Randstad Holding

Randstad Holding NV
Naamloze vennootschap
Traded as Euronext: RAND
Industry Professional services
Founded 1960 (1960)
Founder Frits Goldschmeding
Headquarters Diemen, Netherlands
Number of locations
 4,473 branches in 39 countries
Area served
 Worldwide
Key people
 Wout Dekker (Chairman)
Jacques van den Broek (Chairman and CEO)
Robert Jan van de Kraats (Vice Chairman and CFO)
Services Employment agencies, recruitments, human resource consulting and outsourcing, temporary work agency,
Revenue €19.2 billion (2015)[1]
€518.8 million (2015)[1]
Number of employees
 29,750 (2015)
Subsidiaries Randstad
Monster.com
Website www.randstad.com

Randstad Holding NV is a Dutch multinational human resource consulting firm headquartered in Diemen, Netherlands. Randstad is the world's second-largest HR service provider after Adecco.[2] It was founded in the Netherlands in 1960 by Frits Goldschmeding and operates in around 39 countries.[3] In 2015, the company achieved a turnover of €19.2 billion and a net income of €518.8 million. Randstad employs around 29,000 staff. Globally, Randstad has 4,473 branches.

Randstad Holding NV is listed as RAND on the AEX of Euronext Amsterdam. Founder Frits Goldschmeding is still the biggest shareholder. Randstad’s head office is in Diemen, in the Netherlands.

Core activities

Randstad specializes in human resource services for temporary and permanent jobs, including contract staffing of professionals and senior managers.[4]

In most of these countries, Randstad works according to a unit structure, whereby each unit consists of two consultants who are responsible for service provision to clients and selecting candidates. Randstad promotes these activities under two brand names: Randstad and Tempo Team.

A separate division of Randstad focuses on recruiting supervisors, managers, professionals, interim specialists and advisors. These people are deployed in temporary positions in middle and senior management, such as engineers, ICT specialists, or marketing & communication specialists.

In a number of countries, Randstad also has operating companies that select managers for permanent placements in middle and senior management. HR Solutions also involves a number of services such as selection processes, HR consultancy, outplacement and career support.

Brands under which Randstad promotes its activities include Randstad, Randstad Care, Tempo Team, Expectra and "Yacht." In order to increase name recognition, Randstad has also become a sponsor of the British Formula 1 team Williams F1 .

History

[5]

1960-1970: The company's launch

Randstad was founded in 1960 by Frits Goldschmeding and Ger Daleboudt, who were both studying economics at the time at VU University Amsterdam. The first flyers for the firm were typed in Goldschmeding's attic room in the student house on Sloterkade in Amsterdam. The agency was called ‘Uitzendbureau Amstelveen’.

In the first years, Uitzendbureau Amstelveen mainly provided personnel for the insurance industry, banks and the health-care sector. The firm's first office was near the Vondelpark in Amsterdam.

Founders Ger Daleboudt and Frits Goldschmeding (r) eight years after starting their company

In 1963, the agency also opened branches in Leiden and Rotterdam and changed its name from 'Uitzendbureau Amstelveen’ to ‘Randstad Uitzendbureau'. At that time, Goldschmeding and Daleboudt were still sure that the Randstad (the urban area between Amsterdam, Utrecht, The Hague and Rotterdam) represented their total reach.

A new logo was created by designer Ben Bos from Total Design. This is still the logo used by Randstad in 2011.

From 1965, Randstad opened a branch in Brussels, in 1967 in London and in 1968 in Düsseldorf, Germany. France followed in 1973.

1970-1980

After obtaining additional funding from AMRO Bank, in 1970 Randstad moved into a new head office on A.J. Ernstraat in Amsterdam, where administration of time sheets was centralized, and the company's first computer - the size of a large conference room - acquired to process them.

