From Hard to Harder: A Global Analysis of Staffing Market … · 2020. 6. 8. · HUNGARY Y Y NNN INDIA Y N Y N N IRELAND Y Y N N N ... Main prohibitions on temporary agency work

© 2012 Crain Communications Inc

From Hard to Harder: A Global Analysis of Staffing Market Complexity

Speakers:

• Barry Asin, President, Staffing Industry Analysts• John Nurthen, Executive Director, International Development,

Staffing Industry Analysts

Tuesday, 15 May | 15:15 | Nine Kings Suite

Concurrent Session: Contingent Market Track


• Background

• Methodology

• Analysis

• Summary

• Q&A

From Hard to Harder: A Global Analysis of Staffing Market Complexity


European Contingent Workforce Buyer Priorities

Source: Staffing Industry Analysts: Buyer Survey, 2011


Communication

One ProgrammeOne Site

One ProgrammeTwo Sites

One ProgrammeMultiple Sites


Culture Clash


The Seven Dimensions of Culture

• Universalism vs. particularism (Importance of rules v relationships?)

• Individualism vs. collectivism (Functioning in a group or as individuals?)

• Neutral vs. emotional (Displaying emotions, or hiding them?)

• Specific vs. diffuse (Do we handle our relationships in specific and predetermined ways, or do we see our relationships as changing and related to contextual settings?)

• Achievement vs. ascription (Do we have to prove ourselves to receive status, or is status given to us?)

• Sequential vs. synchronic (Do we do things one at a time or several things at once?)

• Internal vs. external control (Do we believe that we can control our environment, or do we believe the environment controls us?)

Source: Fons Trompenaars, Riding the Waves of Culture


Degree of similarity between home and host countries

Number of foreign

countries in which a company does business

Extent of global operations

Extent of handling of foreign operations

Culture

DomesticBusiness

Low

Medium

High

Company handles its own Global operations

Other domestic firms handle external contracts

Foreign firms handle external contracts

Quite similar

Moderately similar

Not at all similar

One

Several

Many

Limited foreign functions

Multiple foreign functions

Integrated across multiple countries

Source: G. Hofstede, Cultures and Organizations: Software of the Mind


SwedenNorway

Finland

Japan

United States

UnitedKingdom

FranceGermany

Netherlands

Poland

Denmark

ItalyPortugal Spain

Ireland

Canada

Mexico

Brazil

South Africa

Argentina

Belgium

Switzerland

Global Staffing Market (to scale)

Australia

Source: Staffing Industry Analysts


SwedenNorway

Finland

Japan

United States

UnitedKingdom

FranceGermany

Netherlands

Poland

Denmark

ItalyPortugal Spain

Ireland

Canada

Mexico

Brazil

South Africa

Argentina

Belgium

Switzerland

Global Staffing Market Regional Characteristics

Australia

Rest of World• 32% of global market• Very disparate but mostly

immature and poorly regulated markets

• Exceptions are Japan, Australia, Singapore and Hong Kong

• Variable MSP usage

Europe• 37% of global market• Mixture of well

established markets in North, less established markets in South and immature in East

