What changed in this filing

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Item 1. Business

2022-02-14 compared with 2021-02-12 · 64 added, 50 removed, 88 unchanged (56% of the section changed)

1 unchanged sentence

(the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps ® , Robert Half ® Finance & Accounting, OfficeTeam ® , Robert Half ® Technology, Robert Half ® Management Resources, Robert Half ® Legal, The Creative Group ® , and Protiviti ® .

The Company, through its Accountemps, Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is the world’s largest specialized provider of temporary, full-time, and project professionals in the fields of accounting and finance.

OfficeTeam specializes in highly skilled temporary administrative support personnel.

Robert Half Technology provides information technology professionals.

Robert Half Legal provides temporary, project, and full-time staffing of attorneys and specialized support personnel within law firms and corporate legal departments.

The Creative Group provides project staffing in the digital, marketing, and creative fields.

Protiviti , which began operations in 2002, is a global business consulting and internal audit firm.

Protiviti , which primarily employs professionals specializing in risk, advisory and transactional services, is a wholly owned subsidiary of the Company.

The Company, through its Accountemps , Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is a specialized provider of contract, full-time, and senior-level project professionals in the fields of accounting and finance.

OfficeTeam specializes in highly skilled contract, administrative support professionals.

Robert Half Technology provides project and full-time technology professionals.

Robert Half Legal provides contract, project, and full-time staffing of lawyers, paralegals and legal support personnel.

The Creative Group provides creative, digital, marketing, advertising and public relations professionals.

Protiviti , which began operations in 2002, is a global consulting firm that helps companies solve problems in finance, technology, operations, data, analytics, governance, risk and internal audit, and is a wholly-owned subsidiary of the Company.

The Company’s business was originally founded in 1948.

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All of the franchises have been acquired.

The Company believes that direct ownership of offices allows it to better monitor and protect the image of its trade names, promotes a more consistent and higher level of quality and service throughout its network of offices and improves profitability by centralizing many of its administrative functions.

The Company believes that direct ownership of offices allows it to better monitor and protect the image of its trade names, promote a more consistent and higher level of quality and service throughout its network of offices and improve profitability by centralizing many of its administrative functions.

Since 1986, the Company has significantly expanded operations at many of the acquired locations, opened many new locations and acquired other local or regional providers of specialized temporary service personnel.

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These professionals formed the base of the Company’s Protiviti Inc.

Protiviti has enabled the Company to enter the market for business consulting and internal audit services, which market the Company believes offers synergies with its traditional lines of business.

The Accountemps temporary services division offers customers a reliable and economical means of dealing with uneven or peak workloads for accounting, finance, and bookkeeping personnel caused by such predictable events as vacations, taking inventories, tax work, month-end activities and special projects, and such unpredictable events as illness and emergencies.

Protiviti has enabled the Company to enter the market for business consulting and internal audit services, and the Company believes this market offers synergies with its traditional lines of business.

Accountemps offers customers a reliable and economical means of dealing with uneven or peak workloads for accounting, finance, and bookkeeping personnel caused by such predictable events as vacations, taking inventories, tax work, month-end activities and special projects, and such unpredictable events as illness and emergencies.

Businesses view the use of temporary employees as a means of controlling personnel costs and converting such costs from fixed to variable.

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Robert Half Technology

The Company’s Robert Half Technology division, which commenced operations in 1994, specializes in providing information technology contract consultants, placing full-time employees, and offering managed services in areas ranging from multiple platform systems integration to end-user technical and desktop support, including specialists in application development (including mobile, cloud and enterprise applications), networking, systems integration and deployment, database design and administration, and security and business continuity.

The Company’s Robert Half Technology division, which commenced operations in 1994, specializes in providing information technology contract professionals, placing full-time employees, and offering managed services in areas ranging

from multiple platform systems integration to end-user technical and desktop support, including specialists in software and application development, networking and cloud, systems integration and deployment, database design and administration, and security and business continuity.

Robert Half Legal

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Robert Half Management Resources

The Company’s Robert Half Management Resources division, which commenced operations in 1997, specializes in providing senior level project professionals in the accounting and finance fields, including chief financial officers, controllers, senior financial analysts, internal auditors, and business systems analysts for such tasks as financial systems conversions, expansion into new markets, business process reengineering, business systems performance improvement, and post-merger financial consolidation.

