AnnuAl RepoRt 2007
the nordic staffing specialist
Table of conTenTs
2007 in brief 1 Statement by Ceo 2 Introduction to proffice 4–7 Vision, goals and strategies 8 Market 10 the specialists 12 offer Temporary staffing 13 Recruitment 16 Career & Development 17 Statement by Chairman 18 Corporate governance 18 Board of Directors and Management Group 20 Five-year summary 24 Report of the Directors 25 Income statement 31 Balance sheet 32 Change in shareholders' equity 34 Cash flow statement 35 notes on the accounts 36 Auditors’ Report 48 Definitions and glossary 49
blue text: legal annual report
the proffice share is quoted on the nordic list of the Stockholm Stock exchange, nordic Small Cap.
The nordic region is our markeT
Welcome to Proffice!
– the specialized nordic staffing company
over 12,000 employees in more than 100 offices in sweden, norway, denmark and finland.
proffice’s customers include private and public companies and organizations.
proffice originated in Snabbstenografen which was founded in 1960.
proffice’s vision is to be the most successful staffing company in the nordic region.
proffice offers solutions in temporary staffing, Recruitment, and Career & Development.
Proffice’s organizaTion
finance office/
cusTomer service
iT indusTry/
logisTics healTh-
care life science
Techno- logy*
TEMPORARY STAFFING RECRUITMENT CAREER & DEVELOPMENT These are
Proffice’s operations!
Three areas of activity in seven business areas – Proffice in a nutshell.
* Specialist company proffice engineering from January 1, 2008.
1 proffice
www.proffice.se
financial informaTion during 2008
investment in nordic specialist areas continues and, in 2007, represented 18% of turnover and 38% of operating profit.
Proffice acquires medical staffing company Medifact in norway and consolidates its position in the nordic market.
Proffice wins tenders, cooperation with AstraZeneca, Skanska and Vattenfall continues.
agreement signed with försäkringskassan (the Swedish national Insurance office) for the recruitment of 370 employees in 11 towns in Sweden.
framework agreement signed with logica (WM-data) for staffing as well as recruitment in all of proffice’s specialist areas.
Proffice initiates a two-year collaboration with ica and becomes the principal supplier of staffing in Sweden and norway.
The finnish operation undergoes reorganization. the previ- ously acquired company HSG is merged with proffice Finland.
reorganization in norway in accordance with the new specialist strategy which was implemented in January 2008.
Proffice life science is launched as a specialist company with 400 employees.
Proffice sees dramatic growth in recruitment: turnover doubled in 2007.
earnings per share amounted to SeK 1.25 (0.28).
127oPeraTing ProfiT 2007msek
» On the whole, I am extremely satisfied with the progress that has been made over the past year.
Our specialist strategy, to go from being a generalist to a specialist, together with completed reorganizational work has boosted profitability and growth considerably. »
Lars Wahlström, Chief Executive Officer of Proffice AB.
imPorTanT evenTs afTer year-end
Proffice engineering, a nordic specialist company for staffing solutions in the technology field, is launched.
Proffice receives a unique commission from the state employment service in Västra Götaland.
key raTios msek
Q1 2007
Q2 2007
Q3 2007
Q4 2007
full year 2007
full year 2006
net turnover 845 938 939 1,069 3,791 2,851
operating profit, eBIt 13 24 31 59 127 37
operating margin, % 1.5 2.6 3.3 5.5 3.4 1.3
profit after financial items 15 24 31 67 137 34
2007 in brief
33%growTh 2007
proffice’s Annual General Meeting will be held on April 16 at 5:00 pm in Stockholm.
More information at www.proffice.com
16aPril
publication of Interim Report for Jan-March 2008: may 8, 2008 publication of Interim Report for Jan-June 2008: august 21, 2008 publication of Interim Report for Jan-Sept 2008: november 12, 2008
2 proffice sTaTemenT by ceo
on the verge of being the
most successful staffing company in the nordic region
On the whole, I am extremely satisfied with the progress we have made over the past year. Our specialist strategy, to go from being a generalist to a specialist, together with completed reor- ganizational work has boosted profitability and growth considerably. I see this as proof that the long-term strategy according to which Proffice has worked since 2006 is the right one.
Both turnover and profit made a dramatic improvement in 2007. Net turnover rose to SEK 3.8 billion, which corresponds to an increase of 33 per cent. Operating profit rose from SEK 37 million to SEK 127 million for 2007.
