Human Capital Servicesdocshare02.docshare.tips/files/9603/96031803.pdf · Business Services Research March 2012 Human Capital Services HCS Map Mark S. Marcon, CFA [email protected]

Business Services Research March 2012

Human Capital Services HCS Map

Mark S. Marcon, CFA [email protected] 414.298.7556

Patrick R. Abeln [email protected] 414.765.3589

10R.14

Table of Contents

(Use the links below to navigate. To return, click on any page heading.)

HCS News ................................................................................................................................................................. 1

Covered Companies Research and News .................................................................................................................. 6

Labor Market Overview .......................................................................................................................................... 13

U.S. Valuation Metrics ............................................................................................................................................ 21

U.S. Company Profiles ............................................................................................................................................ 22

U.S. Recent Financial Performance ......................................................................................................................... 23

European Valuation Metrics .................................................................................................................................... 24

European Company Profiles.................................................................................................................................... 25

European Recent Financial Performance ................................................................................................................ 26

IPO Chronology ...................................................................................................................................................... 27

Follow-On Offering Chronology .............................................................................................................................. 28

Selected M&A Activity ............................................................................................................................................ 29

Comparative Index Performance ............................................................................................................................ 39

U.S. Closing Stock Price Graphs (3/20/12) ............................................................................................................ 43

European Closing Stock Price Graphs (3/20/12) ................................................................................................... 53

MAP Information .................................................................................................................................................... 59

Appendix – Important Disclosures and Analyst Certification .................................................................................. 60

Baird’s Human Capital Services Contacts ............................................................................................................... 62

Please refer to Appendix - Important Disclosures and Analyst Certification on pages 60 and 61

HCS News

Robert W. Baird & Co. Human Capital Services Page 1

March 2012

HCS News Stories Dividends/Share Repurchases

Dice Holdings Announces $65 Million Share Repurchase

Program. Dice Holdings, a leading provider of specialized online career sites, announced that the company’s board of directors has approved a new $65 million share repurchase program. The new authorization is effective upon the completion of the company’s existing $30 million repurchase program, and will be in effect for one year. The previous $30 million program was approved in August ’11, and through March 8, 2012, the company had repurchased 3.4 million shares for a total of $29.4 million (average price of $8.64/share).

Insperity Declares Quarterly Dividend. Insperity, a leading professional employer organization (PEO), declared a regular quarterly dividend of $0.15/share. The dividend is payable March 23 to shareholders of record on March 9.

Kelly Services Declares Quarterly Dividend. Kelly Services, a leading provider of staffing services and workforce solutions, declared a regular quarterly dividend of $0.05/share. The dividend was paid March 16 to shareholders of record on February 27.

Towers Watson Declares Quarterly Dividend, Announces $150

Million Share Repurchase Authorization. Towers Watson, a leading provider of human capital and financial services consulting, has declared a regular quarterly dividend of $0.10/share. The dividend is payable April 16 to shareholders of record on March 30. In addition, Towers Watson’s board of directors has approved the repurchase of up to $150 million of Class A common stock. The authorization is subject to certain price and availability restrictions, has no expiration date, and can be discontinued at any time.

Financing and Offerings PeopleMatter Raises $14 Million in Series C Funding.

PeopleMatter, a provider of online software solutions designed to help employers manage and develop their hourly workforces, has raised $14 million in Series C funding. This round of financing, which was led by Morgenthaler Ventures, is designed to “continue to accelerate PeopleMatter’s product-innovation and customer-acquisition strategies.” Existing PeopleMatter investors Noro-Moseley Partners, C&B Capital, Intersouth Partners, and Harbert Ventures also participated in the Series C funding. According to the company, PeopleMatter has an integrated set of solutions for recruiting, scheduling, learning, and performance that are designed specifically for hourly workers.

Personnel Changes/Promotions AMN Healthcare Names Sean Ebner President of Locum Tenens.

AMN Healthcare, the largest U.S. healthcare staffing firm, has hired Sean Ebner as president of the company’s locum tenens (temporary physicians) division. Mr. Ebner spent the past 11 years at Technisource, the IT staffing division of SFN Group (now owned by Randstad). Locum Tenens is AMN Healthcare’s second-largest segment (behind Nurse and Allied), and generated revenue of $278 mn in 2011 (31% of total company revenue).

CHG Healthcare Names Alan McIver Group President. CHG

Healthcare, a leading provider of healthcare staffing solutions, has hired Alan McIver as group president. In this role Mr. McIver will be responsible for overseeing RN Network, CHG’s nurse travel business, and CompHealth, CHG’s rehab travel division. Mr. McIver most recently served as Founder, President, and CEO of Skipstone Healthcare Staffing, and previously served as President and CEO of Supplemental Health Care.

CTPartners Hires Sarah Lim as Partner. CTPartners, a leading

provider of executive search services, has hired Sarah Lim as a Partner in the company’s Retail & Consumer Goods Practice in London. Ms. Lim has over 15 years of global executive search experience, including time at Odgers Ray & Berndtson, Purcon, and most recently Spencer Stuart.

Kelly Services Appoints Two New Executives in Australia. Kelly

Services, a leading provider of staffing services and workforce solutions, has hired Heather Oliver as Director of Business Solutions – Australia. Ms. Oliver has 23 year of recruiting industry experience, including time at Talent2, TMP/Hudson, and Hays plc. In addition, Kelly Services has hired Brett Maher as Business Development Manager – Adelaide. In this role, Mr. Maher will be responsible for growing the company’s business in the Adelaide area, with a particular focus on the industrial market.

Korn/Ferry Hires Robert Rozek as Chief Financial Officer.

Korn/Ferry International, the world’s largest provider of executive search, has hired Robert Rozek as the firm’s new CFO. Mr. Rozek has extensive finance experience and most recently served as EVP and CFO at Cushman & Wakefield. Previously he also spent time at Las Vegas Sands Corp., Eastman Kodak, and PwC. In this role Mr. Rozek succeeds Mike DiGregorio, who previously decided to leave the firm to pursue other interests. Please see our 2/22 KFY note “Perspective on CFO Transition” for additional details/analysis.

HCS News


March 2012

Korn/Ferry Hires Global Managing Director for Technology Practice. Korn/Ferry has also announced the hiring of Werner Penk as Global Managing Director of the company’s Technology Practice. Mr. Penk is a very seasoned executive within the technology industry, with nearly 30 years of experience, and most recently served as a leader of Heidrick & Struggles’ technology practice. Previously, he also spent time at Russell Reynolds, Micrologica AG, and Siemens AG.

Korn/Ferry Hires Senior Client Partner in Real Estate Practice.

Korn/Ferry also announced the hiring of Robert Mayes as a Partner in the company’s North America Real Estate Practice. Mr. Mayes joins Korn/Ferry from Russell Reynolds, where he served a wide range of public and private real estate clients.

Resources Global Hires Radgia Cook, Expands Healthcare

Practice. Resources Global Professionals, the operating entity of multi-national professional services firm Resources Connection, has hired Radgia Cook as President of the firm’s Healthcare Solutions practice. Ms. Cook has over 22 years of experience and most recently worked at ACS, a subsidiary of Xerox. In addition, Resources has hired a team of healthcare IT and compliance professionals to work with Ms. Cook to build out the new Healthcare Solutions division.

SourceRight Names Karen Turner VP of Product Development

and Strategy. SourceRight Solutions, a Randstad company that provides RPO and workforce solutions, has appointed Karen Turner to the newly appointed role of Vice President of product development and strategy. Ms. Turner joined SourceRight in 2006 and most recently served as VP of strategic talent optimization. Prior to joining SourceRight, Ms. Turner served as a VP at ZeroChaos, a leading provider of VMS and contingent workforce solutions.

Towers Watson Hires Head of Change Management in the UK.

Towers Watson, a leading provider of human capital and financial services consulting, has hired Phil Merrell as Director of Change Management in the UK. Mr. Merrell has over 25 years of experience, including time spent at Penna, BBC, and the NHS. In his new role at Towers Watson, Mr. Merrell will be focused on M&A, business transformation, and performance improvement for the company’s UK business.

Towers Watson Hires Three Senior Risk Consultants. Towers

Watson has also announced the hiring of three life insurance veterans in the company’s UK risk consulting business. The three individuals hired are Tim Bateman, Peter Murphy, and Miles Stanhope. Mr. Bateman joins Towers Watson from Equitable Life and will be based in London; Mr. Murphy comes to Towers Watson from Lloyds Banking

Group and will be based in Manchester; and Mr. Stanhope joins Towers Watson from PwC.

Workday Hires Two Executives. Workday, Workday, a provider of

SaaS-based business enterprise solutions with a primary focus on the HCM suite including HRMS/payroll, has hired two new executives to help support the company’s rapid growth. First, Debi Hirshlag has been added as Vice President of Human Resources. Ms. Hirshlag most recently served as VP of worldwide HR at Flextronics, where she also led the company’s deployment of Workday (one of the largest Saas-based core HR rollouts to date). In addition, Workday hired Jim Shaughnessy as Vice President, general counsel, and secretary. Mr. Shaughnessy has over 25 years of legal experience including time at Compaq Computer Corp., HP, Lenovo Group, Orbitz Worldwide, and PeopleSoft.

Merger and Acquisition Activity

On Assignment to Acquire Apex Systems for $600 Million. On

Assignment, a diversified international professional staffing firm, has signed an agreement to acquire Apex Systems, one of the largest and fastest-growing domestic IT staffing firms, for $600 million in a cash and stock deal. Under terms of the agreement, ASGN will pay $383 million in cash and $217 million in newly issued stock. Apex Systems generated 2011 revenues of $705 million (vs. ASGN at $597 mn), with an adj. EBITDA margin of roughly 9.2% (close to ASGN at 9.9%). Following the transaction On Assignment will run Apex as a (mostly-independent) business within the ASGN portfolio, and the combined entity will be one of the largest IT staffing companies in the U.S. On a pro forma basis, the combined businesses generated 2011 revenues of approx. $1.3 billion, with roughly 75% coming from IT & Engineering. Please see our 3/21 note – “Positive View on Materially Accretive Acquisition; Raising Price Target” for a full review of this transaction.

Kforce Agrees to Sell Clinical Research Business for $50 Million. Kforce, a national provider of professional and specialty staffing services, has entered into a stock purchase agreement to sell its Clinical Research (“KCR”) business to inVentiv Health for $50 million in cash. The KCR business generated 2011 revenue of $106.2 million and ’11 gross profit of $28.6 mn (26.9% GM vs. company avg. of 31.2%), representing 10% of total KFRC revenue and 8% of total gross profit. inVentiv Health is a leading global provider of healthcare services, with 13,000 employees in 40 countries. The transaction is expected to close by the end of March and Kforce plans to use the proceeds to pay down debt, repurchase common stock, invest in infrastructure, and/or marke strategic acquisitions. Robert W. Baird acted as sole strategic advisor to Kforce in this transaction. Please see our 3/19 note “Positive View

HCS News


March 2012

on Announced Sale of Clinical Research Division” for additional details and disclosures.

ADP to Acquire HR Solutions Subsidiary of SHPS. ADP, a leading

provider of payroll processing and business outsourcing solutions, has agreed to acquire the HR solutions subsidiary of SHPS, a provider of benefits administration solutions. This business is based in Louisville, KY with approx. 840 employees and provides benefits eligibility and enrollment, spending accounts, COBRA, absence management, benefits advocacy, and print and fulfillment. ADP expects the acquisition to close during CQ1 of 2012. Terms of the agreement were not disclosed.

Oracle Receives Early Approval by FTC in Pending Taleo

Acquisition. Oracle, a leading global provider of business hardware and software systems, has been granted early approval by the U.S. FTC in its pending acquisition of Taleo. On February 9, Taleo and Oracle announced the acquisition, where Oracle agreed to acquire Taleo for $46/share, representing a total enterprise value of $1.9 billion. Taleo is a leading provider of SaaS-based talent management solutions, with over 5,000 clients worldwide. The $46/share offer price represents 5.1x EV/unrevised RWB ’12E revenue, and is roughly consistent with Oracle’s acquisition of RNOW in October for approx. 5.5x EV/’12E revenue (which marked the company’s first major SaaS acquisition). In addition, this acquisition follows SAP’s acquisition of SuccessFactors, which was originally announced in early December, and we would expect the consolidation within the SaaS/talent management space to continue at a rapid pace. The acquisition has been unanimously approved by Taleo’s Board and is expected to close in mid-2012. Please see our 2/9 note “ORCL to Acquire for $46/share” and our 2/10 note “Downgrading to Neutral; Additional Thoughts Post-ORCL Announcement” for additional details/analysis.

SAP Completes SuccessFactors Acquisition; Shares of SFSF no longer trade. SAP, a leading global provider of enterprise application software, has completed its acquisition of SuccessFactors for $40/share. Previously, on December 16 SAP entered into an agreement to acquire SuccessFactors, a leading provider of SaaS-based business execution (BizX) software solutions, for $40/share in cash (representing a total enterprise value of $3.4 billion). This acquisition signals SAP’s aggressive expansion into the HCM SaaS market, and was recently followed by Oracle’s acquisition of Taleo (see bullet directly above). We discontinued research coverage of SFSF on February 27 – please see our note “Discontinuing Coverage; Acquisition by SAP Completed” for additional details.

LinkedIn Acquires Rapportive. LinkedIn, the world’s largest

professional network on the Internet, has acquired Rapportive, which

provides a Gmail plug-in designed to integrate users’ social network/contacts with their email accounts. Terms of the acquisition were not disclosed. However, in LinkedIn’s annual 10-K filing, which was filed March 2, the company disclosed it had made two small acquisitions for a total of $7.3 million during Q1 of 2012 (it was not explicitly stated that Rapportive was one of these two acquisitions, though it appears Rapportive was acquired mid- to late-February and the 10-K was filed on March 2).

Cornerstone OnDemand to Acquire Sonar6. Cornerstone

OnDemand, a leading SaaS-based provider of learning and talent management solutions, has entered into an agreement to acquire Sonar Limited (“Sonar6”) for approx. $14 million. The consideration includes approx. $13 million in cash and $1 million in equity, and the CSOD does not expect the transaction to have a material impact on its non-GAAP financial metrics in 2012. Sonar6 is a leading provider of SaaS-based talent management solutions, which provides a strong complement to Cornerstone’s leading, organically built, talent management suite that has been developed for large- and mid-sized businesses. Following the acquisition, the Sonar6 products will be rebranded as a Cornerstone solution, but the two products will not be integrated, rather they will remain separate organically built solutions with a specific market focus (large/mid-sized clients for CSOD, and small businesses for Sonar6). The transaction is expected to close within 45 days of the announcement, which was originally made on March 8.

Miscellaneous Monster Hires Advisers for Review of Strategic Alternatives. On

March 1, Monster Worldwide (MWW) announced at the Baird Business Solutions Conference that while it is focused on the business, it is exploring all strategic alternatives to increase shareholder value. Subsequent to this announcement, on March 5 Monster announced it has retained financial advisers to review its strategic alternatives. The advisers that were hired are Bank of America Merrill Lynch and Stone Key Partners. While we believe a sale of the company is possible, we believe it is just one of several possible “strategic alternatives,” and in our view management is actively exploring all opportunities. Please see our 3/21 MWW note for additional details/analysis.

SAP and SuccessFactors Announce HCM Product Roadmap. SAP, a leading global provider of enterprise application software, and SuccessFactors, a leading provider of SaaS-based business execution solutions that was recently acquired by SAP, have recently announced a unified product roadmap for the companies’ human capital management (HCM) solutions. According to the two companies, SAP will “boldly invest” behind SuccessFactors Employee Central as the

HCS News


March 2012

core HR offering in the cloud. In the talent management suite, SAP will combine components of SAP ERP HCM with the following SuccessFactors modules: performance management, compensation, recruiting, Jam, and learning. SAP also intends to combine SuccessFactors’ analytics solutions with the SAP HANA platform and the SAP BusinessObjects portfolio.

Robert Half Recognized as Industry Leader on “World’s Most Admired” List. Robert Half International, the world’s largest specialized staffing service, has been ranked first in its industry on FORTUNE magazine’s annual “World’s Most Admired Companies” list. According to the report, Robert Half is an industry leader in areas such as innovation, people management, service quality, long-term investment value and financial soundness, among others.

Towers Watson Recognized as Industry Leader on “World’s

Most Admired” List. Towers Watson, a leading provider of human capital and financial services consulting, has also been ranked first in its industry on FORTUNE magazine’s annual “World’s Most Admired Companies” list. According to the report, Towers Watson is the industry leader in areas such as innovation, people management, quality management, financial soundness, and global competitiveness. This is the first time that Towers Watson has received this prestigious recognition.

Heidrick & Struggles Partner David Boehmer Named “Young

Global Leader.” Heidrick & Struggles, a leading provider of executive search and leadership advisory services, announced that David Boehmer has been named a Young Global Leader (YGL) by the World Economic Forum (WEF). Mr. Boehmer is a Partner at Heidrick’s Financial Services practice and Sector Leader in Consumer & Commercial Banking. In 2012, the WEF selected 192 Young Global Leaders from 59 countries worldwide.

Hudson Highland Recognized for Exceptional Customer Service. Hudson Highland Group, an international professional staffing firm, has been recognized on Inavero’s “2012 Best of Staffing” Client and Talent lists. This annual list is presented annually in partnership with CareerBuilder, and is designed to highlight staffing industry leaders in client satisfaction. The 2012 survey was based on responses from 454,000 clients, interim employees, and placed candidates.

Fieldglass CEO Receives Staffing Innovator Award. Jai

Shekhawat, CEO of leading VMS provider Fieldglass, has been presented with the 2012 Peter Yessne Staffing Innovator Award by Staffing Industry Analysts at SIA’s annual Executive Forum. According to Barry Asin, President of Staffing Industry Analysts, “The growth and adoption of vendor management systems (VMS) has been one of the

most striking and enduring innovations in staffing over the past decade. Jai Shekhawat has been leading the cutting edge of that development. This innovation has shown how technology could be used to connect suppliers and buyers of contingent labor while increasing usage and quality.”

Paychex Named a Leading Training Organization. Paychex, a

leading provider of payroll and HR outsourcing solutions, has been named to Training magazine’s Top 125 list of outstanding training organizations. Paychex was ranked No. 35 in the 2012 report, which is based on quantitative and qualitative factors such as financial investment in employee development, the scope of development programs, and how closely such development efforts are linked to business goals and objectives. This is the 11th consecutive year that Paychex has been recognized on the Training magazine list.

TrueBlue Recognized for Leading Employee Health Policies.

