Annual Report 2011

Glossary

Ageing workforce The next few decades will see substantial demographic changes due to the ageing of the workforce. This development will reshape all aspects of our lives, including businesses, workplaces, health and education systems, requiring active intervention by all concerned.

Associate A person who works for Adecco on a temporary basis.

Branch Where we offer our products and services to candidates and clients.

Compound average growth rate (CAGR) The average growth rate over multiple periods.

Candidate Any person interested in becoming an associate or having a permanent placement.

Career management Addresses the needs of both employers and employees throughout their working lives.

Career transition Also referred to as outplacement. The support provided to the employees in an enterprise that is undergoing change, particularly restructuring. Career transition services help affected employees to move into new employment.

Change management The development of a planned approach to changing a method of management or business practice in an organisation. Typically, the objective is to maximise the collective efforts of everybody involved in the change.

Ciett The International Confederation of Private Employment Agencies. Ciett is the authoritative voice representing the interests of agency work businesses.

Client A buyer of Adecco Group’s HR services.

Contingent workforce A group of provisional workers who are employed on a non-permanent basis.

Days sales outstanding (DSO) The average number of days that a company takes to collect revenue after a service has been delivered.

Decentralisation Significant decision-making delegated throughout the organisation, down to regional, national and local management levels.

Deregulation The removal of regulations and restrictions that hinder the effective functioning of, in the case of Adecco, the labour market.

Employee A person who works within the Adecco Group.

ERP Enterprise Resource Planning is an enterprise-wide information system that integrates and controls all the business processes in the entire organization. The Adecco VMS, Beeline, integrates with such systems.

Eurociett The European Confederation of Private Employment Agencies represents the common interests of the staffing industry in Europe.

Human resource business process outsourcing (HR BPO) Total or partial outsourcing of HR duties (e.g. payroll, recruiting, training, benefits, employee orientation, staffing).

ILO International Labour Organization. It is a specialized agency of the United Nations and the international organization responsible for drawing up and overseeing international labour standards.

Inventory-to-sales ratio Calculated by dividing the Inventory Balance at the end of the year by the Total Sales for that year. The inventory-to-sales ratio helps identify whether inventory is growing unnecessarily.

Key performance indicator (KPI) A parameter used to determine whether the desired input or outcome has been achieved.

Leadership development Companies may implement programmes that instruct and guide employees on how to become leaders in both their professional lives and their communities.

Lifelong learning In an era of rapidly evolving knowledge and ever-increasing globalisation, patterns of working, learning and living need to change with the times. Lifelong learning is a continuous process of formal and informal learning to keep employees up to date.

Made-to-order The production of goods only when they have been ordered, as opposed to maintaining an inventory.

Managed Services Programmes (MSP) Is contingent third- party Labour Management Outsourcing where the core solution provided to a client is Business Process Outsourcing with the utilisation of a Vendor Management System (VMS).

On-site A model of service delivery where an Adecco representative (potentially a team) responsible for client management is physically present at the client‘s facility.

Outplacement See career transition.

Outsourcing The practice of using external workers and/or machinery for certain business tasks.

Payrolling Adecco administers payrolling services, but is not involved in the search and placement process.

Permanent placement The placement of a candidate (potentially an associate) for an indeterminate period.

Recruitment Process Outsourcing (RPO) Is the transfer of operational responsibility for one or more recruiting functions for permanent labour (including recruitment administration) from the client to a services provider.

Retail business Service rendered to small account clients.

Retention The ability of an organisation to retain its employees.

Skill shortage Is an economic condition in which there are insufficient qualified candidates/employees to fill the marketplace demands for employment at any price.

Solutions Refers to Adecco’s Career Transition & Talent Development and its Workforce Management solutions.

Succession planning The process by which successors are identified for key positions throughout an organisation. According to Adecco, the process should focus not only on the top levels of the company, but also on other vital roles throughout the organisation. Succession planning should take into account the strategic vision and culture of the organisation.

Talent development Empowering individuals to advance their careers and reach their full potential.

Talent management Talent management requires that a company recognises the individual strengths and weaknesses of its employees or workforce, as well as striving to revise and improve the talents and skills of its workforce.

Temporary placement The placement of human resources for non-permanent employment needs. Placements may be definite or indefinite.

Training The development of a company’s human capital.

TWA Temporary work agencies.

Vendor Management System (VMS) A web-based application for automating the procurement of contingent staff. Adecco’s VMS is Beeline.