We have also worked actively on improving our margins. During the fourth quarter, things really took off for Proffice and our operating margin totaled 5.5 per cent. Spread over the year, this amounted to 3.4 per cent. This positive trend has made our goal of a profit margin of 6 per cent seem entirely realistic.
Specialization and profitability Since I took up my duties as CEO in 2006, Proffice has worked according to the strategy that specialization generates more business and higher profitability. For example, Proffice’s specialist companies represent 18 per cent of turnover but are responsible for 38 per cent of profit. In 2007, of course, we continued with the work of extending our areas of specializa- tion. Among other things, we acquired the Norwegian company Medifact, which is active in medical staffing. Together with Proffice Care, we have created the Nordic region’s lead- ing staffing company specialized in serving the healthcare sector.
In 2007 we also initiated the launch of specialist companies Proffice Life Science and Proffice Engineering.
Although in many areas we have pro- gressed in the right direction, I am less than satisfied with the poor rate of profitability in Finland and Denmark in 2007. An indistinct
offer combined with relatively high turnover of personnel are the most significant explanations for the weak performance. On the other hand, I believe we have succeeded in reversing this negative trend. Even in these markets, there is much to indicate that a clearer offer with a higher degree of specialization will have a positive effect on profitability.
Staffing sector generates jobs The staffing sector plays a hugely important role in the labor market. A growing number of people starting a new job find work through Proffice or some of our competitors. But if the labor market functioned better, even more people would be entering working life. It is both a major tragedy and enormously wasteful of resources that more than one million people remain outside the Swedish labor market while 1.3 million feel locked in. The Swedish Employ- ment Protection Act is a remarkable law in many respects. But if we are to get more people into work and increased mobility in the labor market, sections of the Act will have to be rewritten.
Specialists attract specialists One of the most important explanations for Proffice’s healthy growth is the commitment, knowledge and creativity of our employees.
In 2007 we underwent reorganization and divided the Group up into specialist areas.
Such wide-ranging changes have, of course, imposed enormous demands on everyone working at Proffice. I am especially pleased, then, to see a more positive, thrusting and hungry Proffice today than when I first took up my post. It is also evident that pleasure in one’s work creates a healthy working climate.
Our focus on specialization has even led to growing numbers of consultants seeking us out. Not so strange, perhaps, when you con- sider that specialists attract specialists.
My colleagues and I are continuing with
Higher profitability and increased turnover. This is the result of the specialist strategy we adopted when I took up my duties in 2006. The strategy is now firmly established and I am convinced that we will reach our goal: to be the most successful staffing company in the Nordic region.
the work of changing Proffice in accordance with the strategy we established in 2006. This will involve focusing on specialization, including creating more specialist companies and continuing to work within a number of selected business areas. As you would expect, we base our work on our customers’ current and future needs and we will continue to stay one step ahead of the field by being proactive and suggesting ways in which they can make their business activities more efficient. All with the purpose of creating value for our
customers.
We can be contacted 24 hours a day In the future, too, our aim is to be a leading player in the creation of new solutions pack- aged as products. For example, it is essential for our customers to be able to go directly into our system to book their favorite consultants and we are currently accessible 365 days a year 24 hours a day in selected markets.
As I write this text, we are being bombard- ed with conflicting messages about economic trends. By extending and changing our customer stock, Proffice is less sensitive today to economic fluctuations than it was during the last recession. Whatever 2008 holds in store for us, Proffice is better equipped than it has ever been. We have a dedicated specialist organization and clear evidence that our strategy is successful. Nevertheless, we are humble in the face of the challenges that await us in 2008 when we will continue with the work of building the most successful staffing company in the Nordic region.
Stockholm, March 2008
Lars Wahlström, Chief Executive Officer
3 proffice sTaTemenT by ceo
» This positive trend has made our goal of an operating margin of 6 per cent seem entirely realistic »
4 proffice
inTroducTion CouRAGe
our vision is to become the most successful company in the sector. that requires us to have the courage to re-examine and challenge ourselves.
Proffice’s vision is to become the most successful staffing company in the Nordic region. So jogging along in the same old rut is not going to cut the mustard. Creat- ing, not following trends, is what takes courage. Courage to challenge ingrained behavior – our own, the sector’s and the customers’. We like to stick our necks out, pursue whatever stirs our curiosity and make demands on others. This is the way we go about satisfying our customers as well as our employees.
