Staffing, Rpo & Executive Search Update

H UMAN C APITAL M ANAGEMENT STAFFING, RPO & EXECUTIVE SEARCH UPDATE

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December 2018 Staffing, RPO & Executive Search Update

As part of our Human Capital Management sub-sector research, Delancey Street Partners is pleased to present this Staffing, RPO & Executive Search Update.

This HCM Sector Review provides an overview of the various HCM Talent Acquisition “Service” models in the current public and private markets as well as a look into recent and historic related M&A transactions and Private Equity financings.

Delancey Street Partners Delancey Street Partners is an independent, industry-focused investment bank. We serve CEOs, Entrepreneurs, Shareholders and Boards of Directors of high growth and middle market private and public companies. Our services include strategic advisory, capital raising and independent board advice. We advise on sell-side and buy-side M&A, growth capital financings and recapitalizations. Bill Filip leads Delancey’s Business and Technology Services efforts, which includes a strong focus on the Human Capital Management marketplace. Additional Delancey sectors include: Business & Technology Services, Healthcare, Industrial & Industrial Technology and Infrastructure. We form long-term partnerships with our clients and commit to managing each engagement with senior professionals who bring years of experience and insight.

William J. Filip Patrick E. Dolan B. Andrew Schmucker Steven D. Higgins David K. Allebach Managing Director Managing Director Managing Partner Managing Director Director (484) 533-6312 (484) 533-6311 (484) 533-6313 (484) 533-6308 (484) 533-6315 [email protected] [email protected] [email protected] [email protected] [email protected]

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 1 Contents

DSP’s Human Capital Management: “All Things Human Capital®” Staffing, RPO & Executive Search Update Volume: December 2018 Big Ideas: Q&A with Sue Marks, CEO Cielo Departments Page 24

3 Opening Remarks HCM thought leader, RPO 4 Delancey Observations Entrepreneur and Cielo 7 Market Performance and Valuation Founder, and CEO, Sue Marks sits down with DSP 31 Industry News to give us her thoughts on 48 Select M&A Transactions important topics and trends in the world of human 52 Notes & Disclosures capital and Recruitment 54 About Delancey Street Partners & Process Outsourcing (RPO). Delancey Street Capital Partners How to Subscribe This was prepared by Delancey Street Partners and is for informational purposes only (see important disclosures). If you would like a free subscription (or reprints of prior editions) please e-mail your name and contact info to Ryne Dudley at [email protected].

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 2 Opening Remarks

This DSP HCM sector report focuses on the “Big Three” talent acquisition service models: Staffing, Recruitment Process Outsourcing (RPO) and Executive Search. These bedrock service components of the HCM Talent Acquisition Universe can be sold on a stand-alone basis or, increasingly, as part of an integrated total talent strategy wrapped with various talent advisory consulting services. At a high level, many of these services appear similar from vendor to vendor, but beneath the surface, important differences exist (e.g., capability, technology, solution delivery, vertical, etc.). This is definitely not a “one size fits all” space, which makes it critical for companies selecting vendors, investors in the space and general students of HR to spend time identifying these important differences.

Some of the most enduring brands in HR are in the staffing and executive search space (RPO is much newer). There are many well-known, large providers with proven, successful models - strong “incumbents” abound. But remember that universal truths are universal truths. Just like the astrological truth that our physical universe is continually expanding (see “Hubble’s Law”), the HCM Services Universe is in a constant state of change. How management teams address this changing environment, viewing it either as an opportunity or threat, can make the difference between success and failure. Andy Grove, the founder of Intel, provides a succinct warning to all industry incumbents: “Success breeds complacency. Complacency breeds failure. Only the paranoid survive.” Hopefully “paranoia” isn’t the only source of enduring success, but Mr. Grove’s quote is a good reminder that few things are as dangerous as a “status quo” mindset.

Few business leaders understand “the opportunity that is change” better than our special “Big Ideas” guest, Sue Marks, Founder and CEO of Cielo. Sue Marks moves fast, really fast! You see her “need for speed” in her personal life (check out Sue’s Fun Facts on page 30) and even more so in Cielo’s meteoric ascent in the RPO world and the firm’s rapid deployment of new technology. DSP was lucky enough to temporarily slow Sue down long enough to get her insightful views on important TA trends, RPO’s evolution, and life in general. A must read (see page 24).

We hope you find this report both informative and fun. Please contact your DSP representative for further discussion on the Staffing, RPO and Executive Search industries and to talk about ways we can be of assistance to you.

3 Delancey Observations There has never been a more exciting time to be part of the HCM Services Universe. Staffing and executive search are the oldest players on the scene while RPO is much newer, and has come into its own over the last decade. Surrounding the three core HCM TA Service models, is a literal “world of change,” moving at high velocity. As highlighted in the diagram below, many new technologies, such as AI, programmatic job advertising, and “new to the world” business models such as the Gig/Freelance space and community-based recruitment and staffing models, are reinventing the HR service space.

The Changing HCM Services Universe

Talent Communities & Job Boards Traditional Executive v.2.0 Assessment Staffing Search (Psychometric, Video, Referrals)

Recruitment Process Outsourcing (RPO) Programmatic AI/Chat Bots Job Advertising

Source: Delancey Street Partners HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 4 Delancey Observations – Key Trends

Below, please find our select observations and M&A trends for The Staffing, RPO and Executive Search industries.

The #1 Issue: The Cycle. This is the “big” question on the minds of most HCM service company executives and investors alike. Anyone that has enough gray hair to remember (and successfully lived through) the economic downturns of the post 2000 bubble and the 2008-2009 economic calamity, knows what a scary, white knuckle experience a serious downturn is for the HCM space. Please refer to pages 20-23 for a macro analysis of the employment and economic cycle and in particular, a study of the historic DSP Staffing Index TEV/EBITDA multiples from 1998 to YTD 2018. The current DSP Staffing TEV/EBITDA multiple is 10.1x. By comparison, the trough multiple post the 2000 bubble period and the 2008-2009 downturn was 7.5x and 3.5x, respectively. Whether you are a CEO running a HCM service company, or an investor in the space, it’s critical to know where you are (directionally) relative to the cycle. Please contact your DSP representative for further discussion on this important topic.

Other DSP Top Trends & Observations (in no particular order):

1. Enterprise Class vs. Mid-Market Provider Divide. The big providers have gotten big by serving large clients; the largest RPO providers for example, have increasingly evolved their solutions to specifically serve the largest global clients. Those clients have complex labor needs and want a comprehensive talent strategy that includes services from all three buckets. As a result, the vendor divide between firms focusing on enterprise class versus the “mid-market” has never been more distinct. The mid-market opportunity is real, but the large providers can’t easily scale down their solutions, leaving a big opportunity for the next wave of providers to build strong businesses in the vast “mid-market.”

2. It’s Back to Basics (“Transactional vs. Partnership”). As more providers added more of the service offerings, and as clients gained more experience with RPO, buyers became increasingly transactionally focused. And guess what? In many cases, clients got exactly what they paid for – less than optimal results. When the rebid cycles rolled around many clients switched vendors. This is partially a natural product learning/adoption curve. But here is the good news: many clients have gotten smarter, and we believe (and hope) they are now taking a longer-term view and understand they need a true talent “partner.” Providers have facilitated this partnership mindset through better education, better reporting and the addition of TA consulting and strategy capabilities.

3. Yes There is Hype, But Buyers Are Listening. Yes, we agree the AI hand has been overplayed and chatbots have not taken over the recruitment world (yet), and now “Blockchain-hcm” has arrived, but… here is the reality: buyers are listening (and this stuff actually works). All service providers must have greater technology perspective or risk being excluded from the conversation and not making the down selection cut. There is no doubt that the service providers that truly invest in technology (proprietary assessments, innovation labs, innovation investment groups, etc.) are gaining market share in the HCM Service Provider Universe.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 5 Delancey Observations – Key Trends (Cont.)

4. Buy, Build or Partner? Business Development (M&A) leaders at many HCM Service providers will have some tough calls to make (and soon). We expect to see some fundamental consolidation in several key “technology and community” subsectors that are highly relevant to our HCM Service Provider Universe. But here is the secret… while many of these spaces look crowded, they actually are not! The horse races in these spaces are a lot less crowded than you think when you look closely at the underlying technology and, equally important, when you consider who actually has deep client experience. Service providers often underestimate how quickly the technology and community models evolve. The future is now. So place your bets: “buy, build or partner.” Please consult with your DSP representative for insight into the consolidation opportunities most relevant to your specific model.

5. HCM PE Investors Get Deep, and Vertical. There simply aren’t enough large, highly differentiated HCM Services (and Solutions and Technology) providers available to invest in at reasonable prices. That is a fact. So what can the HCM private equity fund (that just raised a new fund) do? One solution is to dig deeper (i.e. acquire multiple, smaller companies to create the “platform” investment), starting often with a clear vertical industry focus. “Workflow” strategies work equally well in the services sector as they do in Saas. So PE guys and gals, roll up your sleeves!

6. Your Clients Are Your Advantage. HCM technology providers understand this concept better than HCM Service providers do. Your greatest advantage often is your customer base, and your close relationships with the decision makers. It all comes down to client acquisition costs, and services providers need to build their Services Suite (note similarity to Saas Software Suite) to upsell and cross sell via these relationships. For example, executive search service providers have many deep client (board level) relationships, but how many CEO/CFO searches can they expect to do per client per year? The answer - not many. So start solving other related TA problems for your clients by adding new recruitment capabilities (and fast).

7. The Power of the Community. Just one last truism, I promise. This is my favorite one: Whoever has the best talent, wins. If you build a connection with a large number of highly (or lightly) skilled people, engage them and make them feel part of something, you help them in their career success (and consequently improve their lives). You then have the key ingredient for just about any recruitment model: a powerful talent community. Community models solve big work issues. Why add expensive brick and mortar? Work is a thing, not a place. Why have employees commute 2.5 hours a day? Find an extra 12.5 hours of productivity/week and have employees work from home. Need “silicon valley” talent but your business is in Ohio? Find a gig worker online. Don’t have a unlimited hiring budget? Flex-up and flex-down with a professional project worker. Need to make a critical impact hire? Test drive a candidate on a project first, then hire after you’ve seen how they perform. Not yet convinced in the power of a community? Consider the following from Upwork’s recent IPO prospectus: over the last twelve months freelancers (on the Upwork platform) earned more than $1.5 billion, worked on 2 million projects and 475,000 companies found the talent they needed in order to grow. Not bad.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 6 Market Performance and Valuation

7 DSP Human Capital Industry Taxonomy

HR & Outsourcing Staffing Executive Search HR Technology Services United States Heidrick and Struggles (HSII) Automatic Data Processing (ADP) Enterprise/Core HRIS AMN Healthcare (AMN) Korn Ferry International (KFY) Barrett Business Services (BBSI) Oracle Corporation (ORCL) Cross Country Healthcare (CCRN) Capita (LSE:CPI) SAP SE (DB:SAP) Kforce (KFRC) Select Private Executive Search Insperity (NSP) Workday, Inc. (WDAY) Kelly Services (KELY.A) Paychex (PAYX) Sage Group plc (LSE:SGE) Manpower Group (MAN) Boyden Towers Watson (TW) On Assignment (ASGN) Caldwell Partners TriNet Group (TNET) Resources Connection (RECN) DHR International WageWorks (WAGE) Social/Community Robert Half (RHI) Egon Zehnder Facebook (FB) Trueblue (TBI) LLC Partners XING AG (XTRA:01BC) N2Growth Europe Odger Berndtson New World Staffing, Gig Payroll/Benefits Technology Adecco (ADEN) On Partners and Community Benefit Focus (BNFT) Brunel (BRNL:EN) Russell Reynolds Intuit (INTU) CRIT (CEN:EN) Signium Fiverr Ultimate Software (ULTI) Hays (LSE:HAS) Spencer Stuart Freelancer.com Paylocity (PCTY) PageGroup (LSE:PAGE) Stanton Chase International GLG Paycom (PAYC) Randstad (ENXTAM:RAND) Transearch MBO Partners Ebix (EBIX) Sthree (LSE:STHR) True Search Patina Solutions eHealth (EHTH) Synergie (SDG.PA) Witt/Kieffer Snagajob Health Equity (HQY) Japan TaskRabbit Recruit Holdings (TSE: 6098) TopTal Administrative Technology Persol Holdings (TSE: 2181) Uber Works Asure Software (ASUR) Upwork Zendesk (NYSE: ZEN) Select RPOs WeWork Accolo Novo Group Wonolo Learning/Performance/Assess ADP RPO NXTThing RPO Cornerstone OnDemand (CSOD) Advanced RPO Orion Novotus Healthstream (HSTM) Advantage XPO PeopleScout (Trueblue) AgilOne Pontoon (Adecco) Alegis Global PrincetonOne Recruitment Technology Alexander Mann Sevenstep (Motion SEEK (ASX:SEK) Cielo Recruitment Partners) 51job (JOBS) Engage2Excel Sourceright (Randstad) Dice Holdings (DHX) Hire Velocity TalentRISE Hudson Global Taylor Strategy Partners Kinetix TruStar Talent Solutions Korn Ferry (FKA WilsonHCG FutureStep) Xelerate Method3 Yoh RPO Newton Talent Source: S&P Capital IQ HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 8 Human Capital Market Performance – One Year

DSP HUMAN CAPITAL INDICES vs. S&P 500 (as of Nov 30, 2018) COMPANIES INCLUDED IN INDEX

Sector Performance Price (Indexed to 100) 180 Executive Search 120 HR & Outsourcing Services 115 170 Staffing 98 160 S&P 500 97 150 HR Technology 95 140

130

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80 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18

Staffing Executive Search HR & Outsourcing Services HR Technology

Mean Median Mean Median Mean Median Mean Median LTM Revenue $7,603.0 $2,882.5 $1,265.8 $1,265.8 $4,427.2 $3,450.8 $6,544.1 $530.0 Market Value 5,181.1 2,020.5 1,717.1 1,717.1 14,472.8 3,320.3 42,387.3 4,758.2 LTM Gross Margin 26.0% 25.6% 28.1% 28.1% 42.9% 43.7% 72.2% 69.9% LTM EBITDA Margin 6.6% 5.4% 12.1% 12.1% 15.9% 9.8% 23.2% 25.7% 3-Year Rev. CAGR 7.7% 7.4% 14.0% 14.0% 6.6% 8.1% 20.0% 20.2% EV / LTM Revenue 0.7x 0.5x 1.1x 1.1x 2.4x 1.1x 7.1x 6.1x EV / LTM EBITDA 10.0x 9.3x 8.8x 8.8x 13.8x 13.6x 17.0x 15.8x

