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Over 154,000 new labor contracts were registered last year (January 2014 – January 2015) so that, from the begining of this year, in the economy there were 5.8 million labor contracts between employees and companies (up 3% compared to the previous year), according to data provided by the Labor Inspection based on the Revisal query application, the software that contains all the registered employees in Romania.
In the last year, the companies have recruited mainly employees with fixed-term contracts and full time regime (over 80,000 new employment contracts were registred in addition), but also on a part time contracts for an indefinite period (+10,000 contracts).
“The reasons why the companies have opted for these types of contracts are related to the outsourcing need and to the increasing on the personnel leasing, where staff with fixed-term contracts is hired. This method is preferred because firms have greater flexibility and the risk is lower on a service contract than on a labor contract, even if the costs can be higher”, said Dragos Gheban, managing partner of the company with activities in human resources Catalyst Solutions. He added that there are areas, such as IT, where hiring on projects is a practice and the programmers are employed with fixed-term contracts. In addition, the increasing of the volume of internship programs within the multinational companies has led also to an increase in the number of contracts concluded for a definite period.
Decreases of the “total” labor contracts were registered among full-time, indefinite term contracts: from 1 January 2015 there were 14,000 fewer contracts for the same period in 2014, which means a decrease of 0.3% in total. Also, a decrease of 7% in the number of contracts – i.e 8000 – was recorded among contracts that meet two conditions: they are part-time and are concluded for a definite period.
“After December, such a situation is typical because companies do not have clear orders from customers, which is why I believe that only by April-May the number of the permanent contracts will be higher. Generally, a temporary mission in Romania lasts 3 to 6 months and in many cases requires hiring those persons on permanent term. We have demands from employers for some people to pass from a fixed-term contract to a permanent contract”, said Florin Godean, country manager of the recruitment and temporary work company Adecco Romania.
On her turn, Sorina Donisa, country manager of the recruitment and temporary work company APT, says she does not believe that the shortage of the indefinitely labor contracts is a trend, indicating an insignificant decrease in the numbers. “The nature of our company means that most of the positions for which we recruit to be on fixed-term, but still the employers require employees for an indefinite period. Most recruitments are now in the area of business process outsourcing services, which requires candidates for both types of contracts”, said Sorina Donisa.
One of the companies that made massive hiring last year is the US outsourcing provider Computer Generated Solutions (CGS), which, contrary to statistics, recruited employees on indefinite term contracts.
“Last year, we made only indefinite term labor contracts and the «net» number of the employees increased by 400 persons, besides replacements. We’re looking further graduates with studies in finance who speak English and is surprising that we manage to attract them quite quickly, because many come from the banking sector, which has been constrained”, said Vladimir Sterescu, country manager of CGS Romania, company that currently has approximately 2,800 employees.
A similar situation occurred at Smartree, a human resources services (payroll, personnel administration, temporary staffing and recruitment) company , which recorded an increase in the number of contracts for an indefinite period last year. “The number of labor contracts in 2014 versus 2013 increased by 11%. Regarding the contracts for an indefinite period, the number had risen in 2014 by 14% compared to 2013, while the number of fixed-term contracts fell by 9%, according to the data processed by us”, said Raluca Penes, HR Coordinator at Smartree Romania.
Totally, earlier this year, the number of active employees was 5.2 million (less than the number of registered labor contract, because an employee can have multiple contracts), up to 125,000 people from the same period in 2014, according to data from the Labor Inspection.
The latest Eurostat data show that the payroll in Romania was 47.2 billion Euro in 2013, down with 3.5 billion Euro compared to 2012.
Read the original article on the online edition of ZF.
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