• Agency Work Directive• Moderate MSP usage

North America• 31% of global market• US and Canada liberal

and mature markets, Mexico less so

• High proportion of professional/executive staffing

• High MSP usage



Country Licensing Pay ParityReasonsfor Use

Length of Assignment

Sector Restrictions

ARGENTINA N N Y Y N

AUSTRALIA Y Y N N N

AUSTRIA Y Y N N N

BELGIUM Y Y Y Y Y

BRAZIL N N N Y N

BULGARIA Y Y Y Y Y

CANADA Y N N N N

CHINA Y Y Y Y N

CZECH REPUBLIC Y Y N Y N

DENMARK Y N N N

EGYPT Y N N N N

FINLAND N Y Y Y N

FRANCE Y Y Y Y N

GERMANY Y Y N N Y

GREECE Y Y N Y N

HONG KONG CHINA Y N N N N

HUNGARY Y Y N N N

INDIA Y N Y N N

IRELAND Y Y N N N

ITALY Y Y Y N N

JAPAN Y N N N Y

Country Licensing Pay ParityReasonsfor Use

Length of Assignment

Sector Restrictions

KUWAIT N N N Y N

MEXICO Y Y Y Y N

NETHERLANDS N Y N N N

NEW ZEALAND N N N N N

NORWAY Y Y N N N

POLAND Y Y Y Y N

PORTUGAL Y Y Y N N

QATAR Y N N N N

ROMANIA Y Y N Y N

RUSSIA N N Y Y N

SAUDI ARABIA Y N N N N

SERBIA Y Y Y Y Y

SINGAPORE Y N N N N

SOUTH AFRICA* Y N N N N

SPAIN Y Y N Y Y

SWEDEN N Y N Y N

SWITZERLAND Y Y N N N

TURKEY Y N N N N

UNITED ARAB EMIRATES Y N N N N

UNITED KINGDOM N Y N N N

UNITED STATES N N N N N

Main prohibitions on temporary agency work

Complexity


Y/N

*Legislation currently before Parliament will introduce pay parity, reasons for use and limit assignments to 6 months


Research Methodology

MSP/VMS Maturity

Market maturity

Regulatory efficiency

Employment Law Burden

Labour Market

Efficiency

Political Stability/

Corruption

Ability to enforce

contracts

Pricing Environment

Independent Contractor

Environment

Trade Union Influence

Sources: Staffing Industry Analysts, CIETT, World Economic Forum, The Regulation of Labor, World BankGovernance Indicators, Doing Business


Considerations

• ‘Complex’ does not = ‘Impossible’

• ‘Not complex’ does not = ‘Easy’

• No weighting in this analysis– But you could weight the results yourself depending on your own strategy,

risk perception, resources and company culture

• Language as a factor


Most Complex

Least Complex

Not Recorded

Hot Spots



Unknown Markets

• Interesting category in their own right• Generally, no legislative framework and

staffing industry not organised/ represented– Only 23 countries have ratified ILO Convention 181

• Most significant markets not included in this study: – the South American markets of Chile, Colombia and Peru– the Baltic States of Estonia, Latvia and Lithuania,– other parts of Eastern Europe such as Slovakia and Slovenia– the Asian markets of South Korea, Thailand and Malaysia.

Here be monsters


CountryMarket

Maturity

Staffing Market

Regulatory Efficiency


Labour Market

EfficiencyEnforcing contracts

Pricing Environment

MSP/VMS Maturity


Independent Contractors

Stability/ Corruption Total

UNITED STATES 4 5 5 5 5 3 5 5 3 3 43

UNITED KINGDOM 5 5 5 5 4 4 4 4 2 4 42

CANADA 4 5 4 5 2 3 4 4 5 5 41

NEW ZEALAND 4 4 5 5 5 2 2 4 4 5 40

HONG KONG, CHINA 4 5 4 5 5 2 2 4 4 4 39

SINGAPORE 4 5 5 5 4 2 3 5 1 4 38

AUSTRALIA 4 5 3 4 4 3 3 4 2 4 36

NETHERLANDS 4 5 2 4 3 4 3 2 3 5 35

IRELAND 3 2 4 4 2 4 3 3 4 4 33

BELGIUM 4 4 3 3 4 3 3 2 3 4 33

AUSTRIA 3 4 2 3 5 3 1 3 4 4 32

FINLAND 2 4 1 4 5 3 1 3 4 5 32

JAPAN 4 3 5 4 3 3 3 2 1 3 31

GERMANY 4 4 2 2 5 2 3 1 4 4 31

SOUTH AFRICA 5 3 5 2 2 4 2 3 2 2 30

SWEDEN 3 5 1 4 3 2 2 2 3 5 30

SWITZERLAND 3 2 2 5 3 4 1 3 1 5 29

DENMARK 2 5 1 5 3 2 2 3 1 5 29

BULGARIA 1 3 2 3 2 5 1 4 5 2 28

Complexity Ranking



CountryMarket

Maturity

Staffing Market

Regulatory Efficiency


LabourMarket

EfficiencyEnforcing contracts

Pricing Environment

MSP/VMS Maturity


Independent Contractors

Stability/ Corruption Total

FRANCE 4 4 1 2 5 3 4 1 1 3 28CZECH REPUBLIC 2 1 2 3 2 4 1 4 5 3 27INDIA 1 3 5 2 1 3 3 5 3 1 27

NORWAY 2 4 1 4 5 1 2 1 2 5 27CHINA 1 1 3 3 4 2 2 5 3 1 25SERBIA 1 2 2 1 1 5 1 5 5 1 24ROMANIA 1 3 4 2 2 3 1 2 4 2 24HUNGARY 2 3 3 2 4 2 1 1 3 3 24QATAR 1 1 4 4 1 1 1 5 4 2 24EGYPT 1 1 3 1 1 5 1 4 5 1 23PORTUGAL 2 2 1 1 4 5 1 1 3 3 23