______Source: S&P Capital IQ. Index companies weighted equally.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 9 Human Capital Market Performance – Three Year

DSP HUMAN CAPITAL INDICES vs. S&P 500 (as of Nov 30, 2018)

Sector Performance Price (Indexed to 100) 200 HR & Outsourcing Services 138

HR Technology 137 180 S&P 500 137 Staffing 136 160 Executive Search 131 140

120

100

40 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

Staffing Executive Search HR & Outsourcing Services HR Technology

______Source: S&P Capital IQ. Index companies weighted equally.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 10 Broad Market Performance Equity Market Performance: One-Year Stock Performance

THE DSP HUMAN CAPITAL INDEX vs. MARKET INDICES (as of Nov 30, 2018)

Sector Performance DSP Index Dow Jones NASDAQ S&P 500 Price (Indexed to 100) FOR GRAPH LEGEND (ONE YEAR STOCK PERFORMANCE) NASDAQ Composite 117 125

Dow Jones Industrial 106 120 S&P 500 106 115 DSP Human Capital Index 97

110 FOR GRAPH LEGEND (THREE YEAR STOCK PERFORMANCE) Rank 3 105 2 1 100 4

80 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18

Note: The DSP Human Capital Index includes all companies in DSP's Staffing, Executive Search, HR & Outsourcing Services and HR Technology industry categories. Index companies weighted equally. Source: S&P Capital IQ

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 11 Broad Market Performance Equity Market Performance: Three-Year Stock Performance

THE DSP HUMAN CAPITAL INDEX vs. MARKET INDICES (as of Nov 30, 2018)

Sector Performance DSP Index Dow Jones NASDAQ S&P 500 Price (Indexed to 100) 200 NASDAQ Composite 157 190 Dow Jones Industrial 144

DSP Human Capital Index 137 180

S&P 500 133 170

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80 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 12 Staffing Valuation Multiples and Financial Statistics – Sorted by Market Value

COMPANY STOCK PERFORMANCE AND COMPANY DATA LTM MARGINS GROWTH (1) VALUATION DATA FOR STAFFING CHART

Market Enterprise Revenue Gross 5-Year 3-Year EV / EV / Price / 52-Week Value Value LTM Profit EBITDA EPS Revs Revenue EBITDA Earnings (4) Name 11/30/18 Low High ($mm) ($mm) ($mm) % Margin % Margin CAGR CAGR LTM 2018 LTM 2018 2018 2019

Recruit Holdings Co., Ltd. $27.51 $20.88 $33.87 $46,050.1 $44,698.6 $19,858.4 48.4% 12.5% N.M. 17.5% 2.3x 2.2x 18.0x 18.0x 30.8x 28.2x Randstad NV 48.66 46.22 67.41 8,932.3 10,590.8 27,522.7 19.8% 4.6% 20.7% 9.2% 0.4x 0.4x 8.4x 7.7x 9.5x 9.4x Adecco Group AG 49.44 45.60 80.16 8,219.1 9,668.0 27,648.4 18.3% 4.5% 7.4% 4.3% 0.3x 0.4x 7.7x 7.5x 9.9x 9.8x Robert Half International Inc. 61.83 50.99 79.91 7,581.1 7,220.1 5,664.9 41.4% 11.1% 11.4% 4.3% 1.3x 1.3x 11.5x 11.1x 17.4x 15.7x ManpowerGroup Inc. 81.18 71.79 136.93 5,390.4 5,871.2 22,235.5 16.3% 4.2% 9.1% 4.6% 0.3x 0.3x 6.2x 6.6x 9.4x 9.8x Persol Holdings Co.,Ltd. 18.73 16.24 27.97 4,369.4 4,523.5 7,487.0 22.3% 6.5% 16.9% 26.2% 0.6x 0.6x 9.3x 8.8x 29.3x 17.3x ASGN Incorporated 69.25 58.84 94.25 3,667.4 4,780.6 3,149.2 30.9% 11.0% 26.6% 18.1% 1.5x 1.4x 13.8x 11.8x 15.8x 14.8x AMN Healthcare Services, Inc. 63.70 46.75 68.20 3,119.0 3,570.8 2,116.5 32.4% 12.0% 34.3% 13.6% 1.7x 1.7x 14.0x 13.4x 19.6x 18.2x Hays plc 2.00 1.94 2.72 2,935.6 2,773.4 7,591.5 7.6% 4.5% 10.9% 8.5% 0.4x 0.4x 8.2x 8.0x 13.2x 12.0x PageGroup plc 6.35 5.29 8.01 2,020.5 1,905.6 1,913.2 52.1% 9.5% 13.5% 7.4% 1.0x 1.0x 10.5x 9.2x 15.4x 13.7x TrueBlue, Inc. 25.25 22.34 29.85 1,022.6 1,095.8 2,518.7 26.2% 5.0% 12.6% (2.5%) 0.4x 0.4x 8.7x 8.5x 11.2x 10.5x Kelly Services, Inc. 22.92 21.44 32.31 893.9 881.2 5,521.5 17.8% 2.0% 38.7% 0.1% 0.2x 0.2x 8.1x 7.6x 10.2x 9.4x Kforce Inc. 31.69 23.80 43.51 803.4 884.0 1,403.0 29.6% 6.1% 21.6% 2.3% 0.6x 0.6x 10.4x 9.9x 14.4x 12.6x Synergie SE 31.02 27.00 61.71 744.6 789.3 2,882.5 10.7% 5.4% 10.5% 14.1% 0.3x 0.3x 5.1x 4.9x 7.5x 8.1x Groupe CRIT SA 63.75 60.69 107.56 707.5 812.3 2,870.4 6.6% 6.2% 5.7% 10.4% 0.3x 0.3x 4.5x 4.8x 6.9x 8.3x Brunel International N.V. 12.45 12.04 18.93 634.6 518.2 979.9 23.2% 3.2% (6.4%) (8.1%) 0.5x 0.5x 16.7x 10.6x 24.1x 15.2x Resources Connection, Inc. 16.84 13.20 19.50 535.7 566.7 691.5 38.1% 8.3% 5.1% 6.5% 0.8x 0.8x 9.9x 13.0x 19.6x 17.7x SThree plc 3.66 3.46 5.02 487.1 495.3 1,567.5 25.6% 4.2% 13.3% 8.3% 0.3x 0.3x 7.6x 6.7x 10.3x 9.2x Cross Country Healthcare, Inc. 9.07 7.41 14.49 326.0 389.2 835.3 26.0% 4.1% N.M. 2.0% 0.5x 0.5x 11.4x 11.8x N.M. 28.7x

Overall Staffing Group Mean $5,181.1 $5,370.2 $7,603.0 26.0% 6.6% 14.8% 7.7% 0.7x 0.7x 10.0x 9.5x 15.3x 14.1x Median 2,020.5 1,905.6 2,882.5 25.6% 5.4% 12.6% 7.4% 0.5x 0.5x 9.3x 8.8x 13.8x 12.6x High 46,050.1 44,698.6 27,648.4 52.1% 12.5% 38.7% 26.2% 2.3x 2.2x 18.0x 18.0x 30.8x 28.7x Low 326.0 389.2 691.5 6.6% 2.0% (6.4%) (8.1%) 0.2x 0.2x 4.5x 4.8x 6.9x 8.1x

All U.S. Staffing (2) Mean $2,593.3 $2,806.6 $4,904.0 28.7% 7.1% 19.9% 5.4% 0.8x 0.8x 10.5x 10.4x 14.7x 15.3x Median 1,022.6 1,095.8 2,518.7 29.6% 6.1% 17.1% 4.3% 0.6x 0.6x 10.4x 11.1x 15.1x 14.8x

All European Staffing (3) Mean $3,085.2 $3,444.1 $9,122.0 20.5% 5.3% 9.5% 6.8% 0.4x 0.4x 8.6x 7.5x 12.1x 10.7x Median 1,382.5 1,359.0 2,876.4 19.1% 4.6% 10.7% 8.4% 0.4x 0.4x 7.9x 7.6x 10.1x 9.6x

All Japanese Staffing (4) Mean $25,209.7 $24,611.1 $13,672.7 35.3% 9.5% 16.9% 21.9% 1.4x 1.4x 13.7x 13.4x 30.1x 22.7x Median 25,209.7 24,611.1 13,672.7 35.3% 9.5% 16.9% 21.9% 1.4x 1.4x 13.7x 13.4x 30.1x 22.7x

Largest Diversified Staffing (Adecco, Manpower and Randstad) Mean $7,513.9 $8,710.0 $25,802.2 18.1% 4.5% 12.4% 6.0% 0.3x 0.3x 7.4x 7.3x 9.6x 9.7x Median 8,219.1 9,668.0 27,522.7 18.3% 4.5% 9.1% 4.6% 0.3x 0.4x 7.7x 7.5x 9.5x 9.8x

Professional Service Focus (ASGN Inc., Page Group, Resources Connection and Robert Half) Mean $3,451.2 $3,618.2 $2,854.7 40.6% 10.0% 14.2% 9.1% 1.2x 1.1x 11.4x 11.3x 17.1x 15.5x Median 2,843.9 3,343.1 2,531.2 39.7% 10.2% 12.5% 6.9% 1.1x 1.1x 11.0x 11.5x 16.6x 15.3x

Source: Capital IQ as of 11/30/18. (1) 5-Year EPS Growth represents 2019P metric vs 2014A results except in certain circumstances where out year projections are not available; 3-Year Revs CAGR represents 2019P metric vs 2016A results. (2) U.S. Companies: AMN Healthcare, CDI, Cross Country Healthcare, Hudson Global, Kforce, Kelly Services, Manpower, On Assignment, Resources Connection, Robert Half and TrueBlue. (3) European Companies: Adecco, Brunel, Groupe CRIT, Hays, Michael Page, Randstad, Sthree and Synergie. (4) Japanese Companies: Recruit Holdings, Persol Holdings

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 13 Staffing Valuation Multiples and Financial Statistics – Sorted by Gross Margin

COMPANY STOCK PERFORMANCE AND COMPANY DATA LTM MARGINS GROWTH (1) VALUATION DATA

PageGroup plc $6.35 $5.29 $8.01 $2,020.5 $1,905.6 $1,913.2 52.1% 9.5% 13.5% 7.4% 1.0x 1.0x 10.5x 9.2x 15.4x 13.7x Recruit Holdings Co., Ltd. 27.51 20.88 33.87 46,050.1 44,698.6 19,858.4 48.4% 12.5% N.M. 17.5% 2.3x 2.2x 18.0x 18.0x 30.8x 28.2x Robert Half International Inc. 61.83 50.99 79.91 7,581.1 7,220.1 5,664.9 41.4% 11.1% 11.4% 4.3% 1.3x 1.3x 11.5x 11.1x 17.4x 15.7x Resources Connection, Inc. 16.84 13.20 19.50 535.7 566.7 691.5 38.1% 8.3% 5.1% 6.5% 0.8x 0.8x 9.9x 13.0x 19.6x 17.7x AMN Healthcare Services, Inc. 63.70 46.75 68.20 3,119.0 3,570.8 2,116.5 32.4% 12.0% 34.3% 13.6% 1.7x 1.7x 14.0x 13.4x 19.6x 18.2x ASGN Incorporated 69.25 58.84 94.25 3,667.4 4,780.6 3,149.2 30.9% 11.0% 26.6% 18.1% 1.5x 1.4x 13.8x 11.8x 15.8x 14.8x Kforce Inc. 31.69 23.80 43.51 803.4 884.0 1,403.0 29.6% 6.1% 21.6% 2.3% 0.6x 0.6x 10.4x 9.9x 14.4x 12.6x TrueBlue, Inc. 25.25 22.34 29.85 1,022.6 1,095.8 2,518.7 26.2% 5.0% 12.6% (2.5%) 0.4x 0.4x 8.7x 8.5x 11.2x 10.5x Cross Country Healthcare, Inc. 9.07 7.41 14.49 326.0 389.2 835.3 26.0% 4.1% N.M. 2.0% 0.5x 0.5x 11.4x 11.8x N.M. 28.7x SThree plc 3.66 3.46 5.02 487.1 495.3 1,567.5 25.6% 4.2% 13.3% 8.3% 0.3x 0.3x 7.6x 6.7x 10.3x 9.2x Brunel International N.V. 12.45 12.04 18.93 634.6 518.2 979.9 23.2% 3.2% (6.4%) (8.1%) 0.5x 0.5x 16.7x 10.6x 24.1x 15.2x Persol Holdings Co.,Ltd. 18.73 16.24 27.97 4,369.4 4,523.5 7,487.0 22.3% 6.5% 16.9% 26.2% 0.6x 0.6x 9.3x 8.8x 29.3x 17.3x Randstad NV 48.66 46.22 67.41 8,932.3 10,590.8 27,522.7 19.8% 4.6% 20.7% 9.2% 0.4x 0.4x 8.4x 7.7x 9.5x 9.4x Adecco Group AG 49.44 45.60 80.16 8,219.1 9,668.0 27,648.4 18.3% 4.5% 7.4% 4.3% 0.3x 0.4x 7.7x 7.5x 9.9x 9.8x Kelly Services, Inc. 22.92 21.44 32.31 893.9 881.2 5,521.5 17.8% 2.0% 38.7% 0.1% 0.2x 0.2x 8.1x 7.6x 10.2x 9.4x ManpowerGroup Inc. 81.18 71.79 136.93 5,390.4 5,871.2 22,235.5 16.3% 4.2% 9.1% 4.6% 0.3x 0.3x 6.2x 6.6x 9.4x 9.8x Synergie SE 31.02 27.00 61.71 744.6 789.3 2,882.5 10.7% 5.4% 10.5% 14.1% 0.3x 0.3x 5.1x 4.9x 7.5x 8.1x Hays plc 2.00 1.94 2.72 2,935.6 2,773.4 7,591.5 7.6% 4.5% 10.9% 8.5% 0.4x 0.4x 8.2x 8.0x 13.2x 12.0x Groupe CRIT SA 63.75 60.69 107.56 707.5 812.3 2,870.4 6.6% 6.2% 5.7% 10.4% 0.3x 0.3x 4.5x 4.8x 6.9x 8.3x

