QUOTE AND NEWS
Channel News Asia  Mar 11  Comment 
A survey by recruitment firm Robert Half showed that 45 per cent of local accounting and finance firms plan to add new employees in the first half of this year.
StreetInsider.com  Feb 11  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Dividends/Robert+Half+International%2C+Inc.+%28RHI%29+Raises+Quarterly+Dividend+12.5%25+to+%240.18%3B+1.8%25+Yield/9154204.html for the full story.
SeekingAlpha  Feb 2  Comment 
By Ashleigh Rogers: Temporary staffing firms are the type of companies that many investors seem loathe to believe in. I suppose it's because finding the right balance for the firms to be successful is so tricky; if labor markets are too good then...
SeekingAlpha  Jan 31  Comment 
Robert Half International (RHI) Q4 2013 Earnings Call January 30, 2014 5:00 pm ET Executives Harold Max Messmer - Chairman, Chief Executive Officer and Member of Executive Committee M. Keith Waddell - Vice Chairman, President and...
StreetInsider.com  Jan 30  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Robert+Half+International%2C+Inc.+%28RHI%29+Tops+Q4+EPS+by+1c/9108402.html for the full story.
Forbes  Jan 28  Comment 
Analysts expect higher profit for Robert Half International when the company reports its fourth quarter results on Thursday, January 30, 2014. The consensus estimate is calling for profit of 48 cents a share, reflecting a rise from 42 cents per...
StreetInsider.com  Jan 27  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Upgrades/Northcoast+Research+Upgrades+Robert+Half+%28RHI%29+to+Buy/9089401.html for the full story.
Channel News Asia  Jan 21  Comment 
Singapore-listed City Developments (CDL), which has been run by the founding Kwek family for the past 50 years, recently surprised the market by appointing Grant Kelley as its first CEO. Director of Robert Half, Stella Tang, said more...
The Straits Times  Jan 20  Comment 
January 21, 2014 1:14 PM Business leaders are becoming more confident about Singapore's growth prospects and will likely hire more people in the first six months this year, according to recruitment consultant Robert Half.     
TheStreet.com  Jan 17  Comment 
NEW YORK (TheStreet) -- It's no secret that a bad hire can cast a dark cloud over any company, creating headaches for management and stress for everyone from HR to interns. Unfortunately, the problems don't end there: The monetary cost of a bad...




 

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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