TrueBlue, a leading provider of temporary blue-collar staffing services, has received Gold Standard accreditation from The CEO Roundtable on Cancer, a nonprofit organization designed to increase employers’ commitment to the health of employees and their families. In order to receive this recognition, a company must “establish programs to reduce cancer risk by discouraging tobacco use; encouraging physical activity; promoting healthy nutrition; detecting cancer at its earliest stages when outcomes may be more favorable; and providing access to quality care, including participation in cancer clinical trials.” TrueBlue is the first company in the state of Washington to receive this accreditation.

ManpowerGroup’s Hong Kong Business Receives Caring

Company Award. ManpowerGroup, the third-largest staffing firm in the world, announced that ManpowerGroup Hong Kong has received the Caring Company Award from several local NGOs and universities. This is the third time the company has received the award, and in 2012 Manpower received this recognition from the following entities: the Hong Kong Council of Social Service and the Award for Outstanding Society Contribution 2012, from the Capital CEO & Elite Entrepreneur Associations; and the Excellent Brand of Human Resources Consultancy under the Hong Kong Leaders' Choice Award 2012.

New Laws/Legislation/Rulings President Obama Signs Bill on Payroll Tax Cut. President Obama

has signed into law a bill that included an extension of payroll tax cuts through 2012. On Thursday, February 16th, Rep. David Camp and Sen. Max Baucus announced that Congress had reached an agreement on an extension of payroll tax cuts and benefits for the long-term

HCS News


March 2012

unemployed through the end of 2012. According to President Obama, this bill will prevent a 2% tax increase for approx. 160 million Americans. The timing of this addition to the deficit is not unexpected given this is an election year – likely not sustainable, in our opinion.

Product Launches and Partnerships SuccessFactors Forms Partnership with Benefitfocus.

SuccessFactors, a leading provider of SaaS-based business execution solutions that was recently acquired by SAP, has formed a partnership with Benefitfocus, a leading provider of online benefits management solutions. Through the partnership the two companies will integrate Benefitfocus’ “HR InTouch” solution for benefits management and enrollment with SuccessFactors’ Employee Central, the company’s cloud-based core HR system of record. Financial terms of the agreement were not disclosed.

Towers Watson Issued Two Patents for Financial Modeling

Solutions. Towers Watson, a leading provider of human capital and financial services consulting, has been issued to patents by the United States Patent and Trademark Office (USPTO) for the company’s new insurance tools. The two patents are related to Towers Watson’s Replicated Stratified Sampling (RSS) financial modeling technique for the insurance industry, which is designed to dramatically reduce run times for complex insurance calculations and to help industry executives better understand risks.

Covered Companies Research and News


March 2012

*Stock prices as of 3/22/12 closing price Research Notes by Company (See full research notes for additional details.) AMN Healthcare Services, Inc. (AHS-$5.68-Neutral)

Highlights from March 9, 2012, research note: Encouraging Trends in Key Nursing Segment Maintaining Neutral rating for now. Encouraged by solid trends in Nursing, driven by modestly improving environment combined with share gains driven by strong MSP business. Consolidated profitability improvements also encouraging as Medfinders integration has progressed well and AHS is able to leverage large market-leading MSP platform. Trends in Locum Tenens remained soft, leading us to slightly reduce estimates. Maintaining Neutral rating for now given our reduced estimates, but we believe valuation combined with turn in Nursing makes AHS a stock to watch.

EPS of $0.04 exceeded our in-line estimate of $0.03 on +8%

yoy increase in revenue to $222.1 mn, consistent with $219-223 mn guidance (adjusted to exclude discontinued ops).

Encouraging quarter for Nurse & Allied (largest segment). Revenue growth above-market at +16% yoy, driven by firming environment, solid execution, and share gains driven by leading MSP platform.

o Gross margin and EBITDA margins also highly encouraging -- delivered 12.2% segment EBITDA margin (highest since '08) vs. RWB-est. 10.2%.

Optimism tempered slightly by continued headwinds in Locum Tenens. Locum tenens revenue -7% yoy to $64.6 mn -- second consecutive quarter of yoy decline on pro forma basis.

Profitability improved materially. o Adj. EBITDA up $6 mn yoy on a $16 mn increase in revenue;

adj. EBITDA margin +240 bps yoy to 6.3% vs. RWB-est. 5.7%.

o Continues to target 10% adj. EBITDA margin over the next 3-5 years.

Q1 revenue guidance below prior expectations. o Revenue: $224 - 228 million, consensus was $234.0 million

and our estimate (which still included home healthcare) was $245.9 million. Ex-home healthcare, our estimate was $233.2 mn (and would have been roughly in line with an adjusted consensus).

o No formal EPS guidance; implied EPS ~$0.06 vs. $0.05 consensus.

Adjusting estimates slightly.

o 2012E EPS from $0.33 to $0.27 (consensus: $0.38). Cash earnings will be materially higher.

o Introducing our '13 EPS estimate of $0.41 (consensus: $0.54).

Net debt totals $205 million -- projected cash flow sufficient to address $28 million due this year (EPS includes multiple non-cash items).

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/434d5330-ab8d-41e9-931d-2b77abac7a28.pdf

Automatic Data Processing, Inc. (ADP-$55.05-Outperform)

We did not publish any research notes on ADP from Feb. 16 – Mar. 23.

Heidrick & Struggles International Inc. (HSII-$21.01-Neutral) Highlights from February 28, 2012, research note: Fin. Svcs. Exposure Offsetting Improving Expense Structure Maintaining Neutral rating. Encouraged by continued margin improvements, and recent cost actions could drive continued margin improvements in 2012. HSII also nearing end of ~2 years of "transition" related to elevated turnover and subsequent hiring, another positive. However near-term optimism is tempered by continued soft demand trends in parts of its financial services practice (particularly in Europe and Asia). Risk/reward balanced with reasonable valuation and improving margins offset by top-line headwinds.

Q4 results generally mixed relative to formal estimates.

o Revenue flat yoy at $127.2 mn vs. RWB/consensus of $132.8 mn/$133.2 mn.

o Revenue was below expectations in all three geographies; Europe and APAC experienced yoy cc declines.

However, there were a few encouraging elements, most notably the continued EBIT margin improvement (ex-charges).

o EBIT roughly in line despite the top-line weakness as HSII continues to aggressively manage opex; EBIT margins of 9.3% exceeded RWB-est. 9.0%.

o Restructuring actions taken in Q4 (incurred $16.3 mn charge in Q4) expected to yield an additional $20-25 mn in savings on an annualized basis.

o Adj. EPS ~$0.36 (ex-restructuring and assuming "normalized" tax rate) vs. $0.28, below our $0.38 estimate/$0.40 consensus.

Confirms (leading indicator) decline materially in Q4, but early Q1 more encouraging -- confirmed searches declined by



March 2012

10% yoy during Q4, down sharply from +8% in Q3. However it appears confirms bounced back in Jan/Feb (likely returned to yoy growth in Feb).

Q1/2012 guidance roughly in line with our prior expectations, below consensus estimates.

o Revenue: $105-115 mn; our prior estimate was $112.6 mn, consensus was $120.7 mn. No guidance on Q1 margins/EPS.

o 2012 revenue: $510-540 mn; our prior estimate was $537.7 mn, consensus was $543.2 mn. EBIT margin: 7-9% (management adjusts expenses/bonuses to achieve annual targets); our prior estimate was 7.5%.

Encouraged by margin progress in 2H-11 and HSII positioned for continued margin expansion in 2012, though optimism tempered by macro headwinds in several key end markets.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/9abb19e6-1b04-43de-b7c2-1cc6f82ecda0.pdf

Hudson Highland Group Inc. (HHGP-$5.19-Neutral)

Highlights from February 24, 2012, research note: Near-Term Headwinds Delaying Improvement

Maintaining Neutral rating. While there are signs of progress on strategic initiatives, overall Q4 results/Q1 guidance were lower than modeled driven by a combination of European headwinds and softening in the banking sector globally. Reducing estimates to reflect macro/vertical-specific challenges. Longer term, HHGP continues to make progress on several key initiatives that position the company for profitable growth once near-term headwinds subside. Valuation appears balanced -- near-term challenges balanced by longer-term potential earnings power.

Q4 results below guidance/consensus due to worsening

cyclical headwinds in Europe and parts of Asia as quarter progressed:

o Revenue: +2% yoy (+1% cc) to $222.7 million, below the guidance range of $225-240 million and below our estimate/consensus.

o EBITDA up materially yoy to $6.0 million, though solidly below our in-line $7.5 million estimate (guidance was $6-9 million), due largely to the top-line shortfall.

o EPS: $0.10 vs. $0.04, below our $0.13 estimate. Top-line results mixed by region -- Americas showing some

signs that some strategic initiatives are starting to bear fruit. o Americas revenue +8% yoy; progress in Legal and RPO is

encouraging. However EBITDA actually declined on a yoy basis, from $2.4 mn to $1.2 mn (RWB-estimate $2.4 mn).

o However, Europe decelerated, from +14% yoy cc to +2%, reflecting tougher headwinds in Europe (particularly banking in UK). EBITDA materially improved on a yoy basis, though came in at $1.1 mn vs. our $2.2 mn estimate.

o Asia Pacific (previously reported as two segments, ANZ and Asia) actually declined on a yoy basis by 1.2% (-3% yoy cc) to $83.2 mn reflecting pullback by global banking clients, solidly below our $95.8 mn estimate.

Q4 weakness persisting into Q1 -- guidance below prior expectations:

o Revenue now expected to decline 4-8% (implies $201-210 mn vs cons. of $234 mn) and with EBITDA roughly breakeven (consensus was $4.37 mn).

Balance sheet improved -- net cash/share = $1.06.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/e99dd38f-03f8-4388-91d0-2c899b621c26.pdf

Insperity Inc. (NSP-$29.75-Neutral)

We did not publish any research notes on NSP from Feb. 16 – Mar. 22.

Kforce Inc. (KFRC-$14.25-Outperform)

Highlights from March 19, 2012, research note: Positive View on Announced Sale of Clinical Research Division

Incrementally positive following announced sale of Kforce Clinical Research. KFRC has agreed to sell KCR for $50 million cash. Announcement not surprising, in our view, given ongoing changes/developments in clinical research market and KFRC has previously disclosed that the company was pursuing all strategic alternatives with regard to this division. Maintaining Outperform rating as this business was not material to our investment thesis (though its sale removes a sentiment overhang), and our estimates are unchanged pending completion of the sale.

Agrees to sell Kforce Clinical Research ("KCR") for $50

million in cash to inVentiv Health. o Plans to use proceeds to pay down debt, repurchase stock,

invest in infrastructure, and/or pursue strategic acquisitions. Sale price appears to represent 1.75x EV/RWB-estimate of '11 gross profit (KFRC currently trading at 1.6x EV/'11 GP).

o Vast majority (if not all) of KCR was internally built, thus tax shields on gain likely minimal.

o KFRC ended 2011 with $50.2 mn in net debt and approx. $84.2 mn remaining on its share repurchase authorization.



March 2012

Transaction not surprising given ongoing changes/developments in clinical research market, and KFRC 10-K disclosure (reiterated at investor conference) that KFRC was "pursuing all strategic alternatives" for this division.

o Segment had weighed on sentiment given client concentration (largest KCR client represented 50.5% of 2011 KCR revenue, 4.8% of total KFRC revenue) -- sale removes overhang, and thus a positive.

KCR represents less than 10% of consolidated GP and not strategic to rest of business.

o 2011 segment revenue/GP $106.2 mn/$28.6 mn -- represents 10% of total revenue and 8% of GP.

o Segment gross margin 26.9%, below company avg. of 31.2%.

RWB estimates unchanged at this time, pending closing of the transaction (expected by end of March). KCR represented 7% of gross profit in our previous '12 estimates.

Robert W. Baird acted as sole advisor to Kforce in this transaction.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/8c29e92d-93a4-4e4c-9838-6081e76d91bd.pdf

Korn/Ferry International (KFY-$15.45-Neutral)

Highlights from March 8, 2012, research note: Difficult Environment Continues to Weigh on Results/Outlook

Reducing estimates slightly, maintaining Neutral rating. FQ3 results and FQ4 guidance below consensus expectations (similar dynamic to last quarter). Company-specific execution remains solid, though persistent macro headwinds continue to weigh on top-line results. While we remain constructive on KFY long term and valuation relative to mid-cycle earnings power appears attractive, near term we are maintaining our Neutral rating given slightly reduced estimates and environmental challenges that may persist for some time.

FQ3 results below formal expectations in most aspects.

o Revenue -1% yoy cc to $186.0 mn; our estimate was $192.2 mn, consensus was $194.7 mn, and guidance was $183-203 mn.

o EPS (ex-minor restructuring adjustment of ~$0.01) of $0.26 vs. $0.30, below our in-line $0.31 estimate.

Company-specific execution remains solid, and KFY seems well positioned longer term. Continues to face near-term macro headwinds, but longer-term positioning improved given: KFY continues to gain traction with LTC and Futurestep, clients

increasingly using multiple service lines, and consultant productivity has consistently increased.

Confirms (key leading indicator) decelerate materially in FQ3, though have shown signs of stability recently. Confirmations (new engagements) decreased by 5% yoy during FQ3 vs. +3% yoy in FQ2. Encouragingly, Jan. confirms were up from Dec., and Feb. was relatively flat from Jan.

FQ4 guidance below prior RWB/consensus estimates. o EPS: $0.24-0.30 (ex-non recurring comp. costs) vs. our in-

line $0.31 estimate. o Revenue: $182-196 million vs. $200.2 million

consensus/$195.6 million Baird-est. Cash continues to build -- roughly $3.95/sh in net cash available

to shareholders (after adjusting for deferred comp, bonuses, etc.).

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/e51ddacf-0bb5-4f1b-8bb9-c5ff605aba86.pdf

Highlights from February 22, 2012, research note: Perspective on CFO Transition

Maintaining Neutral rating, fundamental outlook unchanged following CFO transition. Our view is that management turnover, particularly at the CFO position, is not unusual at executive search firms and our fundamental view of KFY is unchanged. Specific timing of this announcement a slight surprise, though we are confident it has nothing to do with financial/accounting controls (i.e., it is not related to a material negative financial event). Our estimates/rating/target are unchanged at time.

Robert Rozek hired as new CFO -- joins KFY from Cushman &

Wakefield, where he served as CFO for past ~4 years. o Prior to that, he served as CFO of Las Vegas Sands for two

years, and previously spent time at Eastman Kodak and as a Partner at PwC.

o Mr. Rozek's background is encouraging given strong international exposure and he worked at a firm with a large people component.

Incumbent CFO decided to step down -- Mr. DiGregorio decided to leave to "pursue other interests." We are confident the transition is not related to any material negative financial event -- more likely a function of typical historic turnover pattern for this position in this industry.

Not unusual occurrence -- CFO turnover level within the executive search industry as been elevated for at least 12 years. Industry has some unique challenges including personal dynamics with producing consultants (different from command-and-



March 2012

control management situations). Role also requires global travel, and the industry is highly cyclically sensitive.

o For perspective, Mr. Rozek will be the fifth person to serve as CFO since we started covering the firm in 2000. HSII has also had five CFOs over roughly the same time period.

No change in outlook on KFY at this time -- transition has likely been in the works for some time given Mr. Rozek's credentials. Our expectation is that cyclical dynamics remain challenging in some geographies/verticals consistent with industry/macro news flow.

Transition should be smooth as KFY's CEO previously served as CFO and the number-two person in the finance department has been with KFY for >13 years (well known internally/externally).

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/07d4219f-be2e-4081-8ec4-b0d08960bc56.pdf

ManpowerGroup (MAN-$45.47-Outperform)

We did not publish any research notes on MAN from Feb. 16 – Mar. 22. Monster Worldwide, Inc. (MWW-$9.49-Outperform)

Highlights from March 23, 2012, research note: Upgrading to Outperform

Upgrading to Outperform. After maintaining a Neutral rating since June 2006, we are upgrading MWW to Outperform as we view risk/reward from current levels as being positively skewed. We believe current valuation is still modest at roughly depressed 9.3x 2012 EBITDA and 7.7x 2013E EBITDA, while recent announcement of exploration of strategic options represents positive option value.

Yesterday we attended MWW's innovation day in New York --

we came away encouraged following Monster's innovation day, and we believe risk/reward is skewed more positively at current levels.

While we have long noted significant competitive challenges, we've also noted Monster's many positives, including strong brand recognition, well-established No.1 or No.2 franchise with recruiters across the globe (includes a wide range of both developed and emerging markets), multiple technical innovations, and robust infrastructure with well-established global sales force.

At the innovation day, MWW provided more details regarding significant investments that have depressed margins in the near to intermediate term, but should pay off longer term; includes investments behind SeeMore as well as international expansion into new markets such as China, Latin America, and Turkey.

o These investments could be terminated to materially increase short-term profitability, but strategically makes sense to continue to invest in a disciplined fashion.

o SeeMore, MWW's semantic search tool, is an under-appreciated and under-leveraged tool but still in its early stages of introduction. While sales cycles are long, implemented clients that we've spoken to view it as providing superior search technology.

We increased our FCF estimates earlier this week -- no new estimate changes at this time.

Increasing price target to $15 -- reflects 12.3x still investment-depressed '13E EBITDA. Within historic multiple range (stock has traded in a very wide range; during last expansion ranged from 10-30x) and not a stretch given high-margin, highly recognized brand, with several attractive businesses/pieces. In addition MWW has the option value inherent in exploration of strategic alternatives. While portions of the business do face challenges, multiple aspects of the business are attractively positioned (both in terms of geographies and technologies).

Suitability to Speculative Risk -- our call is somewhat speculative in nature, with a higher level of risk in that it somewhat depends on some positive development from Monster's exploration of strategic alternatives. A less than fruitful outcome from the effort would likely lead to a significant short-term pullback reflecting a perceived lack of value.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/06e27e91-2fa9-4e03-9ab8-b967a15eb20f.pdf

(Note: our $15 price target reflects 12.3x still-depressed '13E EBITDA. Within historic multiple range [stock has traded in a very wide range; during last expansion ranged from 10-30x] and not a stretch given high-margin, highly recognized brand, with several attractive businesses/pieces. Also a higher multiple than we had previously assigned given greater appreciation for scope of strategic alternatives and several encouraging aspects on the technology/innovation front that were discussed at the innovation day. In addition MWW has the option value inherent in exploration of strategic alternatives. While portions of the business do face challenges, multiple aspects of the business are attractively positioned [both in terms of geographies and technologies]. Key risks include competitive risk/technological displacement, potential for exploration of strategic alternatives to prove unfruitful, ability to attract and find quality candidates, highly cyclical business, and execution risk).

Highlights from March 21, 2012, research note: Balanced Perspective Ahead of Innovation Day

Providing perspective on fundamentals and potential strategic alternatives ahead of MWW's innovation day.