All U.S. Staffing (2) Mean $2,593.3 $2,806.6 $4,904.0 28.7% 7.1% 19.9% 5.4% 0.8x 0.8x 10.5x 10.4x 14.7x 15.3x Median 1,022.6 1,095.8 2,518.7 29.6% 6.1% 17.1% 4.3% 0.6x 0.6x 10.4x 11.1x 15.1x 14.8x

All European Staffing (3) Mean $3,085.2 $3,444.1 $9,122.0 20.5% 5.3% 9.5% 6.8% 0.4x 0.4x 8.6x 7.5x 12.1x 10.7x Median 1,382.5 1,359.0 2,876.4 19.1% 4.6% 10.7% 8.4% 0.4x 0.4x 7.9x 7.6x 10.1x 9.6x

COMPANY STOCK PERFORMANCE AND COMPANY DATA LTM MARGINS GROWTH (1) VALUATION DATA

Persol Holdings Co.,Ltd. $18.73 $16.24 $27.97 $4,369.4 $4,523.5 $7,487.0 22.3% 6.5% 16.9% 26.2% 0.6x 0.6x 9.3x 8.8x 29.3x 17.3x ASGN Incorporated 69.25 58.84 94.25 3,667.4 4,780.6 3,149.2 30.9% 11.0% 26.6% 18.1% 1.5x 1.4x 13.8x 11.8x 15.8x 14.8x Recruit Holdings Co., Ltd. 27.51 20.88 33.87 46,050.1 44,698.6 19,858.4 48.4% 12.5% N.M. 17.5% 2.3x 2.2x 18.0x 18.0x 30.8x 28.2x Synergie SE 31.02 27.00 61.71 744.6 789.3 2,882.5 10.7% 5.4% 10.5% 14.1% 0.3x 0.3x 5.1x 4.9x 7.5x 8.1x AMN Healthcare Services, Inc. 63.70 46.75 68.20 3,119.0 3,570.8 2,116.5 32.4% 12.0% 34.3% 13.6% 1.7x 1.7x 14.0x 13.4x 19.6x 18.2x Groupe CRIT SA 63.75 60.69 107.56 707.5 812.3 2,870.4 6.6% 6.2% 5.7% 10.4% 0.3x 0.3x 4.5x 4.8x 6.9x 8.3x Randstad NV 48.66 46.22 67.41 8,932.3 10,590.8 27,522.7 19.8% 4.6% 20.7% 9.2% 0.4x 0.4x 8.4x 7.7x 9.5x 9.4x Hays plc 2.00 1.94 2.72 2,935.6 2,773.4 7,591.5 7.6% 4.5% 10.9% 8.5% 0.4x 0.4x 8.2x 8.0x 13.2x 12.0x SThree plc 3.66 3.46 5.02 487.1 495.3 1,567.5 25.6% 4.2% 13.3% 8.3% 0.3x 0.3x 7.6x 6.7x 10.3x 9.2x PageGroup plc 6.35 5.29 8.01 2,020.5 1,905.6 1,913.2 52.1% 9.5% 13.5% 7.4% 1.0x 1.0x 10.5x 9.2x 15.4x 13.7x Resources Connection, Inc. 16.84 13.20 19.50 535.7 566.7 691.5 38.1% 8.3% 5.1% 6.5% 0.8x 0.8x 9.9x 13.0x 19.6x 17.7x ManpowerGroup Inc. 81.18 71.79 136.93 5,390.4 5,871.2 22,235.5 16.3% 4.2% 9.1% 4.6% 0.3x 0.3x 6.2x 6.6x 9.4x 9.8x Adecco Group AG 49.44 45.60 80.16 8,219.1 9,668.0 27,648.4 18.3% 4.5% 7.4% 4.3% 0.3x 0.4x 7.7x 7.5x 9.9x 9.8x Robert Half International Inc. 61.83 50.99 79.91 7,581.1 7,220.1 5,664.9 41.4% 11.1% 11.4% 4.3% 1.3x 1.3x 11.5x 11.1x 17.4x 15.7x Kforce Inc. 31.69 23.80 43.51 803.4 884.0 1,403.0 29.6% 6.1% 21.6% 2.3% 0.6x 0.6x 10.4x 9.9x 14.4x 12.6x Cross Country Healthcare, Inc. 9.07 7.41 14.49 326.0 389.2 835.3 26.0% 4.1% N.M. 2.0% 0.5x 0.5x 11.4x 11.8x N.M. 28.7x Kelly Services, Inc. 22.92 21.44 32.31 893.9 881.2 5,521.5 17.8% 2.0% 38.7% 0.1% 0.2x 0.2x 8.1x 7.6x 10.2x 9.4x TrueBlue, Inc. 25.25 22.34 29.85 1,022.6 1,095.8 2,518.7 26.2% 5.0% 12.6% (2.5%) 0.4x 0.4x 8.7x 8.5x 11.2x 10.5x Brunel International N.V. 12.45 12.04 18.93 634.6 518.2 979.9 23.2% 3.2% (6.4%) (8.1%) 0.5x 0.5x 16.7x 10.6x 24.1x 15.2x

All U.S. Staffing (2) Mean $2,593.3 $2,806.6 $4,904.0 28.7% 7.1% 19.9% 5.4% 0.8x 0.8x 10.5x 10.4x 14.7x 15.3x Median 1,022.6 1,095.8 2,518.7 29.6% 6.1% 17.1% 4.3% 0.6x 0.6x 10.4x 11.1x 15.1x 14.8x

All European Staffing (3) Mean $3,085.2 $3,444.1 $9,122.0 20.5% 5.3% 9.5% 6.8% 0.4x 0.4x 8.6x 7.5x 12.1x 10.7x Median 1,382.5 1,359.0 2,876.4 19.1% 4.6% 10.7% 8.4% 0.4x 0.4x 7.9x 7.6x 10.1x 9.6x

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 15 Staffing Industry Performance by Quartile

STOCK PERFORMANCE / COMPANY DATA LTM MARGINS GROWTH (1) VALUATION DATA Market Enterprise Revenue Gross 5-Year 3-Year EV / EV / Price / Value Value LTM Profit EBITDA EPS Revs Revenue EBITDA Earnings ($mm) ($mm) ($mm) % Margin % Margin CAGR CAGR LTM 2018 LTM 2018 2018 2019

Sorted by Market Value

Median Statistic by Market Value Quartile Quartile 1 (75th Percentile to Max) $8,219.1 $9,668.0 $22,235.5 19.8% 4.6% 10.2% 4.6% 0.4x 0.4x 8.4x 7.7x 9.9x 9.8x Quartile 2 (50th Percentile to 75th Percentile) 3,119.0 3,570.8 3,149.2 30.9% 9.5% 16.9% 13.6% 1.0x 1.0x 10.5x 9.2x 15.8x 14.8x Quartile 3 (25th Percentile to 50th Percentile) 803.4 881.2 2,870.4 17.8% 5.4% 12.6% 2.3% 0.3x 0.3x 8.1x 7.6x 10.2x 9.4x Quartile 4 (Min to 25th Percentile) 511.4 506.8 907.6 25.8% 4.1% 5.1% 4.3% 0.5x 0.5x 10.7x 11.2x 19.6x 16.5x

Sorted by Gross Margin

Median Statistic by Market Value Quartile Quartile 1 (75th Percentile to Max) $3,119.0 $3,570.8 $2,116.5 41.4% 11.1% 12.5% 7.4% 1.3x 1.3x 11.5x 13.0x 19.6x 17.7x Quartile 2 (50th Percentile to 75th Percentile) 803.4 884.0 1,567.5 26.2% 5.0% 17.5% 2.3% 0.5x 0.5x 10.4x 9.9x 12.8x 12.6x Quartile 3 (25th Percentile to 50th Percentile) 4,369.4 4,523.5 7,487.0 19.8% 4.5% 16.9% 4.3% 0.4x 0.4x 8.4x 7.7x 10.2x 9.8x Quartile 4 (Min to 25th Percentile) 1,840.1 1,792.9 5,237.0 9.2% 4.9% 9.8% 9.5% 0.3x 0.3x 5.7x 5.7x 8.5x 9.0x

Sorted by Revenue Growth

Median Statistic by Market Value Quartile Quartile 1 (75th Percentile to Max) $3,667.4 $4,523.5 $3,149.2 30.9% 11.0% 21.8% 17.5% 1.5x 1.4x 13.8x 11.8x 19.6x 17.3x Quartile 2 (50th Percentile to 75th Percentile) 2,020.5 1,905.6 2,870.4 19.8% 4.6% 13.3% 8.5% 0.4x 0.4x 8.2x 7.7x 10.3x 9.4x Quartile 3 (25th Percentile to 50th Percentile) 5,390.4 5,871.2 5,664.9 29.6% 6.1% 9.1% 4.3% 0.6x 0.6x 9.9x 9.9x 14.4x 12.6x Quartile 4 (Min to 25th Percentile) 764.3 699.7 1,749.3 24.6% 3.6% 12.6% (1.2%) 0.5x 0.5x 10.1x 9.6x 11.2x 12.9x

Enterprise Value / LTM EBITDA Multiple

Sorted by Market Value Sorted by Gross Margin Sorted by Revenue Growth

18.0x 18.0x 18.0x Max Max Max Q1 Q4 10.0x Q1 10.0x 10.0x Q2 9.3x Q2 9.3x 9.3x Mean Mean 13.8x Q4 Mean 10.7x 11.5x Q3 10.5x Median 10.4x Median Median Q1 Q3 Q3 Q2 10.1x Q4 9.9x 8.4x 8.1x 8.4x 8.2x 5.7x Min. Min. Min. 4.5x 4.5x 4.5x ______TAFFING XECUTIVE EARCH PDATE Source: S&P Capital IQ. HCM: S , RPO & E S U 16 Staffing: Growth, Profitability and Valuation Relationship Analysis

Staffing Sector: Growth, Profitability and Valuation Relationship Analysis Median Statistics Historical EV/LTM EBITDA Multiples - U.S.

Historical Revenue Growth (3 Year CAGR)

18.1% 13.6% 14.1% 10.4% 7.4% 9.2% 8.5% 8.3% 8% 7% 4.3% 6.5% 4.3% 4.6% 4% 2.0% 2.3% 0.1%

(2.5%) (8.1%)

Profitability (LTM Gross Margin)

52% 41% 38% 32% 31% 26% 30% 26% 26% 30% 23% 20% 26% 18% 18% 16% 19% 8% 11% 7%

Valuation (EV / LTM EBITDA)

16.7x 14.0x 13.8x 11.5x 11.4x 10.5x 10.4x 10.4x 9.9x 9.3x 8.7x 8.4x 8.2x 8.1x 7.7x 7.6x 7.9x 6.2x

5.1x 4.5x

Page

Hays

CRIT

Kelly

AMN

Sthree

Kforce

Brunel

Adecco

Overall

Median

Synergie

TrueBlue

Randstad

European

Res. Conn. Res.

ASGN Inc. ASGN

Manpower

Robert Half Robert Cross Country Cross

Historical EV/LTM EBITDA Multiples - U.S. Historical EV/LTM EBITDA Multiples - European 18.0x 10.3x Five Year Historical Median EV/LTM EBITDA 18.0x 10.5x Five Year Historical Median EV/LTM EBITDA 15.0x 15.0x 12.0x 12.0x 9.0x 9.0x 6.0x 6.0x 3.0x 3.0x

0.0x 0.0x

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

May-14 May-15 May-16 May-17 May-18

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

May-14 May-15 May-16 May-17 May-18

______Five Year Historical Median EV/LTM EBITDA 10.3x Five Year Historical Median EV/LTM EBITDA 10.5x Source: S&P Capital IQ. HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 17 Staffing: Gross Margin and Valuation Correlations

Staffing Gross Profit Margin vs LTM EBITDA Valuation (1)

25.0x Reflects DSP Adjusted Revenue Scale (Relative) Linear (Trendline) Expon. (Trendline)

20.0x

REC

BRUN 15.0x ASGNAMN

CC RHI KFOR PAGE 10.0x RESO PER TBI HAYS KELL RAND ADEC STHR

MANP 5.0x SYN

CRIT Enterprise Value / LTM EBITDA LTM / ValueEnterprise

0.0x 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% Gross Profit Margin

Staffing Gross Profit Margin Analysis

Margin % EBITDA(x) Ticker Company Name Margin % EBITDA(x) Ticker Company Name Margin % EBITDA(x) Ticker Company Name

52% 10.5x PAGE PageGroup 26% 11.4x CC Cross Country 11% 5.1x SYN Synergie 48% 18.0x REC Recruit 26% 7.6x STHR SThree 8% 8.2x HAYS Hays 41% 11.5x RHI Robert Half 23% 16.7x BRUN Brunel 7% 4.5x CRIT Groupe CRIT 38% 9.9x RESO Resources Conn. 22% 9.3x PER Persol 32% 14.0x AMN AMN 20% 8.4x RAND Randstad 31% 13.8x ASGN ASGN Inc. 18% 7.7x ADEC Adecco 30% 10.4x KFOR Kforce 18% 8.1x KELL Kelly 26% 8.7x TBI TrueBlue 16% 6.2x MANP Manpower

Source: Capital IQ as of 11/30/18. (1) LTM Gross Profit Margin.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 18 Executive Search: Sorted by Market Value

COMPANY STOCK PERFORMANCE AND COMPANY DATA LTM MARGINS GROWTH (1) VALUATION DATA

Market Enterprise Revenue Gross 5-Year 3-Year EV / EV / Price / 52-Week Value Value LTM Profit EBITDA EPS Revs Revenue EBITDA Earnings Name 11/30/18 Low High ($mm) ($mm) ($mm) % Margin % Margin CAGR CAGR LTM 2018 LTM 2018 2018 2019

Korn/Ferry International $48.97 $38.53 $68.98 $2,742.2 $2,610.8 $1,831.5 27.4% 13.6% 17.1% 17.8% 1.4x 1.4x 10.5x 8.8x 15.4x 14.2x Heidrick & Struggles International, Inc. 36.66 20.95 45.29 691.9 527.7 700.1 28.9% 10.7% 23.2% 10.2% 0.8x 0.7x 7.1x 6.6x 15.8x 15.8x

Mean $1,717.1 $1,569.2 $1,265.8 28.1% 12.1% 20.2% 14.0% 1.1x 1.1x 8.8x 7.7x 15.6x 15.0x Median 1,717.1 1,569.2 1,265.8 28.1% 12.1% 20.2% 14.0% 1.1x 1.1x 8.8x 7.7x 15.6x 15.0x High 2,742.2 2,610.8 1,831.5 28.9% 13.6% 23.2% 17.8% 1.4x 1.4x 10.5x 8.8x 15.8x 15.8x Low 691.9 527.7 700.1 27.4% 10.7% 17.1% 10.2% 0.8x 0.7x 7.1x 6.6x 15.4x 14.2x

Historical EV/LTM EBITDA Multiples Historical EV/LTM Revenue Multiples 2.0x 18.0x 8.8x Five Year Historical Median EV/LTM EBITDA 1.0x Five Year Historical Median EV/LTM Revenue 15.0x 1.5x 12.0x 9.0x 1.0x 6.0x 0.5x 3.0x

0.0x 0.0x

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18

May-14 May-15 May-16 May-17 May-18

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18

May-14 May-15 May-16 May-17 May-18 Five Year Historical Median EV/LTM EBITDA 8.8x Five Year Historical Median EV/LTM Revenue 1.0x

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 19 Key Labor Market Benchmarks: Employment

Change in Employment (in thousands) Trailing Six Months

1,000 800 600 400 268 248 254 250 157 200 118 - (200) (400) (600)

(800)

06-18 07-18 08-18 09-18 10-18

(1,000) 05-18

2003 2008 2013 1995 1996 1997 1998 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 2012 2014 2015 2016 2017 2018

Source: Bureau of Labor Statistics.

