ManpowerGroup 2000 Annual Report Download

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bilingual call center agent

Table of contents

  • Page 1
    bilingual call center agent

  • Page 2
    venezuela Manpower Venezuela used a creative compensation idea to win the staffing business for 3 call centers operated by the national telecommunications company, CANTV. Rather than receiving payment for each person assigned to work in the call centers, Manpower's compensation is performance-based,...

  • Page 3
    soldier

  • Page 4
    australia The Australian Defense Force, in an unprecedented move, decided to outsource its recruitment of military personnel to Manpower in 2000, due to our ability to provide a full-service solution, in part, through a collaborative effort with our new Empower Group operating unit. Approximately 10...

  • Page 5
    PC builder

  • Page 6
    ... Flexing Program helped IBM create significant savings associated with contractor staffing costs. Our Managed Services program includes a full management and support staff to recruit and train Manpower employees to support IBM PC Manufacturing, IBM Customer Solutions Center and administrative...

  • Page 7
    supervisor

  • Page 8
    ... efficient and flexible recruitment process, the company decided to outsource the recruiting function to Manpower Germany. We were able to successfully recruit 800 employees in a ten-week period and provide on-site management of the workforce, consistent with our worldwide reputation for delivering...

  • Page 9
    ticket agent

  • Page 10
    ... shows. This year, Manpower was hired to staff the 2-1/2 month show, "Saltimbanco" during its run in Hong Kong. Within a 2-week period, Manpower Hong Kong succeeded in recruiting 150 staff for a wide range of positions. We also provided on-site management of the temporary employee workforce for the...

  • Page 11
    payroll manager

  • Page 12
    ecuador Outsourcing business functions has become a popular way for companies to improve their productivity and efficiency measures. In Ecuador, payroll outsourcing has become a growing part of the Manpower service mix, with clients such as MasterCard, Johnson & Johnson, Albonova and Gillette. ...

  • Page 13
    waitress

  • Page 14
    belgium Manpower was the first European staffing firm to open an in-house branch within a football stadium. At every football (soccer) game in the Anderlecht stadium, Manpower Belgium recruits and manages 200 trained temporary employees for the catering and hospitality areas of the stadium. power

  • Page 15
    construction worker

  • Page 16
    switzerland Manpower opened four new offices in 2000 to support a major construction project in Switzerland, which consists of building two tunnels through the Alps to ease transportation across the country. We are providing temporary construction workers for three different firms that are managing ...

  • Page 17
    salesperson

  • Page 18
    argentina Through its dedicated sales personnel division, SalesPower, Manpower Argentina recruited, selected and trained more than 1,000 sales people for Movicom Bell South, helping the telecommunications company to become the leading seller of wireless phones in Argentina in 2000. power

  • Page 19
    warehouse worker

  • Page 20
    ... HR solution for the provision of logistics warehouse staff, including supervisors, for Sandvik Coromant, in Singapore. The scope of work includes selection of supervisors and deployment to Sandvik's facility in Holland for training. Manpower Singapore has been responsible for staffing the facility...

  • Page 21
    programmer

  • Page 22
    ... for the job in the United Kingdom, Netherlands, Ireland, Switzerland, Germany and Hong Kong. Elan's managed service business supplied on-site IT staffing services to global clients in the telecommunications and software services sectors, providing improved delivery of scarce human resources and...

  • Page 23
    systems engineer

  • Page 24
    japan As a preferred staffing vendor for global corporations like Hewlett-Packard, American Express and AIG, Manpower Japan is rapidly expanding its presence and quality reputation throughout the country. In 2000, we expanded our office network by 100 percent and opened dedicated recruiting and ...

  • Page 25
    welder

  • Page 26
    ...skilled workers in the industrial, construction and logistics sectors, Manpower France launched a nationwide program designed to recruit and train more than 1,000 people for new careers in 20 occupations with noted regional shortages. The program was completely financed by Manpower, with a budget of...