March 2012

Monster plans to host a technology and innovation day on 3/22 – This research note provides a perspective on MWW's fundamentals and potential strategic alternatives ahead of the event.

Fundamental performance/outlook mixed by geography, though MWW's portfolio includes several attractive businesses.

MWW's Careers - International division (43% of total revenue) has generated 22% revenue CAGR over past seven years despite going through one of the worst downturns since the Great Depression.

Within the international portfolio MWW has also developed several very attractive pieces -- e.g., MWW has No. 1 market position in Germany, its Korean business generates ~$25 million in EBITDA, and it also generates ~$14-15 million in EBITDA from India (all growing rapidly).

Domestically, MWW certainly faces a wide range of competitive challenges, though in our opinion job boards are not simply going away anytime soon. Key challenge domestically is commoditization of job postings. Monster still a leading U.S. provider, though longer-term competitive and pricing pressures remain elevated. While questions/uncertainties remain, MWW has introduced several competitive responses (detailed further below).

Strategic alternatives -- very wide range of possibilities. On March 1 at the Baird Business Solutions Conference MWW announced that while it is focused on the business, it is also exploring all strategic alternatives to increasing shareholder value. Our view is that this truly means the company is exploring all strategic alternatives -- while an outright sale of the company is possible, it is not the only option being pursued, and in our opinion it would be a mistake to simply assume the company is up for sale.

Strategic alternatives could include (among others): sale of the company to wide range of financial/strategic/private buyers, sale of part of the company (geographies or technologies), or JV in emerging markets or technologies.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/5651cd73-66de-4e7f-9166-49bfdf539162.pdf

Highlights from March 21, 2012, research note: Fine-Tuning Estimates

Fine-tuning estimates following additional analysis and raising our price target. We continue to expect modest revenue declines in 2012, driven largely by cyclical weakness in Europe. We would also expect operating margins to decline given the top-line headwinds, though the business should continue to support 50%+ incremental EBITDA margins in a modest revenue growth environment. Maintaining Neutral rating.

Fine-tuning our estimates following additional analysis.

o 2012 EPS estimate remains $0.24 and our 2013 EPS estimate remains $0.39.

o We fine-tuned our capex and non-cash comp estimates -- our 2012 FCF estimate is fine-tuned to $0.70 per share and our 2013 FCF estimate is increased to $0.98.

o Please see our most recent MWW model for our full assumptions.

Raising price target to $11; maintaining Neutral rating for now. We are raising our price target to $11 reflecting our higher FCF estimates and increased option value of MWW's stock following its announcement on March 1 at the Baird Business Solutions Conference that while it is focused on the business, it is also exploring all strategic alternatives to increasing shareholder value. Our price target of $11 reflects an EV/'12E EBITDA of 9x and 1.25x revenue -- reflects a blend of very recent historic range (five-year average 9.9x and 0.7x, respectively) combined with possibility of some form of strategic alternative coming to fruition (wide range of potential possibilities are likely being explored).

o We plan to publish a more comprehensive perspective on MWW in the near future.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/8fc5bb52-5d0b-4832-87b2-05a05ed61221.pdf

(Note: our $11 price target reflects a blend of very recent historic multiple range [five-year average 9.9x and 0.7x, respectively] combined with the possibility of some form of strategic alternative coming to fruition [wide range of potential possibilities are likely being explored]. Key risks include competitive risk/technological displacement, ability to attract and find quality candidates, highly cyclical business, and execution risk).

On Assignment, Inc. (ASGN-$17.06-Outperform)

Highlights from March 21, 2012, research note: Positive View on Materially Accretive Acquisition; Raising Price Target

Recommend Purchase of ASGN; positive view on announced acquisition of leading IT staffing firm for $600 million. ASGN announced an agreement to acquire Apex Systems, a leading domestic IT staffing provider generating $705 million in revenue, for $600 million in a cash and stock deal. Valuation not inexpensive, but appears reasonable for rapid grower in very attractive IT staffing market. Maintaining Outperform rating, and increasing price target reflecting accretion from transaction as well as enhanced market profile.

Agrees to acquire Apex Systems for $600 million (expected

close end May).



March 2012

o Consideration includes $383 million in cash and $217 million in newly issued stock.

o Apex generated approximately $705 million in '11 revenue (vs. $597 million for ASGN), with adjusted EBITDA of approximately $65 million (roughly 9.2% adjusted EBITDA margin, close to ASGN's 9.9% margin).

o Implied multiple of 9.2x EV/'11 EBITDA (closer to 7.7x LTM if assuming full cash tax savings).

o Post-deal debt increases to $490 million (3.75x EBITDA) at an attractive price -- cash flow likely to reduce debt load quickly.

Multiple Positives -- Increasing Our Target Price: Apex a high-quality, rapidly growing top-six IT staffing firm.

Little overlap, differentiated positioning from ASGN's Oxford staffing works well within On Assignment structure, will make for smooth integration.

Highly accretive, materially increases earnings power. While we won't adjust our formal estimates until deal closes, our '13E GAAP EPS could increase to the $1.10 to $1.30 range, and cash EPS (adjusting for tax shield) could be in the $1.55 to $1.75 range without the benefit of cost synergies (will be realized slowly).

Raises ASGN's market profile materially. Combined ASGN+Apex generated 2011 revenues of $1.3 billion (75% IT/Engineering) with a 9.7% adj. EBITDA margin. Will now be one of the top firms in the rapidly growing IT staffing market.

Scarcity value/increased attractiveness of ASGN in consolidating market. Industry has been consolidating (particularly IT staffing). The number of high-quality, sizable players in IT market is rapidly shrinking. We view transaction as a positive for KFRC, as well.

Maintaining Outperform rating, increasing 12-month price target to $19. New price target reflects EV/potential '13E EBITDA of 10.4x (similar to private market valuations).

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/807b06dd-0a3e-4ca3-8286-88babe2bb6fb.pdf (Note: our new $19 price target reflects an EV/’13E potential post-acquisition EBITDA multiple of 10.4x, consistent with private market valuations. Key risks include highly cyclical business, secular trend toward VMS/MSP, risk of overpaying for acquisitions, integration risk, difficulties in travel nursing and locum tenens markets, and the company is currently operating with multiple back-office systems).

Paychex Inc. (PAYX-$31.98-Outperform)

We did not publish any research notes on PAYX from Feb. 16 – Mar. 22. Resources Connection Inc. (RECN-$12.92-Neutral)

We did not publish any research notes on RECN from Feb. 16 – Mar. 22.

Robert Half International Inc. (RHI-$30.18-Outperform)

We did not publish any research notes on RHI from Feb. 16 – Mar. 22. SuccessFactors, Inc. (SFSF-N/A-Not Covered)

Highlights from February 27, 2012, research note: Discontinuing Coverage; Acquisition by SAP Completed

We are discontinuing coverage of SFSF. The acquisition of SFSF by SAP has been completed and shares of SFSF no longer trade. Investors should no longer rely upon our last published estimates or rating when making an investment decision regarding the company. Prior to discontinuation of coverage, we were Neutral-rated.

Discontinuing coverage of SFSF. We are discontinuing our

coverage of SFSF due to the completion of the previously announced acquisition of the company by SAP.

o Deal was originally publicly announced on December 3, tender offer dated December 16.

o Tender offer was successfully completed on February 15, with 81.7 million (95.5%) of shares validly tendered.

o Remaining shares canceled and converted into the right to receive the same $40/share in cash through short-form merger completed February 23, as expected.

Consideration. SAP acquired all of the outstanding shares of SFSF at a fixed price of $40.00 per share in an all cash deal (total consideration = $3.9 billion).

Previously Neutral-rated. Prior to discontinuation of coverage, we rated shares of SFSF Neutral.

o Baird does not provide research coverage on SAP.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/de60ef13-cfd9-474d-94c4-1726e687515a.pdf

Taleo, Inc. (TLEO-$45.92-Neutral)

We did not publish any research notes on TLEO from Feb. 16 – Mar. 22. Towers Watson & Co. (TW-$65.14-Neutral)

We did not publish any research notes on TW from Feb. 16 – Mar. 22.



March 2012

TrueBlue, Inc. (TBI-$17.00-Outperform)

We did not publish any research notes on TBI from Feb. 16 – Mar. 22.

Ultimate Software Group Inc. (ULTI-$72.12-Neutral)

We did not publish any research notes on ULTI from Feb. 16 – Mar. 22.

Labor Market Overview


March 2012

Domestic labor market continues to show slow, steady improvements. Several domestic labor market indicators showed signs of further in February/March, building upon a trend of slow yet steady improvements that has developed over the past 5-6 months. While global economic risks remain elevated, and clearly the situation in Europe remains difficult, most U.S. labor market data has continued to improve throughout early 2012. The ADP Employment report for February showed an increase of >200k private sector jobs – the sixth straight increase of >100k private sector jobs – while initial jobless claims remain near levels consistent with steady job growth, and the Monster Employment Index showed a solid increase (suggesting more companies are advertising job openings). One slight negative is the ISM Manufacturing Index showed deceleration, and several of the forward-looking subcomponents ticked down, though the indices remain firmly in expansion territory. In addition, we recently hosted nearly 20 staffing/recruiting/outsourcing companies at the Baird Business Solutions Conference and the general sense among nearly all of the business leaders was that the domestic labor market continues to steadily improve (while international trends are more varied by region, discussed in further detail below). To be clear, the pace of improvement in the U.S. still remains modest, but the steady improvements are encouraging nonetheless. Below we provide a quick summary of the key labor market data points released in February. Baird Composite Employment Index continues to show steady improvements. Given that the headline BLS numbers are subject to material revisions, and the headline employment numbers can be quite volatile, we advise focusing on the underlying trends in employment rather than a single headline number. As a result, we have created the Baird Composite Employment Index in order to incorporate a more comprehensive set of surveys and eliminate the impact of one-month volatility in the reported employment numbers, as well as the impact of temporary Census workers. Our indicator suggests the trend improved to 280,000 jobs created in February, up from +262k in January, and the strongest performance since ’06.

Figure 1

Source: BLS, ADP Employment Report, Baird

February BLS Employment Report The February employment report was consistent with several other data points released recently that continue to show solid, steady improvement in the U.S. labor market. The data should be viewed as a positive data point for domestically focused staffing companies (including RHI, ASGN, TBI, and KFRC) given that the domestic staffing employment has now accelerated for two months in a row. The data should also be viewed as a positive for payroll processing companies (including ADP, PAYX, and ULTI) in that it does suggest that not only employment is picking up, but that also new business formations may be finally rebounding (based on the stronger household data).

Non-farm payrolls showed an increase of 227k jobs in February, above the Bloomberg consensus of +210k. Revisions to prior months’ data added 20k jobs to December, and added 41k jobs to January.

On a yoy basis, the rate of growth ticked up from to +1.54% to +1.55%, and nonfarm employment growth has now remained >1% for eight consecutive months (for the first time since July ’07).

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March 2012

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The unemployment (UE) rate remained flat at 8.3%, in line with consensus.

The decline in the UE rate was driven by a 48k increase in the number of unemployed (per the household survey), while the number of employed persons in the civilian labor force increased by 428k (+1.28 million in the past two months). The civilian labor force also increased by 476k (follows +508k last month).

The average hourly workweek (another of the more forward-looking indicators) increased by 0.1 to 33.8 hours (for production/nonsupervisory employees) and remained flat at 34.5 (for all employees on NF payrolls).

The average manufacturing workweek increased by 0.1 to 41.9 hours and overtime hours increased by 0.1 to 4.3.

Temp help services employment increased by 45.2k, the largest sequential increase since January ‘10. Temp help services employment has now increased sequentially for eight consecutive months, and by >30k for two straight months.

o December: +18.7k o January: +32.1k o February: +45.2k

Temp employment yoy growth accelerated to +9.5% vs. +8.1% in January (the 25th consecutive month of yoy growth).

The temp penetration rate also ticked up and now stands at 1.86%.

In total, the economy added 339k THS jobs during 2010 (avg. +28.2k per month), 167k THS jobs in 2011 (avg. +13.9k per month), and has averaged +38.6k for the first two months of ‘12.

The Government sector shed 6k jobs, following -1k last month. Federal employment decreased by 7k, State government employment declined by 1k jobs, and Local governments added 2k jobs.

The U-6 unemployment rate, which includes all unemployed individuals plus marginally attached workers and those employed part time for economic reasons, decreased 20 bps to 14.9% (lowest level since January ’09; the cyclical high was 17.4% in October ’09).

Figure 3

Source: BLS

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March 2012

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Other US Economic/Labor Market Data

ADP Employment Report

The ADP Employment Report showed an increase of 216k private sector jobs, in line with consensus of +215k. The ADP report has now showed private sector employment growth for 25 consecutive months, with growth >100k jobs for six straight months.

Employment growth continues to be driven by small and mid-sized employers, while large businesses (>499 employees) showed slight growth in employment:

o Small business (1-49 ees) added 108k jobs – now up 439k jobs in the past four months.

o Medium businesses (50-499 ees) added 88k jobs. o Large businesses (>500 ees) added 20k jobs.

Service-providing industries added 170k jobs, while goods-producing added 46k jobs.

As a reminder, ADP pays 1:6 private sector employees in the country and has very good data (arguably superior to the BLS data).

Figure 6

Source: ADP Employment Report

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March 2012

Monster Employment Index

The Monster Employment Index, which is not seasonally adjusted, increased from 133 to 143 in February.

This index has increased sequentially in February for nine straight years, and the sequential increase of 7.5% appears to be slightly better than the “typical” seasonal change – over the prior eight years the average sequential change in February is +4.3%, with a range of +1.7% to +8.8%.

Yoy growth accelerated slightly, from +9.0% to +10.9%. As a reminder, the MEI measures job postings across the web, including, but not limited to, Monster.com.

Figure 7

Source: Monster Worldwide

Challenger Gray and Christmas Challenger layoffs decreased slightly from 53,486 in January to 51,728

in February. However, we would note that layoffs can be volatile from month-to-

month and layoffs still remain low relative to historical levels. On a yoy basis, layoffs increased by 2% vs. +39% yoy in January,

driven by an easier comparison (January through March ’11 went 38k, 51k, 41k).

Figure 8

Source: Challenger, Gray & Christmas

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ISM Manufacturing Index

The ISM Manufacturing Index decreased from 54.1 in January to 52.4 in February, below consensus of 54.6.

The new orders sub-component (a leading indicator) also decreased, from 57.6 to 54.9.

The Employment subcomponent ticked down slightly – from 54.3 to 53.2.

Figure 9

Source: ISM

ISM Non-Manufacturing Index

The ISM Non-Manufacturing PMI increased slightly from 56.8 in January to 57.3 in February.

The new orders sub-component also increased, from 59.4 to 61.2. The employment sub-component decreased from 57.4 to 55.7.

Figure 10

Source: ISM

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ISM Survey - Non-Manufacturing

Employment PMI



March 2012

Initial Jobless Claims

Initial jobless claims decreased from 366k to 351k in the week ended March 10, slightly below consensus of 355k.

In the most recent week, the four-week moving was unchanged at 355,750.

While jobless claims were volatile for most of ’11 and into early ’12, jobless claims have now remained relatively steady between 350-365k for six consecutive weeks. The four-week moving average has also been either flat or down in 13 out of the past 15 weeks.

Figure 11

Source: Department of Labor

International Labor Market Data Economic conditions remain soft in most leading economies, though the rate of deterioration is likely less than the headlines would suggest. Overall, the key economic/labor market indicators were mixed in February, which is not necessarily surprising given the wide range of macro headwinds and uncertainties facing leading economies worldwide. However, while the data remained varied across regions (e.g., Germany and Australia holding up relatively well, most of Western Europe declining), we would note that the pace of decline in these declining areas appears to be more modest than the headlines would suggest (though clearly risks and uncertainties remain elevated). In addition, the data is consistent with most of the nearly 20 staffing/recruiting/outsourcing companies we recently hosted at the Baird Business Solutions conference, where the general sense was that trends are mixed across geographies/verticals, and those that are declining are not necessarily falling off a cliff. In Europe, Germany continues to do well, the UK remains soft but isn’t declining as rapidly as may be expected given the headlines/austerity measures, and France is also holding up relatively well (or declining less than the headlines may suggest). Trends are also mixed in the APAC region, with Australia/New Zealand holding up well, China has shown several signs of deceleration, and the rest of Asia has shown signs of modest slowing due mainly to the banking sector. Altogether, there continue to be mixed signals in several leading global economies, and conditions remain challenging, while the pace of decline may be slightly “less bad” than previously anticipated. With that said, economic risks clearly remain elevated and there are a wide range of issues that still need to be resolved in Europe before we would expect to see more sustained improvements.

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Initial Jobless Claims S.A. 4-wk. MA



March 2012

PRISME French Temporary Staffing Data PRISME temp staffing data continues to deteriorate, and showed a

fourth consecutive yoy decline in February – +5.7% in September, +2.0% in October, -1.0% in November, -3.5% in December, -7.9% in January, and -10.5% in February.

Figure 12

Source: PRISME

Monster European Employment Index The European MEI increased by 11 sequentially to 138 in February,

while the rate of yoy growth accelerated from +9.5% to +10.4%. We also note that this data is not seasonally adjusted, and only goes back to January ’07 (making “typical” seasonality difficult to discern).

Three out of seven regions experienced yoy growth (vs. two last month), while all regions were either flat or up sequentially.

• France worsened from -0.8% to -4.4%. • The UK improved from +0.8% to +4.3%. • Germany decelerated from +30.1% to +28.1%.

Figure 13


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PRISME # of Temps in France -- y/y chg.

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MWW Employment Index y/y Chg. By Country

US France Germany UK



March 2012

ABU Market Developments – Netherlands Temporary Staffing Data The ABU-Markmonitor (Netherlands) temp staffing data showed a

second consecutive yoy decline during weeks 5 – 8 of 2012 (roughly equivalent to February data). The rate of yoy decline remained at -5%, consistent with the prior reading for weeks 1 – 4 (roughly consistent with January data).

