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Staff turnover

Our personnel represent a key asset for sustaining and further growing our business. We therefore carefully monitor and manage unfavorable shifts in retention rates, especially regarding our consultants.

The turnover rates within our sector are relatively high. This is due to the fact that for most consultants it is their first or second job after graduation. Since consultants are in contact with HR departments of our clients and get to know about new vacancies from first hand, they often move to positions at our clients. The latter also makes that, even in difficult times, the staff turnover, as a percentage, remains fairly high.

At Randstad the average staff turnover is around 20%, which is somewhat less than sector average. For Randstad this is a healthy level because is helps controlling the operating expenses through the cycle since 75-80% of opex is personnel expenses.

To maintain turnover at an acceptable level, we monitor the turnover rate carefully, conduct employee satisfaction surveys, design and implement training, and maintain an extensive introduction program with the active involvement of local management. We also manage the risk of unfavorable shifts in retention rates by filling management vacancies internally within an 80% rule, providing management development programs for those with strong potential, and identifying and training future leaders.

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