  • Page 27
    IT administrator

  • Page 28
    ... global IT company belonging to the Fujitsu Group, which is Europe's leading provider of e-business and e-infrastructure solutions. In addition to staffing IT and administrative positions, we provide facility management services, support systems and human resource services for ICL's e-infrastructure...

  • Page 29
    training manager

  • Page 30
    colombia Training services are a hallmark of Manpower's brand leadership around the world. Many companies hire us to provide training to their employees as a stand-alone service due to our quality reputation. In Colombia, we provide temporary employees for Almacenes Exito, as well as a comprehensive...

  • Page 31
    assembler

  • Page 32
    ... In Austria, Manpower played a critical role in helping Magna, a leading global supplier of technologically advanced automotive systems, resolve the high labor turnover in three of its sites. We developed a plan to create precise job specifications and use Manpower's proprietary Ultradex system to...

  • Page 33
    recruiter

  • Page 34
    israel Manpower Israel manages several C.V. Centers (résumé centers) as an outsourced function for high technology companies like Lucent, Intel and Applied Materials. Our expertise in recruiting, assessment of the candidates' skills and abilities, and management of the employee intake process, ...

  • Page 35
    contact center manager

  • Page 36
    ... specialist, 7C, during 2000. In addition to providing the building and associated infrastructure, Manpower recruited the management team and a full workforce of contact center agents. The contact center supports 7C's client, ONdigital, the world's first digital terrestrial TV platform. The center...

  • Page 37
    engineer

  • Page 38
    ...-term projects. In Denmark, engineers are frequently provided for companies like Glunz & Jensen, a manufacturer of process automation equipment. The contractor lifestyle is increasingly attractive to professionals in these fields because of the flexible work schedule and the variety of experience...

  • Page 39
    HR consultant

  • Page 40
    ... performance consulting services to major companies worldwide. From its official opening in July with offices in 10 countries, The Empower Group has generated great interest from many of the world's largest corporations who are seeking more effective ways to manage their human resources...

  • Page 41
    production line worker

  • Page 42
    ... In Mexico, Manpower provides large-scale recruiting services for manufacturers like Solectron through the use of creative techniques such as mobile recruitment teams. They travel with vans and portable recruitment stands to find the qualified employees needed to fill the jobs. In 2000, our teams...

  • Page 43
    web site developer

  • Page 44
    ...world. For Manpower, this technically savvy culture serves as a fertile proving ground for new technologies. Manpower Sweden now operates the largest e-recruitment Web site in the country, offering its services free of charge for both its customers and its candidates. This has transformed the market...

  • Page 45
    mechanic

  • Page 46
    ... of 1,300 temporary employees to Fiat at four different locations across Italy during 2000. Our services included on-site management of the temporary workforce, as well as recruiting, assessment and selection of all candidates. In addition, we created a program called "Iride" to support qualified...

  • Page 47
    store clerk

  • Page 48
    spain In Barcelona, Manpower Spain is finding new ways to fill sales clerk positions for Zara boutiques, one of the companies owned by Inditex, the third largest textile company in the world. Our talented recruiters target places that are frequented by young, fashionable people - universities, ...

  • Page 49
    accountant

  • Page 50
    ...50.1% owned by Manpower and 49.9% owned by Hydro, and we jointly share the responsibility for managing Hydro's workforce of temporary employees. The joint venture provides a single resource for the 1,000 employees that work for Hydro every day, including office workers, engineers, accountants and IT...

  • Page 51
    systems analyst

  • Page 52
    philippines Systems Integration Solutions (SIS), a rapidly growing US-based IT consulting services company, relies on Manpower to recruit highly skilled IT experts for its operations in the Philippines. By outsourcing the recruitment of permanent employees to Manpower Philippines, SIS is able to ...

  • Page 53
    teacher

  • Page 54
    ... shortage of school teachers. To solve this problem, Manpower has recruited and retrained more than 3,500 former teachers, as well as people from other careers, to fill the teaching vacancies - and this work continues today. As a result, Manpower has become the market leader in staffing services...