Figure 13


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32008-2

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32012-2

ABU-MarkMonitor (NL Temp. Staffing Industry)


March 2012

U.S. Valuation Metrics

($ in millions except per share amounts)

Share Annual EPS Valuation MultiplesPrice 52-Week Emterprise Revenue Rev Gth Price Performance Latest Yr-Yr EV/2011 EV/LTM LTM NTM

Company (Symbol) 3/20/2012 High Low Value C2011 Yr-Yr 1yr 3mo 2mo 1mo ytd Q Growth Revenue EBITDA P/E P/E

HR & Outsourcing Services CY2011 2000 2000 6000

Automatic Data Processing (ADP) $55.08 $57.10 $44.72 $25,701.7 $10,349.8 7.4% 11.7% 2.7% (3.0% ) 1.5% 19.0% $0.76 22.6% 2.6x 11.7x 20.3x 19.3xBarrett Business Serv ices (BBSI) 18.99 21.10 12.25 123.5 314.9 15.2% 25.7% (2.2% ) 1.1% 10.5% 22.1% (0.01) (102.2% ) 0.4 23.4 13.5 15.8Insperity (NSP) 29.77 32.38 19.85 498.1 1,976.2 13.7% 8.6% 17.5% 8.3% (4.2% ) 1.6% 0.42 41.1% 2.2 6.9 25.7 17.7Paychex (PAYX) 31.82 33.71 25.12 11,121.1 2,162.8 6.6% 0.7% 5.2% (1.5% ) 1.1% 2.9% 0.39 5.4% 5.3 12.0 21.4 20.4Towers Watson & Co. (TW) 65.77 68.18 51.70 4,338.3 3,407.4 11.3% 18.0% 9.8% 8.7% 4.0% 26.3% 0.92 41.5% 1.3 6.8 20.2 12.4

Mean: 10.8% 12.9% 6.6% 2.7% 2.6% 14.4% 1.7% 2.4x 12.2x 20.2x 17.1xMedian: 11.3% 11.7% 5.2% 1.1% 1.5% 19.0% 22.6% 2.2 11.7 20.3 17.7

HR Technology51Job (JOBS) $57.99 $69.80 $36.62 $1,326.3 $206.2 23.4% 7.9% 32.3% 28.8% 29.2% 17.7% $0.61 77.8% 6.4x 17.8x 27.9x 22.7xConcur Technologies (CNQR) 59.26 62.60 34.30 3,005.1 369.6 25.1% 13.8% 12.6% 9.9% 4.5% 14.1% (0.02) N/M 9.1 73.8 NM 67.2Dice Holdings (DHX) 9.60 18.75 7.02 570.2 179.1 25.0% (28.5% ) 12.1% (1.8% ) 7.3% (33.1% ) 0.15 88.6% 3.2 7.8 19.6 17.0Kenexa (KNXA) 30.77 33.19 13.96 754.8 282.9 28.2% 34.4% 17.2% 30.4% 8.0% 41.2% 0.02 N/M 2.7 31.4 NM 30.0LinkedIn 91.84 122.70 55.98 8,828.5 522.2 105.3% N/A 41.5% 24.8% (1.3% ) N/A 0.07 128.0% 16.9 138.9 NM 293.3Monster Worldwide (MWW) 9.40 18.47 6.34 1,095.6 1,040.1 (2.0% ) (38.0% ) 20.4% 4.4% 34.5% (60.2% ) 0.09 N/M 1.1 8.0 21.9 35.3Saba Software (SABA) 11.99 12.36 5.07 343.0 121.3 4.1% 45.9% 44.6% 20.0% (2.8% ) 95.9% (0.16) N/M 2.9 NM NM NMTaleo (TLEO) 45.94 45.96 21.44 1,819.2 315.4 26.1% 45.4% 13.5% 29.7% 0.5% 66.1% (0.09) N/M 5.8 61.4 NM 40.4Ultimate Software (ULTI) 72.83 74.60 43.28 1,872.5 269.2 20.4% 36.7% 4.1% 5.7% 5.6% 49.8% 0.07 40.6% 7.0 70.2 NM 72.1

Mean: 28.4% 14.7% 22.0% 16.9% 9.5% 23.9% 83.7% 6.1x 51.1x 23.1x 72.3xMedian: 25.0% 24.1% 17.2% 20.0% 5.6% 29.5% 83.2% 5.8 46.4 21.9 37.9

Staffing & Recruiting Services 3/20/2012

AMN Healthcare Services (AHS) $5.47 $9.33 $3.60 $451.0 $887.5 0.0% (26.7% ) 19.2% 27.8% (5.9% ) (10.9% ) $0.04 (236.3% ) 0.5x 8.3x 49.7x 18.6xCDI Corporation (CDI) 17.13 17.67 9.84 305.8 1,059.8 8.0% 23.2% 27.6% 20.1% 7.3% (7.9% ) (0.03) 7.8 0.3 7.8 22.2 20.7Cross Country Healthcare (CCRN) 5.19 8.00 3.76 189.4 734.2 9.7% (25.9% ) (3.9% ) (13.5% ) (14.9% ) (38.7% ) 0.02 (110.5% ) 0.4 9.1 39.9 24.7CT Partners (CTP) 17.13 17.67 9.84 305.8 1,059.8 1.1% 23.2% 27.6% 20.1% 7.3% (7.9% ) 0.01 7.8 2.6 7.8 22.2 20.7Heidrick & Struggles International (HSII) 21.53 28.32 15.57 199.4 644.9 (0.1% ) (14.3% ) (2.3% ) (3.9% ) (0.2% ) (24.9% ) (0.23) N/M 0.4 4.7 NM 17.5Hudson Highland Group (HHGP) 5.65 $6.68 3.05 145.0 1,080.2 1.7% (7.4% ) 13.9% 7.8% 13.5% (3.1% ) 0.10 124.5% 0.2 6.1 16.6 16.4Kelly Serv ices (KELYA) 15.31 22.25 10.77 579.4 5,551.0 5.3% (22.1% ) 16.9% (11.0% ) (5.2% ) (18.6% ) 0.63 63.5% 0.1 6.3 8.9 10.6Kforce (KFRC) 14.60 18.56 8.12 555.2 1,110.9 10.5% (10.6% ) 26.2% 12.5% 3.1% (9.8% ) 0.20 26.9% 0.5 9.7 20.9 16.7Korn/Ferry International (KFY) 16.15 23.98 11.25 511.9 782.2 (0.3% ) (20.9% ) (0.2% ) (11.7% ) (2.2% ) (30.1% ) 0.25 (16.7% ) 0.7 4.6 12.2 13.6Manpower (MAN) 46.34 69.64 31.81 3,834.0 22,006.0 5.3% (22.1% ) 33.7% 11.7% 2.7% (26.2% ) 0.78 N/M 0.2 5.9 15.2 15.6On Assignment (ASGN) 13.68 14.50 6.27 581.3 597.3 33.5% 50.8% 24.8% 20.8% (0.9% ) 67.9% 0.20 N/M 1.0 10.9 21.4 17.2Resources Connection (RECN) 12.76 19.44 8.26 429.8 566.3 4.6% (30.6% ) 23.8% 6.3% (4.7% ) (31.4% ) 0.58 52.6% 0.8 11.0 17.0 26.1Robert Half International (RHI) 30.57 31.83 19.69 4,067.6 3,777.0 14.3% 2.8% 11.0% 1.6% 4.8% (0.1% ) 0.30 76.0% 1.1 13.5 29.3 22.5TrueBlue (TBI) 17.06 $17.99 10.40 550.5 1,316.0 12.2% 15.8% 25.1% 1.5% 1.5% (5.2% ) 0.19 110.7% 0.4 8.6 23.4 18.3

Mean: 7.6% (4.6% ) 17.4% 6.5% 0.4% (10.5% ) 149.4% 0.6x 8.2x 23.0x 18.5xMedian: 5.3% (12.5% ) 21.5% 7.1% 0.7% (10.3% ) 63.5% 0.5 8.1 21.4 17.9

Source: Robert W. Baird &Co., Capital IQ and company filings. All estimates are consensus estimates per Capital IQ and Bloomberg, NOT Baird estimates. Companies in bold are covered by Baird Research. 1) Estimated revenue figures from various research reports and financial models distributed by research professionals.


March 2012

U.S. Company Profiles

($ in millions except per share data and LTM/Headcount is $ in thousands)

Mkt. Price/ 2011 2011 Rev/ IPOCompany (Symbol) Cap. Book Rev. Primary Service Offerings/Markets Headcount Headquarters Date

HR & Outsourcing ServicesAutomatic Data Processing (ADP) $27,020.9 4.4x $9,879.5 Payroll & HR outsourcing and auto dealer serv ices 210 Roseland, NJ Sep-61Barrett Business Serv ices (BBSI) 189.5 1.8 314.9 HR management serv ices including staffing and PEO serv ices 8 Vancouver, WA Jun-93Insperity (NSP) 527.0 1.5 228.8 Professional Employer Organization (PEO) serv ices 120 Houston, TX Jan-97Paychex (PAYX) 11,532.2 7.4 2,084.3 Payroll and HR/ASO serv ices for small businesses 169 Rochester, NY Aug-83Towers Watson & Co. (TW) 4,577.9 1.8 3,259.5 Consulting serv ices – benefits, human capital, and technology 263 Washington, DC Oct-00

Mean: $8,769.5 3.4x $3,153.4 Mean: 154 Median: 4,577.9 1.8 2,084.3 Median: 169

HR Technology51Job (JOBS) $1,652.2 4.9x $206.2 Leading prov ider of HR and online employment serv ices in mainland China 64 Shanghai, China Oct-04Concur Technologies (CNQR) 3,230.8 4.5 331.8 Prov ider of business serv ices and software solutions that automate corporate travel and expense management 277 Redmond, WA Dec-98Dice Holdings (DHX) 615.4 3.0 179.1 Prov ider of specialty career sites including Dice.com, JobsInTheMoney.com, eFinancialCareers.com 530 New York, NY Jul-07Kenexa (KNXA) 838.6 3.6 282.9 Leading prov ider of talent management software solutions and recruitment process outsourcing (RPO) 144 Wayne, PA Mar-06LinkedIn 9,406.0 14.9 522.2 Monster Worldwide (MWW) 1,157.1 0.9 1,040.1 On-line job postings, resume database, and internet advertising 178 New York, NY Dec-96Saba Software (SABA) 357.1 9.9 116.7 Prov ider of learning management and performance management systems 195 Redwood Shores, CA Apr-00Taleo (TLEO) 1,935.1 5.0 315.4 On-demand talent management. Solutions including recruitment, performance, compensation and learning management 271 Dublin, CA Oct-05Ultimate Software (ULTI) 1,921.4 22.3 269.2 Web-based HR, payroll, and talent management solutions 237 Weston, FL Jun-98

Mean: $2,346.0 7.7x $362.6 Mean: 237 Median: 1,652.2 4.9 282.9 Median: 216

Staffing & Recruiting ServicesAMN Healthcare Serv ices (AHS) 222.1 1.6 887.5 Comprehensive healthcare staffing and workforce solutions, including nurse, allied, and physician staffing 484 San Diego, CA Nov-01CDI Corporation (CDI) 328.6 1.2 1,059.8 Staffing serv ices – IT, legal, office, finance, technical, executive search and selection 1,060 Philadelphia, PA Sep-67Cross Country Healthcare (CCRN) 159.7 0.6 504.0 Travel and per diem nurse staffing, travel allied health staffing and clinical research staffing 94 Boca Raton, FL Oct-01CT Partners (CTP) 46.6 1.6 117.7 Executive search provers with focus on C-Suite, senior-level, and board searches 290 New York, NY Dec-10Heidrick & Struggles International (HSII) 384.7 1.5 527.8 Leadership adv isory serv ices, including executive search and leadership consulting 348 Chicago, IL Apr-99Hudson Highland Group (HHGP) 178.1 1.7 933.7 Professional staffing and placement serv ices 424 New York, NY Mar-03Kelly Serv ices (KELYA) 564.1 0.8 5,551.0 Staffing serv ices – professional and commercial segments 694 Troy , MI Jan-62Kforce (KFRC) 505.0 2.2 1,110.9 Staffing serv ices – IT, finance & accounting, health & life sciences, and medical segments 555 Tampa, FL Aug-95Korn/Ferry International (KFY) 772.2 1.3 744.2 Talent management solutions, including executive search, leadership consulting, and recruitment process outsourcing (RPO) 338 Los Angeles, CA Feb-99Manpower (MAN) 3,714.3 1.5 22,006.0 Global Human Capital Serv ices – consulting, staffing, training and testing 734 Milwaukee, WI Sep-59On Assignment (ASGN) 511.6 2.1 597.3 Healthcare, engineering, and IT staffing serv ices 532 Calabasas, CA Sep-92Resources Connection (RECN) 550.4 1.5 545.5 Project-based staffing – high-end F&A, IT, HR, audit, and supply chain segments 762 Costa Mesa, CA Dec-00Robert Half International (RHI) 4,345.3 5.3 3,777.0 Staffing serv ices – F&A, office, senior-level professionals, IT, creative, law, and audit segments 363 Menlo Park, CA Mar-87TrueBlue (TBI) 659.7 2.2 1,316.0 Staffing serv ices -- manual and day labor; (formerly Labor Ready) 506 Tacoma, WA Jun-96

Mean: $924.5 1.8x $2,834.2 Mean: 513 Median: 508.3 1.6 910.6 Median: 495

Source: Robert W. Baird &Co., Capital IQ and company filings. All estimates are consensus estimates per Capital IQ and Bloomberg, NOT Baird estimates. Companies in bold are covered by Baird Research.


March 2012

U.S. Recent Financial Performance

($ in millions except per share amounts)

AnnualEnterprise Revenue Rev Gth Gross Margin EBITDA Margin Quarterly EPS EPS (Fiscal Yr.)

Company (Symbol) Value Latest Q C2010 Yr-Yr C2009 C2010 Latest Q C2009 C2010 Latest Q Yr Ago Latest Q 2009 2010HR & Outsourcing Services 500 2000 500 CY2009 CY2010 500 CY2009 CY2010 500 496 500 FY2009 FY2010Automatic Data Processing (ADP) $25,701.7 $2,583.0 $9,879.5 7.4% 53.3% 51.3% 49.4% 25.3% 22.4% 21.9% $0.62 $0.76 $2.62 $2.40Barrett Business Serv ices (BBSI) 123.5 84.7 314.9 15.2% 11.4% 16.4% 9.9% (2.8% ) 3.4% (2.6% ) 0.30 (0.01) (0.38) 0.71Insperity (NSP) 498.1 495.1 228.8 13.7% 17.4% 17.4% 18.2% 2.6% 3.0% 3.7% 0.30 0.42 0.65 0.86Paychex (PAYX) 11,121.1 545.7 2,084.3 6.6% 67.0% 68.2% 69.7% 41.7% 40.9% 44.3% 0.37 0.39 1.48 1.32Towers Watson & Co. (TW) 4,338.3 879.7 3,259.5 11.3% 28.6% 30.8% 31.5% 16.4% 16.0% 19.5% 0.65 0.92 3.42 2.03

Mean: $917.6 $3,153.4 10.8% 35.5% 36.8% 35.7% 16.7% 17.1% 17.4%Median: 545.7 2,084.3 11.3% 28.6% 30.8% 31.5% 16.4% 16.0% 19.5%

HR Technology51Job (JOBS) $1,326.3 $55.9 $206.2 23.4% 60.5% 66.5% 71.2% 19.6% 29.2% 33.9% $0.34 $0.61 $0.59 $1.25Concur Technologies (CNQR) 3,005.1 100.4 331.8 25.1% 71.1% 72.3% 71.1% 25.1% 21.0% 11.4% 0.07 (0.02) 0.49 0.38Dice Holdings (DHX) 570.2 47.4 179.1 25.0% 93.2% 92.6% 92.8% 40.5% 37.0% 43.6% 0.08 0.15 0.20 0.28Kenexa (KNXA) 754.8 78.2 282.9 28.2% 66.6% 65.2% 58.8% 9.9% 6.3% 12.2% (0.30) 0.02 (1.38) (0.25)LinkedIn 8,828.5 167.7 522.2 105.3% 78.5% 81.6% 85.6% 5.5% 14.6% 13.3% 0.03 0.07 (0.10) 0.07Monster Worldwide (MWW) 1,095.6 250.0 1,040.1 (2.0% ) 48.8% 46.5% 52.4% 7.6% 5.4% 15.4% (0.00) 0.09 0.16 ($0.27)Saba Software (SABA) 343.0 30.4 116.7 4.1% 64.6% 65.6% 62.1% 10.1% 4.9% (13.3% ) (0.03) (0.16) (0.09) 0.09Taleo (TLEO) 1,819.2 84.8 315.4 26.1% 66.7% 66.9% 67.6% 13.6% 12.8% 3.5% (0.02) (0.09) 0.04 0.01Ultimate Software (ULTI) 1,872.5 72.7 269.2 20.4% 55.3% 56.4% 58.6% 5.3% 8.3% 12.8% 0.05 0.07 (0.04) 0.11

Mean: $98.6 $362.6 28.4% 67.2% 68.2% 68.9% 15.2% 15.5% 14.8%Median: 78.2 282.9 25.0% 66.6% 66.5% 67.6% 10.1% 12.8% 12.8%

Staffing & Recruiting ServicesAMN Healthcare Serv ices (AHS) $451.0 $222.1 $887.5 0.0% 26.9% 27.5% 28.3% 6.2% 4.7% 6.4% ($0.03) $0.04 ($3.75) ($1.51)CDI Corporation (CDI) 305.8 268.0 1,059.8 8.0% 20.0% 20.9% 21.0% (0.8% ) 2.0% 3.8% (0.78) (0.03) (1.05) (0.57)Cross Country Healthcare (CCRN) 189.4 124.7 504.0 9.7% 26.5% 28.2% 27.8% 5.6% 4.9% 4.1% (0.19) 0.02 0.22 (0.09)CT Partners (CTP) 24.2 31.7 117.7 1.1% 32.7% N/A 22.8% 9.3% 8.1% 1.4% 1.67 0.01 5.33 (0.89)Heidrick & Struggles International (HSII) 199.4 127.2 527.8 (0.1% ) 28.8% 31.0% 33.1% 2.4% 7.0% 11.7% 0.29 (0.23) (1.24) 0.42Hudson Highland Group (HHGP) 145.0 222.7 933.7 1.7% 37.7% 37.6% 38.0% (2.5% ) 0.5% 2.8% 0.04 0.10 (1.65) (0.15)Kelly Serv ices (KELYA) 579.4 1,396.3 5,551.0 5.3% 16.3% 16.0% 16.3% (0.5% ) 1.7% 1.4% 0.39 0.63 (3.01) 0.71Kforce (KFRC) 555.2 285.6 1,110.9 10.5% 31.4% 31.5% 31.2% 3.9% 5.0% 4.2% 0.16 0.20 0.33 0.51Korn/Ferry International (KFY) 511.9 186.0 744.2 (0.3% ) 30.7% 31.2% 32.4% 2.2% 12.0% 11.1% 0.30 0.25 (0.23) 0.12Manpower (MAN) 3,834.0 5,484.0 22,006.0 5.3% 17.6% 17.2% 17.1% 1.5% 2.5% 3.2% (4.30) 0.78 (0.12) (3.26)On Assignment (ASGN) 581.3 161.8 597.3 33.5% 32.7% 34.1% 33.1% 6.5% 6.1% 10.3% (0.37) 0.20 0.13 (0.27)Resources Connection (RECN) 429.8 145.0 545.5 4.6% 37.9% 39.8% 37.9% 2.4% 7.2% 8.2% 0.38 0.58 0.39 (0.26)Robert Half International (RHI) 4,067.6 973.5 3,777.0 14.3% 36.3% 37.6% 39.8% 4.3% 5.4% 8.7% 0.17 0.30 0.24 0.44TrueBlue (TBI) 550.5 350.2 1,316.0 12.2% 28.6% 26.4% 26.2% 2.8% 3.9% 4.3% 0.09 0.19 0.20 0.46

Mean: $712.8 $2,834.2 7.6% 28.9% 29.2% 28.9% 3.1% 5.1% 5.8%Median: 222.4 910.6 5.3% 29.8% 31.0% 29.7% 2.6% 5.0% 4.3%

Source: Robert W. Baird &Co., Capital IQ and company filings. All estimates are consensus estimates per Capital IQ and Bloomberg, NOT Baird estimates. Companies in bold are covered by Baird Research.