COURAGE A courageous Proffice benefits both customer and employee. We have the courage to make demands of ourselves by, for example, promising that our specialists will get back to the customer within an hour of first contact being made. As a result, we can offer quicker and better delivery and service than our competitors.
Realizing we cannot be the best at every- thing, we have the courage to specialize within selected areas. Our belief in our products is also evident in our satisfied-customer-guarantee which means that, unless customers are satis- fied with the service we provide, they do not need to pay. Which is why we do our utmost to ensure every customer is satisfied.
Bold initiatives to increase profitability
The formation of specialist companies
- proffice life Science - proffice engineering
The amalgamation of business areas - office/Customer Service
- Industry/logistics
Completed divestment of the outsourcing* area of activity Effectivization, including joint purchases within the Group
*During 2006
5 proffice inTroducTion CloSeneSS
our aim is to specialize in what we do best. this has the effect of
increasing closeness to our customers as well as the market.
We aim to continue on our journey to becoming a specialist company – instead of a broad generalist, as before. Closeness means more than simply listening to the customers’ needs – by being close to the market we can be more proative than our competitors. Making us a valuable partner for our customers and the most attractive employer for the best consultants.
CLOSENESS We care about our customers and have in-depth knowledge of the opera- tions, needs and corporate culture of every single one of our customers. Today Proffice has more than 100 offices throughout the Nordic region which means that we can get a feel for the local market and adapt our products to suit. We can be contacted 24 hours a day, seven days a week in selected markets.
A customer contacting Proffice gets to talk directly with a specialist who can speak the same sector language and understands their
Our specialists work in the following business areas
• Finance
• Office/Customer Service
• IT
• Industry/Logistics
• Healthcare
• Life Science
• Technology needs. Everything is done to facilitate finding
a quick solution to the problem, whether recruiting a large number of doctors or hiring a finance assistant for two days. Sensitivity and clarity permeates our work as well as our com- munications. Which is why we are always able to be flexible and deliver quick solutions to our customers. Our consultants know that they will get to work on challenging assignments with opportunities for personal development at exciting companies in their own sectors.
6 proffice
inTroducTion FReeDoM oF ACtIon
our profitability has improved significantly. this allows us freedom of action and the opportunity to develop even further.
0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000
0 5 10 15 20 25 30 35
Mkr Mkr40
2,000 2,250 2,500 2,750 3,000 3,250 3,500 3,750 4,000
-50 -25 0 25 50 75 100 125 150 175 200 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07
Omsättning
EBIT
MSEK MSEK
–50 –25 0 25 50 75 100 125 150 175 200
Turnover and profitability have improved markedly turnover and eBIt rolling 12 months
Proffice is a proactive company that takes the initiative and acts responsibly.
We have put a great deal of effort into changing our company and making it more successful. For the first time in Proffice’s history, we showed turnover of more than a billion in the last quarter of 2007. At the same time, we achieved an operating margin of 5.5 per cent.
FREEDOM OF ACTION The ability to create and offer freedom of action is a cornerstone of our operation. Proffice has a large candidate bank of specialists who can quickly arrive on site, allowing the customer to change and consolidate their organization with ease.
Our employees have the freedom of action to experience working in different sectors, receive career support or sandwich other forms of personal development with their work.
Proffice also offers people freedom of action by being the easiest route to a new job.
7 proffice inTroducTion DRIVInG FoRCe
We have the drive to give our customers and employees that little bit extra.
With our creativity and distinct values, we distinguish ourselves from our competitors.
Our aim at Proffice is to always be first with the best staffing solutions. Our success in this respect is due to the fact that our employees are specialists with a great deal of initiative and innovation and they are always on the ball.
Everyone in the Group is encouraged to dare to be proactive in order to find the best solution for every customer.
DRIVING FORCE We want our customers to always be aware of the fact that Proffice is a driven and highly professional organiza- tion. We have fast-working specialists who can deliver on efficiency and quality, thanks to the fact that we know our customers and their needs. Everyone in the company is sales- oriented and has an excellent grounding in our processes and products. This means that customers can be sure of getting fast and lucid answers at all times.
Proffice’s goal is to always be first with the best staffing solutions. Which is why there
are people within the organization who are responsible for ensuring product development is a continuous process. Proffice has set itself the additional goal of earning 10 per cent of turnover from new products. The organization encourages all employees to be creative, to take personal initiative in relation to the customer and to come up with new ideas for new products that can drive the company forward. In 2007, Proffice organized the Proffice Product Excellence Awards which rewards the employees who submit the best new product ideas.
