StepStone refocuses to retain leadership - 09/2001

Kevin Kerrigan, MD, UK and Ireland for StepStone, announced a comprehensive refocusing of its UK operations. The move reflects a new direction in StepStoneís development that was strengthened by the recent appointment of Karen Slatford as CEO.

As StepStoneís Q2 results announcement indicated, this new direction will bring a heightened focus on operational efficiency. Back-office functions will be integrated to achieve a more streamlined operation and a significant reduction in costs. The benefits will be the creation of a leaner organisation and improved central direction. The effects of managing the business better will be a rationalisation of the companyís customer services and marketing function, resulting in a possible reduction in headcount of 40 people. Approximately ten of these are proposed for Scotland and four in Halifax.

Kevin Kerrigan commented: ìCustomers will not be affected by these changes. StepStone has achieved remarkable growth across Europe and the UK. However, we are now rationalising UK structure to serve our customers more efficiently. A more streamlined structure will support customer care.î

Regional field sales teams will continue to work remotely but will report directly to London rather than to regional offices. Infrastructure savings will be derived from closing two regional shell offices in Stirling and Halifax, thereby removing two tiers of management in these regions.

The UK marketing function will be integrated with that of Ireland. UK and Ireland marketing director Una McGurk has been appointed to head this function. This model has already been successfully implemented for human resources. The new shared infrastructure will see greater collaboration across the regions which as a pan-European company, has historically been one of StepStoneís strengths. The company will remain focused on customer delivery at national and local levels.

StepStone has a genuine cost advantage that can only be retained by remaining efficient. Avoiding over-resourcing and duplication of roles is one important way of achieving this and will enable StepStone to continue to provide an efficient, cost-effective service to its customers.

Kevin Kerrigan commented: ìWe have challenging targets for growth in European sales against an increasingly competitive backdrop which mean taking some tough decisions. We very much regret that following a consultation period, some UK jobs may be lost as part of this process. Naturally, we will be considerate and fair in supporting affected employees over the coming months.

These changes, although difficult in the short term, are necessary if we are to continue to provide a cost-effective service, become a stronger company for the future and safeguard our position as Europeís leading online recruitment company.î

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