The Company’s Robert Half Management Resources division, which commenced operations in 1997, specializes in providing senior-level project professionals in the accounting, finance and business systems fields, including chief financial officers, controllers, senior financial analysts, internal auditors, and business systems analysts, for such tasks as financial systems conversions, business process re-engineering, business systems performance improvement and post-merger financial consolidation.

The Creative Group

The Creative Group division commenced operations in 1999 and specializes in identifying for its clients creative professionals in the areas of interactive media, design, marketing, advertising and public relations.

The division places freelance and project consultants in a variety of positions such as creative directors, graphics designers, web content developers, web designers, media buyers, brand managers, and public relations specialists.

Protiviti is a global consulting firm that delivers an expanding set of services across its defined solution offerings of Business Performance Improvement, Internal Audit, Managed Solutions, Risk and Compliance and Technology Consulting.

Protiviti and its independently owned member firms works collaboratively with its clients in over 25 countries to help them achieve their business objectives and delivers confidence in an ever-evolving dynamic business world.

Clients range from high-growth, pre-public/transactional established start-ups to the largest global companies, across seven focused industries.

The Creative Group division commenced operations in 1999 and specializes in identifying for its clients creative professionals in the areas of creative, digital, marketing, advertising and public relations.

The division places contract and permanent employees in a variety of positions such as creative directors, graphic designers, web designers, media buyers, front end developers, copywriters, digital marketing managers, marketing analytics specialists, brand managers, and public relations specialists.

Protiviti is a global business consulting firm that delivers an expanding set of services across its defined solution offerings of internal audit, technology consulting, risk and compliance consulting, and business performance improvement.

Protiviti and its independently owned Member Firms work collaboratively with its clients in over 25 countries to help them achieve their business objectives and deliver confidence in an ever-evolving dynamic business world.

Serving organizations across industry sectors, clients range from high-growth, pre-public/transactional established start-ups to the largest global companies and government entities, across industries.

Marketing and Recruiting

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Robert Half employees are encouraged to be active in civic organizations and industry trade groups in their local communities.

Protiviti markets its business and technology consulting and internal audit services to a variety of global clients in a range of industries.

Industry and competency teams conduct targeted marketing efforts, locally, nationally and globally, including digital advertising, production of thought leadership, social media and live and virtual speaking events.

Protiviti regularly conducts a variety of programs to share its insights with clients on current topics such as risk, technology, corporate governance, and industry challenges.

It conducts public relations activities, such as distributing press releases, white papers, case studies and newsletters, designed to enhance recognition for the Protiviti brand, establish its expertise in key issues

surrounding its businesses and promote its services.

Protiviti plans to expand both the services and value-added content on the Protiviti.com website and increase traffic through targeted digital advertising.

Protiviti markets its business consulting services to a variety of global clients in a range of industries.

Industry and competency teams conduct targeted marketing efforts, locally, nationally and globally, including digital advertising, search advertising, email marketing, production of thought leadership, social media and live and virtual speaking events.

Protiviti regularly conducts a variety of programs to share its insights with clients on current and emerging business issues.

It conducts public relations activities, including distributing press releases, sharing proprietary research findings and providing subject-matter experts for press interviews designed to enhance recognition for the Protiviti brand, establish its expertise in key issues surrounding its businesses and promote its services.

Protiviti promotes its brand name through digital and out-of-home advertising and its professional golf brand ambassador program.

Protiviti regularly updates the services, value-added content and digital experience on the Protiviti websites globally.

Employees are encouraged to be active in relevant social media communities, civic organizations and industry trade groups.

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The most significant competitive factors in the staffing business are price and the reliability of service, both of which are often a function of the availability and quality of personnel.

The Company believes it derives a competitive advantage from its long experience with and commitment to the specialized employment market, its national presence, its investments in technology, and its various marketing activities.

Protiviti faces competition in its efforts to attract clients, expand relationships with existing clients and win proposal presentations.

The global professional service business is highly competitive with a dynamic regulatory environment, disruptive new technologies, security and privacy concerns and high demand for skilled professionals all driving significant opportunities.

The principal competitors of Protiviti remain the “big four” accounting firms.

The expanded acceptance of remote work creates significant opportunity for the Company.

It brings together the Company’s numerous strengths, including its global brand, global office network, global candidate database, and advanced AI-driven technologies and data analytics at the scale needed to excel at out-of-market recruitment and placements.

This strengthens the Company’s competitive position significantly since its traditionally toughest competitors, local and regional staffing firms, generally do not have these capabilities.

Protiviti faces competition in its efforts to attract clients, expand relationships with existing clients and win new business proposals.

