OUR STRATEGIC OBJECTIVE
Virtuosity makes the difference and will drive market-beating value creation.
OUR STRATEGIC ADVANTAGE
We believe we retain customers, people and investors for longer than our competitors because we’re trusted to do what we say we are going to do. We work collaboratively across our diverse portfolio with a shared vision, mission, style and language we call ‘The Virtuoso Way’. This enables us to deliver differentiated, integrated solutions and services to our customers, and to find good work for our people.
OUR STRATEGIC SCOPE
We work with customers who value engaged, fulfilled and purposeful people, and who allow us to take our share of the economic value we create as we help them build a better business.
We are a leading Global Talent Acquisition and Managed Workforce Solutions provider enabled by talent-focused Specialist Staffing brands with deep heritages, vertical sector expertise and loyal candidate networks.
We offer multiple brands and services across North America, UK, Australasia, Europe and the Middle East. To further support our mission, and to find exciting opportunities for our people, we also invest in, and operate with, specific clients in other regions.
We have a unique, differentiated and collaborative model. This integrates Managed Services and Specialist Staffing into a full workforce solutions management platform for our customers’ permanent, contingent and Statement of Work (‘SOW’) spend. Our work is important and we get it done.
1 Statement of Work (SOW) solutions are spend in complex categories of service
OUR PRIORITIES AND WHAT THEY MEAN
WHAT IT MEANS
Enable our Virtuosos
Our Virtuosos do what they do best enabled by reliable technology. We’ll get out of their way and make sure they are leading more of the Group, futureproofing the portfolio and delivering new, incremental revenue streams.
Transform our portfolio
We’ll accelerate our Managed Services growth by selectively integrating our Managed Services brands across our major geographies. This will make it easier for our high-road customers to access our talented and engaged people. We’ll refine our Specialist Staffing portfolio and will build scale in growing global verticals. At the same time, we’ll respond to macro trends and develop new business lines in new verticals opened by the gig economy.
We’ll improve our resilience by investing in technology to drive efficiencies and productivity. We’ll enter new growth markets and economies organically to defend our key high-road client relationships.
WHAT WE ACHIEVED IN 2019
Enable our Virtuosos
- We have increased the span of control of our Virtuosos and as a result, gross profit per head increased from £88k to £92k per head and our manager population reduced by 20%.
- We launched the Virtuoso Alliance, a shadow board. This is a team of Virtuosos who work with the Group CEO and members of the Leadership team. Their role is to widen and deepen our understanding of the changing world of work and the challenges and opportunities faced by our customers and candidates.
- To ensure Group-wide connectivity to our shared vision, mission and strategy we held Quarterly Strategy cascades across the Group. We have also expanded adoption and engagement of Workplace, an internal social network, which facilitates collaboration.
- To further underpin our culture of making and keeping promises, we scaled our market-first digital platform, Mosaic. The technology enables our Virtuosos to closely manage and support our strategic investments and initiatives.
- Our innovation hub continued to seek and back ideas from across the Group and partner with tech-led start-ups. This resulted in the acquisition of Flexy, a digital staffing platform.
- To make training more accessible and less time-consuming for our people, we launched our global, virtual People & Development solution. All training is now delivered virtually, resulting in significant savings on travel and time previously spent in classroom-based training.
Transform our portfolio
- We continued to invest in our high growth markets: Managed Services, North America, Technology and Life Sciences.
- As a result of portfolio consolidation in Managed Services, the Guidant Global merger delivered £78m additional revenue from customer expansions across territories.
- Our life sciences brands, SRG (UK) and SRG Woolf (US), were merged and rebranded to SRG, a global STEM talent network.
- Lorien, our technology business in the UK, had a brand refresh. It now shares leadership with s.com, our technology and telecommunications business in North America.
- The Group also made a strategic investment in a new management team in North America to transform and grow our businesses with particular focus on Technology, Life Sciences and Managed Services.
- We continued to invest in Europe by scaling our Technology and Life Sciences businesses in Germany, Switzerland and Ireland.
- Our Healthcare business continued to invest in innovative ways to source and manage NHS workforces. MGG were awarded and implemented two more Managed Staff Banks which provide longer term, partnership-based relationships. This builds on our strong position in the recruitment and supply of healthcare professionals to the NHS.
- Our Australasia businesses have performed well in strong markets. Our doctors’ business in MGG grew combined adjusted EBITDA Δ of 31% and Comensura delivered 32% growth.
- We have a new portfolio structure: Global Talent Acquisition and Managed Workforce Solutions, Global Specialist Staffing, Healthcare and Regional Specialist Staffing. This enables collaboration whilst reducing duplication and waste across the Group.
- Efficiency and productivity gains delivered a 2.2% improvement in gross profit per head and a headcount reduction year-on-year of 5.4%. Our Central costs reduced by £1.5m.
- Retention of our Top 50 increased by 2% to 98%. In total, Group-wide customer retention increased to 57.5% (2018: 56.1%).
- Group fill improved from 16.8% to 17% with a 10.7% increase in like-for-like Group fill revenue (using constant exchange rates and excluding two clients lost in 2018).