UNITED ARAB EMIRATES 1 1 3 3 1 3 1 5 3 2 23MEXICO 3 3 3 1 2 2 2 3 3 1 23POLAND 1 3 2 3 2 1 1 2 5 3 23SAUDI ARABIA 1 1 2 3 1 4 1 5 3 1 22KUWAIT 1 1 4 2 1 3 1 5 2 2 22TURKEY 1 1 5 1 3 3 1 3 3 1 22SPAIN 1 2 1 1 3 4 2 1 3 3 21BRAZIL 3 1 3 2 1 3 1 4 2 1 21

RUSSIA 1 2 1 2 4 3 2 2 3 1 21GREECE 1 1 2 1 1 5 1 1 5 2 20ARGENTINA 1 1 4 1 3 4 1 2 2 1 20ITALY 2 3 1 1 1 2 2 1 5 2 20



Market MaturitySOUTH AFRICAUNITED KINGDOMNETHERLANDS

Best Markets by Category

RegulatoryEfficiencyNETHERLANDSSWEDENUNITED STATES

Employment Law BurdenSINGAPOREJAPANINDIA

Source: CIETT Source: CIETT Source: The Regulation of Labor

Source: World Economic Forum

Labour Market EfficiencySWITZERLANDSINGAPOREHONG KONG CHINA


Trade UnionInfluenceCHINA INDIAKUWAITQATARSAUDI ARABIASERBIASINGAPOREUNITED ARAB EMIRATESUNITED STATES

Source: World Bank Governance Indicators

Political Stability/ CorruptionFINLANDDENMARKSWEDEN

Source: Doing Business

Ability to EnforceContractsNORWAYHONG KONG CHINAFRANCE


Pricing EnvironmentBULGARIAEGYPTGREECEPORTUGALSERBIA

IndependentContractor EnvironmentBULGARIAGREECEITALYPOLANDSERBIA


MSP/VMSMaturityUNITED STATESUNITED KINGDOMFRANCE



MSP Adoption Ranking

Rank Country

1 US

2 UK

3 Canada

4 France

5 Japan

6 Netherlands

7 India

8 Germany

9 Belgium

10 Australia

Rank Country

11 Singapore

12 Ireland

13 Malaysia

14 Puerto Rico

15 Mexico

16 Spain

17 Sweden

18 China

19 Denmark

20 Italy

Source: Staffing Industry Analysts: MSP/VMS Global Landscape Report, 2011


VMS Adoption Ranking

Rank Country

1 US

2 UK

3 France

4 Canada

5 Netherlands

6 India

7 Germany

8 Australia

9 Ireland

10 Belgium

Rank Country

11 Puerto Rico

12 Singapore

13 Sweden

14 Mexico

15 Japan

16 Malaysia

17 China

18 Denmark

19 Hong Kong

20 Italy

Source: Staffing Industry Analysts: MSP/VMS Global Landscape Report, 2011


Contingent Supply Quadrant

US

UK

CanadaNew ZealandHong Kong

SingaporeAustralia Netherlands

Ireland

Belgium

Austria

Finland

JapanGermany

South Africa

SwedenSwitzerland

Denmark

France

Czech Republic

India

Norway

ChinaRomania

Hungary

Qatar

Portugal

UAE

Mexico

Saudi ArabiaKuwaitTurkeySpain

Brazil

Russia

Argentina

Italy

High

HighLow

Use ofTemporary

AgencyWorkers

Use of Independent Contractors

HIGH TEMP USEHIGH IC USE

HIGH TEMP USELOW IC USE

LOW TEMP USELOW IC USE

LOW TEMP USEHIGH IC USE

BulgariaSerbiaEgypt

PolandGrece



HIGH INFLIENCEHIGH COMPLEXITY

HIGH INFUENCELOW COMPLEXITY

LOW INFUENCELOW COMPLEXITY

LOW INFLUENCEHIGH COMPLEXITY

Trade Union Impact

US

NewZealand

Hong Kong

Australia

BelgiumAustriaFinland

SouthAfrica

SwitzerlandDenmark

Romania

UK Canada

Ireland

Netherlands Japan

Germany

Sweden

FranceNorway

Hungary

Poland

SpainGrece

Singapore

PortugalMexico

Bulgaria

UAE

CzechRepublic

IndiaChina

Serbia

Qatar

Egypt

SaudiArabia

Kuwait

Turkey

Brazil

RussiaArgentina

ItalyHigh

HighLow

TradeUnion

Influence

Contingent Market Complexity



Labour Market Efficiency as a function of Employment Law Burden

Good

LowHigh

LabourMarket

Efficiency


Italy

US

NewZealand

Hong Kong

AustraliaIreland

BelgiumAustria

Finland

SouthAfrica

Switzerland

Denmark

Romania

UKCanada

Netherlands

Japan

Germany

Sweden

France

Norway

HungaryPoland

Spain

Grece

UAE

Bulgaria

CzechRepublic

India

China