We set ourselves apart from our competitors in the following ways
• Open 24 hours a day, year round in selected markets
• Everyone within the company is sales oriented, proactive and acts fast
• Dagens Möjligheter – proffice’s labor market publication
• PAMA – Proffice’s labor market analysis report
8 proffice
vision, goals and sTraTegies
ThREE STRONG PILLARS whether the customer’s staffing require- ments are concerned with hiring person- nel, receiving assistance in the recruit- ment process or supporting the work involved in shaping a changed organiza- tion, Proffice offers effective solutions provided by specialists.
proffice – a specialist driven by success
PROFFICE’S BUSINESS CONCEPT
With a great deal of knowledge and commitment, we deliver effective staffing solutions to companies and organizations in the Nordic region. We also represent the easiest route to a new job.
maria: I work in sales with some of the best recruitment consult- ants in Sweden. the result is successful busi- ness deals both for me and for proffice.
hOW WE FULFILL OUR VISION
A vision that dares to aim high is, naturally, based on a business concept that strives to fulfill our vision in our daily work.
As a Nordic specialist in Temporary staffing, Recruitment and Career & Develop- ment, we can guarantee our customers’ satisfaction thanks to the commitment of our consultants. Our focus on specialization means that our customers can be sure of receiving effective solutions – which is why the specialist is chosen in preference to the generalist.
We can state with some satisfaction that Proffice attracts specialists in search of new challenges in their careers. We create thousands of new jobs every year through our in-depth knowledge of the Nordic labor market and its legislation.
Proffice’s success and our effective staffing solutions are built on our driving development in the staffing sector. By listening to our customers, we are able to develop and be first in the market with the very best products.
VISION
Proffice aims to be the most successful staffing company in the Nordic region.
9 proffice vision, goals and sTraTegies
Personnel goal
Proffice aims to have the best personnel in the staffing sector.
we will achieve This by
ATTRACTING driven, sales-oriented employ- ees who take full responsibility for proffice’s values.
WORkING with a goal-oriented personnel strategy with a clear development and remuneration system.
GOAL FULFILLMENT 2007 proffice launched integrated programs for the introduction and training of specialists, and common guidelines for providing incentives.
6%
Proffice’s aim is for our average long-term operating margin to be at least 6 per cent.overall financial goal
markeT goal
Proffice aims to grow more rapidly than the market by securing the loyalty of our customers and offering the best products.
we will achieve This by
BROADENING our customer base through the active cultivation of large and medium- sized companies.
BUILDING strong relationships which yield loyal customers; proffice’s nordic Key Ac- count organization guarantees this goal.
GOAL FULFILLMENT 2007 proffice took mar- ket shares in Sweden from 12.15% in 2006 to 14.75% in 2007.
ProducT develoPmenT goal our aim at Proffice is to always be first with the best staffing solutions. our aim is for new products to represent 10 per cent of turnover.
we will achieve This by
LETTING CUSTOMERS and partners in on the product development process.
DEVELOPING a long-term line and product strategy at the nordic level.
GOAL FULFILLMENT 2007 new products represented just over 10% of turnover due, among other factors, to the establishment of new specialist companies and the introduc- tion of It and Recruitment in Denmark and Finland.
efficiency goal
our aim is for Proffice to increase efficiency by more than 10 per cent per annum.
we will achieve This by
CONTINUOUSLY INCREASING efficiency within a number of areas, taking into consid- eration the structure of each country.
REWARDING successful results at individual, group and company level.
GOAL FULFILLMENT 2007 11,131 more visits were made to customers in 2007 – an increase of 25%.
ProfiTabiliTy goal
our aim is for Proffice’s profitability to correspond with shareholders’
required return and, at the same time, create scope for investments to ensure long-term success.
we will achieve This by
IMPLEMENTING approved central strategies in each country and function.
MANAGING and controlling activities focused on our strategic goals.
GOAL FULFILLMENT 2007 Increased operat- ing margin from 1.5% in Q1 to 5.5% in Q4.
0 2 4 6 8
10 Finland
Danmark Norge Sverige OPERATING MARGIN PER
QUARTER 2006–2007 Per cent
Q1 Q2 Q3 Q4
–1 0 1 2 3 4 5 6
2007 2006
In 2007, 25%
more visits were made to customers
10 proffice markeT
Strong driving forces produce growth
The global market for staffing services has turnover of more than SEK 3,000 billion.