Randstad's first computer

Criticism

As the number of temporary staffing agencies grew (e.g. ASB, Manpower Inc., Evro and Tempo-Team), temporary staffing agencies acquired a poor image. Part of the criticism was political; trade unions and left-wing parties wished the government to have greater control over the labor market and also over employment mediation. Unions were concerned that temporary staff had no rights, might earn more than permanent staff, that employers would replace permanent jobs by temporary ones, that only people who were relatively mobile got temporary jobs and that temporary staff would be given only dirty and heavy work. However Randstad felt that it was finding jobs for people who would not otherwise be active on the labor market.

The Dutch Ministry of Social Affairs struggled with the concept of temporary staffing agencies and introduced a series of restrictive measures, going so far as to stipulate that the agencies could not expand any further. Moreover, each temporary employee had to be regularly re-registered with the Ministry; nor were temporary staff allowed to earn more than permanent employees. The unintended effect was that demand for temporary staff soared, due to the relatively low costs.

In response, Randstad - together with ABU, an association that promoted the interests of temporary staffing agencies - initiated 22 court cases against the regulations. One result was the abolition of regulation prohibiting expansion.

Consultant role

Randstad consultants at work
Randstad building in Enschede

While acquiring and serving clients on the one hand and selecting and placing temporary staff on the other were initially two different roles, Randstad decided to integrate them in one person, the consultant. At the time this was a unique development in the temporary staffing sector.

In its early years the company had focused on supplying keypunch operators, typists, accountants, administrators and secretaries. From 1973 it adopted a broader approach, dealing with all types of personnel, from medical to industrial.

Holding Company

At the end of the 1970s Randstad had several divisions, not only temporary staffing, but also cleaning work and security. In 1978, Randstad Holding NV was therefore founded as a holding company to accommodate all the divisions. Randstad also moved to a bigger head office in Diemen in 1977.

1980-1990: steady growth and stock market flotation

The period 1980-1990 started with a recession, as a result of which Randstad was forced to make 160 staff redundant. However, predicting correctly when the economy would recover, Randstad shifted its focus towards growth instead of cost reduction. Its competitor Tempo-Team was less successful in riding the recession and in late 1982 sought to be taken over by Randstad. The price was 125,000 euros and the commitment to repay a large debt. Randstad maintained the brand name but differentiated the Tempo-Team brand by aiming at more experienced staff.

CAO for temporary staff

The trade union FNV now recognized that the labor market needed flex workers, and that for many people temporary work constituted a step towards a permanent job, and sought discussions. This resulted in 1986 in a Collective Labor Agreement (CLA) for permanent employees in the temporary staffing sector and in 1987 in a CLA for all temporary staff.

Recognition

From 1982, government policies became less hostile to temporary staffing agencies, recognizing that they could promote employment, and the rules were gradually relaxed. This was a major change for Randstad, its changed status being symbolized when during its 25th anniversary celebrations, founder Goldschmeding received a Royal Honor.

Stock market flotation

Randstad's turnover rose from 204 million euros in 1983 to 518 million euros in 1985. In 1988, Randstad embarked on a stock market flotation which took place on 5 June 1990. Initially Randstad shares did not do as well as hoped, because the introductory price was set high. However, successful performance from 1991 caused the share price to rise.

1990-2000: internationalization

At the same time, Randstad gave more focus to internationalization. Around 1990 it was primarily a Dutch company; only a quarter of turnover was generated by international activities. On 1 April 1992, Randstad acquired the Dutch temporary staffing agency Flex, which also had branches in Belgium and France, for instance. In the Netherlands, Werknet was acquired and integrated in Tempo-Team.

A major goal was to establish the company in the United States. New board member Erik Vonk therefore set up a small office in Atlanta and sought a suitable candidate for takeover. In 1993 Randstad took over TempForce, a local agency with twelve offices in Atlanta. At the end of 1993, Randstad also acquired the U.S. agency Jane Jones Enterprises. By mid-1994 Randstad had 32 branches in the U.S. generating a turnover of 30 million euros and deploying 5,500 flex workers every day, still small compared with Randstad’s turnover in the Netherlands of 909 million euros.

Randstad became a sponsor in Atlanta of the 1996 Olympic Games, and supplied 16,000 temporary staff to the Games, greatly increasing its name recognition.