  • Page 55
    merchandiser

  • Page 56
    uruguay Manpower Uruguay manages a workforce of more than 400 people for Supermarket Devoto, part of the Geant - Excel Group, during the summer months in the cities of Punta del Este and Piriapolis. The employees required for this customer include warehouse workers, customer service representatives,...

  • Page 57
    With more than 2.7 million skilled, talented people in 59 countries worldwide, we deliver top-caliber staffing solutions to more than 400,000 customers around the globe.

  • Page 58
    manpower

  • Page 59
    ... made on working capital with free cash flow of $130 million. These results are good to report, but much more remains to be done. Changing markets, new economic uncertainty, increasingly complex customer needs, and the continual worldwide tightening of the labor market - these and many other factors...

  • Page 60
    ... to grow our network of offices to nearly 3,700 in 2000 with more than 285 new offices, which has strengthened our position in some of the fastest growing markets throughout the world. Countries like Sweden, Italy and Japan all added offices and continue to show positive signs of handsome returns...

  • Page 61
    ...to provide human resource consulting services to our major customers. Headquartered in London, The Empower Group is strategically important for our customer base, as they rely on us to supply a higher level of expertise to help them overcome the challenges of the tight labor market and Manpower Inc...

  • Page 62
    ...the constantly changing dynamics of their organizational structures. The Empower Group currently has offices across the Americas, Europe and Asia/Pacific, and we plan to expand its size and number of locations throughout 2001. Technology plays a key role in business today, and it will continue to be...

  • Page 63
    ... at some of the most exciting companies throughout the world. These accomplishments throughout the year 2000 have added to the diversity of Manpower's offerings and earnings. Our expansion in offices, our expansion in services, and our expansion in our customer base will add to the durability of our...

  • Page 64
    ...of services, our quality, and our ability to respond to customers' increasingly complex requests, it is clear to see how far we have come. This progress is a credit to the hard work and diligence of the Manpower people around the world - and I thank them for their efforts. We had a good year in 2000...

  • Page 65
    ... U.S. Dollars) 12,500 10,000 7,500 5,000 2,500 96 97 98 99 00 Revenues (in millions of U.S. Dollars) 12,000 10,000 8,000 6,000 4,000 2,000 ... total sales of Company-owned branches and franchises. (b) Represents Operating profit excluding nonrecurring items in 1999 and 1998. Manpower Inc. 63

  • Page 66
    ...65 74 75 Management's Discussion and Analysis Report of Independent Public Accountants Consolidated Statements of Operations Consolidated Statements of Shareholders' Equity Notes to Consolidated Financial Statements Quarterly Data (Unaudited) Selected Financial Data Corporate Information Principal...

  • Page 67
    ... staffing and workforce management solutions worldwide. Through a systemwide network of nearly 3,700 offices in 59 countries, the Company provides a wide range of human resource services including professional, technical, specialized, office and industrial staffing; temporary and permanent employee...

  • Page 68
    ... improvement was achieved despite an increase in France's business tax (taxe professionnelle) and the continued investment in new or expanding markets. On a worldwide basis, the Company opened more than 200 new offices during 1999, with the majority being opened throughout mainland Europe. Interest...

  • Page 69
    .... During the year, the U.S. organization implemented a number of productivity initiatives, the savings of which were offset by additional investments in Manpower Professional. The company acquired three U.S. franchises during the year, adding approximately $50 million of revenue. The impact of these...

  • Page 70
    ...account business and the impact of the slowdown in the IT sector in the U.K. The Manpower brand has begun implementing a program expected to achieve higher gross margins and improved productivity through its office network. The Brook Street brand had a very good performance, with revenues increasing...

  • Page 71
    ...implemented through a variety of methods, including open market purchases, block transactions, privately negotiated transactions, accelerated share repurchase programs, forward repurchase agreements or similar facilities. At December 31, 2000, 8.9 million shares at a cost of $249.8 million have been...

  • Page 72
    ...revenues increase. The amount of financing necessary to support revenue growth depends on receivable turnover, which differs in each market in which the Company operates. The Company believes that its internally generated funds and its existing credit facilities are sufficient to cover its near-term...

