Temporary work is a great solution for both employers and employees. For the former, it allows you to make up for staff shortages that arise, e.g. in the event of a longer absence of an employee or an increased number of orders. For the latter, it allows them to gain valuable experience and earn extra money seasonally. Find out how to hire temporary workers so that everything is done in accordance with the law.

Hiring temporary workers – the basics

According to the law, temporary work consists in performing tasks:

Hiring temporary workers is also called employee leasing because it involves “renting” labor from another entity – a temporary employment agency. Therefore, three entities are involved in the procedure:

The agency concludes two contracts – one with the employee and the other with the user employer. Formally, the agency is the employer of the hired employee and performs most of the related duties. Temporary work can be provided both as part of an employment relationship and on the basis of a civil law contract. In such a case, it is said that people who are not employees are sent to temporary work.

Restrictions on hiring temporary workers

Temporary work is used primarily in those sectors where low-skilled workers are needed. However, it is important to remember about certain restrictions related to its use. A temporary worker may not:

A temporary employment contract must be concluded for a definite period of time. Temporary work cannot replace permanent work. In total, one employee may perform temporary work for a given user employer for a period not longer than 18 months in a 36-month period, regardless of the type of contract signed (employment contract, civil law contract). The limit may be raised to 36 months as an exception, but only if the temporary agency worker performs work on a continuous basis involving tasks belonging to an absent employee employed by the user employer.

What happens after the end of the temporary employment contract?

A temporary worker may obtain employment with the user employer after the expiry of the term of the temporary employment contract. Then he signs a completely new contract with him, and all previous arrangements are invalid. The user employer is also obliged to inform temporary workers about the positions for which recruitment is being conducted.

Hiring temporary workers – why is it worth it?

Hiring temporary workers brings many benefits for the employer. First of all, it is an excellent way to fill vacancies resulting from employee absences (e.g. due to health problems) or to strengthen human resources during periods of increased work. Thanks to quick and simple recruitment, it allows you to flexibly adapt to current needs and changes in the labor market. In addition, when hiring a temporary worker:

Of course, hiring temporary workers also involves certain obligations and risks, but their scale is much smaller than in the case of traditional employment.

Temporary worker – how to acquire one?

Are you interested in hiring temporary workers? Use the services of an experienced agency, such as Leasing Team, and the whole procedure will be simple and pleasant. Fill staff gaps and enjoy minimum costs and liability. We will make sure that you have employees who perfectly meet the requirements. We will take care of the entire recruitment process, prepare a temporary employment contract beneficial for all parties and take care of most of the formalities. We invite you to cooperation!

The pandemic causing the global economic crisis has also taken its toll on the labor market. Last year, we had to deal with the suspension of recruitment processes, blocking vacancies in companies, mass layoffs of employees, or restrictions on the number of full-time jobs. What is the year 2021 like?

To what extent are companies prepared for the continuation of the epidemic?

The Covid-19 pandemic has affected almost every sector of the economy. Although initially employers were forced to make quick and often unpopular personnel decisions, LeasingTeam’s analyses and observations show that currently 100% of customers are prepared for the next stages of the pandemic. This is due to the fact that in the third and fourth quarters of 2020 they adapted their workplace management to the guidelines and implemented new solutions and procedures to maintain the continuity of their businesses at a fairly fast pace. Where possible, the remote or hybrid work model was used, which has now become a standard in many companies. Although the whole process required time, good organization and unplanned costs, it certainly helped to minimize the risk of illness.

In the production or logistics industry, which could not work remotely due to their specificity, the rotational work model was mainly used.

– Employees have been divided into individual teams that have no contact with each other. Preventive and personal protective measures were applied. An example is a body temperature test before entering the workplace. Masks, gloves and disinfectants were used. In the canteen-type rooms, common areas are divided by plexiglass panels. Employers and employees emphasize that self-discipline is very important, without which the above-mentioned measures would not make sense – points out Katarzyna Dąderewicz, Director of the North-West Region at LeasingTeam.

The year 2021 promises to be a year of stability and caution. The teams that need to be built to be able to develop the business are created, but these are mainly employees needed here and now, immediately, and not hired as an investment.

