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On 6th July 2005, Oliver (2005) confirms that London beat Paris at an International Olympic Committee meeting in Singapore to host the 2012 Olympic Games. The top estimated cost for the Olympics was £9.3 billion pounds. Whilst this figure may be revised by the end of the project, Woodman (2007) stated that the London Olympics would boost the UK tourism by £2.1 billion and generate about £1.27 billion extra revenue after 2012. Major sports events are potential sources of income for companies involved.
For this report, Adecco was chosen as a UK based company affected by the 2012 Olympics. Datamonitor (2010) confirm that The Adecco Group (Adecco) is a human resources solutions provider, offering both temporary and permanent placement services. It provides specialist and professional staffing, career services consulting and outplacement services. As a major company, a successful impact on managing the 2012 recruitment of staff would resonate on reputation and result in a financial backlash if things did not go to plan.
This report will:
Identify the benefits that the 2012 Olympics would bring to Adecco. Directly as a successful Tier Two bidder (Unknown, 2009) and indirectly, as an established supplier of human resources to the UK's business sector.
The challenges to be faced by the company.
Offer a conclusion to the content explored in this report.
Potential Benefits for Adecco
Successful Tier Two Bidder - Increased Revenue
Adecco's reputation as a leading provider of human resource services made it an ideal candidate to win the official recruitment services supplier to the Olympics and Para Olympics. Whilst the company invested heavily to win the bid, Blackhurst (2009) and Louise (2009) advise that the successful bid would be worth over £20m to Adecco as apart from recruiting staff for the Organising Committee of the Olympic and Paralympic Games (LOCOG), they will be working directly with the International Olympic Committee on the Athletes' Career Programme to support athletes' transition into work after the competition.Â This long term strategy will be an opportunity for potential growth in mid-market HR services post 2012.
Track Record - Increased Market Potential
Byrne, et al (2002) advise that for the Olympic Games in Sydney, the Sydney Organising Committee had to recruit 2,500 people and 50,000 volunteers. Louise (2009) advise that as an employment specialist, Adecco's past portfolio boast of being a domestic commercial partner for Sydney 2000, Torino 2006 and the Manchester Commonwealth Games in 2002. This positive reputation would affect the company's financial standing in the market. Bosley (2010) states that temporary employment is often seen as an indicator for wider opportunities in labour markets. If Adecco delivers the service, this would have an impact on their net income.
Adecco - Own Workforce Expansion
Tier Two bidding process required dedicated and specialist personnel to be established in order to ensure a consolidated process was in place to support the bid. This would involve some expansion to Adecco's own workforce.
Increased Labour Pool
Adecco has an established labour pool built up using its specialist HRM processes. This will get the right personnel in place to support business sector needs during this period. Additionally, the current economic climate may help the company as the employee pool is growing due to the number of redundancies in the financial and retail sectors (Sturgess, 2009).
As local businesses expand to meet the 2012 Games and associated tourism demands, an increase in temporary staff would be required. Bayliss et al (2004) state that several new short term jobs would be created within the Olympic Zone. This area has a high level of unemployment and the job generation would benefit the local economy. The impact for Adecco is to generate income and become stronger in a competitive market.
Potential Issues for Adecco
2012 games generated business opportunities will require a manpower investment. HRM will be central to this as companies, large and small, recruit trained and experienced staff to meet their needs. Adecco, as recruitment and HR specialists, will be in direct competition with companies such as Ranstead and Manpower UK Ltd.
Corporate Social Responsibility
Moir (2001) state that corporate social responsibility involves managing a business throughout in a socially responsible way, and being accountable for the impact of organisational activities in all aspects of operations. As a successful tier two bidder, this would be part of any bid process. As a supplier of manpower to meet 2012 games generated business sector expansion, Adecco would need to ensure its CSR policy is carried through to client, companies as recognised stakeholders. This will ensure the Adecco brand is protected while guaranteeing workers rights under employment legislation. Chivers (2007) affirm that all these considerations tie into the Companies Act 2006 where regard for the environment, interest of staff, customers and the community are addressed.