  • Page 73
    ... risks in connection with the conduct of their normal business operations. The Company generally has few cross border transfers of funds, except for transfers to the United States to fund the expense of the Company's international headquarters and working capital loans made from the United States...

  • Page 74
    ... professional, technical, specialized, office and industrial staffing; temporary and permanent employee testing, selection, training, and development; organizational-development consulting; strategic outsourcing; major-project planning, staffing and management; and human resource information...

  • Page 75
    ..., including obsolescence or impairment of information systems changes in customer attitudes toward the use of staffing services government, tax or regulatory policies adverse to the employment services industry general economic conditions in international markets interest rate and exchange rate...

  • Page 76
    Report of Independent Public Accountants To the Board of Directors and Shareholders of Manpower Inc.: We have audited the accompanying consolidated balance sheets of Manpower Inc. (a Wisconsin corporation) and subsidiaries as of December 31, 2000 and 1999, and the related consolidated statements ...

  • Page 77
    ... Statements of Operations (in millions, except per share data) Year Ended December 31 2000 1999 1998 Revenues from services Cost of services Gross profit Selling and administrative expenses Write-down of capitalized software Operating profit Interest and other expense Earnings before...

  • Page 78
    Consolidated Balance Sheets (in millions, except share data) December 31 2000 1999 Assets Current Assets: Cash and cash equivalents Accounts receivable, less allowance for doubtful accounts of $55.3 and $47.1, respectively Prepaid expenses and other assets Future income tax benefits Total ...

  • Page 79
    December 31 2000 1999 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable Employee compensation payable Accrued liabilities Accrued payroll taxes and insurance Value added taxes payable Short-term borrowings and current maturities of long-term debt Total current ...

  • Page 80
    ... of businesses, net of cash acquired Proceeds from the sale of property and equipment Cash used by investing activities Cash Flows from Financing Activities: Net change in payable to banks Proceeds from long-term debt Repayment of long-term debt Proceeds from stock option and purchase plans...

  • Page 81
    ...translation Unrealized loss on investments Total comprehensive income Issuances under option and purchase plans Dividends ($.20 per share) Repurchases of common stock Balance, December 31, 2000... Notes to Consolidated Financial Statements are an integral part of these statements. Manpower Inc. 79

  • Page 82
    ... of human resource services, including professional, technical, specialized, office and industrial staffing; temporary and permanent employee testing, selection, training and development; and organizational-performance consulting. The Company provides services to a wide variety of customers, none...

  • Page 83
    ... from the time the internal use software is considered probable of completion until the software is ready for use. Business analysis, system evaluation, selection and software maintenance costs are expensed as incurred. Capitalized software costs are amortized using the straight-line method over the...

  • Page 84
    ... method by which it settles the agreement (i.e., cash or shares). As of December 31, 2000, no shares have been purchased under this agreement. Advertising costs The Company generally expenses production costs of media advertising as they are incurred. Advertising expenses were $44.0, $39.6 and $41...

  • Page 85
    ... - diluted for the years ended December 31, 2000, 1999 and 1998 does not include certain stock option grants because the exercise price for these options is greater than the average market price of the common shares during that year. The number, exercise prices and weighted average remaining life of...

  • Page 86
    ...temporary differences reverse. Temporary differences, which gave rise to the deferred tax assets at December 31, are as follows: 2000 1999 Current future income tax benefits: Accrued payroll taxes and insurance Employee... has been recorded at December 31, 2000, as management believes that realization...

  • Page 87
    ... value of software costs and certain hardware and network infrastructure costs related to the development of a complex and proprietary information system for its North American branch office administration, invoicing and payroll processing. This comprehensive information system had been under...

  • Page 88
    ...an interest rate swap agreement that expired in January 2001. Throughout 2000, this agreement fixed the interest rate at 6.0% on $50.0 of the Company's U.S. dollar-based borrowings. This swap agreement had an immaterial impact on the recorded interest expense during 2000 and 1999. 86 Manpower Inc.

