in Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business Fiscal 2011 Fiscal 2010 in Fiscal 2011 in Fiscal 2010 margin in 2011 2010 growth ratelower ($ million) ($ million) ($ million) ($ million) Fiscal 2011 - 4 4 ADP HR service outsourcing 9,880 8,928 10.7% 1,933 1,863 19.6% - 8 8 CIIC HR service outsourcing 4,484 3,362 33.4% 55 43 1.2% → 12 / Temp Holdings HR service outsourcing 3,032 2,771 9.4% 106 67 3.5% ↓ 14 13 Paychex HR service outsourcing 2,230 2,084 7.0% 854 725 38.3% - 15 15 Insperity HR service outsourcing 1,976 1,720 14.9% 57 37 2.9% ↓ 17 14 Impellam Group HR service outsourcing 1,757 1,720 2.2% 54 47 3.1% ↑ 20 21 Chandler Macleod Group HR service outsourcing 1,168 817 43.0% 29 22 2.5% → 35 / Fullcast Holdings HR service outsourcing 446 444 0.5% 20 16 4.5% ↓ 38 31 Barrett Business Services HR service outsourcing 315 273 15.3% 4 8 1.2% ↓ 39 33 Talent2 International HR service outsourcing 306 243 25.9% 16 11 5.2% → 48 / The ReThink Group HR service outsourcing 123 86 42.0% 3 2 2.7%Ranking Total revenue in Total revenue in Operating profit Operating profit Operating Rank Rank Annual revenuehigher/ Company Logo Country Main business Fiscal 2011 Fiscal 2010 in Fiscal 2011 in Fiscal 2010 margin in 2011 2010 growth ratelower ($ million) ($ million) ($ million) ($ million) Fiscal 2011 Talent dispatch/lease/ - 1 1 Adecco 28,567 24,822 15.1% 1,061 887 3.7% placement Talent dispatch/lease/ ↑ 2 3 Randstad 22,560 18,865 19.6% 347 454 1.5% placement Talent dispatch/lease/ ↓ 3 2 ManpowerGroup 22,006 18,867 16.6% 524 -122 2.4% placement Talent dispatch/lease/ - 5 5 Kelly Services 5,551 4,950 12.1% 58 38 1.0% placement Talent dispatch/lease/ ↓ 10 9 Robert Half International 3,777 3,175 19.0% 250 115 6.6% placement Talent dispatch/lease/ → 13 / Pasona Group 2,324 2,257 3.0% 32 45 1.4% placement Talent dispatch/lease/ → 19 / TrueBlue 1,316 1,149 14.5% 48 28 3.6% placement Talent dispatch/lease/ ↓ 22 19 CDI Corporation 1,060 926 14.4% 20 -0 1.9% placement Talent dispatch/lease/ ↓ 31 29 On Assignment 597 438 36.3% 44 3 7.4% placement Talent dispatch/lease/ → 36 / Corporate Resource Services 345 218 58.5% 0 -0 0.1% placement 17

×