The Adecco Group has announced several initiatives to strengthen and accelerate the ability of Talent Solutions to realise the synergies between its brands as it becomes the transformation partner of choice through the provision of fully integrated HR services, from advisory to transition and placement.
The initiatives are fully aligned with, and evidence strong momentum in delivering the Group’s Future@Work strategy, with its ambition to truly differentiate, including a commitment to invest in faster growth segments that support a shift in the business mix toward higher margin activities.
The first initiative will be that the Group is accelerating the transformation of the Talent Solutions portfolio by streamlining its organisational model and simplifying the brand structure, reducing the number of brands to one global brand – LHH. Going forward, the majority of assets within Talent Solutions will operate under the LHH brand, bringing closer the realisation of a truly seamless fully integrated HR services offering that simplifies and improves the customer journey.
LHH was chosen as the global lead brand following extensive analysis of all brands within Talent Solutions. LHH consistently ranked with highest customer recognition and best fit to a multi-service offering. The new LHH brand will be rolled-out globally during 2022.
In organisational terms, the global business unit will bring together its assets under one roof – LHH. General Assembly and ezra (powered by LHH) will retain their brand identities. The new LHH will have four solutions-based business lines with full P&L responsibilities to secure front-office effectiveness. At the same time, regional structures will be right-sized and four global centres of excellence will be introduced for support functions such as marketing, sales, and product
innovation. These centres of excellence will bring together experts from across the existing portfolio of assets to improve the consistency and quality of the fully integrated solutions offer.
To implement these changes, the Group estimates one-time costs of EUR 40-50 million, mainly in 2022, as the new brand is implemented worldwide. An approximately EUR 30 million impairment charge will also be recognised in Q3 2021, mainly related to the planned brand discontinuation.
Overall, the Group expects a strong financial return from this reorganisation and rebranding effort. It anticipates a meaningful uplift in revenues, mainly from increased leads and conversion ratios when operating as one under the LHH brand, supported by strong data analytics and diagnostics. Profitability is also expected to improve due to more cost-effective brand investment.
