Managed Service Solutions

1. Managed Service Solutions

2. Group Structure HaysPLC Corporate Accounts RPO, MSP and Managed PSL contracts Retail Operations 21 Specialisms Support Services Advertising, Marketing, Candidate Attraction, Finance, Training, Legal and Compliance

3. Corporate Clients

4. Public service track record • Corporate strategy to partner in public service sector • 30% of Hays UK income • Founding sponsors of the Guardian Public Services Awards

5. MSP Models • 1. Master Vendor • Under a Master Vendor (MV) service the process management and principle supply of candidates are provided by a single recruitment company. • 2. Neutral Vendor Solution • The neutral Vendor is very similar to the master vendor, the only difference is there is no lead supplier, instead all suppliers are given equally opportunity to supply. One company manages this process. • 3. Recruitment Process Outsourcing (RPO) • RPO is the management of a company’s recruitment function. The supplier takes control of the entire end-to- end

6. Hays Corporate Accounts • Pioneer in integrated solutions • Longest continuously operating outsourced recruitment resourcer in the UK • Award winning services • Voted “Best Onsite Recruiter” in Financial Markets 2006, 2007, 2008 • Most experienced provider • €100 million of cost savings delivered annually • 20,000 temporary workers and contractors supplied each week • 15,000 new employees introduced each year • 29 clients using our online recruitment systems in EMEA and Asia Pac • 750 partner suppliers under contract • Unrivalled client portfolio • 10 year relationships – BT, Fujitsu, Merrill Lynch, JP Morgan & Virgin Media • Proven delivery to the public sector – Newport, Solihull, Haringey, Camden, Barnet & Merton • Now Westminster

7. Resourcing Evolution Tactical cost savings and standardisation of terms Increased choice and leverage of employer brand Integration of temporary and permanent recruitment Full integration company systems and process, expansion to include all non permanent workers Visibility and control Preferred supplier Master / Hybrid Neutral / Direct RPO Flexible Workforce Management 1990’s 1994 2002 2004 2008 Preferred supplier Preferred supplier Master / Hybrid Neutral Flexible Workforce Management

8. Public Sector Overview • Total expenditure on Temporary/Interim/Contractor staff is estimated to be c £4billion • Circa 420 Local Authorities with temporary expenditure of between £1.7billion - £2billion per annum. • Circa £1 Billion per annum on Healthcare • Circa £650m by Central Govt and their Agencies • C£350m on others, Education, Housing Assocs, Emergency Services, Charities, • To date 42% of councils have appointed an MSP provider for supply of temporary staff (approx 55% of total expenditure) • The initial preference has been for technology led, low touch neutral vendors but this is changing. • Move now towards High Touch RPO Temp and Perm models also including “Consultancy spend” • Perm recruitment which has traditionally been done directly by organisations is becoming a key component.

9. Public Sector Challenges • Ensuring Suppliers deliver their resources in accordance with PS Initiatives/Policy both local & national. • Low Touch vendor solutions whilst initially delivering Gershon cashable savings treat recruitment as a commodity • Is eProcurement based so can result in disengagement of suppliers • Not flexible to policy implementation and quality objectives • Limited responsibility for proactively resolving skills shortages • Where the neutral vendor has no supply capability there is often a lack of understanding of the resourcing challenges faced by suppliers • Efficiencies resulting from the management of permanent resourcing and temporary recruitment within the same service need to be recognised • Large levels of consultancy spend need to be controlled and reduced

10. The Future for MSP in Public Sector • Management of temporary and permanent sourcing in one service that commits to deliver 100% fulfillment of the skill sets required by the client • Fully integrated technology infrastructure to capture and report on all recruitment activity. • Contracts where MSP has some responsibility for delivery in accordance with Public Sector Policy • Sustainability, BME • More high touch MSP Models that re-engage the supply chain and manage them as partners, encouraging SME sustainability. • Commitment to continually improve and extend compliance levels across the contract. • continued

11. The Future for MSP • Must reduce Temp usage in accounts • Challenge a Temps Tenure as well as rates • Incorporate “Consultancy Challenge” & “quantifiable work packages” • A solution focused upon delivery of best value not simply driving costs down, balanced score card approach to service delivery • Pricing models that reward achievement of contract objectives • Risk & reward / regeneration rewards rather than pure margin charges that mean that the service provider has use its own candidates in order to cover its costs • Transference of best-of-breed innovations from commerce to public sector

12. Why use us? Visibility • Data and information – a single data source for all workers and vendors. At the end of the Discovery phase the client will have a 360 degree view of the worker population. Control • One Stop Shop – a single access point, for all requests and queries from managers, workers and vendors • Closed system technology –on line technology system accessible only to approved managers and vendors preventing off contract spend Quality improvement • Worker quality – improved candidate quality through dedicated team of direct hire specialists and two way strategic relationships with vendors • Employer branding – Client branded attraction campaigns • Candidate experience – consistent engagement with vendors and candidates in line with client brand values • Performance management – capture and measurement of the managed service and vendors to support a continuous improvement programme Cost reduction • Strategic negotiation – the secure process offers the opportunity to negotiate most favourable terms by guaranteeing chosen vendors increased opportunity • The “Three Challenges” – managing cost by challenging demand, rate and tenure on individual requests • VAT mitigation – all temporary workers will be transferred to a single VAT payroll bureau guaranteeing 100% mitigation for PAYE workers Risk mitigation • Pre Employment Screening (PES) compliance – 100% compliance through third party verification of PES from all vendors • Worker management – defined contact and escalation processes to mitigate exposure to co-employment risk Time saving • On line technology – self service on line technology for all processes and requests • Reduced time to hire – dedicated experienced resource allocated to recruitment process from attraction to on-boarding