The global professional services business is highly competitive with a dynamic regulatory environment, disruptive new technologies, security and privacy concerns, and high demand for skilled professionals all driving significant opportunities.

The principal competitors of Protiviti remain the “big four” accounting firms and other consultancies.

Significant competitive factors include reputation, technology, tools, project methodologies, price of services and depth of skills of personnel.

Protiviti believes its competitive strengths lie in the collaborative approach it takes to working with clients which drive knowledge transfer, understanding of client issues and value creation.

This is coupled with a “configure-to-fit” resourcing model to create blended teams of full-time Protiviti professionals and engagement professionals from Robert Half’s network of specialized talent to precisely match expertise, approach and people to the changing global needs of clients on consulting and managed solutions projects.

Protiviti believes its competitive strengths lie in the collaborative approach it takes to working with clients, which drives knowledge transfer, understanding of client issues and value creation.

This may be coupled with a “configure-to-fit” resourcing model to create blended teams of full-time Protiviti professionals and engagement professionals from Robert Half’s network of specialized talent to precisely match expertise, approach and people to the changing global needs of clients on consulting and managed solutions projects.

Human Capital Management

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The Company provides access to voluntary health insurance coverage to interested employees.

Diversity and Inclusion.

The Company believes that its rich culture of inclusion and diversity enables it to create, develop and fully leverage the strengths of its workforce to exceed customer expectations and meet its growth objectives.

In 2020, Robert Half President and CEO M.

Keith Waddell, and President and CEO of Staffing Services Paul F.

Gentzkow, joined President and CEO of Protiviti Joe Tarantino, along with more than 1,400 company leaders who have signed the CEO Action for Diversity & Inclusion ("D&I") pledge, making a commitment to advance inclusion and diversity in the workplace and community.

Current key initiatives include a company-wide D&I education series, the creation of Communities of Inclusion ("COI")/Employee Network Groups ("ENG") as business resources groups, and a focus on external strategic partnerships to increase engagement and representation of underrepresented communities.

The Company places a high value on inclusion, engaging employees in its COI/ENG programs staffed by employees with diverse backgrounds, experiences, or characteristics who share a common interest in professional development, improving corporate culture, and delivering sustained business results.

In 2020, Robert Half launched three COI chapters:

Black, Asian, and Hispanic/Latinx, with LGBT+ and Women set to launch in the coming year.

Protiviti has a number of Employee Network Groups that have existed for several years.

Diversity, Equity and Inclusion.

The Company believes that its rich culture of diversity, equity and inclusion enables it to leverage the strengths of its workforce while also creating an environment where employees can connect, thrive and grow.

In 2021, we continued our support of the CEO Action for Diversity & Inclusion pledge and furthered our commitment to advancing diversity, equity and inclusion by signing joint pledges with Ascend and Disability:IN.

Current key initiatives include a companywide Diversity and Inclusion education series, the creation of Employee Network Groups (“ENGs”) as business resource groups, and a focus on external strategic partnerships to increase engagement and representation of underrepresented communities.

The Company places a high value on inclusion, engaging employees in its ENG programs staffed by employees with diverse backgrounds, experiences or characteristics who share a common interest in

professional development, improving corporate culture, and delivering sustained business results.

In 2021, Robert Half launched the LGBTQIA+ and Global Women Employee Network Groups, joining existing groups for Black, Asian, and Hispanic/Latinx communities.

Protiviti has a number of ENGs that have existed for several years.

The Company uses these groups to serve as a source of inclusion and to support the acquisition of diverse talent internally and externally.

Each COI/ENG is sponsored and supported by senior leaders across the enterprise.

Across both Robert Half and Protiviti, as of June 30, 2020, approximately 55% of the Company's global workforce was female and 46% of the Company’s employees in managerial and leadership roles were female.

As of June 30, 2020, approximately 30% of the Company's US workforce were from underrepresented groups.

Each ENG is sponsored and supported by senior leaders across the enterprise.

Across both Robert Half and Protiviti, as of December 31, 2021, approximately 55% of the Company's global workforce was female and 47% of the Company’s employees in managerial and leadership roles were female.

As of December 31, 2021, approximately 33% of the Company's U.S.

workforce were from underrepresented groups.

Employee Engagement.

As part of the Robert Half employee voice initiative to provide its employees with feedback opportunities, in 2020, the Company conducted frequent surveys to understand employee needs and support employees both prior to and, more importantly, during the pandemic.

