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India – Randstad streamlines company structure to halt attrition

21 November 2013

Staffing firm Randstad India has effected a quiet organisational restructuring over the last few quarters in a streamlining exercise aimed at curtailing the company’s high attrition rate, reports The Hindu.

The worldwide attrition rate of the second largest staffing firm in the world, stands at an average of between 20-25%, however, company officials say that Randstad India’s attrition rate is substantially higher.

Marielle de Macker, Managing Director Group HR, Randstad NV Holding, in an interview with The Hindu, said: “While our [organisation] structure here seemed good on paper, it was not so good in practice. Therefore, we did some streamlining, which has helped bring down attrition. By the end of the year we are aiming at an attrition rate of less than 35% here.”

Randstad India has divided its Search & Selection division into two separate businesses. According to officials, the Selection business now follows a regional structure and focuses on areas such as recruitment process outsourcing. The Search business will follow a pan-India vertical model and have a number of verticals underneath it; such as Manufacturing, ICT and Energy.

The staffing giant has also boosted employee compensation, which was not previously market competitive, and also improved its training and induction programmes.

In June it was announced that Randstad India had appointed a new CEO after former Managing Director and CEO, E. Balaji, decided to step down in order to “pursue other career opportunities”.

“In effect, Randstad India now functions more like its global parent, which is good as it reduces attrition. It [attrition] was getting disruptive here,” said Ms Macker.

According to Ms Macker, Randstad India is trying to change the perception around staffing in India, primarily by offering the same benefits as other companies; such as health insurance and an employee provident fund.

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