Marta Pilipowicz, Director of the South Region at LeasingTeam adds: – For some industries in the production area, 2020 has shown that process automation is essential and only this will secure production. In my opinion, companies that were already ready and slowly implemented new technologies in the field of automation may decide to implement them much earlier. Entrepreneurs will plan new investments with great caution, but they will not give them up if they want to return to the pre-pandemic state or make up for the backlog created in 2020.

Specific situation in the IT industry

The IT market, in terms of sought-after specialists and the way they work, currently remains similar to what we observed at the beginning of the pandemic.

– The processes we conduct are 99% recruitment based on remote work. At the same time, there is no time limit as before: remote work until the end of the pandemic, but permanently. The trend of acquiring independent specialists with well-established experience is becoming more and more noticeable. The problems generated by remote work in the area of “on-boarding” make it practically impossible to employ beginners who are just entering the profession. Online tools significantly facilitate communication within the team, but they also have their limitations, which in the long run affect the so-called “team spirit” and work in a company with not fully systematized processes. In addition, remote work requires the specialist to be independent and focus on the task. Not everyone can cope with it, which translates into problems with meeting deadlines and the quality of the work performed. In addition, we have observed increasing concerns among employers about data security and company secrets. Remote work brings with it potential freedom as to the place and time of its performance, at the same time significantly increases the requirements for the department to ensure IT security in the area of securing equipment and connection, but also managing IT systems – explains Anita Dąbrowska, member of the management board of IT LeasingTeam.

Can employees count on pay rises in 2021?

The Covid-19 situation has slowed down wage growth in almost every industry. Although the amount of the national minimum wage has increased by almost 8%, this will not translate into widespread increases. – Employers count every penny and think hard before spending it. The market has also experienced greater availability of candidates, who are further lowering their financial expectations. Thus, current employees rarely have the opportunity to receive raises. We even hear voices that the increase is to maintain full-time jobs. The greatest chance of receiving a higher salary is for people in specialist positions, which are difficult to find on the market – says Anna Jurkiewicz, Regional Outsourcing Manager at LeasingTeam Professional.

Statistically, the e-commerce and retail (food) sectors did not suffer from the pandemic, but even gained. – Although in the first of them we are recording wage increases, the retail sector is much more restrained. Employers first reduced or completely froze previously planned salary increases and resigned from paying bonuses or other salary allowances. This trend is likely to continue through the first half of 2021. The lack of wage increases in trade, especially in Q1 2021, will also be largely related to the burdens imposed on entrepreneurs, the so-called trade and sugar tax. If there are raises, it will be insignificant in order to maintain the current staff. There are also no large hiring plans planned, and seasonal or one-off personnel needs will be supplemented by temporary workers. Thanks to this solution, entrepreneurs can flexibly approach the execution of orders and seasonal peaks, while maintaining permanent staff. It is also worth noting that there has been a very large automation of the sales process on the market, i.e. many companies have purchased self-service checkouts, which allows for the optimization of employment – says Katarzyna Dąderewicz.

When considering the issue of wages, it is worth referring to the NBP report on inflation. According to him, in the second half of 2021, it is possible to gradually unfreeze wage growth. The dynamics of work and the related stimulation of the market will affect the economic situation, which will enable employers to gradually restore non-wage benefits as well as return to the planned salary increases. In this year’s report, average salary increases y/y are expected at the level of 3.4% in Q1 to 5.9% in Q4.

3 observed trends in the labor market in 2021

Recruitment and remote work

The year 2021 is primarily a time of calm determination of the rules of remote work. Most employees have appreciated this form of performing their duties, and employers increasingly see it as an opportunity to reduce costs.

– The coming year will certainly be a year of working in a hybrid model, strongly focused on combining work from home and from the office. It will also cause changes and improvements when it comes to digital tools used for daily communication, recruitment activities or online onboarding. Flexibility – this is certainly a skill that companies have practiced perfectly in 2020 and will continue to practice through, for example, greater openness to external forms of employment such as outsourcing or temporary work, flexible working schedules, high mobility of workstations and online cooperation – notes Anna Jurkiewicz.

