Staffing and human resources solutions firm Randstad India has effected a quiet organisational restructuring over the last few quarters in a streamlining exercise that has been aimed at curtailing the company’s high attrition rate.
While Randstad’s global attrition rate stands at an average of 20-25 per cent, company officials say that Randstad India’s attrition rate is substatinatilly higher than that
. “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 per cent here,” said Marielle de Macker, Managing Director Group HR, Randstad NV Holding, in an interaction with The Hindu on Wednesday. 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 on the other hand will follow a pan-India vertical model and have a number of verticals underneath it such as manufacturing, ICT and energy.
The staffing major has also boosted employee compensation, which was not market competitive earlier, and also sharpened its training and induction programmes.
Last June, Randstad India also appointed a new CEO after former Managing Director and CEO E. Balaji decided to step down 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 her, 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 employee provident fund.