March 2012

European Valuation Metrics

Share Annual EPS Valuation MultiplesPrice 52-Week Enterprise Revenue Rev. Gth Price Performance Latest Yr-Yr EV / LTM EV / LTM EV / LTM LTM C2012

Company (Symbol) 3/20/12 High Low Value C2010 C2009 1yr 1yr 3mo 2mo 1mo YTD Q Growth Revenue GP EBITDA P / E P / EHR and Outsourcing ServicesCapita Group (CPI) $11.86 $12.24 $9.25 $9,844.9 $4,469.3 $4,340.2 1.7% (3.2% ) 22.8% 17.6% 14.6% 21.2% $0.12 12.8% 2.1x 7.6x 12.5x 19.1x 14.2xHarvey Nash Group (HVN) 0.97 1.49 0.74 68.1 785.8 602.7 27.3% (13.9% ) 19.3% 7.9% (9.2% ) 19.6% 0.03 0.5 0.1 0.6 4.3 8.9 8.3Xchanging (XCH) 1.54 2.02 0.73 341.6 1,246.7 1,212.2 8.2% 24.3% 46.0% 40.0% 17.3% 52.7% 0.02 NM 0.3 3.6 3.1 NM 10.1

Mean: 12.4% 2.4% 29.3% 21.8% 7.6% 31.2% 29.2% 0.8x 3.9x 6.6x 14.0x 10.8xMedian: 8.2% (3.2% ) 22.8% 17.6% 14.6% 21.2% 29.2% 0.3 3.6 4.3 14.0 10.1

Staffing and Recruiting ServicesAdecco (ADEN) $52.98 $70.60 $33.70 $11,403.1 $27,357.0 $21,206.7 16.6% (19.2% ) 29.1% 11.1% 4.5% 25.8% $0.88 15.2% 0.4x 2.5x 9.2x 14.6x 13.8xBrunel International (BRNL) 41.86 44.58 25.10 871.4 1,206.1 1,058.3 17.5% 4.1% 42.2% 23.0% 10.0% 41.4% 0.54 77.8% 0.7 3.5 9.7 17.4 14.8Groupe CRIT (CEN) 21.56 30.42 12.64 201.1 2,069.3 1,616.0 18.3% (28.5% ) 38.8% 37.5% 15.4% 44.3% 0.82 77.2% 0.1 2.5 3.0 10.7 9.4Hays (HAS) 1.44 2.01 0.90 2,267.6 5,229.3 3,969.5 21.0% (23.4% ) 47.1% 28.7% 14.1% 44.6% 0.02 0.0 0.4 4.7 9.7 15.2 17.6Healthcare Locums (HLO) 0.03 1.93 0.04 222.8 319.7 270.5 26.9% (98.3% ) (30.1% ) (40.2% ) (36.4% ) (34.0% ) (0.08) NM 0.7 3.0 NM NM N/MImpellam Group (IPEL) 5.59 6.20 2.84 247.5 1,797.7 1,686.8 2.8% 24.4% 33.1% 52.2% 14.1% 34.1% 0.17 41.9% 0.1 0.9 3.8 6.5 5.3Michael Page International (MPI) 7.75 8.76 4.81 2,264.2 1,511.1 1,157.8 26.2% (7.1% ) 48.0% 24.1% 16.3% 42.7% 0.07 (0.2) 1.4 2.6 14.6 26.8 30.1Morson Group (MRN) 0.64 1.88 0.56 67.6 774.3 705.3 9.9% (60.6% ) 0.8% (4.4% ) 1.5% 0.6% 0.04 (38.2% ) 0.1 1.1 4.5 3.3 3.6Proffice (PROE B) 3.84 5.71 2.66 256.5 675.6 546.5 17.8% (29.1% ) 21.9% 0.1% 0.4% 22.6% 0.09 103.1% 0.4 2.1 7.1 12.8 10.3Randstad Holding (RAND) 38.89 54.92 24.96 8,413.8 21,163.9 17,771.3 16.9% (27.2% ) 33.1% 19.4% 7.6% 31.0% 0.56 9.8% 0.4 2.2 10.4 29.4 12.4Robert Walters (RWA) 4.12 5.32 2.41 258.1 766.1 485.3 37.2% (18.2% ) 63.6% 34.8% 15.8% 63.3% 0.05 34.9% 0.3 0.9 9.0 20.4 29.2SThree (STHR) 4.92 6.89 2.99 509.5 836.5 856.8 14.3% (28.7% ) 42.1% 31.5% 4.6% 39.9% 0.07 37.3% 0.6 1.7 9.8 18.9 19.5Synergie (SDG) 12.25 28.54 9.68 303.0 1,994.3 1,359.6 28.6% (33.2% ) 17.4% 12.7% 3.6% 3.4% 0.36 31.7% 0.2 2.5 4.5 13.1 9.9USG People (USG) 11.18 20.73 5.74 1,168.1 4,416.3 4,301.2 9.1% (43.9% ) 40.4% 33.8% 7.4% 34.3% 0.23 (0.4) 0.3 1.3 13.4 NM 13.0

Mean: 18.8% (27.8% ) 30.5% 18.9% 5.6% 28.1% 24.8% 0.4x 2.2x 8.4x 15.8x 14.5xMedian: 17.7% (27.9% ) 36.0% 23.5% 7.5% 34.2% 31.7% 0.4 2.3 9.2 14.9 13.0


March 2012

European Company Profiles

Mkt Price / LTMCompany (Symbol) Cap. Book Rev. Primary Service Offerings / Markets HeadquartersHR and Outsourcing ServicesCapita Group (CPI) $7,214.8 8.7x $4,469.3 Professional support services and business process outsourcing solutions (BPO) London, U.K.Harvey Nash Group (HVN) 70.5 0.7 785.8 Professional recruitment and outsourcing services London, U.K.Xchanging (XCH) 368.6 1.4 1,246.7 BPO services in HR, procurement, finance and accounting and other areas London, U.K.

Mean: $2,551.3 3.6x $2,167.3Median: 368.6 1.4 1,246.7

Staffing and Recruiting ServicesAdecco (ADEN) $10,211.1 2.0x $27,357.0 Global HR service provider Glattbrugg, SwitzerlandBrunel International (BRNL) 984.9 3.2 1,206.1 Provider of staffing and recruitment services in Europe and Canada Amsterdam, NetherlandsGroupe CRIT (CEN) 239.9 0.9 2,069.3 Staffing and permanent placement services Saint-Ouen, FranceHays (HAS) 1,985.7 7.5 5,229.3 Specialty staffing and recruitment provider London, U.K.Healthcare Locums Plc 26.8 NM 319.7 Healthcare staffing and permanent placement provider London, U.K.Impellam Group (IPEL) 250.4 1.2 1,797.7 Staffing and other support services in Europe, Australia, and the U.S. Luton, U.K.Michael Page International (MPI) 2,356.5 8.2 1,511.1 Staffing and permanent placement services in the U.K. Surrey, U.K.Morson Group (MRN) 28.6 0.3 774.3 Staffing and permanent placement services in the U.K. Manchester, U.K.Proffice (PROE.B) 261.5 2.7 675.6 Staffing services - clerical, IT, technical, F&A Stockholm, SwedenRandstad Holding (RAND) 6,692.7 1.7 21,163.9 Global HR service provider Diemen, NetherlandsRobert Walters (RWA) 284.4 2.8 766.1 Staffing services - IT, F&A, light industrial London, U.K.SThree (STHR) 597.7 4.5 839.6 Specialty staffing services London, U.K.Synergie (SDG) 298.2 1.2 1,994.3 IT staffing services Paris, FranceUSG People (USG) 877.1 1.0 4,416.3 European HR service provider Almere, Netherlands

Mean: $1,792.5 2.9x $5,008.6Median: 447.9 2.0 1,654.4


March 2012

European Recent Financial Performance

AnnualEnterprise Revenue Rev Gth Gross Margin EBITDA Margin Quarterly EPS Annual EPS

Company (Symbol) Value LTM Yr-Yr C2009 C2010 C2011 C2009 C2010 C2011 Yr Ago Latest Q C2009 LTM C2011

HR and Outsourcing ServicesCapita Group (CPI) $9,844.9 $4,469.3 1.7% 27.9% 28.9% 29.3% 14.3% 17.0% 17.0% $0.10 $0.12 $0.59 $0.53 $0.84Harvey Nash Group (HVN) 68.1 785.8 27.3% 16.1% 16.2% 15.8% 0.8% 2.0% 2.1% 0.02 0.03 0.02 0.10 0.12Xchanging (XCH) 341.6 1,246.7 8.2% 9.7% 10.1% 9.3% 11.5% 11.9% 10.6% 0.04 0.02 (0.51) 0.18 0.15

Mean: $2,167.3 12.4% 17.9% 18.4% 18.1% 8.9% 10.3% 9.9%Median: 1,246.7 8.2% 16.1% 16.2% 15.8% 11.5% 11.9% 10.6%

Staffing and Recruiting ServicesAdecco (ADEN) $11,403.1 $27,357.0 16.6% 17.9% 17.8% 17.4% 3.3% 4.5% 4.6% $0.90 $0.88 $2.91 $3.09 $3.83Brunel International (BRNL) 871.4 1,206.1 17.5% 20.6% 21.1% 20.7% 6.6% 6.0% 6.6% 0.39 0.54 1.45 2.04 2.82Groupe CRIT (CEN) 201.1 2,069.3 18.3% 2.0% 3.7% 3.8% 1.7% 3.3% 3.5% 0.44 0.82 1.68 3.53 2.30Hays (HAS) 2,267.6 5,229.3 21.0% 7.1% 9.0% 8.1% 9.4% 3.8% 4.1% 0.01 0.02 0.13 0.08 0.08Healthcare Locums (HLO) 222.8 319.7 26.9% 30.1% 26.2% 23.4% 12.1% 8.8% (3.3% ) 0.00 (0.08) 0.05 (0.24) (0.03)Impellam Group (IPEL) 247.5 1,797.7 2.8% 16.0% 16.4% 16.5% 3.3% 2.3% 3.7% 0.11 0.17 0.39 0.70 1.05Michael Page International (MPI) 2,264.2 1,511.1 26.2% 49.1% 53.1% 54.0% 15.4% 4.2% 10.0% 0.05 0.07 0.06 0.27 0.26Morson Group (MRN) 67.6 774.3 9.9% 8.0% 7.7% 7.7% 3.3% 3.1% 2.0% 0.05 0.04 0.26 0.16 0.18Proffice (PROE.B) 256.5 675.6 17.8% 24.1% 20.8% 18.6% 4.3% 5.2% 4.9% 0.07 0.09 0.20 0.29 0.37Randstad Holding (RAND) 8,413.8 21,163.9 16.9% 19.5% 18.8% 18.3% 5.2% 2.6% 4.2% 0.55 0.56 0.52 1.87 3.15Robert Walters (RWA) 258.1 766.1 37.2% 34.7% 36.6% 36.1% 6.1% 1.3% 3.6% 0.03 0.05 0.00 0.20 0.14SThree (STHR) 509.5 836.5 14.3% 33.0% 35.1% 35.9% 8.7% 3.9% 5.4% 0.06 0.07 0.06 0.24 0.25Synergie (SDG) 303.0 1,994.3 28.6% 5.6% 5.8% 6.0% 5.0% 2.0% 3.7% 0.22 0.36 0.51 1.53 1.23USG People (USG) 1,168.1 4,416.3 9.1% 22.6% 21.9% 21.2% 5.9% 1.8% 2.7% 0.24 0.23 (0.63) 0.30 0.86

Mean: $5,008.4 18.8% 20.7% 21.0% 20.6% 6.5% 3.8% 4.0%Median: 1,654.4 17.7% 20.0% 19.8% 18.5% 5.6% 3.6% 3.9%


March 2012

IPO Chronology

($ in millions except per share amounts) Offering CurrentPricing Filing Offer Split Adjusted Split Adjusted Share Price % Primary /

Company Name (Symbol) Date Date Size (1) Shares (1) Price Shares Offer Price 3/20/2012 1 Day 30 Days Current % Secondary (2)

Cornerstone OnDemand 03/16/11 09/29/10 115.0 10.5 $13.00 NA $13.00 $20.20 40.4% 36.9% 55.4% 62%/38%

CTPartners Executive Search (CTP) 12/07/10 09/03/10 30.0 2.3 13.00 NA 13.00 6.55 0.0% 16.2% (49.6%) 84%/17%

Team Health Holdings, Inc. (TMH) 12/15/09 10/06/09 159.6 13.3 12.00 NA 12.00 21.18 6.8% 24.3% 76.5% 100%/0%

SuccessFactors (SFSF) 11/19/07 07/20/07 107.9 10.8 10.00 NA 10.00 NA 32.5% 15.2% NA 93%/7%

Dice Holdings (DHX) 07/17/07 04/04/07 220.9 17.0 13.00 NA 13.00 9.60 3.1% (11.5%) (26.2%) 39%/61%

Salary.com (SLRY) (4) 02/15/07 11/13/06 68.8 6.6 10.50 NA 10.50 NA NA NA NA 80%/20%

Taleo (TLEO) 09/28/05 03/31/04 93.8 6.7 14.00 NA 14.00 45.94 (2.9%) (15.7%) 228.1% 80%/20%

Kenexa (KNXA) 06/24/05 04/12/05 69.0 5.8 12.00 5.8 12.00 30.77 0.4% 8.3% 156.4% 100%/0%

Mean $119.0 8.5 11.5% 10.5% 73.4% 82%/18%Median 107.9 7.8 3.1% 15.2% 116.5% 84%/17%

Source: Robert W. Baird & Company , Capital IQ and company filings. Companies in bold are cov ered by Baird research.(1) Includes over allotment shares sold as of 3/20/12.(2) Assumes full ex ercise of ov erallotment.(3) Offering amount is a preliminary estimate based on SEC filings.(4) Salary .com w as acquired by Kenex a Corp. on 9/30/10.

% Change Since Offering


March 2012

Follow-On Offering Chronology

($ in millions except per share amounts) Follow-On Offering CurrentFollow-On Offering IPO Offer Split Adjusted Split Adjusted Share Price % Primary /

Company Name (Symbol) Pricing Date Filing Date Pricing Date Size (1) Shares (1) Price Shares Offer Price 3/20/2012 1 Day 30 Days Current % Secondary (2)

Dice Holdings 02/16/11 02/15/11 07/17/07 $114.7 8.1 $14.25 8.1 N/A $9.60 4.3% (5.8%) (7.3%) 11%/89%

Towers Watson (TW) 09/16/10 07/19/10 10/10/00 226.4 4.9 46.00 4.9 $46.00 65.77 (1.8%) 11.3% 43.0% 100%/0%

Hudson Highland Group (HHGP) 03/30/10 03/30/10 03/17/03 21.0 4.2 4.35 4.2 4.35 5.65 0.7% 33.3% 29.9% 100%/0%

Taleo (TLEO) 11/19/09 10/28/09 09/28/05 147.4 6.5 20.25 6.5 20.25 45.94 2.7% 5.5% 126.9% 100%/0%

SuccessFactors (SFSF) 10/20/09 10/15/09 11/19/07 158.9 12.0 15.50 12.0 15.50 N/A 7.6% 0.8% NA 100%/0%

SuccessFactors (SFSF) 06/23/08 06/03/08 11/19/07 104.2 8.8 11.80 8.8 11.80 N/A (2.5%) (8.6%) NA 28%/72%

Concur Technologies (CNQR) 09/24/07 09/14/07 12/15/98 146.7 5.4 28.50 5.4 28.50 59.26 9.5% 20.6% 107.9% 100%/0%

Taleo (TLEO) 06/05/07 05/11/07 09/28/05 69.9 3.5 19.85 3.5 19.85 45.94 6.4% 16.2% 131.4% 0%/100%

Kelly Services (KELYA) 05/07/07 04/27/07 01/10/62 145.2 5.2 27.75 5.2 27.75 15.31 0.6% 1.4% (44.8%) 0%/100%

Kenexa (KNXA) 01/18/07 01/10/07 06/24/05 137.4 4.3 31.86 4.3 31.86 30.77 3.5% 14.8% (3.4%) 100%/0%

COMSYS IT Partners (CITP) 01/17/07 01/17/07 09/25/95 49.0 2.5 19.60 NA 19.60 N/A NA NA NA 0%/100%

Cross Country (CCRN) 11/13/06 11/13/06 10/24/01 83.7 4.0 20.93 4.0 20.93 5.19 (0.3%) (0.7%) (75.2%) 100%/0%

On Assignment (ASGN) 11/09/06 11/01/06 09/15/92 76.4 7.6 10.00 7.6 10.00 13.68 10.8% 10.0% 36.8% 87%/13%

Kenexa Corp. (KNXA) 03/07/06 01/31/06 06/24/05 166.1 6.2 27.00 6.2 27.00 30.77 4.1% 19.3% 14.0% 43%/57%

Huron Consulting Group (HURN) 02/02/06 01/11/06 10/12/04 170.0 6.3 27.00 6.3 27.00 37.27 0.3% 2.2% 38.0% 96%/4%

COMSYS IT Partners (CITP) 12/22/05 12/22/05 09/25/95 33.0 3.0 11.00 NA 11.00 N/A NA NA NA 100%/0%

Barrett Business Services (BBSI) 07/27/05 07/11/05 06/14/93 40.0 2.5 16.25 2.5 16.25 18.99 10.8% 20.2% 16.9% 89%/11%

Hudson Highland Group (HHGP) 06/30/05 06/30/05 03/17/03 48.0 3.2 14.89 3.2 14.89 5.65 4.1% 39.6% (62.1%) 100%/0%

Mean $135.9 5.4 (1.4%) 6.0% 7.4% 60%/40%Median 101.6 4.3 3.5% 10.3% (3.4%) 85%/15%

Source: Robert W. Baird & Company , Capital IQ and company filings. Companies in bold are cov ered by Baird research.(1) Includes ov er-allotment shares sold as of 3/20/12.(2) Assumes full ex ercise of ov erallotment.