Growth in the staffing sector has been extremely good in recent years. According to Almega1) the sector increased by 18 per cent in Sweden last year. During the same period, Proffice grew by 33 per cent in the Nordic region.
Half the global market in staffing services is made up of temporary staffing. The remainder consists of recruitment, career development, contract work and job mediation. The driving forces behind the long-term development of the staffing sector are:
Good economic growth or GNP development.
Changes in labor market legislation.
Globalization forcing companies to work constantly on increasing their competi- tive edge. Hiring personnel from staffing companies for certain parts of an operation creates flexibility and cost-efficiency. Adapt- ability and flexibility are often included as part of the strategy of a company.
Demographic factors influence growth.
The supply of labor is diminishing.
In the future, the huge number of people entering retirement will increase demand for competence.
High levels of unemployment create oppor- tunities for the staffing sector in markets which are partly deregulated. Staffing com- panies are expected to have an increasingly important role to play in this area.
The number of knowledge-intensive companies is growing. Recruitment is becoming increasingly complex. Within recruitment, demand for specialist competence is increasing.
The individual’s increased need for flexibility.
The need for structural changes The need for structural changes in western Europe and the USA means that the staffing sector has a stronger hold than, for example, in the Nordic region. In western Europe and the USA, 1.8 and 2.2 per cent respectively of the population fit for work is employed within the staffing sector. In the Nordic region, the proportion in each country varies from
between 0.5 and 1.2 per cent. A loosening of the legislation governing the labor market is essential if we are to increase the degree of pen- etration. The changes must promote mobility and remove the locking in effects that have been a result of current legislation. Denmark is considered to have the best opportunities for a more flexible labor market while, for political reasons, Sweden, Finland and Norway are expected to be a good deal more sluggish.
Sensitivity to economic fluctuations has reduced.
Historically speaking, the staffing sector is one of the first sectors to be affected by changes in the state of the market. The short-term response to recession is for hired personnel to leave their client companies.
In the longer term, once companies have made cut-backs and modified operations, the demand for hired-in labor increases instead.
As late as 2001, the market saw a dramatic slowing down in the staffing sector. Only in 2003 and 2004 did the sector begin to recover.
Today, many staffing companies are better equipped for poor market conditions. The reasons include some of the following factors:
More flexible cost structure. A new staffing agreement resulting in increased flexibility.
An increase in the number of strategic col- laborations between customer and supplier.
Frame agreements tending to extend over longer periods of time.
The weighting between various service categories also affects the sensitivity of staffing companies to economic fluctua- tions. Cyclical service categories are aimed at industry, warehousing, installations and construction. Examples of less cyclical categories include healthcare, life science and retail trade.
gnP forecasT, 2008–2009 Per cent
Norway Denmark Finland 0
1 2 3 4 5
Sweden
Source: Konjunkturinstitutet etc.
0809 0809 0809 0809
unemPloymenT forecasT, 2008–2009 Per cent
Norway Denmark Finland 0
2 4 6 8
Sweden
Source: OECD
0809 0809 0809 0809
Turnover Trend for sTaffing comPanies in sweden 20072) Per cent
0 5 10 15 20
Q2 Q3 Q4
Q1
Source: Bemanningsföretagen, HUI
1) Almega is an organization for service companies in Sweden. Almega includes staffing companies together with six other trade and employers’ associations.
2) percentage change compared with the same quarter in the previous year
11 proffice
markeT
Proffice’s strategy provides flexibility Proffice has gone from being generalists to becoming specialists. This puts us in a unique position and creates the flexibility required to deal proactively with fluctuations in the economy. Proffice’s distinctive image as a product leader within the sector also gives a boost to our position in relation to competence and strategic cooperation.
Proffice has also reduced dependence on the economic situation by offering services with a high degree of specialist competence.
Many new and longer frame agreements, including within the public sector, have also contributed to a reduction in Proffice’s sensi- tivity to economic fluctuations.
Price level increases with specialization
Proffice enjoys active relations with more than 6,600 customers throughout the Nordic region. Our customers are in the private as well as the public sector. Tough competition within the staffing sector has squeezed prices for temporary staffing while the margins for the recruitment and career development niches continue to be
good. Proffice’s strategy, to go from being a generalist to a specialist, increases the opportunities for customer-adapted solu- tions and establishing long-term relations.
Improving the value of the service offered to the customer tends to increase the price level and hence profitability.