Davey (2009) states that The British Standards Institution Code of Practice for Business Continuity Management, BS25999-1, defines business continuity as, "An holistic management process that identifies potential threats to an organisation and the impacts to business operations that those threats, if realised, might cause, and which provides a framework for building organisational resilience with the capability for an effective response that safeguards the interests of key stakeholders, reputation, brand and value-creation." If things go wrong, Adecco may suffer from negative publicity, loss of key staff, damage to corporate image and reputation. The question is what may go wrong for Adecco. Scenarios to consider include:
Actions to take if staff, own and clients, cannot get to work due to issues with overburdened public transport during Olympic events.
Actions to take if there is a threat of a terrorist attack during the Olympics.
Actions to take if there is industrial action.
Actions to take if issues with key personnel are unable to get to their workplace due to adverse weather / ill health/ leave/ illicit time off to attend Olympic events.
What will be impact on the providing services to business partners for different failure periods, i.e. 3 hours, 8 hours, 24 hours, 4 days.
Which functions and people are most important to ensure no disruptions to own / business partners/ Games during the Olympic period?
Recruitment - 2012 Games
As a Tier Two bidder, Adecco needs to implement effective recruitment processes to ensure the success of the games and a successful impact on their own corporate brand. Sturgess, (2009) confirms that Sebastian Coe, London 2012 Chairman, commented that Adecco would play a vital role in ensuring that the right people were doing the right jobs and that the quality of people hired would directly impact on the success of the games.
Recruitment - Local Business Expansion Opportunities
Adecco's past experience will benefit local business large and small as they expand to meet the economic boom anticipated from the 2012 games. Such factors as staff shortages, head hunting, and personnel poaching are all business opportunities that fall to Adecco's benefit. For example, Unknown (2007) confirmed Ann Whelan, HR Director of the Jumeirah Carlton Tower and Lowndes Hotel stated that staff were being trained and then poached by rival chains.
The large number of employees to be recruited by Adecco as a result of the 2012 Games business sector expansion means that processes should be in place to ensure that jobs are not filled without
firstly looking at workloads and job roles
looking at the legal elements of HR recruitment and selection
training and developing staff to ensure they benefit from the experience which will assist them in future employment prospects post 2012.
Effective people management boosts morale which will create job satisfaction and enhance performance. This can be reflected when staff meet customers. Happy staff = happy customer.
Adecco's strategy is to ensure that the right people are in the right place at the right time. To do this, client company policies and practices for induction, training and development are important to integrate staff into the organisation effectively.
2012 Games Scale of project - subcontracting
Due to the scale of the project, co-ordination of resources is imperative. Adecco's project management team would need to look at completing processes from a human resources perspective within financial, time and resources constraints whilst ensuring quality standards are maintained.
Unknown (2010) state that Adecco would be working with athletes at the end of the Games and that working with the International Paralympic Committee (IPC), the Athlete Career Programme (ACP) would be extended to UK Paralympians for the first time to helping Paralympic athletes find their place in the workforce following the London 2012 Olympic and Paralympic Games. The question is whether Adecco have the capability to deliver this commitment or opt for a sub-contract process utilising specialist organisations within the UK business community.
The benefits the Olympics bring to the area are numerous. The impact on Adecco will be mainly positive with increased business opportunities as client companies seek to expand to meet business needs. Tier Two involvement impacts directly at a strategic level with operational impact mainly affecting Olympic sites. Negative impacts will be similar to those affecting other business ventures and competitors. These will be staff inconvenience at local level, travel disruption on event days and staff absenteeism (own and client). Finally, as short term employment opportunities lessen with the closure of the Games, Adecco will see a share of repeat job seekers entering the market with a subsequent impact on their recruitment offices.