Agnieszka Kaczmarek, project manager, also notes that a big challenge in 2020 was to reorganize the recruitment system from stationary to online: – Before the pandemic, recruitment was largely carried out on-site, so it was possible to verify the candidate primarily in terms of qualifications, and he could get acquainted with the company and the job position. The year 2020 forced both parties to switch to remote recruitment. On the one hand, this had its advantages, such as greater availability of appointments, time optimization, but on the other hand, not every candidate had the opportunity to meet online, especially in the case of recruitment for entry-level positions, in less urbanized towns. Over time, this has changed and such situations are now less and less frequent.

Rebranding among employees

LeasingTeam Group’s observations show that many candidates from various industries, especially those most affected by Covid-related restrictions, declare their willingness to change careers permanently and ensure a better chance of stable employment. This applies mainly to employees in the fitness, restaurant, event, entertainment and retail industries. Such a trend has consequences.

– We are already seeing an increasing, even massive influx of applications for various types of lower-level positions for which there are no specialized requirements. On the one hand, this significantly extends the work of recruiters, who have to open hundreds of CVs, on the other hand – these people often lower their financial expectations in order to get any job, which creates a real probability that the average salary in individual industries may decrease. It will also be more difficult to raise prices – comments Katarzyna Leśniewska, acting recruitment director at LeasingTeam Professional.

The situation is slightly different in specialized industries, such as IT. The demand for specialists there is still not decreasing. – There were more offers than a year ago for financial analysts, e-commerce specialists or cybersecurity specialists Taking into account the last year, only the IT industry showed stability ,” adds Katarzyna Leśniewska.

On the one hand, we have an increase in the number of job seekers willing to change the career of lower-level employees, and on the other hand, there is a constant demand for specialists. Both of these aspects mean that companies will increasingly use the services of professional recruitment companies to save time, but also to save time, but also to be convenient.

Headhunting still demanding

Since the second quarter of 2020, the work of headhunters has become even more demanding and time-consuming. Employees who are not actively looking for a job approach the proposed offers with a great deal of caution, fearing the loss of stability, choosing the wrong company for them or not proving themselves in a new position and having to look for employment in the difficult covid market. Employers should be aware that in 2021 it will be more difficult to acquire talents and often the help of a professional headhunting agency will be indispensable.

– Lack of stability in the labour market results in great caution and even reluctance of passive candidates to change jobs. This can be felt in everyday conversations with candidates, who regularly ask, for m.in, about the financial condition of the company, its stability, plans for the future, employers’ behavior towards employees in the new situation, the level of implementation of the remote/hybrid work model, etc. The process of recruiting such people has become longer and much more demanding. Employees do not want to take risks and only a thoroughbred recruiter, who can properly talk to candidates, can convince them to change their minds – says Katarzyna Leśniewska, acting recruitment director at LeasingTeam Professional, which specialises in headhunting recruitment.

Foreigners in Poland – will they come to work in 2021?

For a long time, Ukraine has been the most frequently chosen destination for acquiring foreign workers. This has not changed in 2020 either. It can even be said that this nation has gained popularity due to the cautious approach of companies to running businesses. A new, previously unemployed nation would involve the need to introduce required and costly changes to adapt the workplace and the employee management model. In general, however, in 2020, employers strongly preferred cooperation with employees from Poland. This should not change this year.

– The recruitment of foreign employees is longer, and in the case of some countries, significantly longer than the recruitment of an employee with Polish citizenship. Currently, it is also associated with the risk that the process, which has been conducted for months, will be abruptly halted by legal restrictions that are impossible to predict at the initial stage. Already in January, we are observing how more and more faculties, previously conditionally released from quarantine, are absolutely covered by it. Therefore, we can expect that the need to isolate foreign workers after arriving in Polish will be maintained in 2021. When it comes to interest in job offers in Poland, we are still a country eagerly chosen by candidates. However, we must take into account the fact that each country from which we acquire employees also introduces its own restrictions, which have a direct impact on the effect of recruitment – says Aneta Sztompka, Regional Director at LeasingTeam.

Germany is still an attractive destination for Poles to work

In the spring, we experienced a sudden slowdown both in terms of customer demand and the willingness of Polish employees to work in Germany. Especially the closure of borders has resulted in a large number of job resignations. The summer has already brought a huge improvement on both sides and despite the changing circumstances of the pandemic, this trend continues in 2021 as well.