Serbia

Qatar

Egypt

Portugal Mexico

SaudiArabia Kuwait

Turkey

Brazil

Russia

Argentina

Poor

GOOD EFFICIENCYLOW BURDEN

GOOD EFFICIENCYHIGH BURDEN

POOR EFFICIENCYHIGH BURDEN

POOR EFFICIENCYLOW BURDEN

Singapore



Protests against Temporary work

ISRAEL SPAIN

SOUTH AFRICA POLAND

GERMANY

TAIWAN


The Black Market

• Many developing economies have a thriving black market for contingent workers– i.e. Mexico, Russia, Middle East

• Undermines credible, professional suppliers

• Inhibits social acceptance and creates union opposition

• Make sure your suppliers are properly licensed!


Staffing Market Clusters

Market Type Regions Countries

Market Driven Europe UK

Non-Europe US, AU, NZ

Social Dialogue Western Europe NL, CH, AT, DE

Nordics SW, NO, DK, FI

Asia JA

Legislator Driven Western Europe FR, BE, LU

Mediterranean IT, GR, ES, PT

Emerging Markets Eastern Europe Eastern Europe

Latin America Latin America

Asia IN, CH

Characteristics

Rapid AW development, open regulatory environment with limited restrictions, liberal economies favoringflexibility over security

Mature with significant degree of AW penetration

Low penetration, unique Nordic social model

Liberal economy but high value on job security

Penetration varies ranging from low to above average

Highly regulated weighted towards job security

Nascent industries with AW legally recognised only recently, regulatory policies still in development, economic policies and market dynamics still evolving

1

2

3

4

5

6

Source: CIETT


Identifying Complex Markets

They grow olives They drill for oil They dance salsa


Main Causes of Failure

• Lack of sponsorship

• No clear ROI for the business

• Moving too fast

• Minimal project planning

• Skimping on appropriate resources

• Not involving your suppliers

• Misjudged localization requirements

• Inadequate budget

• Not engaging all stakeholders

• Underestimating change management


Global Programme Governance Model

Source: Staffing Industry Analysts: ‘Building and Operating a Global MSP Governance Structure, Feb 2012


Even Complex Markets have Redeeming Features

• In relatively immature staffing markets, the pricing environment for temporary labour will likely be quite benevolent

• In developing economies, trade union influence is likely to be restricted

• In many underdeveloped staffing markets, the use of independent contractors will be quite widespread and the regulations relating to the use of independent contractors will be quite relaxed – perhaps even non-existent


Summary

“Toto, I’ve a feeling we’re not in Kansas anymore”

• All complexity is relative– Contingent worker procurement is one of the more complicated

procurement categories regardless of geography

– Complexity multiplies for managers responsible for multi-regional or global contingent workforce programmes

• Local expertise is the key to unlocking the most complex staffing markets

– In-house expertise to ensure you understand and respect the local language and culture

– Professional legal expertise to ensure your programme is legally compliant

– Supplier expertise


Any Questions?

Documents

From Hard to Harder: A Global Analysis of Staffing Market … · 2020. 6. 8. · HUNGARY Y Y NNN INDIA Y N Y N N IRELAND Y Y N N N ... Main prohibitions on temporary agency work