Featured Images

Jumbo selects Raet for HR Outsourcing

Jumbo is looking to outsource Payroll and HR to Raet

Raet has announced that Jumbo Supermarkets is looking to outsource its HR and Payroll departments subject to certain conditions. This is part of a wider strategic plan by Jumbo to restructure the business to concentrate on the core business. Earlier this year Jumbo sold two business units. It sold its retail accounting division to BDO and B.SiS, its cash till maintenance and technology arm, was sold to Simac.

Conditions of outsourcing still remain.

According to the press release Jumbo has informed the works councils and requested their opinions. It has also informed all the trade unions and the Economic Council of the Netherlands (SER). Jumbo has not disclosed the financial terms of the agreement. It has, however, said that employees from both divisions will transfer to Raet as part of the agreement.

Ton van Veen, CFO of Jumbo Supermarkets commented: “After a careful process, Raet was selected as our service provider. Raet is a reliable partner and a leading player in the HR services market. I am delighted that all employees can keep their jobs and can start working for Raet.”

Jumba has been careful in phrasing this announcement. It has avoided saying that without the deal there would have been job losses in the future. Outsource HR is interesting as many companies are finding the strategic importance of HRM is increasing. CHRO’s are getting onto boards more frequently as there is a talent war in many business sectors.  That is not the case in retail, certainly for the majority of staff. However by outsourcing, Jumbo will still need to consider how they retain their culture during recruitment, selection and onboarding.

Raet outsourcing

Kobe Verdonck, CEO of Raet

Raet is better known for its cloud-based HR and Payroll software rather than its outsourcing capability. In the Netherlands though, and on the Dutch version of the Raet website there is a lot of information. Companies such as Universal Music have outsourced HR to Raet. Kees Jan Willeboordse, Manager HR Facilities at Universal Music commented: “We guarantee continuity by outsourcing our payroll to Raet.”

Sanders Kars, content manager at Raet recently wrote a blog about companies working together during an HR outsourcing process. As of writing there was an issue access parts of the Raet site (Now resolved). Kobe Verdonck, CEO of Raet commented: “We are very happy about starting a partnership with Jumbo. The past few months have shown that there is a strong fit between Jumbo and Raet. This agreement perfectly matches Raet’s strategy as an HR Solutions Provider, where we focus on a combination of leading HR Software and HR Services.”

Jumbo challenge

Jumbo is not a small company. They have 580 shops and revenues in 2015 were €6.25. In January 2016 they announced the restructure of their headquarters division as they looked to slim down costs. In May it shed 190 jobs from its headquarters staff as a result of its merger with C1000 in 2012. This restructuring is as a result of rapid expansion following that and other acquisitions. The most recent of these has been the La Pace chain of restaurants in January 2016. In 2014 its staff numbered around 24,000 and that number is likely to have grown in the last two years.

Conclusion

Outsourcing the HR function to Raet will allow Jumbo to deploy a cloud-based HR solution. What will be interesting to see is whether Raet are able to make Jumbo a model customer for its software.  If Raet can deliver self service, talent management and prove that the outsourcing deal is successful it will increased its market credibility. Assuming that all the relevant hurdles are overcome this will be an interesting story to watch.

Article source: https://www.enterprisetimes.co.uk/2016/11/22/jumbo-selects-raet-for-hr-outsourcing/

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>