- Our focus on pricing delivered an increase of 8.8% to our average invoice value for permanent placements. 22 customers moved along the value chain of Impellam services and delivered incremental margin of £4.4m.
- We continued to invest in technology to increase efficiency and productivity and to drive collaboration and communication. Jobscience has now been rolled out to all Blue Arrow branches.
Our business model
Our collaborative, Virtuoso culture is our key differentiator enabling us to leverage Group fill and cross-sell opportunities to improve the quality of our earnings. We deliver the right service at the right time and at the right price to the customers we choose to work with and by collaborating closely, our businesses share thinking, resources and execution which reduces duplication and waste.
Our Global Talent Acquisition and Managed Workforce Solutions businesses, Regional Specialist Staffing, Global Specialist Staffing and Healthcare businesses provide market-leading services to high road customers across our core markets and we rigorously manage the portfolio and invest according to market potential.
OUR CULTURE OF VIRTUOSITY
At the heart of our integrated, collaborative business model is a virtuous circle of making and keeping promises, engendering trust and loyalty. By keeping our promises we retain clients, candidates, employees and investors for longer, and reap the benefits of that longevity.
We make sure that ‘the beautiful basics’ as a Virtuoso way of working are in place and deeply embedded in all of our businesses, all of the time and we make investment promises to sustain, enhance and innovate our combined portfolio.
We focus on partnering with organisations that value engaged, fulfilled people and we call this the ‘high road’ which serves to drive clear market segmentation and a compelling price point.
All our businesses work in the ‘The Virtuoso Way’ which embeds a consistent, collaborative Group-wide culture, based on trusted behaviours, delivered by entrepreneurial Virtuoso leaders who can drive our competitive advantage and deliver on our promises to all our stakeholders.
We tune in to our customers and work closely with them to find people for good work to help them build better businesses. We retain them, continuing to listen and partner with them to extend the scope and tenure of our services, and in doing so, open up more opportunities for organic growth.
From the outset, we listen to our candidates and find them good work that fulfils them and matches their aptitudes, skills and aspirations. We reward our candidates fairly, retain them by treating them well, and by finding them work that interests and develops them. In turn, this encourages them to refer more people and good work to us.
We employ people who care about what we do and we develop them, so they have the right skills and experience to do their job by being Virtuosos in their field. We free up our Virtuosos and give them greater spans of control so they in turn develop a culture of Virtuosity across the Company. Ultimately, we trust them to make the right decisions, collaborate and deliver on their promises.
We take care to create relationships with investors and we build on the trust we create by delivering sustainable earnings.
We build strong partnerships of mutual trust with our suppliers, many of whom are also our clients. Our long-term relationships with our suppliers enable us to fill more jobs for our clients and by building an engaged recruitment supply chain which is passionate about finding the right candidates with the right skills, we can reduce the cost of recruitment; reduce the time to hire; provide timely market insight and drive innovation.
Our investment proposition: trusted through changing times
The world of work is changing rapidly: the demographics of the workforce are shifting, and new generations are demanding work with more purpose and meaning; clients and candidates are seeking to work ever more flexibly, and the increasingly rapid adoption of technology is challenging our view of the workplace.
A leading provider in the industry, our broad range of global Talent Acquisition and Managed Workforce Solutions supported by talent-focused specialist staffing brands means we are well positioned for further growth. Our deep heritage in contingent staffing provides a clear competitive advantage as clients increasingly seek more flexible ways to work. This, coupled with, our expertise in leveraging data and emerging technology, enables us to deliver a blend of managed recruitment solutions and the full range of consulting and specialist recruitment services.
We operate a differentiated and sustainable high retention business model which builds customer and candidate trust, advocacy and loyalty. Our Talent Acquisition and Managed Workforce Solutions businesses deliver long-term, contracted revenues which provide earnings visibility and sustainable value. This is complemented by our portfolio of higher margin, expert-to-expert Specialist Staffing brands. Through this blended approach, we create incremental value for our stakeholders. Our integrated, collaborative, cross-selling culture across the portfolio ensures that customers and candidates do not need to leave the Group.
We provide our Virtuoso leaders with the autonomy to deliver these solutions to our clients and entrepreneurially identify and develop new opportunities. We continue to empower and enable our Virtuosos with technology to free them up to build more meaningful relationships with our clients and candidates.
We have market-leading positions and capabilities in many of our markets which provide a significant competitive advantage. We leverage these capabilities to expand into new markets and develop new revenue streams. We have unrivalled experience providing thought leadership on the attraction, engagement and retention of talent which ultimately helps our clients build better businesses in a changing world.
We focus on identifying and executing innovative and strategic partnerships and investment opportunities which enables us to be adaptive to the needs of our candidates and clients. We expand the geographic footprint of the business organically to provide further resilience across the portfolio.
Our balanced portfolio of businesses, our trust-based culture and collaborative Virtuoso leaders build sustainable value through our high-retention business model. This delivers sustainable financial performance throughout the economic cycle. Our strong focus on cash generation enables us to reinvest in the portfolio and continue to deliver dependable returns to shareholders.