1. Estonian staffing history in nutshell Staffing started as a business in 2004 just before Estonia joined EU, earlier it it was a “family business” by the words of one local HR opinion leader. In 2004 two world leaders in staffing, Manpower and Adecco entered the market, companied by many Finnish staffing entrepreneurs subsidiaries or partner companies In 2005 Estonian Staffing Association was founded by Manpower, Adecco, Staffpoint (Personalipunkt),right after joined Varamiespalvelu, followed by Simplika, Eilakaisla and later Barona.

2. Staffing in the Baltics All 3 countries leading staffing companies have organised their work and founded local associations. Largest association is in the Lithuania with 12 members,smallest in Latvia (4). Official statistical data and reliable facts about Baltic States staffing markets are not available as such information is not gathered by authorities, still the local associations are carefully following market developments and competition situation. Strongest statistics is available about Lithuania. Estonian Staffing Association has conducted yearly market survey about staffing industry, however the outcome is HR leaders best guess, based on market analyzes and common sense (public is only financial information, not the services).

3. Staffing in the Baltics All 3 countries staffing associations are members of the Eurociett. Oldest association is in Estonia (since 2005), strongest most probably in Lithuania (since 2007), Latvian association was founded this year (2011). All 3 countries have to implement AWD by December 2011. In Estonia officials have prepared some changes in legislation, which will define staffing much better and create more clarity in the sector. Trade Unions agreed with the needed changes on the meeting but later still withdraw and decided to stay with permanent employment demand. In Lithuania, there is separate law about staffing since May 2011, will be in force 01.2012. Latvia is negotiating with the officials at the moment about the needed additional changes. Small corrections and definition of the staffing are in force since July 2011.

4. Staffing in the Baltics Penetration rate: Estonia ca 0,5 % (ca 3000 persons) Latvia ca 0,25 % (2000 - 2500 persons) Lithuania ca 0,1 % (ca 2500 persons) Staffing market size estimation: Estonia – 30 M € Latvia – 15 M € Lithuania – 25 M € Association members are covering from local staffing market: Ca 50 % in Estonia Ca 25 % in Latvia Ca 50 % in Lithuania

5. Staffing in Estonia In Estonia ca 300 companies have registered staffing as one of their business areas or main business, 50-60 out of them, who show some activity on the market, are selected to the survey conducted by the staffing association. Real competition is limited with 10 companies. In perm business double or even triple more. Total staffing market size is estimated to be ca 30 M € today, in 2011 there was significant growth but by the latest prognoses the market will not grow remarkably in the 2012, if the economical instability will continue, also decrease is possible. Decreasing working population and the mismatch in-between the unemployed and newly created jobs means employers have a smaller number of candidates to choose from than expected and they may fail to find a suitable employees, which will put pressure on the market players and may also lead to the faster salary growth than expected.

6. Estonian Staffing Association The main goals of the association are: promoting the flexible workforce solutions and enhancing the reputation of the staffing industry; explaining the added value, provided by staffing solutions, to employers, employees, decision makers and the public in general; contributing to better organisation the labour market and modernisation of legislative drafting. The plans involve close co-operation with public and private sector, aimed at enhancing the labour market efficiency and flexibility, creation and implementation of a code of ethics of staffing companies. All staffing companies with high ethical values, strictly law abiding and promoting impeccable business culture are welcome to join.

7. Estonian Staffing Association

8. Latvian Association of Staffing Agencies

9. Lithuanian Association of Temporary Employment Agencies