– We continue to see a lot of interest in temporary work in Germany. Of course, candidates are sometimes discouraged by the need to take a coronavirus test and mandatory quarantine in Germany, but taking into account the increasing cost of living in Poland with reduced income or even losing their jobs, our citizens will continue to go to Germany for work. Germans are usually willing to hire foreign staff, and in this area, Poles are valued for their skills and commitment, so they have become a permanent part of the German temporary employment market – said Anna Macheta, Business Development Director at CPC Consulting Group, an employment agency specializing in delegating Polish employees to work in Germany.

2021 in the HR industry under the sign of stability and caution

2020 was a year marked by the COVID-19 pandemic. The rapid spread of the coronavirus and the resulting great economic crisis have given an impulse to many changes that are visible in the employment sector. At the beginning of the pandemic, we experienced a sudden slowdown and a reduction in employment, only to slowly return to a more stable labor market after a few months, which we will most likely observe in 2021. HR departments will continue to play a very important role in organizations, and even this role is likely to increase given the changing economic conditions in which proper human capital management is crucial. Hiring or using the services of specialized HR Business Partners will be indispensable in the current market reality.

Black Friday is a day of big discounts and discounts, not only in traditional stores. It is a kind of consumer holiday, which, although it has an American origin, brings together an increasing number of sellers and service providers offering discounts in Poland every year. As part of Black Friday, we have also prepared a promotion at LeasingTeam, thanks to which your company will gain greater flexibility at a lower cost and enter 2021 with greater security.

>>> What is temporary work and why is it worth looking for temporary workers through an agency?

>>> Send an inquiry. Our experts will answer your questions

TERMS AND CONDITIONS OF THE PROMOTION – “10% DISCOUNT ON TEMPORARY WORK”

1. These terms and conditions (“Terms and Conditions”) set out the terms and conditions of the “Black Friday – 10% discount on temporary recruitment” promotional campaign (“Promotion”).

2. The organizer of the campaign is LeasingTeam Sp z o.o. with its registered office in Warsaw (02-677), 7C Taśmowa Street, entered into the register of entrepreneurs of the National Court Register kept by the District Court for the m.st. of Warsaw in Warsaw, XIII Commercial Division of the National Court Register under the KRS number 0000246710; NIP: 123-10-69-185, REGON: 140357370, share capital: PLN 300,000.00 (hereinafter referred to as the “Organizer”).

3. The promotion allows you to receive a 10% discount on the margin/mark-up of LeasingTeam for the temporary employment service for the first 2 months of cooperation.

4. The promotion is valid from November 23, 2020 at 00:00 CEST to December 31, 2020 at 23:59 CEST. The organizer reserves the right to extend the promotion.

5. In order to take advantage of the promotion, it is necessary to sign a contract for temporary work services by 31.12.2020 and place an order for at least 6 people (each for at least 160 rbh per month) for a period of not less than 4 months.

6. The promotion can only be applied to new customers signing a contract for temporary employment services.

7. In order to take advantage of the promotion, it is necessary to start the order in the first quarter of 2021. The commencement of the contract is understood as the commencement of employment of temporary workers.

8. If the customer resigns from the order earlier than after 4 months of cooperation, he will receive a compensatory invoice in accordance with the amount of the discount granted. By placing an order and using the Promotion, the Customer declares that they have read and agree with this provision, thus the Customer’s consent to issue the said invoice is not required.

9. The Promotion cannot be combined with other promotional offers organized by the Organizer.

10. Orders in accordance with the Promotion will be processed in accordance with the above Terms and Conditions

11. Any dispute relating to this promotion shall be settled by the Promoter’s registered office.

>>> Send an inquiry. Our experts will answer your questions

The pandemic has been going on since March 2020 and no one can predict when it will end. The related restrictions affect almost every branch of the economy, not only because of restrictions on conducting business. The second wave of Covid-19 shows that every company can be exposed to difficulties or even downtime due to the illness or mandatory quarantine of employees. Especially in production plants, ensuring continuity of work becomes crucial. The situation on the labour market in the “blue collar” sector is analysed by Edyta Kowalczyk, Key Account Director at LeasingTeam Group.