Change in Payrolls by Company Size (in thousands) Trailing Six Months

400 119 109 101 Small (1-49 Employees) Medium (50-499) Large (500-999 Employees) Enterprise (1,000+) 94 300 80 73 65 59 200 52 50 50 49 46 38 33 31 100 28 23 24 24 16 19 11 9 -

(100)

(200) Small (1-49) Medium (50-499)

(300) Large (500-999) Enterprise (1,000+) (400) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 02-18 03-18 04-18 05-18 06-18 07-18

Source: ADP; American Staffing Association.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 20 Key Labor Market Benchmarks: Unemployment

U.S Unemployment Rate (U-3) Trailing Six Months

10.0% 9.0% 8.0% 4.00% 3.90% 3.90% 7.0% 3.80% 3.70% 3.70% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

0.0%

1999 2008 2017 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 2018

08-18 05-18 06-18 07-18 09-18 10-18

Source: Bureau of Labor Statistics. U-3 rate defined as total unemployed persons as a percent of civilian labor force. Data is seasonally adjusted.

Labor Underutilization (U-3, U-5 & U-6) Trailing Six Months

18.0% U-3 U-5 U-6 U-3 U-5 U-6 16.0%

14.0%

12.0% 7.8% 10.0% 7.6% 7.5% 7.4% 7.5% 7.4%

8.0% 4.6% 4.9% 4.8% 4.7% 4.6% 4.6% 6.0% 3.8% 4.0% 3.9% 3.9% 3.7% 3.7% 4.0%

2.0%

0.0%

2018 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

05-18 06-18 07-18 08-18 09-18 10-18

Source: Bureau of Labor Statistics. U-5 rate defined as total unemployed persons, plus discouraged workers, plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force. U-6 rate defined as total unemployed persons, plus all persons marginally attached to the labor force, plus total persons employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force. Data is seasonally adjusted. HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 21 Employment and Transaction Cycles: Index Pricing

Unemployment Rate and DSP US Staffing Index Pricing

Unemployment Rate (U-6) Dow Jones Industrial Average DSP US Staffing Index 600.0% 24.0%

500.0% 20.0%

400.0%

16.0%

300.0%

IndexPricing 12.0% 200.0%

8.0% 100.0% UnemploymentRate(%)

4.0% -

(100.0%) 0.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 DSP US Staffing Index includes: AMN Healthcare, ASGN Inc., Cross Country Healthcare, Defined Recession Source: S&P CapitalIQ. Kelly Services, Kforce, Manpower Group, Resources Connection, Robert Half, and TrueBlue - March 2001 – November 2001 - December 2007 – June 2009 UnitedUnited States States M&A Transaction Transaction Value Value ($ in ($ billions) in billions)

$2,046 $1,859 $1,733 $1,702 $1,631 $1,466 $1,452

$1,208 $1,119 $1,020 $882 $838 $816 $836 $835 $627 $569 $497

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Harvard Law School Forum – 2017 M&A Report. HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 22 Employment and Transaction Cycles: EBITDA Multiples

Unemployment Rate and DSP US Staffing Index TEV / EBITDA

Unemployment Rate (U-6) Dow Jones Industrial Average DSP US Staffing Index 25.0x 24.0% TEV / EBITDA

20.0x 20.0%

Jul. 2000 13.8x 16.0% 15.0x Jun. 2007 Aug. 2018 11.5x 10.1x 12.0%

10.0x Sep. 2001

8.0% TEV / EBTIDA Multiple 7.5x UnemploymentRate(%)

5.0x Feb. 2009 4.0% 3.5x

0.0x 0.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 DSP US Staffing Index includes: AMN Healthcare, ASGN Inc., Cross Country Healthcare, Defined Recession Source: S&P CapitalIQ. Kelly Services, Kforce, Manpower Group, Resources Connection, Robert Half, and TrueBlue - March 2001 – November 2001 - December 2007 – June 2009 UnitedUnited States States M&A Transaction Transaction Value Value ($ in ($ billions) in billions)

$2,046 $1,859 $1,733 $1,702 $1,631 $1,466 $1,452

$1,208 $1,119 $1,020 $882 $838 $816 $836 $835 $627 $569 $497

24 Big Ideas: Q&A with Sue Marks, CEO & Founder, Cielo RPO

DSP: Sue, you’ve had a long and very successful career. Let’s open by having you give our DSP readers the background on how you originally got into the HR space?

SM: My dad was a contingency recruiter for many years “back in the day,” so I literally grew up in the business as I listened to him “dialing and smiling” (yes, I have been around that long). From the beginning, I’ve been steadfast in my belief that “all that matters is talent” … and what I do, what we do at Cielo, is among the most worthy of endeavors. We change the lives of the candidates we work with, we change the careers of our client stakeholders, and we change the trajectories of our client companies.

Sue Marks is the CEO of Cielo, a leading pure-play Sue, you have obviously seen a lot over your career. What is the provider of technology-enabled Recruitment Process biggest change you’ve seen in the HR space over the last decade? Outsourcing (RPO) solutions. Sue’s visionary thinking, creative problem solving and ability to motivate and The biggest change? There hasn’t been nearly enough change. There’s been a lot of “Talk the talk” at the C-Suite and Board Levels, but very inspire people are the foundation of Cielo’s corporate little “Walk the walk” when it comes to talent and people strategies. culture and client relationships. She is widely recognized That’s got to change. as one of the key founders of, and a pioneer in, the RPO industry. Since its inception, she has been an annual At Cielo and at your previous firms, you have managed a lot of people. member of the HRO Today HR Outsourcing Superstar How would you describe your personal leadership style and give us listing, and was recognized as Ernst & Young’s some “HR lessons learned.” Entrepreneur of the Year in the service business category. Be bold. Encourage everyone to be bold, be brave, and be confident. She is the winner of the Marquette University College of Make sure your people know that you have their back and encourage Business Administration’s Alumni Award for them to “fail forward.” Entrepreneurship and a three-time winner of both the Working Woman 500 designation and the Future 50 of In your professional career, what are you most proud of? Wisconsin. Sue earned her Bachelor of Science in business administration from Marquette University and is an I’m most proud that so many people I’ve worked with have annual participant in YPOWPO’s prestigious executive accomplished so much. And if I’ve played a small role in their growth and success, I count that as one of my life’s greatest blessings. education program at Harvard Business School.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 25 Big Ideas: Q&A with Sue Marks

Cielo is one of the largest and most successful “pure-play” (i.e. stand- RPO obviously stands for “Recruitment Process Outsourcing.” But just alone) RPOs in the industry. What was the original motivation to start the to cover all our bases, what is the “Sue Marks” definition of RPO? What business and how is the “Cielo of today” different than the original does it include and what does it exclude? business model/concept that you envisioned? Well, what it’s NOT is HR. Recruiting … Talent Acquisition … is part Back in the early ‘90’s, I read an article on turning “products into services” sales and marketing, part technology, and part process excellence. and “services into products.” I realized that most of my contingency Above all, it puts the talent at the center of everything! Today, search and temporary/contract clients didn’t think strategically, and that organizations need to simultaneously reduce the friction and maximize what I was doing was simply transactional. Knowing that I know how to the magnetism of the experience they offer for the potential talent – the “run staffing like a business,” I knew I could do better than most of my candidate. But to get to your question … it’s when an organization turns clients at the time. So … just like back in the day Pitney Bowes sold to an expert partner to become their talent acquisition function, in full or copiers, etc, and then began “outsourcing” mailrooms, etc, I took the same in large part. approach. When you founded Cielo (then known as Pinstripe), RPO was not as The Cielo of today is evolving into multi-product, multi-service company, well known, many clients did not understand the model and what to flexible and creative to meet and anticipate the total workforce needs of expect. Where are we today in terms of the RPO industry evolution? our clients. A great example of this is Total Talent, where we’re fulfilling What’s the biggest change you’ve experienced then and now? all hire requirements, from flexible to permanent. That said, no matter how much may change, the one thing that has stayed the same is our Cielo’s always been a leader in tech enablement, and investment in commitment to delivering the best customer experience in the industry. recruiting technology is accelerating faster than ever before. It’s so easy for companies to adopt the wrong technology, use the right technology in the wrong ways, or miss out on a technology solution that they could benefit from. The technology advances (AI, machine learning, and automation) is making the experience so much faster -- and frictionless -- for the candidate, too. We actively invest in our own technology talent, partners, and systems to ensure our clients can make the most of theirs.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 26 Big Ideas: Q&A with Sue Marks

Ok Sue, get out your crystal ball. What does the “next generation” RPO Sue your passion for new and cutting-edge HR technology is legendary. So model look like, both within the industry and for Cielo in particular? here are a few HR Technology questions:

Total Talent Acquisition evolving to Total Workforce Management • Tell the DSP readers how you assess new HR technologies and how you Solutions. The new workforce will be made up of traditional employees decide which ones into your RPO solution? and a wide range of non-employee workers including temporary workers, independent contractors/consultants/ freelancers, volunteers, One of the most important things is to look at everything without outsourced resources. I’d suggest we’ll even recommend and manage preconceived notions of how the technology fits – in other words, don’t “non-human” or “mechanized/automated” options such as robots, try to fit the technology to a current sub optimized process. Start with drones and cognitive computing applications. the “customer experience” in mind, and the work becomes easier. There are some technologies that are transformative to a process, but also lots of Accenture talks about enterprises of the future with “liquid point technologies that are highly useful just as part of the process to get workforces.” These organizations focus on building fluidity into their work done. In evaluating new technologies to enable a process, we like organizations both at a macro and micro level. They will utilize to say that “technology is only as valuable as the human experience it comprehensive, integrated, “consumer grade” platforms that combine improves” in order to keep our lens on the customer/candidate talent profiles, career management and a wide range of training, experience. Many companies end up creating processes that were good workforce management tools and practices. They will act more like for their data processing and internal administrative systems, but really “start-ups” and fully embrace Internal and external freelancing. These terrible for candidates. They’re just now figuring out how important that will start as pilots across the enterprise and then start to integrate and experience is. It’s important we design with the end user in mind. If the expand. technology is bad for the candidate, it’s bad technology. For us, knowing the market of technologies both inside and outside HR is really crucial to Platforms are becoming more and more important, and for great being able to spot opportunities for us to plug in the right technology in reasons. These new business models are adaptable, scalable and the right place at the right time at the right cost. interconnected. The shift to platforms has been an area of interest and research for me lately. If we think about value “pipelines,” they are the linear value-creation and delivery models that we’ve inherited from the past. As the world becomes more connected, “platform” business models have begun to create an infrastructure that enables interactions between producers and consumers today and is evolving and will evolve to fully embrace the service economy tomorrow. This more open, networked, collaborative, flexible flow of value will drive our business in the future.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 27 Big Ideas: Q&A with Sue Marks

• What’s are some of the coolest new technologies you have seen • “Workforce analytics” and “big data” (dare I say AI?), are getting recently? a lot of air time currently. What’s real here and what does this mean for Cielo? There’s lots of interesting technologies to look at in our space, with two key trends right now – automation and experience. Most of the solutions that bill themselves as AI are using decades Talentify is one that is pushing boundaries in automation of the old rules-based tools, but the marketing claims to be much more recruitment process and getting some great results in early stages. than that. Cielo use cases range from a subset of “AI like” That’s certainly a trend to help automate many of the things in the machine learning and natural language processing, to true AI and talent acquisition that are too manual today, for example posting. machine learning. Like anything else, it’s really more about the Virtually 100% of our postings are automated today through outcomes we can produce with AI or big data or any other programmatic means. I’d add Uncommon and Visage to that list technology. And let’s be clear … Data, lots and lots of data, is the as well, especially when it comes to automating sourcing. Robotic key to any of these applications to truly work. There are some Process Automation (RPA) is a very flexible tool that will continue really exciting things happening though in terms of how we can to impact outsourcing as well where the industry is just in early use data to automate processes. That said, while there are many stages. On the experience end, much of it is about being able to interesting things possible, we see a lot of companies looking to get so much more information from people in different ways to just get basic process right and get reports out of Workday or help analyze them. Instead of having people take long whatever system they’re using. assessments or in-depth interviews, we can often use facial recognition, voice analytics, text analysis and short assessments to • And, finally, should you (as a service provider) ever own core get a good sense of a person in a short period of time. parts of your technology stack?

