2012 saw SD Worx’s turnover go up from 234 to 246 million euros, representing a 5% increase, generating 11 million euros in total profits. Last year, the company’s customer roster also rose to exceed the cape of 50,000 businesses. 2012 is set to go down in SD Worx history as a year of innovation that not only saw Steven Van Hoorebeke take over from Jan van den Nieuwenhuijzen as the company’s CEO, but in which the operational structures were also put under the magnifying glass. For 2013, SD Worx is holding out unambiguous ambitions: the company is aspiring to boost its market leadership position in Belgium in all three business lines (Payroll, HR and Tax&Legal) and to continue to build and expand its market position in Europe with its own branch offices and through the Payroll Services Alliance.
Over the past year, SD Worx recorded a handsome growth in all three business lines – Payroll, HR and Tax & Legal – that is in keeping with the growth levels the company managed to post in recent years. In doing so, SD Worx is positioning itself in the international HR market place as a leading company that has the structure, the know-how and the financial resources to go on to become a powerful European top-tier player.
SD Worx CEO Steven Van Hoorebeke: “In 2012, SD Worx not only posted solid growth, we were also recognised as a quality supplier . We are purposively focusing on innovation, sector-specific support and an international offering and on striking the right balance between profitability and the room to invest. To do so, we are looking to make better use of internal synergies, which is positively crucial in order to meet the challenges in today’s consolidating market place.”
Belgium – Solid growth in a consolidated market place
Belgium is marked by a consolidating market in which virtually all businesses have already been signed up. Last year saw SD Worx not only holding but further reinforcing its market leadership position by continuing to concentrate on bringing an in-depth and comprehensive offering, with a sector-specific focus of attention and dedicated solutions.
In Belgium, SD Worx currently boasts a portfolio comprising 47,500 customers for whom the company handles 910,000 pay calculations each month. In the SME segment too, SD Worx shored up its market position last year with well over 258,000 pay calculations.
The integrated solutions for SMEs, larger organisations and international businesses - which respectively come under the headers of SD Worx Proxy, SD Worx Insync and SD Worx Connect -, are clearing hitting the mark. Over 60% of our large customers are not only calling on our Payroll services, they are also turning to SD Worx for HR and/or Tax & Legal consultancy. In addition, Full Business Process Outsourcing is fast gaining popularity, with Albert Heijn Belgium and Action as new customers.
In addition, SD Worx is further specialising in solutions tailored to suit specific sectors. “We have been offering customers in the social profit or retail sector bespoke service packs that bring solutions that are specifically geared to the challenges they face on a daily basis. These sector-specific efforts are greatly appreciated and it pays”, Steven Van Hoorebeke explains.
Courtesy of this programme and our induction into the National Retail Federation,
SD Worx strengthened its position in the retail industry, where the company welcomed new customers such as McGregor, Gaastra Fashion, Scapino, Buurtslagers and AVA Papierwaren, all of which resulted in handsome growth rates.
With the takeover of Socrefos, SD Worx continues to remain the leading market player in the social profit sector (care and welfare sector) with over 160,000 pay calculations per month.
In the top segment of the public sector, SD Worx recorded growth last year and is now also seen to deliver its payroll services to the NMBS (the Belgian National Railway Company) and bpost (the Belgian Postal Service).
Europe – Solid quality network for cross-boundary synergies
In all, SD Worx handles over 1.2 million pay calculations across Europe and 5.7 million pay calculations in association with the Payroll Services Alliance each month. Last year, SD Worx managed to further expand its customer portfolio with customers including Millicom in Luxembourg, Pandora and Sixt in Germany and Delek in The Netherlands.
Steven Van Hoorebeke: “Through our collaboration with the Payroll Services Alliance and the combination of three areas of expertise in Payroll, Tax&Legal and HR, SD Worx is home to a varied, complementary and unique offering for international customers. In addition, in our European reporting tool Cubes, we are delivering unprecedented cross-boundary synergies to existing customers. The continued integration of the international department as part of the current SD Worx organisation comes in support of this strategy: Belgium and international, united under a single CEO, to reflect the rising relevance of the international arena to SD Worx.”
Innovation as the driving force behind our growth strategy
What is more, SD Worx unrelentingly maintains its focus on innovation, a crucial element enabling us to deliver the right tools to organisations to help them face the HR challenges of the future. Under the “Future of Work” umbrella, SD Worx is mapping out a vision that places the emphasis squarely on autonomy, collaboration and committing people to enable them to play to their strengths.
Flexibility is a key factor in all of this. SD Worx’s “Flex Income PlanTM” plan for instance allows businesses to remunerate employees with a flexible reward package. Commissioned by the Mobility and Finance government cabinets, last year moreover saw us lay down pioneering groundwork to enable a mobility budget to be created.
In the area of staffing too, under the header of “Shape, Match, Blend™” SD Worx designed an innovative and sustainable approach. The jump-off point in this respect are the future needs and requirements of businesses that are linked to the strengths and the potential of their employees.
Through the partnerships in place with Peoplexs and Cornerstone OnDemand, SD Worx worked to further expand its HR Software range. Doing so enables our organisation to offer customers the full gamut, from e-Recruitment and Talent Management to Self Service. The latter too is increasingly finding favour with SMEs.
SD Worx Consulting also turned a strong performance. Across the board, the turnover of SD Worx Consulting rose by 4.7% and in the SME segment the division even notched up a 9.5% rise in turnover, with HR consultancy as the biggest growth pool.
SD Worx Learning posted an 8% growth in turnover in 2012. Last year, the division launched various new formats, including a hybrid training technique that revolves around training sessions staged over at existing customers’ premises, attended by staff from various companies where they get to learn from one another (“peer learning”).
Belgian flagship in Europe
For 2013 and the future beyond, SD Worx holds out clear and unambiguous ambitions: (1) to maintain and strengthen its market leadership position in Belgium, (2) to secure a more impactful presence in those countries where SD Worx has branch offices of its own and (3) to generate adequate turnover from the Payroll Services Alliance, the European network which SD Worx is a member of, and with whom we serve customers in 27 European countries.
“Our ambitions are considerable, but they are definitely feasible”, SD Worx Chairman of the Board Filip Dierckx concludes. “A worldwide study conducted by independent research agency Gartner into the Payroll BPO Services market places SD Worx as one of the main challengers to the three biggest global players. Our market leadership position in Belgium – based on our comprehensive offering in Payroll, Tax and Legal and HR – will act as a flagship to drive a stronger market position in Europe.”