Tough competition in the market The staffing sector is generic and the com- petition tough. The sector is also character- ized by a lack of entry barriers. The Nordic market has turnover of approximately SEK 40 billion and is dominated by three major players: Proffice, Adecco and Manpower.
Adecco and Manpower have a generic offer and global presence. Uniflex has grown in Sweden through its clear niche within in- dustry and warehousing and has the image of being a low-price player. Poolia has its market in the Nordic region as well as Ger- many and the UK, and focuses chiefly on finance, office and IT. Proffice is the only Nordic staffing specialist and is positioned as a product leader.
Other international players include Randstad/Vedior and Kelly Services.
The nordic markeT 2007 sweden finland norway denmark
Sector growth rate, % 18 20 24 26
Active in the staffing sector, % 1.2 1.0 1.0 0.5
Sector turnover, SeK billions 15.61) 7 11 6.5
proffice market share, % 14.8 2.7 9.3 4.5
1) Statistical sample of sector
Trends
In 2007, two major international Dutch staffing companies, Randstad and Vedior merged. If market growth weakens, the opportunity for consolidation in a number of directions in the sector may increase.
The trend for staffing companies to acquire other companies in order to consolidate the existing service supply or to complement operations is expected to continue.
Within the Nordic region, we can also expect to see staffing across borders as a way of evening out the difference between supply and demand in the labor markets of each of the countries.
In Sweden, AMS tender of private employ- ment mediation was not a success among the major staffing companies. This was mainly down to the fact that jobs in staffing companies were not to be counted as proper jobs. In the future, however, companies in the staffing sector will have a role to play in private employment mediation.
There is a clear trend for the needs of indi- viduals to move towards increased flexibility and in this respect the staffing sector has some interesting solutions to offer.
» Hiring personnel from staffing companies to parts of an operation creates flexibility and cost-efficiency »
Staffing 93%
Recruitment 5%
Career & Development 2 %
share of Turnover for each area of acTiviTy wiThin Proffice
share of Turnover for TemPorary sTaffing in each business area
Finance Office/
Customer service IT Industry/
Logistics
12% 29 % 8% 37%
healthcare Life Science Technology 2)
9% 4% 1%
2)Specialist company proffice engineering from January 1, 2008.
12 proffice The sPecialisTs
the best consultants
form the basis of success
We realize that we cannot be the best at everything, everywhere. But being the best in the Nordic region is entirely possible. Hence our focus on the Nordic market and the fact that we continue to specialize in selected areas of activity.
In 2006, we established that our aim was for Proffice to become the most successful staffing company in the Nordic region. We’ll leave it to others to be the biggest, broadest or global.
Concentrating on what we do best – what we are specialists in – is, we believe, the best route to our success.
2007 was the year we continued to develop our strategy and started working according to
“The Proffice Way”. This involves our working with shared processes throughout the Nordic region and coordinating our purchases in order to increase efficiency.
The role of the specialist
As a specialist, it is taken for granted that we can speak and understand our customers’ sector language. Which is why every customer that approaches Proffice gets to talk with a specialist.
A specialist does not wait for the customer to call and ask for services but finds proactive solutions that bring about improvements for the customer. This makes Proffice and what we deliver attractive to both current and poten- tial customers. Successful specialists, in turn, produce successful customers.
Increased number of employees Proffice has a total of more than 12,000 con- sultants and our areas of activity are Finance, Office/Customer Service, IT, Industry/Logis- tics, Healthcare, Life Science and Technology.
The average number of employees totaled 8,113 in 2007, an increase of 24 per cent.
Our specialists are Proffice’s most impor- tant asset and when we recruit the point of departure is always competence and personal ability. We are dedicated to finding the best candidates for each customer and allowing them to work in their specialist area. In this way Proffice is able to take advantage of large parts of the experience of the whole labor market. We can offer wide diversity as we have a larger share of non-Nordic employees than the labor market as a whole. In order to attract the best employees, we always offer competi- tive terms and attractive career opportunities.
We can motivate our consultants through the fact that they will get to work on a wide range of exciting and challenging commissions.
Our in-house training within Proffice Competence also contributes to the fact that all employees undergo personal development and are given the opportunity to work on new assignments. Proffice gives candidates the opportunity to find attractive jobs and our employees are encouraged to pursue mobility within the Group.
Products that give customer satisfaction
Proffice presents its range of services in the form of products which are constantly undergoing development. All employees are encouraged to be sales-oriented, sensitive and to take the initiative in relation to customers. To further stimulate the creativity and innovation of our employees, the Proffice Product Excellence Award was launched as a reward for the most innova- tive ideas.