There are times that a provider should own the technology stack or parts of the stack – it really depends on the situation and how getting the best fit into a provider and a client’s ecosystem. It’s less about who owns it and more about how it works together to provide the right outcomes. Build, buy or partner, it’s about being agile and insightful to find the right solution.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 28 Big Ideas: Q&A with Sue Marks

For years we heard large clients saying that they require “global RPO What advice would you have to a client looking to hire an RPO vendor? delivery” capabilities from vendors. Know what problems you’re trying to solve and hire for the cultural fit. • Is this RFP lip service or is there really actually significant demand There are a lot of good providers out there. You can have a scorecard to help for a truly integrated global RPO solution? you navigate what’s the same and what’s different among the different providers you talk with, but in the end, choose a partner you feel There are certainly organizations that are looking for global delivery, comfortable with. One who will stay up late so you don’t have to. but the impact of the hires and the relationships tends to be local. Running a global company is complex and running a global RPO program is complex as well. A very few providers can really pull it off and it’s important that a company’s footprint and needs really match the vendor’s way of working.

• On a related topic, the big staffing firms talk a lot about providing clients with a “total talent” capability. Is that an important trend and how is Cielo addressing?

Well I think the key takeaway from what clients are saying is that they want “future proofing” by working with a partner that has the resources, scale and expertise to deliver. Total talent will certainly be a big part of how companies work in the future, both in how they manage internal talent and external talent. In 10 years, we won’t talk about “total talent” because it will be all we know….we’ll just call it “talent acquisition.”

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 29 Big Ideas: Q&A with Sue Marks Sue, as a “closer look” give the DSP readers a few Personal Fun Facts about yourself…

Birthplace: Born in Milwaukee, WI but will die in Texas

First Job: Delivering Papers – when that actually happened and girls couldn’t have paper routes

Favorite Music/Artist: Any Broadway Musical

Hobby: Photography

Favorite Vacation Spot: A Safari in Africa or a Broadway Show weekend in New York City or London

Favorite Hometown Restaurant: My husband is the best cook!

Car You Drive: Tesla S100D; Alfa Romeo Giulia Quadrofolio

Last Book You Read: The Art of Racing in the Rain

Newest Investments: On and Off Broadway Productions

Little Known Fact: I had a “Letter to the Editor” published in Playboy Magazine

My Golden Rule: Pay it Forward

Backdrop photo is the skyline of Milwaukee, Wisconsin Thanks Sue!

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 30 Industry News

Category Page

Staffing 32-38

Recruitment Community & Gig Economy 39-40

Recruitment Process Outsourcing (RPO) 41-44

Executive Search 45-47

31 Industry News

Staffing

• Motion Recruitment Partners Acquires MDI Group – December 13, • Cross Country Healthcare Acquires American Personnel, Inc. – 2018 – Boston, MA-based Motion Recruitment Partners, parent December 2, 2018 - Boca Raton, FL-based Cross Country Healthcare company of IT staffing agencies Jobspring Partners and Workbridge announced the acquisition of Boston-based American Personnel, Inc. Associates, and RPO provider Sevenstep, announced that it has American Personnel offers healthcare clients permanent placement, acquired MDI Group. MDI Group is an IT staffing firm and MSP with consultative staffing solutions and traditional staffing, primarily in the offices in Atlanta, Greenville, Charlotte, Dallas, Fort Worth and Massachusetts market. Phoenix. Motion Recruitment Partners is led by CEO Beth Gilfeather. • WinterWyman Named A Top Place to Work by The Boston Globe – • Kelly Education Practice Announces Partnership with Vector November 16, 2018 – Waltham, MA-based, WinterWyman has been Solutions – December 5, 2018 – Kelly Services, a global provider of named one of the “Top Places to Work” in Massachusetts by the Boston workforce solutions, announced a partnership between Kelly Globe continuing its strong ranking for eleven years. WinterWyman Education Practice, a leading provider of educational staffing, and provides talent acquisition services including contract staffing, temp- Vector Solutions, a provider of eLearning and performance support in to-perm and contingency search services in the areas of accounting & the education market. The partnership will enhance Kelly Education finance, HR, administrative and technology. Practice’s special needs services offerings. Vector solutions, previously a portfolio company of Providence Equity Partners, was acquired by • AMN Healthcare Releases Survey of Millennial Nurses – November Golden Gate Capital on November 5, 2018. 2018 – San Diego, CA-based AMN Healthcare released the findings of its survey comparing the views of Millennial nurses (ages 19-36) to • Randstad US Identifies 8 Work Trends to Watch in 2019 – December those of Generation X (ages 37-53) and Baby Boomer nurses (ages 54- 5, 2018 – Randstad US released their annual expert predictions for the 71) regarding their work environment and career futures. Highlights coming year. The eight biggest trends to watch according to the include: Seek leadership role: 36% Millennials, 27% Gen Xers, 10% Randstad report include: 1) Constant digital disruption will become the Baby Boomers. Pursue higher degree: 71% Millennials, 56% Gen Xers, norm , 2) A continued shift in how, when, where and why work gets 20% Baby Boomers. Become Advanced Practice RN: 49% Millennials, done, 3) Training, anytime and anywhere, will become an expectation, 35% Gen Xers, 12% Baby Boomers. 4) Diversity and inclusion will take center stage, 5) Artificial Intelligence will become an employment category, 6) Employers will • Robert Half Announces Dirk Kempthorne Elected to Board of need to hire for potential and reward retention, 7) Company culture Directors – October 31, 2018 – Menlo Park, CA-based Robert Half will influence the quality of job applicants and 8) Employee International announced that Dirk Kempthorne has been elected to the performance measurements will evolve. company’s board of directors, effective January 1, 2019. Kempthorne was Governor of Idaho from January 1999 to May 2016. From May 2006 to January 2009, he was US Secretary of the Interior. Mr. Kempthorne was a U.S. Senator for Idaho from 1993 to 1999.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 32 Industry News

Staffing

• Indeed Curtails Free Postings by Staffing Firms – October 22, 2018 – • SIA’s List of Largest Healthcare Staffing Firms Announced – Staffing firms will no longer be able to post free job ads on jobs website, September, 13, 2018 – Mountain View, CA-based advisory firm, Indeed effective Janurary 7, 2019. However, the firm said that staffing Staffing Industry Analysts (SIA) announced its survey of the 43 largest firms will be able to post sponsored ads according to a blog by healthcare staffing firms. A total of 43 staffing firms were included that Matthew Lewis, director of search quality at Indeed. Indeed noted: generated a combined $11.3 billion in revenue and comprised 70% of ”Over time, our search quality team has identified a number of the market. The five largest healthcare staffing firms in the US and their persistent problems with jobs from recruitment-based companies, estimated 2017 staffing revenue are: 1) AMN Healthcare ($1.68 billion, including high rates of duplication, reposting, location blasting and 10% market share), 2) CHG Healthcare Services ($1.55 billion, 10% inaccurate job descriptions.” market share), 3) Cross Country Healthcare ($903 million, 6% market share), 4) Jackson Healthcare ($850 million, 5% market share) and 5) • Kelly Services Invests in Business Talent Group – September 26, Aya Healthcare ($444 million, 3% market share). By sub-segment, 2018 – Troy, MI-based Kelly Services announced it has made an equity AMN Healthcare also ranked as the largest travel nurse firm and the investment in Business Talent Group (BTG), a marketplace for on- largest allied healthcare staffing firm. CHG Healthcare Services demand consultants, experts and executives. Kelly Services led BTG’s ranked as the largest locum tenens firm in the US, holding 34% market Series C funding and will hold a minority stake in BTG (the round share in locum tenens. Cross Country Healthcare ranked as the largest raised a total of $6 million while other terms were not disclosed). per diem nursing firm with 7% market share. “Companies adapting to the new world of work know they need to understand how skilled talent actually want to work if they are to • Cross Country Healthcare Announces Upcoming Retirement of CEO compete successfully in their specific marketplaces,” said Teresa William Grubbs – September 10, 2018 – Cross Country Healthcare Carrol, EVP of Kelly Services. BTG has raised a total of $16.5 million announced that Bill Grubbs will step down as President and CEO when from investors including NextEquity Partners. his contract expires at the end of March 2019. Mr. Grubbs will remain in his current role until the Board names his successor.

• ManpowerGroup President and COO Darryl Green to Retire – August 6, 2018 – Milwaukee, WI-based ManpowerGroup announced that Darryl Green will retire as President and Chief Operating Officer, effective August 31, 2018. The company does not intend to appoint a successor COO. Chairman and CEO Jonas Prising will assume the COO responsibilities.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 33 Industry News

Staffing

• TrueBlue Appoints Kristi Savacool to Board of Directors – July 30, • Recruit Holdings Completes Glassdoor Acquisition – June 21, 2018 – 2018 – Tacoma, WA-based TrueBlue announced the appointment of Tokyo-based Recruit Holdings completed the acquisition of Glassdoor Kristi Savacool to its Board. Ms. Savacool, served as the CEO of Aon (previously announced on May 9, 2018) for $1.2 billion in an all-cash Hewitt until her retirement there in January 2018. Ms. Savacool played transaction. Glassdoor is a leading job and recruiting company known a key role in the sale of Aon Hewitt’s RPO business to TrueBlue in for providing workplace transparency. Recruit plans to operate 2016. Glassdoor as a distinct entity within its growing HR Technology business segment (which also includes job aggregator, Indeed). • TrueBlue Announces Leadership Transition; Patrick Beharelle to Glassdoor represents yet another major brand acquisition for Recruit. Become CEO – July 30, 2018 – TrueBlue announced that CEO Steven On the staffing side of its business, Recruit Holdings has several well- Cooper will transition to Executive Chairman of the Board and that known brands including Recruit Global Staffing, The CSI Companies President and COO Patrick Beharelle has been named President and (US IT/clerical), Staffmark (US light industrial), Advantage Resourcing CEO effective September 1, 2018. Mr. Beharelle joined the firm (US/UK HR services), Peoplebank (AUS staffing) and Chandler following the acquisition of PeopleScout and Staff Management, which Macleod (AUS temp/perm) among others. Recruit Holdings is led by he led as CEO from 2009 to 2014. Mr. Beharelle is a graduate of Illinois President and CEO is Masumi Minegishi. State University and the University of Pennsylvania – The Wharton School. • TrueBlue Acquires TMP Holdings LTD; Strengthen PeopleScout’s Global RPO Capabilities – June 13, 2018 – TrueBlue has, through its • Kelly Services Makes Inaugural Investment Through Innovation PeopleScout RPO, segment acquired TMP Holdings LTD which Fund – July 23, 2018 - Troy, MI-based Kelly Services announced operates in the UK under the brand TMP Worldwide. TMP provides through Kelly Innovation Fund (KIF) its participation in the seed employer branding and recruitment marketing solutions with a fundraising round for Kenzie Academy, a tech apprenticeship program portfolio of RPO clients. “With TMP, we significantly strengthen our that develops modern tech workers. KIF was launched in early 2018 for RPO footprint and delivery capabilities in EMEA – deepening our Kelly to invest in the next generation of workforce solutions expertise in this strategic market,” said PeopleScout President Taryn companies. The KIF team is led by Rick Wallace and Yana Krivozus. Owen. Additionally, Ms. Owen sited: “The TMP team infuses PeopleScout with decades of experience in recruitment marketing and • Kforce Unveils New Branding – July 21, 2018 – Tampa, FL-based talent acquisition strategy.” Kforce recently announced its new mission, vision, brand promise and company tagline. Mission: Uniting professionals to achieve success • Synergie Acquires Stake in DCS Easyware - June 8, 2018 – French through lasting personal relationships. Vision: To have a meaningful staffing firm Synergie announced it has acquired a 66% stake in Lyon impact on all the lives we serve. Brand Promise: Great results through based DCS Easyware. DCS Easyware specializes in the management strategic partnerships and knowledge sharing. Tagline: We love what and support of IT infrastructure. we do. We love who we serve.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 34 Industry News

Staffing • Express Employment Professionals Introduces ExpressJob App – • Resources Global Professionals and WonderBotz Form Strategic June 6, 2018 – Oklahoma City-based Express Employment Alliance – May 21, 2018 - Irvine, CA-based Resources Global Professionals introduced its new ExpressJob App. With more than Professionals (RGP, an operating subsidiary of Resources Connection 12,000 jobs currently posted to ExpressJobs, the app leverages machine- RECN) announced a partnership with WonderBotz, a provider of learning models and intelligent search to help users find jobs in their Robotics Process Automation. The alliance unites RGP’s on demand area, link to their social networks, apply to jobs, schedule interviews, functional and change management experts with WonderBotz’s highly- access resources and manage their employment details. skilled experts in digital transformation technologies to help businesses robotize repetitive routine tasks. In RGP’s press release, the company • Randstad Innovation Fund Team Named in Top GCV Power List – stated “This automation can eliminate intensive data integration and May 29, 2018 – Randstad’s Ilonka Jankovich and Paul Jacquin made the analysis efforts, enabling knowledge workers to focus on more Global Corporate Venturing (GCV) top 100 Powerlist in 2018. The GCV creative, high-level assignments. These transformation technologies uses a number of metrics to select the top 100 heads of corporate include RPA, natural language processing and artificial intelligence to venturing units. enable digital workers.”

