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5Manpower Annual Report 2008 Shareholder’s Letter
for us. Strategic moves such as: introducing Skillware® in 1982
to train candidates and staff on software and business systems;
acquiring Elan, Europe’s leading IT outsourcing firm in 2000;
and the acquisition of Right Management, the world’s largest
outplacement and organizational consulting firm in 2004 – all
were made based on an awareness and sensitivity to the trends
that drive our industry and the actions of our clients.
Solutions for Now and for the Future
As we continue to navigate these challenging times, there are
certain world of work megatrends at play that have real implications
for our business. These trends will continue to affect us in a more
targeted way once the world’s economies emerge from the current
environment. One of the key trends that will drive much of the
industry and our clients’ behavior is the aging workforce, which is
aggravating the ongoing talent shortage. The current economic
downturn and the associated job losses are masking the effect
of this megatrend. But the fact remains that aging baby boomers
will continue to exit the workforce, taking with them business
acumen and essential skills such as how to manage legacy systems.
And this situation is even more acute in the emerging economies.
In many ways, the latent demand will actually exacerbate the
talent shortage, as there will not be enough appropriately skilled
people to fill the void of available jobs, and the upgrading of skills
and workforces in general will be stalled.
Another major trend is the notion and reality that the individual
rules. This is a significant role reversal, and we’ve seen this taking
shape for some time as companies have had to build their employer
brand and learn how to manage employees as individuals rather
than as a homogenous group. The rise of the “NetGen,” young
people with very different expectations and motivations from
previous generations, combined with the talent shortage, has
shifted the power from the employer to the individual and, as a
result, retaining talent will be much more elusive. This will create
Evolution of Specialty Gross Profit
in millions ($)
Includes Manpower Professional, Elan, Jefferson
Wells and Right Management.
Our strategy has allowed us to improve gross profit
from specialty services over the past five years,
more than doubling to $932 million in 2008.
93
24
06
18
12
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Strong Record of Long-Term
Revenue Growth
in billions ($)
932
433
08
03