{"id":43254,"date":"2020-08-11T10:03:00","date_gmt":"2020-08-11T08:03:00","guid":{"rendered":"https:\/\/ewl.com.pl\/?p=43254"},"modified":"2020-12-17T11:05:07","modified_gmt":"2020-12-17T10:05:07","slug":"flexible-forms-of-employment-a-step-towards-budget-optimization","status":"publish","type":"post","link":"https:\/\/ewl.com.pl\/en\/flexible-forms-of-employment-a-step-towards-budget-optimization\/","title":{"rendered":"Flexible forms of employment &#8211; a step towards budget optimization"},"content":{"rendered":"\n<p><strong>Flexible forms of employment &#8211; a step towards budget optimization<\/strong><\/p>\n\n\n\n<p>Changes in the\nmarket situation cause companies to face new challenges on a regular basis. In\nthe period of economic growth, it is necessary to quickly and effectively\nincrease the production capacity, i.e. hire and train new employees. During the\nslowdown and decline in production, solutions are needed to adjust the state\nand structure of employment to current needs. The current situation, caused by\nthe coronavirus pandemic, has shown how important it is to be able to react\nimmediately to unexpected changes on the market. Companies are increasingly\noften and more willingly looking for alternative forms of employment, namely flexible\nones that enable a quick adaptation to fluctuations of economic cycles. Forms\nthat will allow to optimize the budget while maintaining an appropriate level\nof work efficiency. <\/p>\n\n\n\n<p> One way of building a safety buffer in case of economic fluctuations is temporary work. In Poland, the model of temporary work developed with the emergence of international corporations in the mid-1990s. Currently, this solution is also used in small and medium-sized enterprises, which are much more sensitive to market changes. How can cooperation with a temporary work agency influence budget optimization? <\/p>\n\n\n\n<p><strong>Elimination of recruitment and HR and payroll administration costs<\/strong><\/p>\n\n\n\n<p>The operating\ncosts of the internal HR department increase with the growth of the company. A\nsystematic increase of employment forces entrepreneurs to increase the number\nof back office employees responsible for recruitment, HR and payroll services. When\ndeciding to cooperate with an external company in the field of employee\nleasing, the client eliminates the costs of employing additional employees. It\nis the agency that is responsible for the efficiency of the recruitment\nprocess, bears the costs of the recruitment campaign and reaching the\ncandidates. The agency is also responsible for keeping HR documentation and\narchiving documents. All obligations and costs resulting from concluding a\ntemporary employment contract, i.e. calculating and paying salaries,\ncalculating and paying taxes, paying social and health insurance contributions,\nare borne by the agency which posts the employee to work for the client. Without\na doubt, this solution relieves the client&#8217;s internal structures, frees up\nstaff resources and saves time. Additionally, the ability to calculate all\nvariable labor costs (sickness absence, days off) into the cost of the service\nallows for effective planning of the company&#8217;s expenses.<\/p>\n\n\n\n<p><strong>Change from fixed labour costs to variable costs<\/strong><\/p>\n\n\n\n<p>The optimization\nof labour costs through the introduction of temporary work results not only\nfrom the reduction of HR and payroll obligations incumbent on the employer and the\nelimination of expenditure on recruitment activities. Employee leasing is also\na possibility of a different classification of costs connected with providing\nwork. Hiring employees on a permanent basis is a permanent expense that must be\nincluded in the company&#8217;s budget. The cost of work in this case is not very\nflexible and it is difficult to rationalize it quickly in the period of\ndeclining production. By deciding to hire employees based on the service of\ntemporary work, the company gains the opportunity to react ad hoc to economic\nfluctuations. Short notice periods for temporary employment contracts, the flexibility\nof employees and their mobility are the main factors influencing the\npossibility of an optimal cost structure. The introduction of temporary work,\nas a variable cost, allows for dynamic adjustment of the state of employment to\nchanges taking place on the market.<\/p>\n\n\n\n<p><strong>Reduction of overtime costs<\/strong><\/p>\n\n\n\n<p>In a period of\nhigh growth it is necessary to increase the production capacity. Often, in\norder to realize the growing number of tasks it is necessary to introduce\novertime for full-time employees. However, such a solution is associated with a\nsignificant increase in labor costs, as well as a decrease in efficiency and\nquality of work in the long run. By deciding to use leased employees, the\ncompany does not only gain motivated employees who efficiently carry out the\ncommissioned tasks, but also optimizes the labor costs by reducing overtime. <\/p>\n\n\n\n<p>Temporary work\nservice is a solution that allows you to adjust the state and structure of\nemployment to the changing economic situation and respond flexibly to changes\ntaking place on the market. Cost optimization through employee leasing has\nseveral dimensions. It gives the possibility to realize production challenges\nwithout generating overtime costs or additional financial outlays on\nrecruitment activities and administrative and human resources services. It\nallows to rationalize labor costs in the period of declining production. It\nbuilds the competitiveness of the company on the market and provides a safety\nbuffer for unforeseen situations.<\/p>\n\n\n\n<p><strong>Flexible forms of employment &#8211; a step towards budget optimization<\/strong><\/p>\n\n\n\n<p>In most cases,\nsuch solutions are also beneficial for employees, to whom the agency provides\ncontinuity of employment by delegating to industries which have increased\nstaffing needs in the crisis. The employee retains employment without worrying\nabout lack of work, therefore such solutions are beneficial for all parties,\nalso in difficult conditions on the labour market during the crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Flexible forms of employment &#8211; a step towards budget optimization Changes in the market situation cause companies to face new challenges on a regular basis. In the period of economic growth, it is necessary to quickly and effectively increase the production capacity, i.e. hire and train new employees. During the slowdown and decline in production, [&hellip;]<\/p>\n","protected":false},"author":42,"featured_media":43256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[],"tags":[],"class_list":["post-43254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Flexible forms of employment - a step towards budget optimization<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ewl.com.pl\/en\/flexible-forms-of-employment-a-step-towards-budget-optimization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Flexible forms of employment - a step towards budget optimization\" \/>\n<meta property=\"og:description\" content=\"Flexible forms of employment &#8211; a step towards budget optimization Changes in the market situation cause companies to face new challenges on a regular basis. In the period of economic growth, it is necessary to quickly and effectively increase the production capacity, i.e. hire and train new employees. 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