• ManpowerGroup Showcases Innovation, HR Tech and Predictive • Hays Announces Partnership with Stack Overflow – May 8, 2018 – Performance Tools at Viva Technology Conference - May 23, 2018 – Hays, a recruiting provider in qualified, professional and skilled ManpowerGroup, a Gold HR Partner at the Paris Viva Technology people announced a partnership with Stack Overflow, an online Conference spotlighted the latest HR innovations (augmented reality, community for developers. Stack Overflow provides developers with virtual reality and digital predictive performance tools) that disrupt the the opportunity to learn, share their knowledge and build their career. way people work and how businesses attract, retain and upskill talent. Stack Overflow claims it receives more than 50 million visits from programmers each month. New York-based Stack Overflow was • Terminal Raises $10.1 Million Series A for Remote Engineering founded by Jeff Atwood and Joel Spolsky. Stack Overflow has received Teams – May 22, 2018 – Toronto, Canada-based Terminal, a startup $68 million over four rounds of financing from investors including that builds and scales remote engineering teams for technology Andressen Horowitz, Bezos Expeditions, Index Ventures, Spark Capital companies raised a Series A funding. Investors include Lightspeed and Union Square Ventures. Venture Partners, Thiel Capital, Kleiner Perkins Caufield & Byers, Atomic and Craft Ventures. • PeopleScout’s Talent Technology Platform, Affinix, Wins the 2018 HRO Today TekTonic Award for Candidate Experience – May 3, 2018 – PeopleScout’s Affinix technology platform won the 2018 HRO Today TekTonic award in Candidate Experience. Affinix is a mobile- first, cloud-based platform that creates a consumer-like candidate experience and streamlines the sourcing process. Affinix leverages artificial intelligence, recruitment marketing, machine learning predictive analytics and other emerging technologies with one-point ATS and VMS integration.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 35 Industry News

Staffing • Adecco Buys EdTech Company General Assembly for $412.5 Million • Recruit Holdings Invests in AI/ML Provider ScoreData – March 27, – April 16, 2018 – Zurich-based staffing firm Adecco announced the 2018 – Recruit Holdings, through its investment subsidiary, has made acquisition of New York-based General Assembly for $412.5 million. an investment in Palo Alto-based ScoreData. ScoreData uses AI/ML to General Assembly, which was founded in 2011, runs 20 facilities improve customer experience with predictive customer-agent mapping around the world where it teaches employees subjects such as web in digital contact centers. development, user experience design, digital marketing and data science and machine learning. Adecco’s press release stated that • Silver Oak Services Partners Leads Recapitalization of Brilliant General Assembly would help to establish the company “as a leader in Staffing – March 27, 2018 – Evanston, IL-based Silver Oak Services the fast-growing up/reskilling segment.” General Assembly’s revenue Partners, a lower middle market private equity firm focused in 2017 was reported to be $100 million. exclusively on service businesses, announced it has led the recapitalization of Brilliant Staffing. Brilliant Staffing is a provider of • AMN Healthcare Completes Two Acquisitions – April 9, 2018 – AMN temporary and permanent finance, accounting and IT professionals to Healthcare announced the acquisition of MedPartners, a mid-revenue the Greater Chicago and South Florida markets. Brilliant Staffing is led cycle firm, and two related brands in healthcare leadership solutions, by CEO Jeff Mariola. Phillips DiPisa and Leaders For Today. MedPartners, based in Tampa, FL, provides solutions that help maximize healthcare facilities’ • Yoh Acquires IT Recruitment Firm GECO Deutschland – March 6, revenue integrity and improve patient care. The purchase price was 2018 – Philadelphia-based Yoh (part of Day & Zimmermann) $195 million with up to an additional $20 million based on future announced the acquisition of Hamburg, Germany-based GECO financial performance. MedPartners generated 2017 revenue of roughly Deutschland, a specialty IT recruitment firm. “This acquisition is $125 million with an adjusted EBITDA margin of 16%. Phillips DiPisa further evidence of our commitment to providing focused recruiting and Leaders For Today, based in the Boston area, offers a range of solutions to our clients globally” said Emmett McGrath, President of leadership staffing and permanent placement solutions for the Yoh. healthcare industry. Phillips DiPisa is an executive retained search firm. Leader for Today provides interim and permanent leadership • Yoh Acquires Texas-Based Maxsys Solutions – February 28, 2018 – workforce solutions. The combined purchase price was $30 million Philadelphia-based Yoh (part of Day & Zimmermann) announced the with potential for an additional $7 million based on future acquisition of Maxsys Solutions, a Frisco, Texas specialty IT performance. The combined entities generated 2017 revenue of roughly recruitment firm. The transaction includes Maxsys Financial Solutions, $23 million and an adjusted EBITDA margin of 20%. a separate finance and accounting brand. Terms of the transaction were not disclosed. • Recruit Holdings Acquires Canadian Job Site Workopolis.com – April 4, 2018 - Recruit Holdings announced it will acquire the Canadian job site Workopolis.com. Recruit Holdings’ Indeed job aggregator will operate Workopolis as part of its publisher network.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 36 Industry News

Staffing • Persol Group (TS2 Holdings) Acquires Three California Firms – • ManpowerGroup Appoints Dr. Tomas Chamorrow-Premuzic as February 21, 2018 - TS2 Holdings, the US growth platform of Japanese Chief Talent Scientist to Lead New Assessment Center of Excellence staffing firm Persol Group, acquired three California executive – February 5, 2018 – ManpowerGroup established its Assessment recruiting firms: Neohire South (venture focus), RockIT Recruiting Center of Excellence led by Dr. Chamorrow-Premuzic, an expert in (technology) and Hero.jobs (software). Through its Temp innovation business psychology, consumer analytics and talent management. Dr. Fund, TS2 makes strategic investments in HR technologies and the US Chamorrow-Premuzic is also a professor of Business Psychology at the startup ecosystem. It is led by CEO Yoshimi Lyadomi Shinohara. University College London, and a visiting professor at Columbia University in New York. Previously, Dr. Chomorrow-Premuzic was • Adecco Acquires NYC Hiring Startup Vettery – February 20, 2018 – with Hogan Assessments, a provider of personality assessments, and The Adecco Group has acquired Vettery, a digital professional leadership and organizational effectiveness. permanent recruitment marketplace, strengthening Addeco Group’s Professional Staffing & Solutions business. Vettery’s online recruitment • On Assignment Acquires Government Services Contractor ECS platform connects over 4,000 employers with highly-qualified, well- Federal for $775 Million – January 31, 2018 – Calabasas, CA-based On suited candidates across the IT, sales and finance verticals. Vettery’s Assignment, a provider of IT and professional services in the machine learning algorithms are applied to identify in-demand talent technology (Apex Systems/Cybercoders), creative/digital (Creative to bring onto the platform, analyze clients’ existing hiring activity and Circle), engineering and life sciences (Apex Life Sciences/Oxford), has recommend appropriate candidates. Terms of the transaction have not acquired privately held government services provider ECS Federal. been disclosed but several news sources have suggested that an Founded in 2001 in Fairfax, Virginia, ECS is an IT solutions provider approximately $100 million may have been paid. delivering cyber security, cloud, DevOps, IT modernization and advanced science and engineering solutions primarily to government • Joint Venture Between Persol and Kelly Services Rebrands as customers. ECS had 2017 estimated revenues and adjusted EBITDA of PersolKelly – February 12, 2018 – An Asia Pacific staffing joint venture $586.4 million and $67.6 million respectively. The ECS Federal between Persol Holdings and Kelly Services has been rebranded acquisition closed on April 2, 2018. On Assigment’s CEO is Peter PersolKelly and plans to expand in size across Asia Pacific. CEO Taka Dameris. Yamazaki has indicated that the JV plans to grow its current base of more than 1,000 consultants in the Asia Pacific region to more than • ManpowerGroup Introduces Avator Zara and Launches 3,000 by 2020. DigiQuotient – January 22, 2018 – At the World Economic Forum Annual Meeting in Davos, Switzerland, ManpowerGroup is • Recruit Invests in Dashbot – February 9, 2018 - Recruit Holdings, showcasing its latest innovations – the Digital Room which assesses through its investment subsidiary, has made an investment in Palo digital fluency and is hosted by Zara the avatar and DigiQuotient, a Alto-based ScoreData. ScoreData uses AI/ML to improve customer scientifically validated quiz that helps leaders assess readiness to lead experience with predictive customer-agent mapping in digital contact in the digital age. centers.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 37 Industry News

Staffing

• InGenesis Acquires the Healthcare Specialty Business of Kelly • Cross Country Healthcare Completes Acquisition of Advantage RN – Services – January 10, 2018 – San Antonio, TX- based InGenesis, a July 5, 2017 – Cross Country Healthcare announced it had completed provider of workforce solutions and healthcare staffing services, the acquisition of Advantage RN for a total purchase price of $88 announced the acquisition of the healthcare specialty business of Kelly million. The acquisition provides Cross Country with an increased Services. InGenesis’s founder and CEO is Dr. Veronica Muzquiz supply of healthcare professionals and expanded Managed Service Edwards. Per the InGenesis’ website, the definition of “InGenesis” (a Provider capabilities. combination of ingenuity and genesis) is being characterized by groundbreaking creativity, inventiveness an innovation.

• Aya Healthcare Acquires RN & Allied Specialties – August 8, 2017 – San Diego, CA-based Aya Healthcare has acquired RN & Allied Specialties (RNS), an Indianapolis IN-based nurse and allied staffing firm to expand Aya’s presence in the Midwest.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 38 Industry News

Related-Recruitment Community and Gig Economy Based Models

• TopTracker (Affiliated Entity of TopTal) Releases Payment Solution • Online Staffing Platform Wonolo Closes $32 Million Series C for Freelancers – December 5, 2018 – TopTracker, the free time Funding Round – November 19, 2018 – San Francisco, CA and tracking tool for remote freelancers and freelance teams, has released a Nashville, TN-based Wonolo closed on a $32 million series C funding new global payments solution in partnership with Payoneer that allows round led by Bain Capital Ventures. The deal follows a $13 million for free payments between companies and freelancers using its Series B funding round in April led by Sequoia Capital, and brings platform. “TopTracker is the only application offering integrated time Wonolo’s total funding to $52.9 million. In addition to Bain Capital and tracking, invoicing, and payments all in one, with the ability to remain Sequoia, DAG Ventures, Base10, AMN Healthcare and Cendana also completely free,” said Taso Du Val, CEO of TopTal. TopTracker is an participated in the latest round. Wonolo stands for “Work. Now. affiliated entity of TopTal, a global network of freelance talent in Locally.” The company operates in the “just-in-time” basis, enabling business, design, and technology that enables companies to scale their clients to access an online marketplace to staff hourly and daily labor teams on demand. workers to physical locations. Wonolo workers are known as Wonoloers and take positions such as general labor, warehouse • MBO Partners and Taxfyle Announce Partnership – December 4, operations, delivery drivers, merchandising, event staff and 2018 – Herndon, VA-based MBO Partners, a portfolio company of administrative tasks. Wonolo was founded in 2013 by AJ Brunstein, Primus Capital, has announced a partnership with Coral Gables, FL- Jeremy Burton and Yong Kim. based Taxfyle to streamline the tax filing process for Independent Contractors. MBO Partners is a provider of business services for • Toptal Launches Artificial Intelligence and Data Science Talent independent contractors. Taxfyle matches and connects customers to Specializations – October 23, 2018 – San Francisco-based Toptal, a licensed certified public accountants and IRS enrolled agents who global network of top talent in business, design, and technology perform tax and accounting work for them. “We continually seek announced the launch of its two new on-demand talent specializations innovative solutions and partnerships like Taxfyle to help the to meet the demand for skilled artificial intelligence and data science independents we serve fuel their growth and success” said MBO engineers. “With these service offerings, Toptal is providing businesses Partners CEO Gene Zaino. with the unique opportunity to quickly staff their AI and data science initiatives,” said CEO Taso Du Val. • Freelancer Acquires Freight Marketplace Channel 40 – November 20, 2018 – Sydney, Australia-based Freelancer.com announced the • Uber Testing On-Demand Staffing Business, Uber Works – October acquisition of enterprise freight marketplace Channel 40, a marketplace 18, 2018 – Uber is testing an on-demand staffing business called Uber and management system for freight owners and transport companies. Works, according to the Financial Times. The service would make it Freelancing and crowdsourcing marketplace that (per website) possible for businesses to hire short-term workers for things like connects over 31,212,202 employers and freelancers globally from over “events and corporate functions, such as waiters or security guards” 247 countries, regions and territories. Freelancer Limited trades on the the report said. Uber is testing the service in Chicago, after testing the Australian Securities Exchange under the symbol ASX:FLN. Freelancer service earlier in Los Angeles. is led by CEO Matt Barrie.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 39 Industry News

Related-Recruitment Community and Gig Economy Based Models

• Upwork Completes Initial Public Offering – October 2, 2018 – • Snag (FKA Snagajob.com) Names Fabio Rasati CEO – July 20, 2018 – Mountain View, CA-based Upwork, a freelancing website, where Richmond, VA-based, Snagajob announced that board member and businesses connect with independent professionals, completed its IPO former Upwork CEO Fabio Rosati will become Chairman and CEO. on the NASDAQ (UPWK). The stock opened at a share price of $15.00 Rosati, was CEO of Elance, which later became Upwork, from 2001 to translating to a valuation at the IPO of $1.6 billion. Founded in 1999, 2015. “Hourly workers constitute nearly 60% of the US workforce, and the business previously was known as Elance-oDesk (as a result of the Snag’s mission of helping people get jobs and shifts at more than merger of Elance and oDesk) and has raised $168.8 million in private 300,000 employer locations in the US and Canada is a source of capital over ten funding rounds from venture investors including inspiration and pride for all of us” said Rosati. Benchmark, FirstMark, Stripes Group, Globspan Capital Partners and Sigma Partners among others. Upwork is led by CEO Stephane Kasriel. • Patina Solutions Introduces CAMEO, External Coaching and Mentoring On-Demand – April 9, 2018 – Brookfield, WI-based, Patina • GLG Names Brian Dockray CFO – September 5, 2018 – New York, Solutions, a provider of executive on-demand talent has introduced NY-based Gerson Lehrman Group (GLG), a platform connecting CAMEO its digitally enabled platform for delivering one-on-one businesses to insight, announced that Brian Dockray will join the external coaching and mentoring. Patina sources executives with a company as CFO. GLG is a platform for professional insight, linking minimum of 25 years of experience from its proprietary “Patina thousands of clients to its global network of more than 600,000 subject Nation” community. Patina Professionals serve in a variety of matter experts across every sector. GLG’s more than 1,700 employees functions including business transformation, engineering, finance & work from offices in 12 countries. GLG is led by CEO Paul Todd. The account, HR, IT, marketing among others. Patina is led by President firm has raised $121 million and its lead investor is SFW Capital and CEO Mike Harris. Disclosure: William Filip of Delancey Street Partners. Partners serves on the Patina Board of Directors.

