With around 57,000 employees, 550 locations and revenues of 1.97 billion euros (2015), Randstad is the top staffing services company in Germany. The company's core competencies include classic temporary employment, outsourcing concepts, HR consulting and in-house solutions.
Temporary work allows companies and government institutions flexibility in staffing so that they can respond to seasonal peaks, fluctuation in order volumes, a need for additional know-how and unplanned absences. At the same time, Randstad is helping to reduce unemployment.
Managing Director Eckard Gatzke on temporary employment: "Temporary employment is the contemporary answer to today's market demands. On the one hand, it creates the flexibility that companies demand, which is especially necessary in times of market instability. On the other hand, it creates career prospects for people in the labor market."
Randstad is working to actively reshape the labor market
In addition to establishing itself as the market leader in Germany, Randstad aims to actively shape the labor market. "We will make our services more attractive for companies and employees, while we will continue to engage in the discussion about statutory labor market regulations,” says Eckard Gatzke.
Randstad has already taken important steps in this regard. First, it has successfully built upon the policy it introduced years ago of concentrating on key sectors.
This means the company is positioned to support clients with industry-specific staffing needs with targeted solutions and expertise, providing qualified staff for call centers, technology and finance.
Second, in 2000, Randstad became the only firm in the staffing industry to reach a wage agreement with the union ver.di. In 2003, this agreement served as the basis for wage reforms that have been valid industry-wide since January of 2004.
Randstad itself acceded to the sectoral collective bargaining agreement concluded by the Federal Association for temporary Staffing Services (Bundesverband Zeitarbeit Personal-Dienstleistungen e.V. - BZA) with Deutscher Gewerkschaftsbund (German Federation of Unions, DGB) and converted the agreement in place with ver.di into this new sectoral agreement at the beginning of the year.
Important Functions of Temporary Employment
Randstad believes that temporary employment has three essential functions in the labor market:
- Balance: Temporary employment helps balance supply with demand for limited-term services or staffing capacities.
- Integration: Temporary employment contributes to the re-integration of workers into the labor market after they have left it for various reasons.
- Development: Temporary employment promotes the attainment of additional skills by workers through "learning by doing" and develops personal attributes, such as adaptability, that are becoming increasingly important in the labor market.
In 2002, the German Parliament (Bundestag) passed the law known as "Modern Services in the Labor Market" (Moderne Dienstleistungen im Arbeitsmarkt), which deregulated the employment-inhibiting German Law on Temporary Employment (Arbeitnehmerüberlassungsgesetz - AÜG) at the beginning of 2004.
Randstad welcomes the new law while emphasizing that it is only a first step, with further improvements needed in key areas. One way to achieve the needed reforms would be to amend the Works Council Constitution Act (Betriebsverfassungsgesetz) or the Act on Temporary and Limited-Term Employment (Teilzeit- and Befristungsgesetz) to meet the special demands of temporary work (classifying the client's contract for temporary work as qualifying grounds for limiting the term of employment, removing caps on the number of consecutive limited-term employment contracts offered to any one employee).
“We will only see the full effect of temporary work on employment rates when we begin to pay closer heed to market mechanisms,” says Eckard Gatzke.
Randstad Deutschland: a member of the Randstad Group
Randstad Deutschland is a subsidiary of the Dutch firm Randstad Holding nv. The Randstad Group is one of the world's largest staffing firms, with offices in Belgium, China, Denmark, Germany, France, the United Kingdom, India, Italy, Canada, Luxemburg, the Netherlands, Portugal, Poland, Sweden, Switzerland, Spain, Turkey, Hungary and the USA.
According to the study "Top Companies for Leaders 2005" by the international human resources management consultants Hewitt Associates, Randstad Holding was voted by one of the top 10 employers in Europe by executives.