Randstad nv, the largest staffing firm globally, reported challenging conditions in the second quarter with declines in perm placement fees and recruitment process outsourcing. Revenue fell 5% year over year on an organic basis to €6.47 billion (US$7.04 billion).

“We delivered a solid set of results in the second quarter amid challenging conditions across our markets,” Randstad CEO Sander van ‘t Noordende said in a press release. “We have seen performance levels below the record results achieved in the same period last year.”

Perm placement fees fell by 16% year over year on an organic basis in the second quarter; they had fallen by 8% year over year in the first quarter.

Organic growth excludes the impact of currencies, acquisitions, disposals and reclassifications. It also includes an adjustment for working days.

North America recorded the largest decline in perm placement fees, down 36% in the second quarter on an organic basis. Perm fees fell by 5% in the Asia Pacific region and by 7% in Randstad’s “Southern Europe, UK and Latin America” geography. However, perm fees rose 1% year over year in Northern Europe.

US revenue

Total US revenue fell 13% year over year in the first quarter on an organic basis. The US staffing/inhouse services business line saw revenue fall 18% year over year organically, while US professionals revenue fell 8%.

Canadian revenue fell 15% year over year on an organic basis. However, Latin America revenue rose 14%.

Overall, revenue fell across geographies with the exceptions of France, Asia Pacific and “other Southern Europe, UK and Latin America.”

In France, revenue was up 2% year over year on an organic basis, though perm fees were down 6%.

Meanwhile, in Asia Pacific, Japanese revenue rose 7% year over on an organic basis, while Australia/New Zealand revenue rose 3% and India revenue rose 10%. However, revenue in China was down 6%.

“Other Southern Europe, UK and Latin America” revenue per working day was up 1% year over year on an organic basis. Latin American revenue rose 14%, but UK revenue fell 4%.

Global business

Global business revenue — which includes managed services programs, RPO, outplacement and other services — was down 6% year over year on an organic basis. Monster revenue on its own was down 14% year over year.

RPO revenue fell to €89 million in the second quarter from €119 in the second quarter of last year.

Randstad had 600,300 temporary employees on average during the second quarter, down from 662,400 in the second quarter of last year.

Guidance

Market trends in the second quarter have continued into early July with talent scarcity and wage inflation persisting, van ‘t Noordende said.

Share price and market cap

Shares in Randstad closed up 2.57% today in Europe to €52.76 (US$58.36); shares were 15.91% below their 52-week high. Randstad had a market cap of €9.46 billion (US$10.46 billion).

Proposed supervisory board member

The company also announced that Dimitra Manis has been proposed to be appointed as a member of Randstad’s supervisory board with shareholders set to vote on the appointment at the next general meeting. Manis is the chief purpose officer at S&P Global with responsibility for HR, marketing, communication and corporate responsibility. Prior to joining S&P Global, she held leadership positions in HR at Revlon, Estée Lauder, Openlink and Thomson Reuters.