  • Page 89
    ...7. STOCK COMPENSATION PLANS The Company accounts for all of its fixed stock option plans and the 1990 Employee Stock Purchase Plan in accordance with APB Opinion No. 25 and related Interpretations. Accordingly, no compensation cost related to these plans was charged against earnings in 2000, 1999...

  • Page 90
    ...Company also has the Savings Related Share Option Scheme for United Kingdom employees with at least one year of service. These employees are offered the opportunity to obtain an option for a specified number of shares of common stock at not less than 85% of their market value on the day prior to the...

  • Page 91
    ... funded status of the plans are as follows: U.S. Plans 2000 1999 Non-U.S. Plans 2000 1999 Change in benefit obligation: Benefit obligation, beginning of year Service cost Interest cost Curtailment loss Special termination benefits Actuarial loss (gain) Plan participant contributions Benefits paid...

  • Page 92
    ... the amounts reported. A one-percentage point change in the assumed health care cost trend rate would have the following effects: 1% increase 1% decrease Effect on total of service and interest cost components Effect on postretirement benefit obligation $ .4 3.1 $ (.4) (2.7) 90 Manpower Inc.

  • Page 93
    ... retirement package and certain other benefits to eligible employees. These benefits are expected to be paid from the respective defined benefit pension plans. In addition, the Company will no longer provide medical and dental benefits under its U.S. retiree health care plan to certain employees...

  • Page 94
    ... from other human resource services, including temporary and permanent employee testing, selection, training and development; and organizational-performance consulting. Segment revenues represent sales to external customers within a single segment. Due to the nature of its business, the Company...

  • Page 95
    ... items ($16.4 after tax) in the second quarter of 1999 related to employee severances, retirement costs and other associated realignment costs. (c) The write-down of capitalized software relates to the abandonment of an information system that was being developed in the U.S. Manpower Inc. 93

  • Page 96
    ...share data) (continued) 2000 1999 1998 Total assets: United States France United Kingdom Other Europe Other Countries Corporate... assets: United States France United Kingdom Other Europe Other Countries Corporate(a) $ 205.0 15.0 22.2 9.7 22.2 15.0 ...Corporate (a) $ $ $ $ $ $ $ $ (a) Corporate...

  • Page 97
    ... Quarter Second Quarter Third Quarter Fourth Quarter Total Year Ended December 31, 2000 Revenues from services Gross profit Net earnings Net earnings per share Net earnings per share - diluted Dividends per share Market price: High Low Year Ended December 31, 1999 $ 2,568.3 446.0 25.6 $ .34...

  • Page 98
    ...Year Ended December 31 2000 1999 1998 1997 1996 Operations Data: Revenues from services Gross profit Write-down of capitalized software Operating profit Net earnings Per Share Data: Net earnings Net earnings - diluted Dividends Balance Sheet Data: Total assets Long-term debt $ 10,842.8 1,946...

  • Page 99
    ...Vice President Strategic Planning David Arkless Senior Vice President Manpower Inc. and Chief Executive The Empower Group Tammy Johns Vice President Global Accounts and Chairman Canadian Operations Michael Lynch Vice President International Support and General Counsel A copy of form 10-K filed with...

  • Page 100
    ... Colombia Costa Rica Czech Republic Denmark Ecuador El Salvador Finland France Germany Greece Guatemala Honduras Hong Kong Hungary India Ireland Israel Italy Japan Korea Luxembourg Malaysia Mexico Monaco Morocco Netherlands New Caledonia New Zealand Norway Panama Paraguay Peru Philippines Poland...

  • Page 101
    Design: SamataMason Major Photography: Sandro CEO Portrait: Marc Norberg Printing: H. MacDonald

  • Page 102
    International Headquarters P.O. Box 2053 5301 North Ironwood Road Milwaukee, Wisconsin 53201 USA 414.961.1000 www.manpower.com AR-103 (3/01) ©2001 Manpower Inc.