As part of our strategy to be the first with the best products, Proffice provides the most generous satisfied-customer-guarantee in the Nordic region. This means that all customers must be satisfied with the product they have bought, otherwise they do not need to pay for it. We have the courage to guarantee this because we understand our customers’ needs.
Proffice’s public face
All meetings with people, including everyone from customers and suppliers to family mem- bers and acquaintances, offer an opportunity to talk about Proffice. A Code of Conduct has been drawn up to safeguard the brand and ensure all Proffice’s employees are singing from the same hymn sheet when they talk about the company. Every employee is responsible for taking on board the contents of the code of con- duct and acting in accordance with it. The code defines how the company and its employees should deal with ethical, environmental, com- munication and security issues.
»A specialist does not wait for the customer to call and ask for services but finds proactive solutions that will bring about improvements for the customer»
FACT In 2007, in Sweden, 120,000 people worked from time to time in a staf- fing company, an increase of 15,000
compared with 2006.
Source: Almega
13 proffice
offer
Closeness to the customer makes for good business
Temporary staffing – deeper relation- ships and longer term agreements Hiring personnel is the simple, fast way of securing the right competence without having to take any major risks or committing oneself to huge expense. We offer our customers competent personnel where they are needed, when they are needed and for as long as they are needed.
Temporary staffing is the basis of our operations and means that we can provide competent personnel for short or long periods of time. Staffing periods can vary from a single day to several years. Every twenty minutes we supply a specialist to our customers.
Market
The current trend is for longer commissions – more than half of our assignments exceed three months in duration which brings a number of advantages. Customer relations are deepened, putting us in a better position to anticipate and meet our customers’ needs.
Longer commissions mean that the adminis- trative expenses involved in each assignment are kept relatively low. All areas of competence
offer temporary staffing, and new staffing solutions are being developed continuously in cooperation with our customers. A close collaborative relationship with our customers facilitates finding smart solutions from which all parties can benefit.
Quality and follow-up
Quality work is extremely important to us. We create a detailed requirement profile to ensure that every assignment is staffed with the right people, with the right degree of competence and at the right point in time. Our consul- tancy managers invest a huge amount of effort in producing company profiles and service descriptions.
Our consultancy managers also have an important role to play when it comes to following up and evaluating an assignment.
Each commission is followed up on site, at the customer’s premises, and viewpoints and suggestions for improvements are incorporated in our improvement work. A natural part of this process involves relaying any feedback to the consultant.
Good quality is about delivering what we have promised. This is something our cus- tomers should be able to count on. And why Proffice has the best guarantees in the market without any tricky clauses. We have also made great strides in the area of accessibility and are now open 24 hours a day seven days a week 365 days a year in selected areas.
Future – continued optimism
The market for temporary staffing has shown dramatic growth in recent years. In the short as well as long term, the prospects are good for continued positive development.
Our investment in Nordic specialist areas continues in 2008. The strategy of investing in what we are best at creates excellent conditions for continued success.
FACT
proffice engages someone every twenty minutes.
Proportion of operations
Personaluthyrning 18%
Rekrytering 7%
Karriär och utvcekling 50%
93%
ExAMPLES of sought after professional categories in temporary staffing:
• Accountants
• IT specialists
• Logistics workers
• Technicians
• Doctors
• Public relations officers TEMPORARY STAFFING By working close to our customers, we under-
stand their needs. Sometimes, before they do themselves. By working proactively – and thanks to our competent specialists – we become an important partner for our customers.
malin: thanks to the years I spent working as a proffice consultant alongside my university studies, I now work as a consultancy manager and am part of the extremely exciting staffing sector.
proffice 14
TemPorary sTaffing
our markets
offer Professional categories Proportion of total turnover
for Temporary staffing country of operation examples of customers market examples
of competitors opportunities/Threats
finance proffice offers the hiring and recruitment of qualified account- ants. We have long experience in specialist staffing in the area of accounting in the private as well as public sectors.
- Business administration managers
- Finance managers - Controllers - Financial accountants - Administrative assistants - Back-office personnel
12%
Xxxxx 16%
Xxxx 18%
Xxxxx 7%
Xxxx 50%
- lindorff - Ragnsells - norsk Hydro - Fabege
existing and new players are focusing even more intensely on specialization. the focus is on Business Administration among the major players in the sector. no signs of slow- ing down. Demand for more specialized competence is increasing.
