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According to Smartree, a leading provider in Romania of outsourcing payroll services and personnel administration, the staff leasing market has grown over the years, both in terms of employee volume temporary and turnover. This is possible despite the fact that in Romania the percentage of temporary employees out of the total active employees is incomparable lower than in Western European countries, such as England or Germany.
According to Smartree, an authorized temporary employment agent, companies from various industries are increasingly using this form of employment. If at the beginning this personnel system was used in response to the fluctuating needs for unqualified staff, lately it has been used by many multinational companies to find people with a thorough training and appropriate education. The most active companies in this segment are call-centers or shared-services centers, IT consultancy companies, technology companies, telecoms, software development organizations and those working project-based.
“When it comes to staff leasing, large multinational companies, with a consistent number of employees, use this form of employment to streamline their costs and eliminate the risks associated with unwanted employment. It is also a method that can be used successfully to fill certain positions that have not been taken into account and budgeted in the annual plan, but for which it is desirable to hire staff regardless of the moment of the year,” said Adrian Stanciu, Smartree CEO.
There are market segments where hiring is influenced by the seasonal factor, especially when it comes to unskilled work, for which staff leasing is being used: warehouse manipulators, staff involved in hotel services, retail, production or logistics. Also, staff leasing is an alternative to replacing employees who are inactive for a certain period of time, such as employees who are on parental leave.
This form of employment is most often found in large cities, such as Bucharest, or in areas with industrial centers or major production facilities such as Timisoara, Craiova, Sibiu or Cluj.
Advantages and disadvantages of staff leasing
Temporary employment has multiple benefits for employers, which translates primarily in flexibility in terms of staff numbers, cost efficiency and the elimination of risks associated with the employment process. Thus, an authorized leasing agency takes over all the tasks, starting with payroll, payment of contributions or benefits. In addition, it is the easiest solution to cover the fluctuating needs of market personnel, especially for companies without a legal entity based in Romania.
“For this type of service, Smartree provides its clients with complete and transparent solutions for the whole human resource management process, from the management of the staff up to the salary calculation using their own HRMS, MyStaff suite of applications. Apart from the implicit benefits of temporary work, the technology perk makes the difference in terms of quality of service, delivery time and process transparency,” said Adrian Stanciu, Smartree CEO.
Other benefits associated with the staff leasing are the reduction in time and recruitment costs as well as the access to new sources of candidates through the databases available for agencies.
The majority of Smartree’s personnel lease contracts are completed for an average of three years, which is also the maximum period allowed by law. For some companies, the contract period may be associated with a probation period where new employees confirm or not the compatibility with the new job. Thus, in about one third of the cases, companies offer temporary workers permanent employment contracts.
Original source: Profit.ro