Management changes

On Friday 16 May 1998, at the age of 65, Frits Goldschmeding retired from the company he founded after 38 years. After a year's rest, Goldschmeding took his seat on the Supervisory Board. He was succeeded by Hans Zwarts, who embarked on more acquisitions. In order to continue the internationalization process, temporary staffing chain Strategix was acquired in the United States, a company with 300 branches. In Switzerland, Life & Work was acquired, in Spain Tempo Grup and in Germany Time Power. However, these acquisitions and problems with integrating them into Randstad caused 2000 and 2001 profits, and the share price, to fall. Faced with these poor results, Zwarts resigned.

2000-2016: recent history

In October 2001, Cleem Farla succeeded Hans Zwarts as CEO. His aims were to reintroduce the former Randstad brand values, develop a better strategy for internationalization and substantially cut costs. This was expressed in a new business strategy based on four strategic building blocks: strong concepts, best people, excellent execution and superior brands. This strategy was successful; in 2003, the net profit was 77.1 million euros, a 36% increase compared to 2002. However, in August 2002, Farla was diagnosed with a serious illness. Ben Noteboom temporarily stepped into his shoes, and definitively assumed his role on 1 March 2003.

In order to further standardize Randstad’s services, the company started to define and implement best practices. ‘You map out the market and enter the results in this database. We've turned these activities into a routine. […] We give it the rhythm and tone, but our staff make their own music,’ according to CFO Robert-Jan van de Kraats. As a result, it is easier to copy services from one market to another. Randstad has specialized in the recognition, recording and implementing of company processes worldwide.

Internationally, Randstad took over EmmayHR and Team4U in India, and took its first steps in China. Randstad also entered the market in Portugal, Hungary, Turkey, Poland and Japan.

In the year 2000, Randstad also launched the Randstad Award research conducted by a third party research company, ICMA, in 23 countries around the world including; USA, UK, France, The Netherlands, Hong Kong, Australia and Singapore. The Randstad Award is based on the results of the largest employment survey into employer branding research across the world and designed to uncover how employers are perceived in the eyes of today’s job seekers.[6]

In August 2016, Randstad Holding has announced acquisition of job search website Monster Worldwide Inc.[7]

Vedior

On Monday 3 December 2007, Randstad and temporary staffing organization Vedior announced their merger.[8] Randstad had been eyeing Vedior for some time. The takeover moved both companies up to number two in the world (after Adecco). Vedior had a higher proportion of higher-margin, faster growing professional staffing business than Randstad. Moreover, Vedior operated in strategic markets in which Randstad had not yet established itself, such as Japan and Brazil. In spite of differences in organisational culture, the two companies were ultimately successfully merged.

50th anniversary

In 2010, Randstad celebrated its fiftieth anniversary, marked by the publication of the book ‘Randstad Mensenwerk’ compiled by Professor Fred Emmer, professor emeritus at Leiden University. This book was internally distributed within Randstad under the title 'Working on a dream'.

Countries in which Randstad operates

[3] Randstad operates in the following countries:[9]

Asia and the Middle East

Pacific

Europe

North America

Latin America

Figures

[10] An overview of Randstad's main figures:

Turnover and profit

Global distribution of turnover and the different business areas of Randstad

Global distribution of turnover generated by temporary staffing

See above for a description of this business area.

total in millions of euros, in 2015 11,186.4
The Netherlands 17%
France 18%
Germany 9%
Belgium and Luxembourg 8%
United Kingdom 1%
Iberia 9%
Other European countries 10%
North America 19%
Rest of the world 9%
Global distribution of turnover generated by professionals

See above for a description of this business area.

Total in millions of euros, in 2015 3,816.4
The Netherlands 8%
France 10%
Germany 10%
Belgium and Luxembourg 3%
United Kingdom 16%
Iberia 1%
Other European countries 2%
North America 42%
Rest of the world 8%
Global distribution of turnover generated by inhouse services

See above for a description of this business area.