- poolia - SJR - Manpower
Huge demand and increased degree of penetration. proffice holds a strong position in a stable market. Shortage of qualified candidates.
office/
cusTomer service
proffice offers experienced specialists in administration. the offer includes consultants at all levels, for example, principal secretaries, project assistants as well as Ceo and head secre- taries. Customer service means that we improve our custom- ers’ accessibility through specialist competence in areas such as telemarketing, customer service and reception work.
- Secretaries - Assistants - project managers - Switchboard operators - Receptionists
29%
Xxxxx 16%
Xxxx 18%
Xxxxx 7%
Xxxx 50%
- elli lilly - Aga Gas - Volkswagen - Kone - Statoil - telenor
Degree of specialization in- creasing while companies and organizations focus on their core business. the market is still healthy for the office/ Customer Service area.
- Manpower - Adecco - poolia
Increased strain experienced by many companies is expected to result in a growing number taking on administrative personnel to secure staffing and deal with peaks. this area is sensitive to signs of a down- swing in the economy.
iT proffice helps the customer find and engage the right type of It competence through Dfind, our specialist company in the It sector.
- Systems programmers - Systems architects - project managers - operations personnel
8%
Xxxxx 16%
Xxxx 18%
Xxxxx 7%
Xxxx 50%
- logica (WM-data) - nobel Biocare - Accenture - Acando
Highly competitive market with low unemployment. there are few major staffing companies expressly focusing on It.
- ework - Connecta - Mercuri urval
Continued high demand and good conditions for geographic broadening in the nordic region. low unem- ployment means recruitment of candidates is challenging.
indusTry/
logisTics
proffice offers flexible, skilled personnel in sectors exposed to global competition, rapid changes in market conditions and shorter production cycles. We have competent personnel who are used to stepping in at short notice and performing at a high level of efficiency.
- logistics managers - Forwarding agents - Warehouse staff - truck drivers - Assemblers - production personnel - Machine operators - technicians
37%
Xxxxx 16%
Xxxx 18%
Xxxxx 7%
Xxxx 50%
- Cramo - ICA - Agrikjøp
Industry/logistics is the larg- est segment in the sector and is expected to be developed further as global competition increases.
- uniflex - Adecco - lernia
A changeable market with high
“temporary staffing maturity”. prices are being squeezed by smaller, local players.
healThcare proffice Care offers flexible solutions to hospitals, care centers, pharmaceutical companies and other healthcare operations with improved efficiency and quality at a lower cost for the customer.
- Doctors - nurses - Assistant nurses - Medical secretaries - Health workers
9%
Xxxxx 16%
Xxxx 18%
Xxxxx 7%
Xxxx 50%
- County councils in Väster norrland,
Dalarna and Jämtland - AstraZeneca - Rigshospital, Copenhagen
A growing care sector with huge demand from an aging population with extensive care needs.
- Adecco - Aktiv Care - Dedicare
opportunities for increasing the offer within the healthcare sector and other related sectors.
life science
life Science offers recruitment and staffing of research teams in all types of natural scientific/biotechnical competences – at all levels, chiefly in Biotechnology, Medical engineering, pharma- ceutical, Food and Chemical/technical industries.
- Clinical trials managers - Biomedical analysts - laboratory engineers - Chemists
- pharmacologists - Biologists
4% - nobel Biocare
- Cochlear Bone Anchored - AstraZeneca
the nordic region represents more than 25% of all biotech companies in the european market and is growing sig- nificantly faster. order intake, investments and employment are expected to increase by 10% in 2008.
proffice is the only specialist player.
Increased demand for specialist com- petence in biotech and chemtech is creating excellent conditions for staffing nordic companies with competence across borders.
Technology* During the first quarter of 2008, proffice will be launching a nordic specialist company for staffing solutions in the technol- ogy field, proffice engineering. proffice hires out specialists as reinforcements for projects or to meet immediate require- ments for specific technical competence and offers recruitment for permanent placements.
- process developers - Quality engineers - production managers - project managers
1% the market includes the
motor vehicle, technology, telecoms, industry and installation sectors.
the technology market has developed positively or ex- tremely positively in virtually all customer areas.
- Staffing company - technology
consulting company
no other major staffing companies have found their niche as special- ists in technology. opportunity for becoming an alternative to the established technology consultancy companies. limited availability to qualified candidates.
* Specialist company Proffice Engineering from January 1, 2008.
