Staff leasing is a concept used for decades worldwide and in Romania emerged in the ’90s. What does employee leasing mean exactly? A specialized agency or HR and recruitment company provide staff to other companies for a determined period.
Thus, those who work in this system will be officially the employees of the recruitment company, but in practice they will provide the results of their work for the company that needs staff for a predetermined period. The company that provides temporary personnel will be in charge of preparing the necessary documents, employment contracts and job descriptions, or the management of meal vouchers if applicable.
When the need for temporary work arises
There are times in a business activity when the need for labor force is higher. This need could arise because of the seasonal peaks of production of the business segment, as in construction, agriculture, and tourism, or when we talk about projects for a determined period. In such situations, turning to a temporary labor agent is an extremely effective solution for a company.
Also, this need can occur when employees are on sick leave, maternity or study leave, or when the company is not allowed to hire any more. Another situation when temporary employment is a solution is when we talk about a newly established company or of a new department in the company when business success can’t be predicted with certainty.
The advantages of personnel leasing
A first advantage for a company that turns to personnel leasing is that it has access to workforce easily, without having to seek for employees. So they won’t have to utter them the conditions of the labor contract and possibly to negotiate with them some particular clauses.
The company resorting to temporary workforce gets rid of many responsibilities such as preparing the documents related to employment and payroll. The personnel provider is the one who takes care of all these responsibilities. Among the tasks entrusted to the staff provider, we can include the preparation of tax documents or maintaining the relationship with financial institutions.
Once these tasks are outsourced, the costs related to the employment for a limited period are predictable and smaller, and the company can focus on its basic business tasks. This way, turning to temporary employment agencies, the company saves not only time but also a lot of energy.
On the other hand, there are cases when the fixed-term contract finishes and the possibility to extend it arises. This might happen if the company concludes that one or more temporary workers have become essential to the activity.
BIA HR TEAM