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Offsetting Randstad

Offsetting Randstad

Randstad launches staff offsetting, an innovative solution for small businesses, which may be facing a potential staff redundancy situation.

Offsetting enables businesses to retain skills while reducing the cost of salaries by up to 89 per cent.

Randstad, the worlds second largest HR services company, has launched an innovative employee salary offsetting service, as a way for small businesses to reduce their costs without having to lose their key assets, their people. Randstad is offering offsetting from its branches in Birmingham, Bristol, Ilford, Leeds, Manchester and Solihull, and will be rolling out the programme nationally.

Using Randstads offsetting option, employees would go through the normal redundancy consultation process, but would be offered the offsetting alternative as a way of maintaining their position with their employer. Randstad would endeavour to find a suitable secondment for the employee with another local business for an agreed period of time, which could be from one week to 10 months.

The employer would continue to pay the salaries, national insurance and other contractual benefits of their offset employees. Randstad would then pay the employer the hourly rate of the secondment job, thus enabling them to save up to 89 per cent of the employees salary cost during the offsetting period.

The 89 per cent saving would be available to a business that only pays the offset employees national insurance at 11 per cent, and no other benefits, and where the offset employee receives secondment pay that is equivalent to that from their employer.

Employers that use offsetting will also save the costs they could face through redundancy payments, outplacement costs and the recruitment and training of future new employees to replace staff they would otherwise have been forced to make redundant.

Small businesses will benefit by becoming more resilient to weather any challenging trading conditions while retaining their skills bases, which they will be able to fully utilise when their business picks up. Employees will benefit through the security of keeping their original job, which they will be able to return to at the end of the offsetting period.

Patrick Maloney, Director of Staffing Solutions at Randstad, said: We are delighted to have created a solution that will help small businesses reduce their salary costs and maintain their talent bases, thereby enabling many people to keep their jobs. Small businesses need all the help they can get to survive such a difficult and uncertain economic environment.

Without our offsetting service, many businesses would be forced to make redundancies of skilled employees, which is costly and time consuming, and would leave them with the challenge of having to find and pay for the recruitment and training of new talent when the upturn comes.

Kevin Green, CEO of the Recruitment and Employment Confederation, said: The REC is pleased to see our members such as Randstad developing innovative solutions to help their clients and candidates in this difficult jobs market.

Randstads offsetting service goes beyond the CBIs Alternative to Redundancy (ATR) proposal of July. Under the CBIs proposal, employees would not work for up to six months and would receive the Job Seekers Allowance and the equivalent sum from the employer.


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