% Change Since Offering


March 2012

Selected M&A Activity

($ in millions unless noted)

Date Target Estimated Value EstimatedAnnounced Acquirer of Transaction Revenues Target Business Description and other Salient Information (at time of acquisition)

HR OUTSOURCING SERVICESMar-12 SHPS Holdings, Inc. - Certain Assets

Automatic Data ProcessingJan-12 Ma Foi Consulting Solutions Ltd.

Automatic Data ProcessingNov-11 Resurs

Wise GroupNov-11 Batrus Hollweg

KenexaOct-11 Staffmark

Recruit Co. LtdOct-11 The RightThing

ADP Sep-11 Cencseo Corporation

Mercer Human Resources ConsultingMay-11 Advantec – HR

Oasis OutsourcingJan-11 Patni Computer Systems Ltd.

IGate Corp. Jan-11 PreVisor

SHLDec-10 Asperity Employee Benefits Ltd.

Inflexion Private Equity Partners LLP Dec-10 Sterling Infosystems, Inc.

Calera CapitalNov-10 TechTeam Global Inc.

Stefanini IT SolutionsJul-10 Hewitt Associates

Aon CorporationJul-10 Global Employment Solutions PEO

Madison Capital PartnersJun-10 Powerchex Limited

Hire Right, Inc.Jun-10 Intelligence Ltd.

Kohlberg Kravis Roberts & Co.Jun-10 Kroll Inc.

Altegrity, Inc.May-10 ExcellerateHRO Corporation

Affiliated Computer ServicesMay-10 Priority Payroll

CompuPay

$8 N/M Resurs prov ides staffing and recruitments serv ices in Sweden. The company offers solutions primarily in IT, economics andfinance, as well as office management areas.

N/A Batrus Hollweg International Selection Serv ices operates as a human capital consulting company. It develops Talent Gaugingsystems, which are tools to assess and develop indiv iduals within a company.

N/A N/A Censeo Corporation is a human resources consulting firm offering real-time leadership assessment products and serv icesdesigned to help companies select and retain talent.

N/A

N/A

N/A Advantec, a Tampa-Fla.-based PEO that integrates, develops, and supports HR models for small to mid-size companies.

Hewitt Associates prov ides human resources benefits, outsourcing and consulting serv ices primarily in the U.S. and the U.K.

N/A

1,375

N/A Sterling Infosystems, Inc. prov ides employment and student screening, corporate due diligence and background investigation,occupational health, and employment-related business tax consulting.

706 Patni Computer Systems Ltd. prov ides global IT serv ices and business solutions including application development andmaintenance, packaged software implementation and business process outsourcing.

ExcellerateHRO Corporation offers human resources outsourcing serv ices to employer organizations worldwide.

N/A

TechTeam Global Inc. prov ides IT outsourcing and business process outsourcing serv ices.94

Intelligence Ltd. prov ides recruitment consulting serv ices, clerical staffing serv ices, professional serv ices, OPPO part-timeemployment information serv ices and other serv ices in Japan.

1,130 670 Kroll is a leading risk consulting agency that helps governments, indiv iduals and corporations reduce exposure to risk andcapitalize on business opportunities.

N/A

125

N/A Priority Payroll offers payroll, time-keeping and human resource serv ices to medium-sized businesses in the U.S.

GES PEO is a leading prov ider of human capital solutions to small and mid-sized businesses in a diverse range of industries.

Powerchex Limited offers pre-employment screening serv ices for financial institutions in the U.K.

401

40 N/A Asperity Employee Benefits prov ides integrated employee benefits to 1.5 million employees in the U.K.

211

4,875

N/A N/A PreVisor is a leading prov ider of on demand employment assessments and talent measurement solutions.

3,092

N/A

N/A N/A

100

716

295 983 Staffmark prov ides various staffing serv ices to small and middle-market companies. They also offer direct hire serv ices thatinclude sourcing and screening candidates.

N/A N/A The RightThing prov ides recruitment process outsourcing solutions to small, medium and large organizations worldwide.

N/A N/A Prov ides human resource and general management serv ices

N/A N/A Ma Foi Consulting Solutions Ltd offers managed payroll serv ices and social benefits administration


March 2012




Mar-10 Convergys (Human Resources Management Segment)NorthgateArinso

Jul-09 Randstad's HR Serv ices PortfolioRaet B.V.

Mar-09 Gevity HRTriNet Group

Jun-08 PaywiseZeroChaos

Jan-08 Resolve StaffingKoosharem Corp (Select Family of Companies)

May-07 Dr. Dr. Heissmann GmbHWatson Wyatt

May-07 CeridianThomas H. Lee & Fidelity National Financial

May-07 USISProvidence Equity Partners

Mar-07 ClarkAegon

Mar-07 Intuit's Fully Outsourced Payroll BusinessAutomatic Data Processing

Feb-07 TALXEquifax

Nov-06 Taxware, LPAutomatic Data Processing

Apr-06 ADP Claims Serv ices Div isionSolera, Inc.

Apr-06 Performance Assessment NetworkTALX Corporation

Apr-06 Knowledge Workers, Inc.Kenexa

HR TECHNOLOGYMar-12 Sonar Limited

Cornerstone OnDemandFeb-12 Taleo Corp

OracleJan-12 Ciber Inc. (Federal Div ision Assets)

CRGT Inc.Jan-12 WorkforceLogic

ZeroChaosJan-12 Time Systems

Paychex Inc.N/A N/A

N/A WorkforceLogic prov ides a vendor management system and a manages serv ice prov ider offering for strategic reporting forbusinesses to control, optimize and manage a contingent workforce.

Icon Time Systems, Inc. prov ides time and attendance solutions for small businesses. They initially partnered with Paychexon the launch of Paychex PST 1000 a web-enabled time and attendance solution for small business.

N/A

N/A N/A ADP acquired Intuit's 25,000 Premier (fully outsourced) payroll clients; the transaction represents Intuit's decision to focus onclients who prefer to control some or all payroll-related tasks.

ADP's Claims Serv ices offers integrated business solutions to help clients manage costs, improve efficiency and acceleratethe claims rev iew and settlement process.

25

N/A

TALX provides outsourced employer serv ices including automated employment and income verification serv ices,unemployment cost management and electronic-based psychometric testing and assessments.

Knowledge Workers is a leading prov ider of talent acquisition and retention solutions with nearly two decades experience inprov iding HR consulting and technology-based serv ices to government clients.

Performance Action Network is a prov ider of electronic-based psychometric testing and assessments, as well ascomprehensive talent management serv ices.

278

425

N/A

602

1,400

4,913

63

N/A

1,585

N/A

Dr. Dr. Heissmann is the leading pension and compensation consulting firm in Germany. 300 of 360 of Heissmann'semployees are located in Germany; subsidiaries are located in Ireland, the Netherlands, France and Austria.

N/A N/A Randstad's HR Serv ices Portfolio prov ides salary administration and payroll serv ices to the education sector in theNetherlands.

520

Ceridian prov ides information serv ices to the HR and transportation markets, operating two segments -- HRS and Comdata.HRS prov ides payroll processing, benefits administration, and other HR Serv ices.

N/A

N/A

123

Paywise prov ides human resource and referral staffing serv ices specializing in payrolling.

Clark engages in the design, marketing and administration of compensation and benefits programs.

USIS offers a range of serv ices, including pre-employment and drug screening, background investigations, businessintelligence and risk management solutions to companies and government agencies.

N/A Taxware automates the calculation of various taxes around the world and automates their returns, including sales, use, VATand other transactional taxes.

272

$315 Prov ides on-demand talent management software solutions including sourcing, recruiting and onboarding to performancemanagement, compensation and learning.

975

97

Resolve Staffing operates as a staffing firm and PEO through its Employee Leasing Serv ices brand.

Gev ity HR operates as a professional employer organization offering insurance, payroll, and human resource outsourcingserv ices.

N/A100

N/A

1,400

75

1,921

125

40 $118 Offers a full spectrum of information technology (IT) serv ices, solutions, and supports to include enterprise architecture,application development, systems implementation and integration, operations support, and security .

The Human Resources Management segment of Convergys prov ides global human resource business process outsourcingsolutions.

$34 N/A Designs and develops online performance management and succession planning software solutions


March 2012




Nov-11 Jobs2WebSuccessFactors, Inc.

Nov-11 SuccessFactors, Inc.SAP

Oct-11 ADI TimeAsure Software

Oct-11 Provade Inc.Pinnacle Technical Resources

Sep-11 JobScout 24CareerBuilder

Jul-11 CVM SolutionsAltegrity

Jun-11 Jobpartners Taleo

Jun-11 GlobalExpenseConcur

Jun-11 Xi’an FescoManpowerGroup

May-11 JobsCentralCareerBuilder

May-11 ePlan Serv ices, Inc.Paychex Inc.

Apr-11 Edge Professional Serv ices LLCArtech Information Systems LLC

Mar-11 Lawson Software, Inc.Golden Gate Capital; Infor Global Solutions, Inc.

Mar-11 Jambok, Inc. SuccessFactors, Inc.

Jan-11 Cytiva Software Inc.Taleo Corporation

Jan-11 GeoLearning, Inc.SumTotal Systems, Inc.

Jan-11 OrgPlus Software Div ision of HumanConcepts LLCAdministaff

Dec-10 iSoft Business Solutions (nka: I B Solutions)Capita Group plc

Dec-10 SurePayroll, Inc.Paychex Inc.

Oct-10 VCG, LLCBond International Software plc

N/A

3,400 317 SuccessFactors prov ides cloud-based business execution software solutions that enable organizations to bridge the gapbetween business strategy and results worldwide.

110 N/A Jobs2Web prov ides interactive recruiting and career site optimization solutions. It offers mobile recruiting solutions, talentcommunity marketing solutions and social network recruiting solutions.

N/A

N/A N/A JobsCentral is an online job board operator with a presence in Singapore and Malaysia.

N/A N/A

SurePayroll, Inc. prov ides online payroll, retirement, health insurance, and human resources serv ices for small businesses.

N/A Provade prov ides enterprise managed serv ices for businesses; it offers contingent workforce management, managedprocurement and professional serv ices.

Jobpartners Plc designs and develops strategic HR and talent management solutions for companies in the UK.

iSOFT Business Solutions prov ides financial software, procurement and bespoke solutions to serv ice-centric organizations. Itspecializes in prov iding financial, accounting & purchasing software solutions.

115

Cytiva Software Inc. prov ides recruiting, performance management, onboarding, and other software management solutions in Canada and the United States.

37

ePlan Serv ices, Inc. is a prov ider of recordkeeping and administrative serv ices to the defined contribution marketplace.

38 N/A

N/A N/A JobScout 24 is an online job board based in Germany.

22

12

N/A

N/A

1,780

9

N/A

7

N/A

Xi’an Fesco is a staffing firm based in Shaanxi Prov ince, China.

Jambok, Inc. operates a social business platform that enables employees to create content and share it with others as part of a community .

GlobalExpense is a London-based prov ider of Web-based expense management serv ices.

23

7 VCG provides technology enabled staffing and recruitment solutions, including résumé searches, job sourcing tools, and jobboards.

GeoLearning, Inc. prov ides managed learning serv ices, hosted learning, and performance technology through on demandsoftware and the internet.

Lawson is a leading prov ider of enterprise resource planning software and solutions.

N/A

755

N/A

Edge Professional Serv ices, Llc operates as a technical and information technology staff augmentation company in the U.S.

28

N/A ADI Time LLC develops cloud computing time and attendance management software-as-a-serv ice for small-to-mid- sizedbusinesses and div isions of large enterprises.

N/A N/A OrgPlus facilitates the creation, management and communication of organizational charts and has developed an SaaS basedversion to be released in 2011.

N/A N/A

N/A CVM Solutions is a prov ider of supplier management technology and data serv ices.

N/A

7


March 2012




Sep-10 Fieldglass, Inc.Madison Dearborn Partners

Sep-10 Softscape, Inc.SumTotal Systems, Inc.

Sep-10 Learn.com, Inc.Taleo Corp.

Sep-10 Salary.com, Inc.Kenexa

Aug-10 Rigzone.com, Inc.Dice Holdings, Inc.

Aug-10 MrTed, Ltd.StepStone Solutions Ltd.

Jul-10 Workscape, Inc.Automatic Data Processing

May-10 Worldwideworker.com B.V.Dice Holdings, Inc.

May-10 Cube Tree, Inc.SuccessFactors, Inc.

Feb-10 SkillSoftAdvent International Corporation / Bain Capital / Berkshire Partners, LLC

Feb-10 HotJobs.com, Ltd.Monster Worldwide, Inc.

Feb-10 Inform Business ImpactSuccessFactors, Inc.

Dec-09 Peopleclick, Inc.Authoria, Inc.

Dec-09 OneClickHR plcADP Network Services Limited

Sep-09 Worldwide Compensation, Inc.Taleo Corp.

Jul-09 Affiliated Computer Serv ices, Inc.Xerox

May-09 SumTotal SystemsVista Equity Partners

Jun-08 HireRightUS Investigations Services

May-08 Vurv TechnologyTaleo Corp.

Mar-08 AIRSThe RightThing

Feb-08 ChoicepointReed Elsevier

49

55

Cube Tree, Inc. prov ides social networking technology to organizations to create internal social networks, as well as foremployees to connect, communicate and collaborate using a set of integrated tools.

6,523

25

HotJobs.com prov ides recruiting solutions to employers, recruiters and staffing agencies.

201

N/A

N/A

N/A

N/A

N/A

74

N/A

Inform Business Impact offers SaaS-based workforce planning, reporting, and human capital analy tics solutions toorganizations in the U.K. and internationally .

Rigzone is the world’s most−used source for upstream oil and gas news and data, including industry-specific job postings andin−depth information on the exploration, drilling and production markets.

10

N/A

N/A

118

4,184

130

SkillSoft is a leading SaaS prov ider of on demand e-learning and performance support solutions.315 1,128

100

195 71

114

16

Affiliated Computer Serv ices, Inc. prov ides business process outsourcing and IT serv ices to commercial and governmentclients in the U.S.

6,400

Learn.com offers a cloud-based learning and talent management platform for businesses.28

Softscape offers human capital management software for compensation, talent acquisition, human resource management andbusiness intelligence.

46

Worldwide Compensation, Inc. offers fully integrated global compensation data and software that enables global companies toalign and reward critical talent.

63

N/A

2

OneClickHR plc, engages in the design, production, marketing and sale of HR software and related products and serv ices

Fieldglass, Inc. delivers VMS technology to help Global 2000 firms manage contingent workers, serv ice prov iders, includingstatement of work projects, independent contractors and direct hires.

Worldwideworker.com B.V. prov ides energy jobs for engineers and professionals in the energy sector in the U.S. andinternationally .

Workscape, Inc. prov ides web-based human resources solutions to large organizations.

MrTed is an e-recruitment software prov ider based in the U.K.

9

N/A

SumTotal Systems develops and markets performance and talent development software solutions and on-demandsubscriptions worldwide.

982

N/A

N/A

Peopleclick, Inc. develops and implements talent acquisition software and serv ices.

30

Salary.com is a prov ider of on-demand compensation management solutions.

Vurv Technology offers solutions for recruitment, onboarding, performance and compensation management and talentmanagement. The Company was founded in 1996 and is based in Jacksonville, Florida.The RightThing is an Ohio-based recruitment process outsourcing firm acquired AIRS, a recruitment software, training andconsulting firm. Choicepoint prov ides identification and credential verification software and will be integrated into Reed Elsevier's LexisNexisRisk Information and Analy tics Group.

125

HireRight prov ides security , staffing and training solutions and offers pre-employment and drug testing screening solutions.

N/A

N/A

N/A

225


March 2012




Jan-08 Ensemble Chimes GlobalBeeline (MPS Group)

Dec-07 Affinity Labs Inc.Monster Worldwide Inc.

Oct-07 Deploy Solutions Inc.Kronos, Inc.

Jul-07 H-G Holdings Inc.Concur Technologies

Apr-07 WorkbrainInfor Global Solutions European Finance

Mar-07 KronosHellman & Friedman Capital Partners

Feb-07 Witness SystemsVerint

Oct-06 BrassRingKenexa

Aug-06 Lominger LimitedKorn/Ferry International

Jul-06 UnicruKronos, Inc.

STAFFING AND RECRUITING SERVICESJan-12 VSN Inc

AdeccoJan-12 Advantage Resourcing

Recruit Co., Ltd.Nov-11 TS Staffing Serv ices Inc.

Corporate ResourcesNov-11 Tradição Tecnologia E Serv iços Ltda.

Kelly Services, Inc.Oct-11 The RightThing

ADP Network Services LimitedSep-11 TFR

Staffline Group plcSep-11 GMW

SynergieAug-11 Ashley Ellis

General Employment EnterprisesAug-11 PeopleLink

Groupe CRITAug-11 Ingram Mayet

HB International

N/A Advantage Resourcing America, Inc. and Advantage Resourcing Europe B.V. were acquired by Recruit Co., Ltd. theyprov ides commercial and technical staffing serv ices.

$118 N/A VSN Inc. offers engineer dispatching serv ices to information technology, mechatoronics and electronics, and biochemistrysectors, as well as prov ides contract and paid placement serv ices.

410

N/A TS staffing serv ices offers temporary and permanent employment staffing serv ices to municipalities, private and publiccompanies. TS Staffing also prov ides ancillary serv ices to private and public companies.

N/A N/A Tradição Tecnologia E Serv iços Ltda prov ides employment solutions including temporary staffing, permanent placement,executive search and training to companies throughout Brazil.

64

950

N/A N/A Taskforce, prov ides temporary personnel to a number of blue chip customers and local authorities throughout the East Midlands region, managed through a network of 4 branch offices and 7 OnSites.

N/A N/A The RightThing prov ides recruitment outsourcing solutions to orgnaizations worldwide.

Ingram Mayets is a financial recruitment focused staffing firm.

Witness Systems prov ides software and serv ices that help businesses capture customer intelligence and optimize theirworkforce performance.

Kronos is a leading workforce management solutions prov ider, offering applicant tracking, human resources, payroll,scheduling and time & labor applications.

Affinity Labs operates several career and community websites for various specialties including nurses, police officers,firefighters and others.

N/A Deploy delivers selection and hiring solutions that help organizations increase applicant flow, reduce costs and improve qualityof hires.