Total in millions of euros, in 2015 4,216.4
The Netherlands 19%
France 12%
Germany 15%
Belgium and Luxembourg 7%
United Kingdom 4%
Iberia 5%
Other European countries 10%
North America 22%
Rest of the world 6%

Average number of own staff in 2015

The Netherlands 4,150
France 3,460
Germany 2,570
Belgium and Luxembourg 1,890
United Kingdom 1,560
Iberia 1,750
Other European countries 2,820
North America 6,430
Rest of the world 4,930
29,560

Own staff include flex workers working in the Randstad organization.

Number of branches (including inhouse locations), end 2015

The Netherlands 644
France 728
Germany 550
Belgium and Luxembourg 303
United Kingdom 139
Iberia 306
Other European countries 406
North America 1,119
Rest of the world 278
4,473

Number of inhouse locations, end 2015

At inhouse locations, Randstad works at one location for a specific client.

The Netherlands 333
France 207
Germany 276
Belgium and Luxembourg 153
United Kingdom 64
Iberia 99
Other European countries 118
North America 293
Rest of the world 50

Management

[11]

Executive board, composition in 2015

[12]

Jacques van den Broek 1960 Dutch CEO and chairman of the Executive Board since 2014, member since 2001
Robert-Jan van de Kraats 1960 Dutch CFO and vice chairman of the Executive Board since 2006, member since 2001
Chris Heutink 1962 Dutch Member of the Executive Board since 2014
Linda Galipeau 1963 Canadian Member of the Executive Board since 2012
Francois Béharel 1970 French Member of the Executive Board since 2013

Supervisory Board, composition in 2015

[13]

Wout Dekker 1956 Dutch Chairman of the Supervisory Board, member since 2012 current term 2016-2020
Jaap Winter 1963 Dutch Member of the Supervisory Board since 2011 current term 2011-2015
Henri Giscard d’Estaing 1956 French Member of the Supervisory Board since 2008 current term 2012-2016
Giovanna Kampouri Monnas 1955 Greek Member of the Supervisory Board since 2006 current term 2010-2014
Barbara Borra 1960 Italian Member of the Supervisory Board since 2015 current term 2015-2019
Rudy Provoost 1959 Belgian Member of the Supervisory Board since 2015 current term 2015-2019
Frank Dorjee 1960 Dutch Member of the Supervisory Board since 2014 current term 2014-2018

In March 2011, Frits Goldschmeding (1933, Dutch), original founder of Randstad, resigned as vice chairman of the Supervisory Board.[14] His last term ran from 2007 to 2011.

See also

References

  1. 1 2 "consolidated statement of comprehensive income | annual report 2014". Randstadannualreport.com. Retrieved 2015-10-11.
  2. ↑ "Randstad Holdings, RAND:AEX company performance". Financial Times. Retrieved 26 Apr 2013.
  3. 1 2 "Locations - Randstad | Randstad Holding". Randstad. Retrieved 2015-10-11.
  4. ↑ Working on a dream – abbreviated annual report 2010, page 4
  5. ↑ "Mensenwerk, Mathieu Jacobs & Pieter van Gent | 9789047062578 | Boeken" (in Dutch). bol.com. Retrieved 2015-10-11.
  6. ↑ "What is the Randstad Award?". Randstad Australia. Retrieved 23 September 2015.
  7. ↑ "Randstad to buy US rival Monster for $429 million". Retrieved 9 August 2016.
  8. ↑ "History of Randstad". Randstadusa.com. February 24, 2014. Retrieved June 12, 2014.
  9. ↑ http://www.randstad.com/worldwide/
  10. ↑ Value at work – abbreviated annual report, pages 1, 6, 7, 18, 19
  11. ↑ Working on a dream – abbreviated annual report, pages 8 & 9
  12. ↑ Archived September 2, 2011, at the Wayback Machine.
  13. ↑ Archived September 2, 2011, at the Wayback Machine.
  14. ↑ "Grondlegger Frits Goldschmeding vertrekt na ruim 50 jaar bij Randstad". VEB. 2014-02-21. Retrieved 2015-10-11.
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