Randstad looks to future in changing human resources market

Human resources services represent one of the world's fastest-growing industries, with a global market value of around 310 billion euros ($345 billion).

In many major economies, however, some HR services, such as recruitment process outsourcing and outplacement, are still in their infancy, according to Randstad, the world's second largest HR services company.

On an average daily basis, the Dutch company Randstad helps nearly 600,000 talented people in about 40 countries and regions find jobs, of which China is "a key country with a great market potential", according to Annemarie Muntz, the company's director for public affairs.

Randstad's business has developed "quite well in recent years", she said.

Despite the economic downturn in Europe and the United States, the company managed to maintain organic growth and saw its revenues increase from 13 billion euros in 2009 to 19 billion euros in 2015.

At the turn of the millennium, Europe was Randstad's biggest market, but this has shifted quickly.

With the acquisition of Vedior and the rebranding of the Randstad brand in 2008, the company's presence in the US and Asia has grown considerably.

"In our opinion the most dynamic market for talent acquisition and placement is Asia, as economies there are emerging and legislation is adapted toward mobile, sustainable labor markets, which allow for a diversity of modern employment relations," Muntz said.

Last year, Randstad celebrated its 55th anniversary. The director said the company is known for continuing to adhere to and live by the core values established in its early days, "to know, serve and trust, striving for perfection and simultaneous promotion of all interests".

"We see the bigger picture, and take our social responsibility seriously," said Muntz.

"Our business must always benefit society as a whole."

Randstad invests, together with governments, in specific labor market projects, such as Youth at Work in the Netherlands, to fight youth unemployment.

It partners with institutions, such as the International Organization of Employers and Global Apprenticeships Network, to promote better functioning labor markets which provide for quality jobs and traineeships.

"The values we (as individuals) share as a company serve as a compass for everyone at Randstad, guiding our behavior and representing the foundation of our culture," said Muntz.

"Our continuing success, our ability to achieve our mission 'Shaping the World of Work', and our reputation for integrity, services, and professionalism are based on them."

She added that the world of work has seen some new trends emerge, such as an aging working population, and the increasing flexibility, digitization and global mobility of employees.

She identified resolving skills shortages and finding the right talent at the right time in the right place -which means developing new HR solutions - as the key challenges currently facing employers.

As a Global Fortune 500 company and a world leader in connecting people with the right jobs, Randstad is exploring new forms of talent search and acquisition via the Randstad Innovation Fund, through which it invests in companies that use digital innovation to enhance their HR services.

The company also regularly commissions universities and research institutions to undertake a range of research projects.

One of its latest reports on the "Future of Work in the Digital Age" shows that the continuing demand for science, technology, engineering and mathematics skills will increasingly drive the polarization of the labor market. New jobs will be created and old ones will disappear, which means there is an urgent need to invest in education and especially life-long learning, according to the report.

For 16 years, Randstad has run an employer branding survey called the Randstad Award, the biggest third-party employer branding survey in the world. Chinese companies have been included in the survey for the past four years.

"Traditionally, employers who offer good salaries and employee benefits, long-term job security, and a good working atmosphere are considered good employers," said Wang Guisheng, managing director of Randstad China.

"In China, however, employees consider career progression opportunities as being more important than the working atmosphere, which makes it a forward looking nation."

The Chinese market

Randstad has seen rapid development during the 10 years it has been in China, Wang said.

The talent search business has grown by 40 percent annually over the past decade, and the figure for the staffing business is 35 percent.

However, Wang has identified a number of challenges facing the industry.

"The first is the talent scarcity in many businesses such as the internet, IT and financial services," he said.

"The second is that with the economy slowing down and the decelerating growth of the manufacturing, chemicals and consumer goods sectors, the number of vacancies in these industries also dropped."

He added that digitization is forcing Randstad to redesign its services pattern by making it more candidate-driven.

In addition, rapidly-changing HR regulations also expose potential management risks to HR services providers and clients.

Wang concluded: "Digitization and its derivative technologies are shaping the HR services model from recruitment, retention and engagement through to employee relations management."

"While the clients will have more options in the market, their needs should be met even faster and more efficiently.

"Since Randstad entered the Chinese market, we have continued to introduce international HR services concepts and models to China through conferences, symposiums and seminars," said Wang.

"'Best Match' is not only a slogan, but also a guideline for practice."

zhangzhao@chinadaily.com.cn

(China Daily 09/04/2016 page28)