160

8

115

18

N/A

N/A

24

BrassRing is a global prov ider of talent management solutions to enterprise organizations across multiple vertical markets.BrassRing prov ides software, serv ices and outsourcing to identify , assess, recruit and retain talent.

Unicru is a leading prov ider of talent management/applicant tracking solutions.

653

61

Workbrain prov ides total workforce management solutions to help large enterprises plan, deploy and manage their workforce.

Ensemble Chimes Global is a leading prov ider of vendor management software and on-site serv ices.

N/A

185

97

N/A

H-G Holdings prov ides transaction and information processing solutions to corporations and government agencies, focusing onthe travel expense management and the trade promotion planning markets.

PeopleLink LLC is a South Bend, IN based staffing company.

Lominger prov ides leadership assessment and development tools for indiv iduals, teams and organizations and offers follow-updevelopment serv ices through a network of trained associates.

N/A

227

1,800

Ashley Ellis is an information technology recruiting and staffing firm with offices located in Naperv ille, Illinois, Atlanta, Georgiaand Houston, Texas.

N/A N/A

N/A N/A

50 150

N/A GMW is a regional staffing agency group based in south-western Germany.

N/A N/A

N/A


March 2012




Aug-11 VMS Staffing Div ision of Workway Inc.Addison Search

Aug-11 Ashbourne Group Kenexa

Aug-11 HealthCare PartnersOn Assignment, Inc.

Jul-11 Madeo Sourcing Group ABZeroChaos

Jul-11 Allied Healthcare International Inc.Saga Group Limited

Jul-11 Arnashade Recruitment LimitedStaffline Group plc

Jul-11 Drake Beam Morin Inc.Adecco

Jul-11 A-1 TempsNesco

Jul-11 SFN GroupRandstad

Jul-11 Rocket Careers Inc., Bench International Search

Jul-11 Reynolds Technical Serv icesNesco Resource

Jun-11 Berkeley Frost Limited Human Capital Resources

Jun-11 Contract Connections Limited InterQuest Group Plc

Jun-11 Human Capital Serv ices div ision of RSM McGladreyPension Specialists, Inc.

Jun-11 A-1 StaffingTrueBlue

Jun-11 Reach HRManpowerGroup

May-11 Team24 Limited Capita Group Plc

May-11 Medic-Zeitarbeit GmbHAdecco

May-11 Triple West Medical LimitedServoca Plc

Apr-11 Runway Personnel Limited CPL Resources Plc

Apr-11 Cameo Personnel Systems Inc.Corporate Resource Services Inc.

Contract Connections Limited offers technology staffing serv ices including contract and permanent IT personnel to the legalsector.

HealthCare Partners makes physician placements in 14 specialty areas across 24 states.

7

N/A N/A Runway Personnel Limited prov ides multiple types of recruitment solutions to public and private hospitals, care homes andallied health facilities in the healthcare sector across Ireland.

15 N/A

Cameo Personnel Systems Inc. is a New Jersey-based firm that prov ides primarily light industrial staffing.

N/A

N/A

N/A

53

Triple West was is a specialist doctors recruitment agency sourcing for locum and permanent positions in the healthcare sector.

N/A

N/A Medic-Zeitarbeit GmbH is a temporary staffing agency specializing in the medical and science sectors in Germany.

Team24 Limited offers temporary placement serv ices for doctors and specialist nurses.

RSM McGladrey, Inc., Human Capital Serv ices Div ision is a prov ider of recordkeeping and administration, actuarialserv ices, employee share option plans .

43

N/A

8 N/A

1 12

N/A Reach HR is a human resources prov ider in China’s Guangdong Prov ince and employer of more than 100,000 associates.

N/A

N/A N/A

A-1 Staffing is an industrial staffing prov ider with eight branches located in Kansas, Missouri, Nebraska, and Iowa.N/A

N/A

N/A

Berkeley Frost is a recently established executive Search firm that specializes in the Financial Serv ices sector.

N/A N/A

N/A N/A A-1 Temps prov ides staffing serv ices in Florida. It engages in recruiting, screening and testing of applicants. In addition itoffers contract staffing serv ices such as payroll processing, employee benefits and workers compensation.

105 59

Technical Serv ices is a technical staffing serv ices firm based in Stratford, Conn.

Arnashade Recruitment Limited prov ides industrial recruitment serv ices for corporate customers. Staffline acquired certainassets and commercial relationships.

Rocket Careers Inc. is a search firm based in the San Francisco Bay Area that also serves the life science industry .

771 2,091 SFN Group offers professional and staffing serv ices, which include temporary staffing, outsourcing and other, and permanentplacement serv ices.

N/A N/A

N/A

Drake Beam Morin Inc. prov ides career transition and talent development solutions to indiv iduals and organizations. Itsserv ices include job databases, resume building and developing job search strategies.

N/A Ashbourne Group focuses on the U.K. public sector and has designed a wide range of behavioral assessment, learning anddevelopment products.

175 271 Allied Healthcare International Inc. is a United States based prov ider of homecare and healthcare staffing in the UnitedKingdom.

150 Madeo Sourcing Group AB is an information technology consultant broker. Madeo's business model includes finding ITprofessionals and sending them to client firms where they become employees.

N/A

N/A N/A The VMS staffing div ision specializes in prov iding staff augmentation serv ices to MSP and VMS program nationally .


March 2012




Apr-11 Swan iT Recruitment LtdIT Human Resources (ITHR) Plc

Apr-11 Draig PersonnelAcorn Recruitment

Mar-11 Right4staffGi Group

Mar-11 UnimanUSG People

Mar-11 Ethos Recruitment LtdStaffline Group plc

Mar-11 PeriscopeAspire Global Network

Mar-11 Trainico GmbHAdecco Germany

Mar-11 Big fish Search & Selection LimitedNakama

Feb-11 PRN RegistrySK3 Group, Inc.

Feb-11 ETI ProfessionalsCherokee Nation Businesses

Jan-11 Aston Carter International LimitedAllegis Group, Inc.

Jan-11 Full Circle StaffingNesco Resource

Jan-11 Tri-Diamond Staffing, Inc.Corporate Resource Services, Inc.

Dec-10 Eliassen Group, LLCRiverside Partners

Dec-10 UndisclosedOn Assignment, Inc.

Dec-10 PMS MédicalisationAdecco Medical SAS

Dec-10 XRoads Consulting, LLCAmerican Cybersystems, Inc.

Nov-10 Healthcare Australia Pty. Ltd.Healthcare Locums Plc

Nov-10 Dextrys IT Staffing Div isionEliassen Group

Nov-10 ResCo Serv ice Pty. Ltd.Humanis Group Ltd.

Nov-10 The Broadlane GroupMedAssets Inc.

Right4staff Holdings Limited prov ides recruitment, staffing, and workforce management serv ices.

N/A Uniman is a prov ider of specialist staffing and recruitment of qualified personnel for the industrial, construction and commercial sectors.

N/A N/A Swan iT Recruitment prov ides contract, permanent and executive search and selection solutions throughout the UK, Europeand South Africa in the SAP and IT market sectors.

Trainico GmbH is the technical training and staffing agency prev iously owned by Lufthansa.

N/A Full Circle Staffing is a prov ider of Engineering and IT staffing serv ices in the Boston, Massachusetts market.

N/A 280 Aston Carter operates as an IT recruitment consultancy in the U.K. It specializes in placing permanent and contract ITprofessionals in management consulting companies, and prov ides technology and business consulting serv ices.

N/A

N/A

N/A N/A

N/A ResCo prov ides staffing as well as mine site operations and maintenance serv ices.

Healthcare Australia prov ides nursing workforce, health and homecare, aged care staff, and medical specialist placements serv ices for the health, hospital, aged, and community care sectors in Australia.

N/A

118

ETI Professionals prov ides project management and staffing serv ices at federal government agencies in the engineering, IT,R&D and clerical sectors.

N/A

N/A

N/A

N/A

N/A

850 168

N/A

XRoads Consulting, LLC is an Atlanta-based firm that prov ides information technology staffing.

13

Dextrys IT Staffing prov ides product engineering and application serv ices outsourcing.

PMS Médicalisation prov ides HR serv ices in the medical, health and pharmaceutical fields to companies, which operate with hazardous chemicals, the offshore oil industry , the maritime industry

216

Eliassen is a technology staffing and clinical data management consulting firm in the Northeast.

N/A

Diamond Staffing Serv ices, Inc. offers temporary and permanent employment staffing serv ices.

The Broadlane Group, Inc., a healthcare serv ices company, prov ides margin control solutions for healthcare prov iders in the United States.

N/A

N/A

N/A

N/A

Ethos Recruitment Ltd., a recruitment consultancy, prov ides temporary and permanent staff to companies and organizations in Daventry , Rugby, and Northampton areas.

N/A Periscope is a leading recruitment company serv ing the creative and design sectors.

N/A

Undisclosed clinical research staffing firm that operates in Western Europe.

N/A N/A

N/A

24

N/A

N/A

25 77

PRN Registry is a nurse and therapist staffing firm based in Los Angeles and serv ing southern California.

N/A Big fish prov ides recruitment serv ices for creative and marketing professionals in the U.K.

N/A

Draig Personnel Ltd. prov ides recruitment solutions and training serv ices in the U.K.

N/A

N/A


March 2012




Nov-10 Integrated Consulting Group of NY LLCCorporate Resource Services, Inc.

Nov-10 Pulse StaffingIndependent Clinical Services Ltd.

Nov-10 Signature Government Solutions, LLC Global Defense Technology & Systems, Inc.

Nov-10 Comforce Corp.ABRY Partners, LLC

Oct-10 Keane, Inc.NTT Data Corporation

Sep-10 Hospitality Staffing SolutionsFrontenac Company

Aug-10 FujiStaff HoldingsRandstad Holding

Jul-10 Medfinders Inc.AMN Healthcare Services Inc.

Jul-10 The CSI CompaniesRecruit Co., Ltd.

Jul-10 Insight GlobalHarvest Partners

Feb-10 COMSYS IT Partners, Inc.Manpower, Inc.

Feb-10 Tatum, LLCSpherion Corp.

Oct-09 MPS Group, Inc.Adecco SA

Sep-09 Pomeroy IT Solutions, Inc.Platinum Equity, LLC

Aug-09 Spring Group plcAdecco SA

Jun-09 Towers Perrin, Inc.Watson Wyatt Worldwide, Inc.

Jun-09 Whitehead Mann GroupKorn/Ferry International

Jun-09 Butler International, Inc.Select Staffing

Jan-09 Westaff Inc.Koosharem Corp (Select Staffing)

Sep-08 DNC De Nederlanden Compagnie N.V. Adecco Nederland (Adecco SA)

Jul-08 MDA Holdings, Inc.Cross Country Healthcare, Inc.

80

Pulse Staffing is one of the U.K.'s leading prov iders of comprehensive labor management, recruitment and deployment serv ices in the healthcare sector.Signature Government Solutions, LLC prov ides IT staffing and solutions for national security agencies and programs of the U.S. government.

N/A

431

350

46

42 456

27 273

1,090

25 536

103 DNC De Nederlanden Compagnie N.V. prov ides temporary, permanent and contract staffing serv ices in the Netherlands.

112 158

97

1,912

Spring Group plc prov ides recruitment, staffing and related serv ices in Europe, North America and internationally .

MDA prov ides multi-specialty locum tenens (physician) and allied staffing serv ices to the healthcare industry in all 50 U.S. states.

Pomeroy IT Solutions, Inc. prov ides IT solutions and a range of hardware, software and technical staffing serv ices in the U.S.

Insight Global is one of the fastest growing prov iders of IT staffing solutions in North America.

650

Westaff prov ides temporary staffing and permanent placement solutions focused on clerical, administrative and light industrial personnel.

39

Medfinders Inc. prov ides nurses, healthcare professionals and physicians to healthcare facilities and patients in home.

N/A

COMSYS IT Partners operates as an IT serv ices company, offering serv ices that prov ide contingent and direct hire placement of IT professionals.

303

MPS Group, Inc. prov ides staffing, consulting and business solutions to various industries, primarily in the U.S., Canada and the U.K.

Tatum offers an assortment of executive leadership / search serv ices and consulting solutions to companies in the U.S.

N/A

Butler International prov ides outsourcing, project management and technical staff augmentation serv ices.

809

Whitehead Mann Group prov ides executive search and leadership development serv ices in France, the U.K. and internationally .

1,823 Towers Perrin, Inc. offers human capital strategy, program design and management, risk and capital management, and insurance and reinsurance intermediary serv ices.

The CSI Companies offer healthcare, IT, recruitment and custom staffing solutions.

N/A

213

N/A

154 623

678

N/A

4 19

N/A Atlanta-based HSS prov ides outsourced staffing serv ices to hotels, including Marriott, Hyatt, and Ritz-Carlton properties across the U.S.

Integrated Consulting Group of NY LLC specializes in temporary staffing in light industrial businesses predominantly in the Northeastern U.S.

Comforce prov ides outsourced staffing management serv ices and staffing solutions to large employers.

Keane is an IT serv ices firm offering application serv ices, as well as infrastructure and business process outsourcing solutions. 788

FujiStaff Holdings prov ides temporary and permanent staffing and business contract serv ices in Japan.242

53 N/A

1,586

N/A

174

121


March 2012




Jul-08 Randstad PortugalKelly Services, Inc.

Apr-08 Personnel ManagementTrueBlue

Mar-08 Carlisle Group & Corporate Serv ices GroupImpellam Group

Mar-08 Imprint Premier Group

Feb-08 Capital ConsultingAlexander Mann Solutions

Feb-08 Allgeier DLUSG People

Feb-08 Energy and Engineering Staffing Business (Hudson Highland Group)System One Holdings

Dec-07 Alexander Mann SolutionsGraphite Capital

Dec-07 StaffmarkCompass Diversified Holdings

Nov-07 VediorRandstad Holding

Nov-07 TechnisourceSpherion

Oct-07 Tandem StaffingSelect Staffing

Sep-07 Todays StaffingSpherion

Sep-07 Team BSRandstad

Aug-07 NursefindersGoldman Sachs Urban Investment Group

Jul-07 Job OneRandstad

Jun-07 AblestSelect Family of Staffing Companies

Jun-07 Think ResourcesVedior

Jun-07 Spring GroupGlotel

Jun-07 Tuja GroupAdecco

May-07 InteliStaf Holdings, Inc.Medical Staffing Network Holdings, Inc.

N/A

1,904

N/A

Carlisle Group and Corporate Serv ices Group are U.K. based staffing firms that agreed to merger into a newly incorporatedentity , Impellam Group.

136 69

69

Imprint offers a range of international recruitment serv ices in the U.K.

N/A

1,730

Personnel Management is a light industrial staffing company to warehousing, manufacturing and distribution clients in theMidwestern and Southeastern U.S.

Randstad Portugal offers temporary staffing serv ices, on-site personnel management and permanent placement serv ices in Portugal.

860

19

Technisource prov ides IT and Engineering temp staffing and managed serv ices primarily for mid-market clients out of 34 U.S.locations. Technisource has over 3,000 employees.

295+ Based in Germany, Allgeier is a subsidiary of Allgeier Holding Company and prov ides temporary staffing serv ices.

Alexander Mann Solutions is a global prov ider of recruitment process outsourcing solutions to blue-chip companies based inthe UK. Members of the senior management team are substantial investors in the buy-out of the company.

669

Capital Consulting is a recruitment process outsourcing firm with operations in Europe and Asia.

Based in Arkansas, Staffmark prov ides staffing and permanent placement serv ices to customers in a variety of verticalsincluding light industrial, administrative and accounting / finance.

146 Hudson's Energy and Engineering Staffing Business is part of its North American operations. Hudson also received awarrant for up to 10% of System One equity .

40

InteliStaf is one of the largest healthcare staffing companies in the U.S., supporting more than 25,000 medical professionals,including nurses, and allied healthcare and other medical professionals.

Todays prov ides staffing and permanent placement serv ices to customers seeking office administrative staff, legal professionals and financial staff in the U.S. and Canada.

Tuja Group is one of the leading temporary staffing companies in Germany, offering specialized and general staffing serv icesmainly to the automotive, aerospace and metal industries.

Glotel is a technology staffing and solutions company with 22 locations that serv ices clients operating in 40 countries across awide range of industries.

N/A

Job One is a Swiss-based staffing company that operates 23 branches with a focus on technical, healthcare, commercial andconstruction staffing.

Based in Germany, Team BS primarily serv ices the pharmaceutical, chemical, consumer goods and automotive industries.

Think Resources employs a professional recruiting and sales staff that is focused on placing indiv iduals in technical jobs.

Ablest prov ides staffing solutions, managed serv ices, and vendor-on-premise (VOP) programs. Staffing solutions includeclerical, industrial and IT.

54

61

47

N/A

N/A

N/A

250

N/A

N/A

32

55

257

205

N/A

40

128

16

71

5,812

140

N/A

1,070

92

153

190

265

10,991 Vedior is one of the world’s largest staffing and recruitment companies and is a full-serv ice prov ider with a diversified portfolioof brands targeting a broad range of industry sectors.

Nursefinders prov ides nursing, allied healthcare and physician placement serv ices through its Nursefinders, Club Staffing andLinde Healthcare/Kendall & Davis brands and places more than 14,000 professionals each year.

Tandem is based in Boca Raton, FL and specializes in temporary staffing and direct placement for light industrial, logistics andmanufacturing. It operates 44 branches and 40-onsite locations in 10 states.


March 2012




Feb-07 Keane, Inc.Caritor, Inc.

Jan-07 Oxford Global ResourcesOn Assignment, Inc.

Jan-07 VISTA Staffing SolutionsOn Assignment, Inc.

Dec-06 Nordic Facility Management Serv icesArgan Capital

Nov-06 Computer Horizons Corp.TEKsystems/Allegis Group

Oct-06 Highland Partners (HHGP)Heidrick & Struggles International

Oct-06 Computer Horizons Corp.AXIUM International, Inc.

Sep-06 NES Group Ltd.Graphite Capital

Aug-06 Metropolitan ResearchCross Country Healthcare

Jun-06 Swift Technical Serv ices Ltd.Gresham Private Equity

Jun-06 Club StaffingNurse Finders

May-06 CNC GlobalVedior

May-06 RemedyTempSelect Personnel Services

Mar-06 TUJA Holding GmhHSelect Personnel Services

Feb-06 TalismanVedior

Feb-06 World Health AlternativesJackson Healthcare

Jan-06 Pinkerton Computer Consultants, Inc.

Kforce

Jan-06 DISAdecco

Club Staffing is a leading U.S. independent allied health staffing company. Founded in 1999, they prov ide rehabilitation,radiology , respiratory, pharmacy and laboratory professionals.

Metropolitan Research is a full-serv ice pharmaceutical consulting firm that prov ides clinical trials staffing, drug safety monitoringand contract research serv ices.

