Flexi staffing is next big thing says Randstads Ben Noteboom
Organised flexi staffing holds huge potential in India, according to Ben Noteboom, global CEO and chairman of executive board at Randstad Holding. With changing labour market dynamics and a prolonged recessionary environment, an increasing number of companies are trying to maintain a flexible layer in their organisations, leading to a growth in organised flexi staffing.
"Flexi staffing is being recognised as a more sensible way to run a company more efficiently," Noteboom told ET during his recent India visit.
Noteboom, who met client companies, human resource professionals and industry leaders, says a lot of people in India, including big companies, are of the view that flexi staffing will take a much bigger market in the future.
Flexi staffing enhances companies' competitive strength by enabling them to focus on the core activity of profit generation without spending much time on staffing. India has one of the largest flexi staffing workforces across the world, besides China and the US. "HR leaders agree that there will be a huge uptake for flexi staffing going forward," adds Moorthy K Uppaluri, CEO, Randstad India.
The company employs about 58,000 people in India under flexi staffing and 600,000 globally, who are contracted to clients across sectors. The total number of people in the organised flexi workforce in India is currently about 1.3 million. In addition to this, there are people from the unorganised sector, of which there is no record. So the potential for flexi staffing, looking at the country's population, is immense.
"As the economy evolves, companies mature and as companies go through different economic cycles they need this flexibility to help them augment their workforce. And that holds immense potential in India," says Uppaluri, adding there is a possibility of flexi staffing growing by 10 times in India in the future.
Companies across sectors such as information technology, telecom, retail, hospitality, pharmaceuticals, manufacturing, banking and finance, among others, are increasingly adopting the flexi staffing model to augment workforce across levels.
Flexi staffing is increasingly in demand for companies in different stages of the growth cycle. For companies that are growing rapidly and who need quick augmentation of workforce, flexi staffing presents a very efficient model.
Even for firms that have grown and plateaued or for those that have grown big and want to optimise or rightsize their workforce, flexi staffing makes lot of economic and strategic sense. "In all three segments, no matter what stage of lifecycle the company is in, there is a need for smart workforce planning," says Uppaluri.
Noteboom says he is optimistic about the future of flexi staffing in India. "The bad news is we have 7% market share and the good news is we have 7% market share. There's 93% market to be captured, so we should be able to grow in India," he says.