• $500 Million Investment to Fuel Growth of WeWork China – July 25, • Fiverr Acquires AND CO to provide its Freelance Software for Free – 2018 – WeWork, the provider of shared workspaces to increase January 24, 2018 – Tel Aviv, Israel-based Fiverr, an online marketplace productivity, innovation and collaboration, announced an increased for creative and digital services for entrepreneurs and small businesses, commitment to growth in China. WeWork China has raised a $500 announced the acquisition of freelance services platform AND CO. million Series B investment led by Trustbridge Partners, Temasek, AND CO’s previously paid SaaS offering swill become widely available SoftBank and SoftBank Vision Fund and Hony Capital. The company at no cost, providing offline and online professional freelancers cited supporting 20,000 members spanning nearly 40 locations across “efficiency, organization and opportunity.” Fivrr was founded by CEO three cities, with plans to expand to Shenzhen, Suhou, Hangzhou, Micha Kaufaman and Shai Wininger and has raised $111 million from Chengdu, Nanjing and Wuhan. WeWork was founded by CEO Adam investors including Square Peg Capital, Qumra Capital, and Bessemer Neumann and Chief Culture Officer Miguel McKelvey in 2010 with the Venture Partners. Founded in 2015 in New York City by Leif Abraham mission is to “Create a world where people work to make a life, not just and Martin Strutz, AND CO received funding from Thrive Capital, a living.” WeWork, based in New York, has raised over $900 million BoxGroup, Red Swan Ventures and Designer Fund. inception to date.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 40 Industry News

Recruitment Process Outsourcing

• Randstad Sourceright Announces New “MSP Ahead” Model – • Korn Ferry Releases Product to Streamline and Simplify Hiring December 5, 2018 – Randstad Sourceright unveiled the latest evolution Process – October 8, 2018 – Korn Ferry RPO (FKA Korn Ferry of its managed service provider (MSP) offerings aimed at helping FutureStep) has released two new talent acquisition products for organizations manage their contingent workforce. The new model organizations of all sizes. The products are built upon Korn Ferry’s brings together innovations in data analytics, workforce technology database of 4.9 million assessments, plus engagement, reward and and supply chain management. The new model, called “MSP Ahead” management data of more than 20 million professionals. The enterprise includes “all types of talent, working ‘upstream’ to identify the product for larger organizations leverages data from a company’s ATS appropriate talent pools even before a hiring need exists” says JoAnne and is integrated with new technologies such as AI-enabled sourcing Estrada, head of the company’s contingent workforce strategies. and machine learning. This improves sourcing capabilities, drives efficiencies and provides a holistic view of talent acquisition. The • Hudson Global Changes Operating Brand Name to “Hudson RPO” – second product is Korn Ferry Direct and is targeted at small and mid- December 4, 2018 – Greenwich, CT-based Hudson Global (HSON) has size organizations. “With our predictive analytics and decades of changed its operating brand name to Hudson RPO. This change marks experience, we can source, assess and hire candidates who are right for the completion of a strategic realignment process launched years ago to a role and will have the greatest chance of fitting with a company’s focus on the company’s core recruitment process outsourcing (RPO) culture, giving them the highest probability of advancing in the business. Earlier this year, the company sold its agency recruitment organization” said Bryne Mulrooney, CEO of Korn Ferry RPO, and talent management operations in Europe and Asia Pacific. Hudson Professional Search and Products. Global is led by CEO Jeff Eberwein. • Hire Velocity Chairman John West Receives SIBF Mentor of the Year • L2 Capital Partners and Lakewood Capital Acquire Orion Talent and Award – October 6, 2018 - RPO provider, Hire Velocity, announced Orion Novotus – December 3, 2018 – L2 Capital Partners and that its Chairman, John West, was named the 2018 Mentor of the Year Lakewood Capital announced the acquisition Orion Talent and its by the Society of International Business Fellows (SIBF). The award wholly owned subsidiary Novotus. Orion Talent has found careers for represents a passionate commitment to supporting the success of new over 43,000 veterans and Orion Novotus is a provider of RPO services. leaders. With offices in Lutz Florida, Atlanta, Georgia and Fairfax, Matt Klein, Partner at L2 and Roger Knight, Partner at Lakewood Virginia, Hire Velocity provides total workforce solutions including Capital were involved in the transaction. Orion is led by CEO Michael RPO, executive search and talent advisory. Starich. • Allegis Global Solutions Names Sarah Wong as VP of APAC – • PeopleScout Announces Guy Bryant-Fenn as New Asia-Pacific September 25, 2018 – Allegis Global Solutions (AGS) an RPO and MSP Managing Director – November 20, 2018 – PeopleScout, a TrueBlue provider has named Sarah Wong as VP of their Asia Pacific region. company and global provider of talent solutions, announces the Based in Hong Kong, Ms. Wong has 30 years of recruitment experience appointment of Guy Bryant-Fenn as its Asia-Pacific region managing and 18 years of experience in RPO. director. Mr. Bryant-Fenn is based in Sydney, Australia.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 41 Industry News

Recruitment Process Outsourcing

• Xelerate Included in 2018 Inc. 5000 list – September 10, 2018 – King of • Cielo, TalVista Join Forces to Help Clients Increase Diversity – Prussia, PA- based Xelerate, an outsourced recruiting firm, has been August 20, 2018 – Brookfield, WI-based Cielo (formerly Pinstripe) has named to the Inc. 5000 list of America’s fastest-growing private expanded its capabilities to support organizations’ diversity and companies. Xelerate is led by CEO Emily Biscardi. inclusion initiatives by partnering with software provider TalVista whose solutions help mitigate unconscious bias throughout the hiring • Korn Ferry Report Spotlights Growth of Gig Economy Professionals process. in Companies – September 5, 2018 – A report by Los Angeles, CA- based Korn Ferry highlights the growth of gig economy employees in • Kinetix Adds VP of Client Advocacy to Leadership Team – July 31, organizations. When asked why organizations were hiring gig 2018 – Atlanta-based RPO provider, Kinetix, announced the addition of workers, the survey cited “access to resources for short-term projects” Laura Eaton as VP of Client Advocacy. In this role, Ms. Eaton will serve and “expertise we don’t have in-house” as the top two reasons. as liaison and advocate for a portfolio of Kinetix RPO and Employer “Effective organizations contract people who have high-demand, niche Branding clients. Ms. Eaton joins Kinetix from IBM Talent Acquisition skills, which allows them to complete unique tasks, and then move to Optimization and prior to IBM was with FutureStep and Recruitment the next company that needs their expertise” said Jeanne MacDonald, Enhancement Services. Founded in 1990, Kinetix is led by CEO president of Global Talen Solutions for Korn Ferry’s RPO and Shannon Russo. Professional Search Business. • Sevenstep Appoints Amy Bush to President and Paul Harty to Chief • NXTThing RPO Launched by RPO Industry Veteran Terry Terhark – Solutions Officer – July 23, 2018 – Boston, MA-based Sevenstep September 2018 – CEO Terry Terhark is joined by Jamie Minier announced the appointment of Amy Bush to President and Paul Harty (Sales/Operations Strategist) and Karyssa Siegel (Marketing Strategist) to Chief Solutions Officer. Sevenstep provides enterprise & project to establish NXTThing RPO. According to the company’s website, the RPO, employer branding & talent analytics, and contingent labor new RPO provider will “deliver (RPO) solutions that leverage recruiting. Bush will lead all of Sevenstep in their commitment to innovative tools and technology while relying on recruiting experts to delivering market-leading talent solutions and consulting services. As leverage the element of personal connection.” The website also Chief Solutions Officer, Mr. Harty will be leading technology indicates that NXTThing will provide HR (process) consulting services enablement, including the advancement of the company’s predictive as well as Full Cycle and Project-Based RPO services. analytics platform, Talent AI. Sevenstep (and parent company Motion Recruitment Partners) is led by CEO Beth Gillfeather. • WilsonHCG CEO, John Wilson, Recognized on SIA 40 Under 40 – August 21, 2018 – John Wilson, CEO of Tampa-based WilsconHCG has been recognized as one of Staffing Industry Analysts’ (SIA) 40 under 40 top executives. Mr. Wilson founded WilsonHCG in Tampa, Florida in 2002. WilsonHCG’s revenue has grown by 400% over the past five years and it now operates in 37 countries. WilsonHCG is a portfolio company of private equity firm CIP Capital.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 42 Industry News

Recruitment Process Outsourcing

• Randstad Sourceright Making Growth Investments in India – June • Hudson Global Announces Closing of Strategic Divestitures and 26, 2018 – Randstad Sourceright has named Harish Pillai as head of Names Jeff Eberwein CEO – April 2, 2018 – Talent solution company, India and has set up an Asia Pacific employer branding and talent Hudson Global (HSON) announced the completed sale of its attraction team in Hyderabad to support activities in the region. recruitment and talent management operation in Europe and Asia Pacific in three transactions. Hudson received total proceeds of $39.0 • Cielo Promotes Adam Godson to SVP of Global Technology million in cash at closing. Geneva Switzerland-based Morgan Philips Solutions – June 21, 2018 – Global RPO provider Cielo (formerly Group acquired Hudson’s recruitment and talent management Pinstripe) announced that Adam Godson has been promoted to SVP of business in Europe. Morgan Philips, founded in 2013 by CEO Chares- Global Technology Solutions at the firm. Henri Dumon, CFO Francois Sallembien and CIO Pascal Tour (former Michael Page International Executives). Hudson Global also • Alexander Mann Solutions Sells to OMERS Private Equity for $1.1 announced that Jeffrey Eberwein has been appointed CEO. Mr. Billion – May 10, 2018 – London-based Alexander Mann Solutions has Eberwein was previously chairman of Hudson’s board of directors and been acquired by OMERS Private Equity for $1.1 billion. OMERS is one succeeds Stephen Nolan. of Canada’s largest defined benefit pension plans. Founded in 1996 by CEO Rosaleen Blair, Alexander Mann had previously been owned by • Hueman Acquires Marketing Communications Staffing and New York-based New Mountain Capital. Alexander Mann Solutions Recruitment Firm, Agency a la Carte – March 28, 2018 – Jacksonville, employs 4,000 people and delivers talent acquisition services to over FL-based Hueman People Solutions has acquired Agency a la Carte, a 100 clients in 85 countries. staffing and recruiting firm specializing in marketing communications and creative services. “As we expand Hueman, we see significant • WilsonHCG Names Ken Bowles CFO and Gary Cook as CTO – May opportunity to capture market share of the ever-expanding marketing 1, 2018 – Tampa, FL-based WilsonHCG a provider of talent solutions recruiting space,” said Hueman CEO & Founder Dwight Cooper. announced the addition of two new executives to its C-Suite naming Hueman People Solutions was formed in January 2017 with the spinout Ken Bowles as CFO and Gary Cook as CTO. Mr. Bowles spent 15 years from PPR Talent Management. With this acquisition, Hueman now at General Electric and most recently was CFO of technology firm, operates with four business lines: RPO, Executive Search, Risk Tribridge. Mr. Cook will be based in London and has 30 years of Adjustment Staffing and Agency a la Carte (marketing/advertising). experience in technology and human capital, most recently with IBM’s Watson Talent division. Wilson’s Andy Zahn will become Executive Vice President of Corporate Development. Mr. Zahn will lead the company’s M&A strategy and development of new product lines, partnership channels and geographic markets.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 43 Industry News

Recruitment Process Outsourcing

• Randstad Sourceright Launches “Talent Velocity” Technology • AgileOne Launches New Brand and Logo – March 6, 2018 – Torrance, Platform – March 21, 2018 - Randstad Sourceright announced the CA-based AgileOne, a total talent management leader, has announced development of Talent Velocity, a cloud-based platform that gives a new corporate brand to elevate the original Agile-1 identity. The clients access to the its HR and talent analytics technologies. “Talent rebranding coincides with the launch of two new technologies – Velocity takes HR tech to the next level by streamlining the power of GigSource and Talent ETL. The company’s press release stated “True to today’s top AI, machine learning and predictive technologies into a its name, AgileOne continues to be agile – well coordinated, active and single, integrated digital platform” said Rebecca Henderson, CEO of possesses a resourceful and adaptable character. Spelling out the word Randstad Sourceright. The company’s press release noted that the one reflects the company’s unique position in the marketplace as one platform will be continuously updated and is “fueled by the Randstad workforce management vendor to meet all their clients’ workforce Innovation Fund. Talent Velocity will be regularly updated by needs around the world. The idea of one, or unity, is further reinforced Randstad’s Sourceright’s Global Talent Innovation Center.” by the tagline: One World. One Workforce.” AgileOne is led by CEO Janice Bryant Howroyd. • Decision Toolbox Changes Name to Engage2Excel Recruitment Solutions – March 15, 2018 – Decision Toolbox, a provider of • Novo Group Merges with Xcellero Leadership – February 1, 2018 – recruitment solutions, announced the company will unify branding Brookfield, WI-based Novo Group, a national recruiting and with its parent company, Engage2Excel, and will now be known as management consulting firm announced its merger with Xcellero Engage2Excel Recruitment Solutions. Decision Toolbox was acquired Leadereship, a Naperville, IL-based leadership and organizational by Engage2Excel on December 16, 2016. Engage2Excel is led by CEO development firm. Novo Group is led by CEO Kelly Renz. Phil Stewart.