Swift supplies specialist manpower resources to the oil and gas industry .

RemedyTemp is a prov ider of commercial, as well as specialty staffing serv ices. The company primarily serv ices industrial,serv ice and technology companies, professional organizations and government agencies.

Talisman prov ides permanent and temporary/contract staff globally from a network of offices in Switzerland, Germany, theNetherlands, and the U.K., with a focus on personnel for SAP, web, and eCommerce projects.

Based in Germany, TUJA is a leading temporary employment agency that primarily focuses on middle-market clients in theautomotive and av iation industries.

223

Pinkerton is an IT serv ices and solutions company headquartered in Pennsylvania, with 8 additional U.S. branches as wellas a wholly owned subsidiary in the Philippines, Prov ident Computer Consultants; 65% Commercial serv ices, 35%Government solutions.

NES Group prov ides technical, engineering, rail and IT staffing and recruitment serv ices.

Chimes is a comprehensive BPO solution for vendor management serv ices that manages over $1.8 billion in contingent laborspend for its global client base.

DIS is a leading prov ider of professional staffing solutions in Germany and focuses on temporary staffing, career and recruitingserv ices and project work.

CNC provides temporary/contract staffing and permanent recruitment as well as a full range of RPO solutions includingcontractor administration, payroll administration, vendor management, etc.

Jackson Healthcare acquired the assets of World Health Alternatives following a Chapter 11 Bankruptcy filing by WorldHealth, along with its subsidiaries.

N/A

N/A

N/A

N/A Computer Horizons sold TEKsystems (Allegis Group) its Commercial Serv ices business, which prov ides professional ITserv ices to a variety of vertical markets.

854

41

Highland Partners is a retained executive search firm with 60 professionals (48 of which joined HSII) in the U.S., U.K.,Canada and Australia.

Oxford Global Resources is a leading prov ider of high-end IT and engineering staffing serv ices.

Manpower sold its Nordic Facility Management Serv ice in Sweden, Norway, Finland and Denmark and its Contact Centrebusiness in Sweden and Norway to Argan Capital for which it recognized a €75 million gain.

VISTA Staffing Solutions is a prov ider of temporary physician staffing and permanent physician search serv ices.

Keane is a leading business process and IT serv ices firm. It delivers application and business process serv ices to helpclients transform their business and IT operations.

60

N/A

948

177

N/A

200

79

19

N/A

80

147

EUR 680

N/A

28

60

169

N/A

300

N/A

EUR 305

510

95

18

NA

43

36

N/A

57

37


March 2012

Comparative Index Performance

S&P vs. U.S. HCS Composite Index

Source: FactSet Data Systems, Inc. U.S. Human Capital Services Composite Index includes: ADP, AHS, ASGN, BBSI, CCRN, CDI, CNQR, CTP, DHX, HHGP, HSII, JOBS, KELYA, KFRC, KFY, KNXA, LNKD, MAN, MWW, NSP, PAYX, RECN, RHI, SABA, TBI, TLEO, TW, ULTI. Equal weighted index assuming no dividend reinvestment.

FTSE All-Share Index vs. Baird European HCS Composite Index

Source: CapitalIQ. European Human Capital Services Composite Index includes: ADEN, BRNL, CPI, CEN, HAS, HVN, IPEL, MPI, MRN, PROE.B, RAND, RWA, STHR, SDG, USG, XCH. Equal weighted index assuming no dividend reinvestment.

50%

100%

150%

200%

3/22/2010 6/21/2010 9/20/2010 12/20/2010 3/21/2011 6/20/2011 9/19/2011 12/19/2011 3/20/2012

S&P 500 Index

Baird U.S. Human Capital Services Composite Index

80%

100%

120%

140%

160%

3/22/2010 6/21/2010 9/20/2010 12/20/2010 3/21/2011 6/20/2011 9/19/2011 12/19/2011 3/20/2012

FTSE All-Share Index

Baird European Human Capital Services Composite Index

31.8% 20.6%

12.9% 5.9%


March 2012


S&P vs. U.S. HR & Outsourcing Services Index

Source: FactSet Data Systems, Inc. U.S. HR & Outsourcing Services Index includes: ADP, BBSI, NSP, PAYX, TW. Equal weighted index assuming no dividend reinvestment.

S&P vs. U.S. HR Technology Index

Source: FactSet Data Systems, Inc. U.S. HR Technology Index includes: CNQR, DHX, JOBS, KNXA, LNKD, MWW, SABA, TLEO, ULTI. Equal weighted index assuming no dividend reinvestment.

75%

100%

125%

150%

3/22/2010 6/21/2010 9/20/2010 12/20/2010 3/21/2011 6/20/2011 9/19/2011 12/19/2011 3/20/2012

S&P 500 Index

Baird U.S. HR and Outsourcing Services Index

50%

100%

150%

200%

250%

3/22/2010 6/21/2010 9/20/2010 12/20/2010 3/21/2011 6/20/2011 9/19/2011 12/19/2011 3/20/2012

S&P 500 Index

Baird U.S. HR Technology Index

27.1% 20.6%

88.0%

20.6%


March 2012


S&P vs. U.S. Staffing and Recruiting Services Index

Source: FactSet Data Systems, Inc. U.S. Staffing & Recruiting Index includes: AHS, ASGN, CDI, CCRN, CTP, HSII, HHGP, KELYA, KFRC, KFY, MAN, RECN, RHI, TBI. Equal weighted index assuming no dividend reinvestment.

50%

75%

100%

125%

150%

3/21/2010 6/20/2010 9/19/2010 12/19/2010 3/20/2011 6/19/2011 9/18/2011 12/18/2011 3/19/2012

S&P 500 Index

Baird U.S. Staffing and Recruiting Services Index

20.6%

(0.1%)


March 2012


FTSE All-Share Index vs. European HR & Outsourcing Services Index

Source: CapitalIQ. European HR & Outsourcing Services Index includes: CPI, HVN, XCH. Equal weighted index assuming no dividend reinvestment.

FTSE All-Share Index vs. European Staffing & Recruiting Services Index

Source: CapitalIQ. European Staffing & Recruiting Services Index includes: ADEN, BRNL, CEN, HAS, IPEL, MPI, MRN, PROE.B, RAND, RWA, STHR, SDG, USG. Equal weighted index assuming no dividend reinvestment.

80%

100%

120%

140%

160%

3/22/2010 6/21/2010 9/20/2010 12/20/2010 3/21/2011 6/20/2011 9/19/2011 12/19/2011 3/20/2012


Baird European HR and Outsourcing Services Index

80%

105%

130%

155%

180%

3/22/2010 6/21/2010 9/20/2010 12/20/2010 3/21/2011 6/20/2011 9/19/2011 12/19/2011 3/20/2012


Baird European Staffing and Recruiting Services Index

5.9% (1.0%)

24.7%

5.9%


March 2012

U.S. Closing Stock Price Graphs (3/20/12)

HR and Outsourcing Services Group

Automatic Data Processing (ADP) Barrett Business Services (BBSI) Insperity (NSP)

Relative to S&P 500 Index Relative to S&P 500 Index Relative to S&P 500 Index

Source: FactSet Data Systems, Inc.

$35

$40

$45

$50

$55

$60 Price50-Day Moving Average200-Day Moving Average

$10

$12

$14

$16

$18

$20


$15

$20

$25

$30

$35


90%

100%

110%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201270%

100%

130%

160%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201275%

100%

125%

150%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Paychex (PAYX) Towers Watson (TW)

Relative to S&P 500 Index Relative to S&P 500 Index


$20

$25

$30

$35


$35

$45

$55

$65


75%

85%

95%

105%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201280%

100%

120%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012


HR Technology Group

51job (JOBS) Concur Technologies, Inc. (CNQR) Dice Holdings (DHX)



$10

$35

$60


$30

$40

$50

$60


$4

$9

$14

$19


50%

150%

250%

350%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201270%

90%

110%

130%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201260%

110%

160%

210%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012


HR Technology Group

Kenexa (KNXA) LinkedIn (LNKD) Monster Worldwide (MWW)



$5

$10

$15

$20

$25

$30

$35


$50

$70

$90

$110


$0

$8

$16

$24

$32


80%

120%

160%

200%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201260%

80%

100%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201220%

65%

110%

155%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012


HR Technology Group

SABA Software Inc. (SABA) Taleo Corp. (TLEO) Ultimate Software Group Inc. (ULTI)



$0

$3

$6

$9

$12


$10

$20

$30

$40


$20

$30

$40

$50

$60

$70


60%

110%

160%

210%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201280%

110%

140%

170%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201280%

130%

180%

230%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012


Staffing and Recruiting Services Group

AMN Healthcare Services (AHS) CDI (CDI) Cross Country (CCRN)



$3

$6

$9

$12


$8

$12

$16

$20


$3

$6

$9

$12


30%

60%

90%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201250%

80%

110%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201220%

45%

70%

95%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



CT Partners (CTP) Heidrick & Struggles (HSII) Hudson Highland Group Inc (HHGP)



$3

$6

$9

$12

$15

$18


$8

$16

$24

$32


$0

$2

$4

$6

$8


0%

40%

80%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201230%

60%

90%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201250%

80%

110%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Kelly Services (KELYA) Kforce (KFRC) Korn/Ferry International (KFY)



$6

$14

$22


$5

$10

$15

$20


$10

$15

$20

$25


50%

80%

110%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201245%

70%

95%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201260%

85%

110%

135%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Manpower (MAN) On Assignment (ASGN) Resources Connection (RECN)



$30

$50

$70


$3

$6

$9

$12


$8

$11

$14

$17

$20

$23


50%

70%

90%

110%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201250%

90%

130%

170%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201230%

60%

90%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Robert Half International (RHI) TrueBlue, Inc. (TBI)

Relative to S&P 500 Index Relative to S&P 500 Index


$19

$24

$29

$34


$5

$10

$15

$20


60%

80%

100%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201265%

85%

105%

125%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012

European Closing Stock Price Graphs (3/20/12)


Capita Group (CPI) Harvey Nash Group (HVN) Xchanging (XCH)

Relative to FTSE All-Share Index Relative to FTSE All-Share Index Relative to FTSE All-Share Index


$9

$10

$11

$12

$13

$14


$0

$1


$0

$1

$2

$3

$4

$5


80%

90%

100%

110%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201250%

125%

200%

275%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201210%

40%

70%

100%

130%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Adecco (ADEN) Brunel International (BRNL) Groupe CRIT (CEN)



$35

$45

$55

$65

$75


$15

$25

$35

$45

$55


$10

$15

$20

$25

$30

$35

$40


65%

85%

105%

125%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201265%

90%

115%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201240%

70%

100%

130%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Hays (HAS) Impellam Group (IPEL) Michael Page International (MPI)



$0

$1

$2


$0

$2

$4

$6


$2

$4

$6

$8

$10


45%

70%

95%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/20120%

200%

400%

600%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201280%

100%

120%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Morson Group (MRN) Proffice (PROE.B) Randstad Holding (RAND)



$0

$1

$2


$2

$3

$4

$5

$6


$15

$25

$35

$45

$55

$65


40%

80%

120%

160%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201270%

100%

130%

160%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201245%

70%

95%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



Robert Walters (RWA) SThree (STHR) Synergie (SDG)



$0

$2

$4

$6


$2

$4

$6

$8


$9

$13

$17

$21


60%

95%

130%

165%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201250%

80%

110%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/201250%

80%

110%

140%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012



USG People (USG)

Relative to FTSE All-Share Index


$5

$10

$15

$20

$25


30%

60%

90%

120%

3/22/2010 9/20/2010 3/21/2011 9/19/2011 3/20/2012


March 2012

MAP Information

BAIRD’S MAP

“Human Capital Services Metrics, Analysis & Perspective” The Baird Human Capital Services team is pleased to provide you with this edition of MAP, a monthly summary of the financial performance and valuation multiples of leading Human Capital Services companies. We hope that you will find this to be a valuable reference tool and encourage you to contact the members of the Baird team with your comments or for additional information and insight. To make changes in your e-mail address, or additions and deletions to the MAP mailing, please send an e-mail to [email protected] or contact Joni O’Bryan by telephone at (312) 609-4945. If you do not currently receive Baird’s MAP and would like to do so, please send us an e-mail with your full name, company information, mailing address, telephone and fax numbers.

Valuation & Performance Metrics – Terminology

Enterprise Value (EV): Market value of equity plus total debt (including capitalized leases) plus preferred stock at book value minus cash and short-term investments.

EV/LTM Rev: Enterprise value divided by last twelve months’ revenues. EV/C2012E Rev: Enterprise value divided by calendar year 2012 revenue estimates. EV/LTM EBITDA: Enterprise value divided by last twelve months’ earnings before interest, taxes, depreciation, and

amortization. Est. 2012 P/E: Current stock price divided by calendar year 2012 earnings estimates per share. LTM Rev./Avg. Headcount: Last twelve months’ revenues divided by average number of employees over the period.


March 2012

Appendix – Important Disclosures and Analyst Certification

Robert W. Baird & Co. Incorporated and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months.

Robert W. Baird & Co. Incorporated may not be licensed to execute transactions in all foreign listed securities directly. Transactions in foreign listed securities may be prohibited for residents of the United States. Please contact a Baird representative for more information.

Investment Ratings: Outperform (O) - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Neutral (N) - Expected to perform in line with the broader U.S. equity market over the next 12 months. Underperform (U) - Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months.

Risk Ratings: L - Lower Risk - Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety. Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A - Average Risk - Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include: moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H - Higher Risk - Higher-growth situations appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet leverage, dynamic business environments, and higher levels of earnings and price volatility. S - Speculative Risk - High-growth situations appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and unknown competitive challenges.

Valuation, Ratings and Risks. The recommendation and price target contained within this report are based on a time horizon of 12 months but there is no guarantee the objective will be achieved within the specified time horizon. Price targets are determined by a subjective review of fundamental and/or quantitative factors of the issuer, its industry, and the security type. A variety of methods may be used to determine the value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts. Overall market risk, interest rate risk, and general economic risks impact all securities. Specific information regarding the price target and recommendation is provided in the text of our most recent research report.

Distribution of Investment Ratings. As of February 29, 2012, Baird U.S. Equity Research covered 672 companies, with 53% rated Outperform/Buy, 45% rated Neutral/Hold and 2% rated Underperform/Sell. Within these rating categories, 13% of Outperform/Buy-rated, 8% of Neutral/Hold-rated and 17% of Underperform/sell-rated companies have compensated Baird for investment banking services in the past 12 months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months.

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Analyst compensation is derived from all revenue sources of the firm, including revenues from investment banking. Baird does not compensate research analysts based on specific investment banking transactions.

A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at http://www.rwbaird.com/research-insights/research/coverage/research-disclosure.aspx. You can also call 1-800-792-2473 or write: Robert W. Baird & Co., Equity Research, 24th Floor, 777 E. Wisconsin Avenue, Milwaukee, WI 53202.


March 2012

Appendix – Important Disclosures and Analyst Certification

Analyst Certification

The senior research analyst(s) certifies that the views expressed in this research report and/or financial model accurately reflect such senior analyst's personal views about the subject securities or issuers and that no part of his or her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the research report.

Disclaimers

Baird prohibits analysts from owning stock in companies they cover.

This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.

ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST

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Copyright 2012 Robert W. Baird & Co. Incorporated

Other Disclosures

The information and rating included in this report represent the Analyst’s long-term (12 month) view as described above. Robert W. Baird & Co. Incorporated and/or its affiliates (Baird) may provide to certain clients additional or research supplemental products or services, such as outlooks, commentaries and other detailed analyses, which focus on covered stocks, companies, industries or sectors. Not all clients who receive our standard company-specific research reports are eligible to receive these additional or supplemental products or services. Baird determines in its sole discretion the clients who will receive additional or supplemental products or services, in light of various factors including the size and scope of the client relationships. These additional or supplemental products or services may feature different analytical or research techniques and information than are contained in Baird’s standard research reports. Any ratings and recommendations contained in such additional or research supplemental products are consistent with the Analyst’s long-term ratings and recommendations contained in more broadly disseminated standard research reports.

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This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed to private clients. Issued in the United Kingdom by Robert W. Baird Limited, which has offices at Mint House 77 Mansell Street, London, E1 8AF, and is a company authorized and regulated by the Financial Services Authority. For the purposes of the Financial Services Authority requirements, this investment research report is classified as objective.

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March 2012

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U.S. Offices Atlanta One Buckhead Plaza 3060 Peachtree Road Suite 1815 Atlanta, GA 30305 888.792.9478 Boston One Post Office Square Suite 3617 Boston, MA 02109 888.661.5431 Charlotte 4725 Piedmont Row Drive Piedmont Town Center Two Suite 750 Charlotte, NC 28210 704.553.6600 Chicago 227 West Monroe Street Suite 2100 Chicago, IL 60606 800.799.5770 Milwaukee 777 East Wisconsin Avenue Milwaukee, WI 53202 888.224.7326 Nashville 2525 West End Avenue Suite 1000 Nashville, TN 37203 888.454.4981 Palo Alto 1661 Page Mill Road Suite A Palo Alto, CA 94304 650.858.3800

San Francisco 101 California Street Suite 2450 San Francisco, CA 94111 866.715.4024 555 California Street Suite 1350 San Francisco, CA 94104 415.627.3270 St. Louis 8000 Maryland Avenue Suite 500 St. Louis, MO 63105 888.792.7634 Stamford 100 First Stamford Place 3rd Floor Stamford, CT 06902 800.380.3247 Tampa 401 East Jackson Street Suite 2900 Tampa, FL 33602 888.238.2672 Washington, D.C. Pinnacle Tower North 1751 Pinnacle Drive Suite 1100 McLean, VA 22102 888.853.2753

International Locations* Frankfurt Neue Mainzer Strasse 28 60311 Frankfurt Germany 011.49.69.13.01.49.0 Hong Kong Suite 3304, 33/F Bank of America Tower No.12 Harcourt Road Central, Hong Kong 011.852.2827.8822

London Mint House 77 Mansell Street London E1 8AF UK 011.44.207.488.1212 Shanghai Rm 42-022, 42/F, Hang Seng Bank Tower No.1000 Lujiazui Ring Road Pudong Shanghai 200120, China 011.86.21.6182.0980

*Baird and its operating affiliates have offices in the United States, Europe and Asia. Robert W. Baird & Co. Incorporated. Member SIPC. Robert W. Baird Ltd. and Baird Capital Partners Europe are authorized and regulated in the UK by the Financial Services Authority. ©2012 Robert W. Baird & Co. Incorporated.

Documents

Human Capital Servicesdocshare02.docshare.tips/files/9603/96031803.pdf · Business Services Research March 2012 Human Capital Services HCS Map Mark S. Marcon, CFA [email protected]