On Feb. 18, the Staffing Industry Daily News featured a comment made by Randstad Chairman and CEO Ben Noteboom during a conference call with analysts. Here, Noteboom clarifies his statement.
MSP programs are an integral part of Randstad’s overarching strategy to grow our Professionals and HR Solutions’ lines of business and build long-term and successful relationships with our clients. We believe the evolution of MSP will continue as a strategic talent solution that includes forward-thinking advice on market conditions, talent landscapes, risk mitigation and creative variable workforce approaches. For clients, getting the right advisory services for managing their supply chain and building their total talent management strategy is critical.
Investors applaud the idea in principle. They can see how this is part of a sophisticated strategic offer for clients. However, for many it is still a relatively new concept, and the delineations between MSP, RPO, blended solutions etc. are not always obvious. Investors focus on the near- and medium-term earnings potential. MSPs sometimes still get priced as a tactical delivery solution only, and that still hampers the overall profitability of this element in the portfolio of strategic talent management solutions.
Randstad will continue to provide highly successful vendor-neutral programs to customers worldwide. Vendor neutrality is an issue on which the industry gets questioned because all major MSP players are owned by major staffing agencies. This is mainly due to the expertise, stability, scale and reach that are required to be a credible strategic partner. It also means that specific measures were designed and have been put in place to safeguard vendor neutrality. Optimizing supply chain architecture should be an active part of the strategy for any customer; although never to the detriment of the supply performance (regardless of staffing provider). Randstad pays careful attention to matching the right delivery models to the proper client situation.
According to our own and external measurements, clients are very happy with the progress. This is a rapidly evolving field. Client needs, global demographic and economic shifts, and technological possibilities are in a state of flux. We are determined to keep playing a leading role in advancing the cause of strategic talent management solutions. It is entirely consistent with our company’s mission, which is “shaping the world of work.”