• PrincetonOne Hires Bart Heres as Director of Marketing Development – March 13, 2018 – Skillman, NJ-based PrincetonOne has hired Bart Heres as Director of Market Development for its Executive Search Division. Founded in 2002 by CEO Dave Campeas, PrincetonOne delivers integrated talent solutions through professional search, retained executive search, RPO and contract staffing.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 44 Industry News

Executive Search

• Korn Ferry Identifies Emerging Global Talent Trends for 2019 – 8. Talent Analytics Becoming Just as Important as Business Analytics. March 14, 2018 - Los Angeles, CA-based Korn Ferry, a global Analytics to look at the talent landscape (regional availability of talent, organizational consulting firm, has identified emerging global talent compensation norms) emerging. trends for 2019. “Several factors, including an incredibly tight labor 9. Talking Talent Holistically, From Hire to Retire. Overcome talent market and the massive influx of data are impacting the way HR data silos with data from talent acquisition, assessment, development, professionals and talent acquisition leaders are doing their jobs” said organizational structure and compensation functions to allow a Korn Ferry’s Jeanne MacDonald. calibrated approach to talent that is lined to business outcomes. 10. Balancing Act: Managing Short-Term Hiring Needs with Long-Term The 10 emerging trends are (in no particular order): Business Goals. Firms must balance near term hiring needs (via mix of full-time, contractors and gig works) and longer-term business 1. Don’t Mind the Gaps. The stigma of taking time off between jobs is imperatives (via total strategic plan). fading. Recruiters should not mind resume gaps. 2. Making Artificial Intelligence More ‘Intelligent.’ Efforts should be • Heidrick & Struggles Announces New Chief Human Resources made to ensure that AI does not unintentionally undermine diversity Officer – December 4, 2018 – Chicago, IL-based Heidrick & Struggles, efforts. a provider of executive search, leadership assessment and 3. Personalized Pay: Go Ahead, We’re Listening. With potentially four development, organization and team effectiveness, and culture shaping generations now in the workforce, compensation and reward services, announced Sarah Payne has been appointed to CHRO, and packages need more than ever to be customized to a employees and Rick Greene, the search firm’s current CHRO, will move into the companies must listen to what matters to employees. Heidrick Consulting business. 4. Rethinking the Annual Performance Review. Data suggests the year end performance review is ineffective in improving performance and • Edilson Camara Appointed CEO of Egaon Zehnder – November 27, that real-time feedback and ongoing performance discussions is more 2018 – Zurich-based Egon Zehnder, a provider leadership advisory effective. services including executive search, board advisory, executive 5. Digging Deeper into the Diversity and Inclusion Pipeline. Diversity assessment, leadership and team development and organization efforts should not stop at the very top, rather companies need to create transformation, announced that Edilson (“Ed”) Camara has been an ongoing pipeline of diverse talent (women, people of color, appointed CEO. Mr. Camara is based in Toronto. disabled persons and LGBTQ employees). 6. How are We Doing? Job candidate feedback can provide important • Signium Leveraging Hogan Assessments – November 5, 2018 – insight to successfully hire the best people. Chicago, IL-based Segnium, a provider of executive search and 7. That’s Really a Title? New titles and roles are emerging to meet the leadership consulting partnerships, has added Hogan Assessments to changing strategies of organizations (e.g., Chief Experience Officer, its range of solutions. “We chose Hogan because of its internationally Chief Transformation Officer, Chief People Officer, Data Wrangler, recognized and respected suite of assessments and leadership Legal Ninja, Customer Relations Advocate). development tools,” says Alastair Paton Signium’s Chairman.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 45 Industry News

Executive Search

• True Search Findings From “Talent Partner” VC Survey – October 28, • Russell Reynolds Associates Realigns Technology Practice – 2018 - Haddonfield, NJ-based True Search, a describe, surveyed 90 September 18, 2018 – New York- based Russell Reynolds Associates “Talent Partners” of leading VC firms. The key findings of this survey has announced it has realigned its technology practice to assist included: 1) The role’s diverse tasks and difficulty in setting priorities organizations stay ahead of disruptive market forces. The firm has makes the measuring the success of this function challenging, 2) More taken measures to bring together expertise in digital transformation, and more funds are investing in this function as a way to help their data and analytics, artificial intelligence, loT (internet of things), ZaaS companies hire great people, and 3) Entrepreneurs increasingly will (Zenoss as a Service), cybersecurity, blockchain, U/X and other expect funds to have this position when selecting funds. True Search is emerging technologies under one practice. David Finke and Nada led by Founders and Co-CEOs Brad Stadler and Joe Riggione. Usina co-lead the Russell Reynolds Technology Practice.

• Ben Williams Named CEO at Spencer Stuart; David Daniels • Lee Joins DHR as New Partner in Firm’s Advanced Technology, Chairman – October 8, 2018 – Chicago, IL- based Spencer Stuart, an Private Equity Practices – July 2, 2018 – Chicago, IL-headquartered executive search and Leadership advisory firm, has announced that DHR International, a global executive search firm, announced that Ben Williams and David Daniel will assume the CEO and Chairman of Michael Lee has joined the firm as a partner in the Advanced the Board, respectively. Mr. Williams succeeds Kevin Connelly. Prior to Technology and Private Equity practices. Founded in 1989, privately becoming CEO, Mr. Williams led Spencer Stuart’s North American held DHR International provides executive search solutions from more business and before that led its Financial Services practice in North than 50 wholly-owned offices around the world. DHR International is America. Privately held and founded in 1956, Spencer Stuart has 57 led by CEO Geoffrey Hoffmann. offices and operates in 30 countries with 50 practice specialties. • Heidrick & Struggles Announces Artificial Intelligence to be Newest • Korn Ferry Announces KF Perform on Salesforce AppExchange – Specialty Practice – June 20, 2018 – Heidrick & Struggles (HSII) September 26, 2018 – Korn Ferry today announced the launch of Korn announced that Ryan Bulkoski will lead its AI Specialty Practice as Ferry Perform on Salesforce AppExchange. The vision comes from a more clients require AI expertise. “Our clients are eager to incorporate collaboration with Salesforce’s Office of Innovation with the goal of AI and adaptive learning into their business strategies, and recognize treating employees more like customers while empowering them to the need to build their expertise and talent pipeline in the spade.” said drive their careers. The application is part of an integrated approach President and CEO Krishnan Rajagopalan. towards performance, learning, and development management. Korn Ferry is led by CEO Gary Burnison. • Russell Reynolds Associates Names Paul Ottolini CFO – June 17, 2018 – Global search and leadership advisory firm, Russell Reynolds Associates, has announced that Paul Ottolinin has joined as CFO. Prior to joining Russell Reynolds, Ottolini was CFO of IBM’s Global Business Services division.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 46 Industry News

Executive Search

• Heidrick & Struggles Launches Disruptive Innovators Team – April • N2Growth Expands Executive Team – January 2, 2018 – N2Growth 17, 2018 - Heidrick & Struggles (HSII) has launched its Disruptive announced it has appointed Mike Kerouac as CEO and Barry Katz as Innovators Team to advise emerging companies at the cusp of rapid Chief Growth Officer. Mr. Kerouac was previously president of global growth, breakthrough innovation and market disruption. Tim product operations at EMC. Mr. Katz, who will report to Mr. Kerouac, Alexander Ludke has been named global managing partner of the was most recently VP of Business Development and Talent Acquisition Disruptive Innovators Team and will report to President and CEO at Nobilis Health Corp. Krishnan Rajagopalan.

• N2Growth Acquires Interest in S. African Search Firm, Landelahni Group – March 1, 2018 – Philadelphia, PA-based N2Growth, a provider of executive search, culture shaping, leadership development, organizational design, risk, digital transformation and executive coaching, announced the acquisition of an interest in Landelahni Group. Founded in 1996m Landelahni Group is an executive search and leadership development firm based in South Africa. N2Growth is led by Chairman Mike Myatt and CEO Mike Kerouac.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 47 Select Recent M&A Transactions

48 Select Recent M&A Transactions

Date Buyer / Target / Transaction Details Business Investor Issuer Size Revenue EBITDA Description ($ in mm) Multiple Multiple

Dec-18 Motion Recruitment Partners, LLC Management Decisions, Inc. - - - Management Decisions, Inc., doing business as MDI Group, provides information technology staffing services and contingent workforce solutions that supplement in- house resources for mid-sized and Fortune 500 organizations in the United States.

Dec-18 Cross Country Healthcare, Inc. American Personnel Inc - - - American Personnel Inc provides personnel services such as permanent placement, consultative staffing solutions, and traditional staffing for health care sector.

Dec-18 Patriot Capital, L.P. Orion ICS, LLC - - - Orion ICS, LLC provides skilled talent acquisition, recruitment optimization, Lakewood Capital, LLC recruitment process outsourcing, and military hiring services to businesses in the United L2 Capital Partners States.

Nov-18 Sequoia Capital Wonolo Inc. 32.0 - - Wonolo Inc. provides an application for on-demand staffing needs of businesses. AMN Healthcare Services, Inc. Bain Capital Ventures and Others

Aug-18 Kelly Services, Inc. Business Talent Group, LLC - - - Business Talent Group, LLC provides independent consultants and professionals for project based consulting and work to corporations, private equity firms and their portfolio companies, and non-profits and foundations.

Jun-18 New Mountain Capital Beeline Eur 110 - - Vendor management provider.

Jun-18 PeopleScout Inc. TMP Holdings LTD 30.0 - - TMP Holdings LTD provides employer branding and recruitment marketing, resourcing and assessment, and specialist services in the United Kingdom.

Jun-18 Synergie SE Dcs Easyware - - - Dcs Easyware provides information technology infrastructure management, consulting, and support services.

May-18 Kleiner Perkins Caufield & Byers Terminal 10.0 - - Terminal provides recruitment services, manages work spaces, and provides operational Lightspeed Venture Partners and legal support to early stage companies. Thiel Capital and Others

May-18 OMERS Private Equity Alexander Mann Solutions Ltd. - - - Alexander Mann Solutions Ltd. provides talent acquisition and management services to organizations.

May-18 Recruit Holdings Co., Ltd. Glassdoor, Inc. 1,200.0 7.0x - Glassdoor, Inc. operates an online jobs and career community.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 49 Select Recent M&A Transactions (Cont.)

Date Buyer / Target / Transaction Details Business Investor Issuer Size Revenue EBITDA Description ($ in mm) Multiple Multiple

Apr-18 Adecco Group AG General Assembly Space, Inc. 412.5 4.1x - General Assembly Space, Inc., an educational institution, provides education services in the areas of technology, data, design, business, marketing, and career development.

Apr-18 AMN Healthcare, Inc. MedPartners HIM, LLC 215.0 1.7x - MedPartners provides solutions that help maximize healthcare facilities' revenue integrity, improve patient care management and support care-quality reporting requirements. The Company based in Tampa, Florida.

Apr-18 AMN Healthcare Services, Inc. Phillips, DiPisa & Associates Inc. 37.0 1.6x - Phillips, DiPisa & Associates Inc. and Leaders For Today, LLC operates as a and Leaders For Today, LLC management staffing company for hospitals.

Apr-18 Recruit Holdings Co., Ltd. workopolis.com Ltd. - - - workopolis.com Ltd. operates an online job site that helps job seekers to find jobs, and connects employers with candidates in Canada.

Mar-18 Hueman People Solutions Agency a la Carte - - - Agency a la Carte provides marketing communications and creative services staffing and recruiting serves in Northeast Florida, the Southeastern, Mid-Atlantic and the Mid- Western U.S.

Mar-18 Recruit Strategic Partners, Inc. RSP ScoreData Corporation - - - ScoreData Corporation, a global data analytics company, which provides data analytics Fund 6 LLC solutions to deliver predictive insights.

Mar-18 Silver Oak Services Partners, LLC CBN Management, LLC - - - CBN Management, LLC, doing business as Brilliant Partners, provides search, staffing, and recruitment services to accounting, finance, and information technology industries.

Mar-18 Yoh Services LLC GECO AG - - - GECO AG recruits specialists for information technology (IT) projects in Germany and internationally.

Feb-18 Yoh Services LLC Maxsys Solutions, LLC - - - Maxsys Solutions, LLC offers recruitment services to information technology industry.

Feb-18 Adecco Group AG Vettery Inc. 100.0 - - Vettery Inc. creates an online hiring marketplace that helps people to find jobs by connecting employers with the job seekers.

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 50 Select Recent M&A Transactions (Cont.)

Date Buyer / Target / Transaction Details Business Investor Issuer Size Revenue EBITDA Description ($ in mm) Multiple Multiple

Feb-18 Recruit Strategic Partners, Inc. RSP Dashbot, Inc. - - - Dashbot, Inc. provides a bot analytics platform that enables bot developers and Fund 6 LLC enterprises to increase user acquisition, engagement, and monetization through data and tools.

Jan-18 On Assignment, Inc. (nka:ASGN ECS Federal, LLC 775.0 - - ECS Federal, LLC provides information technology services to military, federal civilian, Incorporated) and commercial clients.

Jan-18 InGenesis, Inc. Healthcare Specialty Business of - - - The Healthcare Specialty Business of Kelly Services, Inc. comprises healthcare staffing Kelly Services, Inc. business.

Please see your DSP representative for a full history of M&A transactions

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 51 Notes & Disclosures

52 Notes & Disclosures

Financial Terminology

- EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization - EPS: Earnings Per Share - LTM: Last Twelve Months - NA: Not Applicable - NM: Not Meaningful - PE: Price to Earnings Multiple - Enterprise Value: Market value of equity plus total debt (including capitalized leases) plus preferred stock at book value minus cash and short-term investments.

Disclosures

The financial data and other information in DSP’s Human Capital Special Staffing Update is derived from Capital IQ, company SEC filings and news releases and other news sources. We believe the information obtained from these sources is reliable, but we do not guarantee that the information herein is accurate or complete. This material was prepared by Delancey Street Partners, LLC and is for informational purposes only. This material is not a research report and should not be interpreted as such, or used in any way as the basis for making investment decisions of any kind. This report shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Any performance mentioned does not include transaction fees and costs which would reduce an investor’s return.

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 2018 Delancey Street Partners, LLC

HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 53 About Delancey Street Partners & Delancey Street Capital Partners

54 About Delancey Street Partners & Delancey Street Capital Partners

About DelanceyA StreetBOUT PartnersDELANCEY (DSP)STREET PARTNERS RECENT DELANCEY TRANSACTIONS Delancey Street Partners is an independent, industry-focused investment bank. We serve CEOs, Entrepreneurs, Shareholders and Boards of Directors of high growth and middle market private and public companies. Our services include strategic advisory, capital raising and independent board advice. We advise on sell-side and buy-side M&A, growth capital, recapitalizations and strategic evaluations. Our focus sectors include Business & Technology Services, Healthcare, Industrial & Industrial Technology and Infrastructure. We form long-term partnerships with our clients and each engagement is managed by senior professionals with years of industry experience.

About DelanceyABOUT StreetDELANCEY Capital PartnersSTREET (DSCP)CAPITAL PARTNERS DSP SENIOR LEADERSHIP Through Delancey Street Capital Partners, our merchant banking group, we contribute to, and align ourselves with, our client’s success. We complement our William J. Filip B. Andrew Schmucker advisory expertise with principal investing experience within industry sectors Managing Director Managing Partner we know and understand extremely well. We provide growth capital to partner 484.533.6312 484.533.6313 clients and manage broader strategic fund-raising initiatives as well as provide [email protected] [email protected] additional strategic advisory services at critical inflection points for our clients. Patrick E. Dolan Steven D. Higgins CAPABILITIES Managing Director Managing Director Provide investment and merchant banking services to high growth and middle market 484.533.6311 484.533.6308 public and private companies within focused industry sectors [email protected] [email protected] Investment Banking Merchant Banking David K. Allebach ■ Sell-Side & Buy-Side M&A ■ Partnering with our clients to achieve Director long-term objectives ■ Growth & Expansion Capital 484.533.6315 ■ DSCP proprietary capital ■ Recapitalizations [email protected] ■ Focused capital raises ■ Strategic Evaluations Five Tower Bridge, Suite 420 ■ Strategic advisor to management and ■ Fairness Opinions 300 Barr Harbor Drive board West Conshohocken, PA 19428 HCM: STAFFING, RPO & EXECUTIVE SEARCH UPDATE 55