QUOTE AND NEWS
Forbes  Jul 18  Comment 
Analysts expect higher profit for Robert Half International when the company reports its second quarter results on Tuesday, July 22, 2014. The consensus estimate is calling for profit of 52 cents a share, reflecting a rise from 46 cents per share...
Market Intelligence Center  Jul 18  Comment 
After closing Thursday at $47.07, Robert Half International Inc. (RHI) presents an attractive opportunity to get a 3.76% return in just 155 days, which is an annualized return of 8.85% (for comparison purposes only). To enter this trade, sell one...
MarketWatch  Jul 3  Comment 
Shares of staffing services and recruiting companies get a nice lift, outperforming the broader market, after data showing payroll growth exceeded expectations.
Biomass Magazine  Jul 2  Comment 
The U.K. Department of Energy and Climate change has released Renewable Heating Incentive and Renewable Heat Premium Payment data for May. The program provides financial incentives to increase the production and use of renewable heat.
TheStreet.com  Jun 25  Comment 
NEW YORK (TheStreet) -- As far as myths go, fears about bringing up salary and compensation at a job interview are as common as talk about the ability of leprechauns to find gold. The fact is, you should bring money into the conversation, and the...
TheStreet.com  Jun 18  Comment 
NEW YORK (TheStreet) ? You always suspected it, and now there's official backup: 15 minutes of every hourlong office meeting is a waste of time, according to Menlo Park, Calif.-based Robert Half Management Resources. It's usually because meeting...
Forbes  Jun 9  Comment 
Looking at the sectors faring best as of midday Monday, shares of Industrial companies are outperforming other sectors, up 0.2%. Within that group, Robert Half International Inc. (NYSE: RHI) and Quanta Services, Inc. (NYSE: PWR) are two large...
Biomass Magazine  May 30  Comment 
The U.K. government has announced changes to the country's non-domestic renewable heat incentive (RHI). The changes introduce new technologies to be covered introduce new technologies to be covered by the scheme and new tariffs.
Market Intelligence Center  May 27  Comment 
After closing Friday at $45.45, Robert Half International Inc. (RHI) presents an attractive opportunity to get a 2.62% return in just 53 days, which is an annualized return of 18.06% (for comparison purposes only). To enter this trade, sell one...
SeekingAlpha  Apr 24  Comment 
Robert Half International Inc. (RHI) Q1 2014 Results Earnings Conference Call April 23, 2014 5:00 PM ET Executives Max Messmer - Chairman and CEO Keith Waddell - Vice Chairman, President and CFO Analysts Mark Marcon - Robert...




 

Robert Half International (NYSE:RHI) is a temporary staffing company. The company provides its customers with temporary, project, and full-time workers specializing in accounting and finance.[1] Though Robert Half competes with companies such as Adecco SA (ADO), Manpower (MAN), and Kelly Services (KELYA) in the temporary staffing market, its employees' high degree of specialization sets it apart from its peers. The company earned $3 billion in revenue and $37 million in net income in 2009.[2]

Robert Half uses its reputation for providing specialized financial and accounting workers to charge a premium price, making it the most profitable of the large temporary staffing companies. Despite Robert Half's advantages, several external factors, such as unemployment rates, which are hovering at 9% as of the sumer of 2010. On the other hand, higher demand for flexible workers has led to an increase in the average number of temporary workers employed on a given day. Additionally, because the company generates revenue overseas, a weak dollar also helps the company's revenues.

Company Overview

Business Segments

Temporary and Consultant Staffing (78% of net sales)

Temporary and Consultant Staffing provides customers with temporary and consultant workers. The workers are employed and paid by Robert Half and customers pay Robert Half a fee for hours worked. Temporary and Consultant Staffing operates under the following brand names:

  • Accountemps provides customers with temporary accounting workers to deal with predictable events such as vacations, tax season, and taking inventories as well as unpredictable events such as illness or emergencies.
  • OfficeTeam provides customers with full time temporary workers in administration and office settings. Employees range from word processors to office managers.
  • Robert Half Technology provides customers with experts in programming, networking, help desk support, etc. for technology consulting and full time worker placement.
  • Robert Half Legal provides customers with temporary and full time attorneys, paralegals, legal administrators, and legal secretaries.
  • Robert Half Management Resources provides customers with senior level finance and accounting professionals such as CFOs and senior financial analysts to assist with projects such as financial systems conversions, expansions into new markets, and post-merger financial consolidation.
  • The Creative Group supplies clients in the marketing, advertising, and web design businesses with project consultants that fill positions such as graphic designers, public relations specialists, and creative directors.

Permanent Placement Staffing (10% of net sales)

Permanent Placement Staffing provides customers with full time accounting and finance workers under the Robert Half Finance & Accounting brand name. Customers pay Robert Half Finance & Accounting a placement fee (usually a percentage of the new employees salary) to help them find new workers. Workers are not charged any fees by Robert Half Finance & Accounting. Additionally, customers sometimes hire a worker from one of Robert Half's Temporary and Consultant Staffing programs to work full time. If this happens, the customer pays Robert half a one-time fee to convert the worker from a temporary worker to a full-time employee.

Risk Consulting and Internal Audit Services (12% of net sales)

Risk Consulting and Internal Audit Services provides customers with independent internal audit and risk consulting services under the Protiviti brand name. Customers pay Protiviti a consulting fee for internal audit and risk management consulting.

Business Growth

FY 2009 (ended December 31, 2009)[2]

  • Net sales fell 34% to $3 billion. The company attributes the loss in revenue to the sluggish economy and high unemployment rate which has deceased the demand for temporary workers and increased the number of working applications.
  • Net income fell 85% to $37 million.

Trends and Forces

Increasing unemployment results in low demand for temporary workers

Temporary workers are generally the first hired as unemployment drops and the first fired as unemployment rises. Situations in which unemployment rises usually result in decreased demand for temporary workers. As of the summer of 2010, unemployment was 9% due to the sluggish global economy.[3]

Demand for flexible jobs and workers increases the demand for Robert Half's temp services

According to the American Staffing Association, two-thirds of temporary employees cite increased flexibility as their main reason for choosing to become a temporary or contract employee, along with having more time to spend with family.[4] Businesses also prefer to hire temporary workers because they can add employees during peak work periods without incurring the costs of hiring full time.

Competitors

  • Manpower (MAN)- Manpower is a world wide staffing agency with a presence in over 80 countries. Manpower gets 90% of its revenues from outside the US and is an international competitor for Robert Half. However, Manpower doesn't offer as many specialized temporary workers as Robert Half.
  • Adecco SA (ADO)- Adecco SA is a staffing agency based in Switzerland. It offers some specialized labor, but for the most part offers unspecialized labor, much like Manpower (MAN).
  • Kelly Services (KELYA)- Kelly Services provides scientific temporary workers in IT, engineering, and financial services. The company has a presence in 36 countries.

References

  1. RHI 2009 10-K "Business" pg. 1
  2. 2.0 2.1 RHI 2009 10-K "Selected Financial Data" pg. 11
  3. RHI 2009 10-K pg. 4
  4. Staffing Industry Economic Analysis
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