As part of the Robert Half employee voice initiative to provide its employees with feedback opportunities, in 2021, the Company conducted three surveys throughout the year to understand employee needs and support employees during the pandemic.

The survey results were analyzed by an independent third-party and then reviewed by the executive officers.

The results of this engagement survey were shared with individual managers, who were then tasked with taking action based on their employees’ confidential feedback (both quantitative and qualitative).

By paying close attention to the results both at an aggregate enterprise level as well as at a department/business/workgroup level, the Company has been able to enhance its culture of rewards and recognition, drive efforts to promote inclusion and diversity, increase communication in support of employee well-being and modernize its approach to foster a culture of continuous learning and feedback.

In 2021, Robert Half also sent out new hire surveys at specific points in a new hire's onboarding as well as departure surveys to selected employees.

By paying close attention to the results both at an aggregate enterprise level and at a department/business/workgroup level, and an employee's life cycle with Robert Half, the Company has been able to enhance its culture of rewards and recognition, drive efforts to promote inclusion and diversity, increase communication in support of employee well-being and modernize its approach to foster a culture of continuous learning and feedback.

Protiviti leverages surveys in the United States and internationally, including the Great Place to Work survey.

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The Company emphasizes employee development and training as a priority for the organization.

Training and development are key elements to overall retention, engagement, and employee experience strategy.

Training and development are key elements to the overall retention, engagement, and employee experience strategy.

Our strategy is designed to empower employees to reach their full potential, and we provide a wide range of development programs, opportunities and resources needed to be successful.

The Company has specialized programs for all audiences, new hires, tenured, and leadership.

The Company has specialized programs for all audiences, including new hires, tenured employees and leadership.

We provide a variety of learning channels including instructor-led, facilitated custom workshops, leader-led, cohort and mentorships, self-paced, e-learning and a catalog of vendor-provided courses, videos, resources, and books.

The Company is committed to the organization's overall health and providing career progression by providing individual development, readiness, and transition plans as a part of its talent review and succession planning process.

The Company is committed to its employees' overall health and providing career progression by providing individual development, readiness, and transition plans as a part of its talent review and succession planning process.

As a result of the pandemic, our learning strategy has pivoted to a virtual/hybrid approach.

This has allowed us to expand our offerings and reach through a virtual delivery model.

In 2021, we also launched a virtual-facilitated onboarding program as onboarding new employees virtually needs to be more planned, structured and engaging.

As a result of the shift in our learning programs to a virtual/hybrid approach, employees have increased access and a closer connection to the Company’s learning programs.

In 2021, approximately 10,432 employees engaged with the Company’s learning program virtually.

Compensation, Benefits and Well-being.

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The Company provides emotional well-being services through its Employee Assistance Program as well as a number of perks and other convenience benefits.

In response to the COVID-19 pandemic, the enterprise implemented significant changes.

In response to the coronavirus (“COVID-19”) pandemic, the enterprise implemented significant changes.

We provided all employees with the unconditional opportunity to work from home and the vast majority did so.

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Order backlog is not a material aspect of the Company’s staffing services business.

Backlog is of greater importance to Protiviti and is typically realized within a twelve-month period.

An insignificant portion of the Company’s business is subject to government contracts.

Backlog is of greater importance to Protiviti and is typically realized within a 12-month period.

The Company conducts business under various federal, state, and local government contracts, no one such contract represents more than two percent of total service revenues in 2021.

Available Information

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The Company intends to satisfy any disclosure obligations under Item 5.05 of Form 8-K regarding any amendment or waiver relating to its Code of Business Conduct and Ethics by posting such information on its website.

The Company has used, and intends to continue to use, its website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.

The Company's website, and the information contained therein or connected to or linked from the website, are not incorporated information and do not constitute part of this Annual Report.

Government Regulations

Our operations are subject to regulations by federal, state, local and professional governing bodies, and laws and regulations in various foreign countries, including, but not limited to, (a) licensing and registration requirements and (b) regulation of the employer/employee relationship, such as worker classification regulations, wage and hour regulations, tax withholding and reporting, immigration regulations, social security and other retirement, anti-discrimination, and employee benefits and workers’ compensation regulations.

Our operations could be impacted by legislative changes by these bodies, particularly with respect to provisions relating to payroll and benefits, tax and accounting, employment, worker classification and data privacy.

Due to the complex regulatory environment that we operate in, we remain focused on compliance with governmental and professional organizations' regulations.

For more discussion of the potential impact that the regulatory environment could have on our financial results, refer to Item 1A “Risk Factors.”

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business