Labour market reaction to the first wave

In March and April this year, many companies were forced to reduce employment and even temporarily close their offices, premises or plants. The lockdown came suddenly and did not give us time to prepare. You had to act here and now, which usually involved making quick decisions. Although there were companies that were not economically affected by the pandemic, even they were cautious about hiring new people or cooperating with HR agencies. Meanwhile, companies already cooperating with agencies appreciated this cooperation, because thanks to it they managed employees faster and with greater flexibility. What is more, in the event of forced redundancies, they could also count on the support of the agency. At LeasingTeam, we have repeatedly managed to delegate employees made redundant by one employer to other projects, even when they had to relocate to another province. Such flexibility is made possible by the temporary employment service and outsourcing.

Second wave – potential threats and emergency solutions

The second wave of the pandemic, although more violent, does not entail such quick and sometimes final decisions by employers as it was at the turn of the 1st and 2nd quarters. Currently, companies are facing the challenge of ensuring continuity of work in the event of quarantine of part of the staff. Proper preparation for this eventuality can protect companies from such effects as paying overtime to employees not in quarantine or stopping or drastically reducing operations. Stress, fatigue and declining morale of the crew are also important.

In order to face staff shortages resulting from the pandemic, companies are first looking for internal solutions, e.g. by launching “ad hoc” recruitment through their own HR department. At the same time, the effort and time spent do not guarantee the intended effect. This is influenced by many variables: the size of the internal HR team, the experience of individual recruiters, the tools and skills to reach the right candidates.

Some companies also save themselves by temporarily moving employees from other departments, e.g. from the warehouse to production. However, there are limitations: it can be done for a maximum of 3 months a year, the position must match the employee’s qualifications and the salary cannot be reduced (Article 42 § 4 of the Labor Code).

Such solutions are only a temporary remedy. They will not work in the long term or with a larger scale of the problem. It can be treated as the so-called emergency exit, but with the awareness that it does not constitute an effective, systemic protection of the company.

Plan b – the prudent always secured

In view of the current epidemiological situation, but also in connection with the flu season, enterprises, especially manufacturing companies, should prepare in advance internal procedures in the event of sudden and possibly mass absences of employees. The larger the scale of the business, the less you can rely on chance, count on luck or rely on ad hoc actions.

Recruiting and hiring employees with the right competences and available “immediately” are not easy tasks. When preparing for such an eventuality, it is worth talking in advance with a professional employment agency, which will be able to ensure the continuity and effectiveness of the process in a short time thanks to a wide database of candidates and large recruitment resources.

Employers, aware of the upcoming threats, want to protect themselves and have the so-called plan B, i.e. the ability to obtain quick support in a situation where some of the staff are in quarantine or on a longer sick leave. We are observing a growing interest in the services provided by LeasingTeam Group, such as temporary work or outsourcing. Some of our clients go a step further and invest in employees on the so-called stand-by, who can come to work almost overnight in the event of an emergency. The model of cooperation we choose depends on the individual expectations of the client – what number of employees he needs to replace him, how quickly, what budget he has, etc. Based on the information received, we jointly consider and implement the best solution for a given company.

Not only during the pandemic

Outsourcing and temporary work is a way to effectively manage employee absences, regardless of whether we are dealing with a few days of L4, a two-week holiday or quarantine. An experienced employment agency is able to delegate candidates for replacement even within a few days, and operating throughout Polish, it can reach almost every candidate interested in working in a specific plant.

For example, at LeasingTeam, quick response, the right tools and resources made it possible to recruit and hire more than 70 employees scattered in dozens of locations for the 2-week period required by the client within just 2 working days. In most locations, the cooperation time was later extended by further weeks. Partnership, mutual trust and open communication – this is what made the project a success. Currently, the client has asked us to prepare a similar recruitment campaign, which it treats as a “plan B” in the event of an increase in demand for employees.

Our experience shows that it is worth working with a proven employment agency on a long-term basis. Over time, coordinators from the agency become more and more familiar with the specifics of work in a given organization, and this allows them to regularly expand the database of candidates with people who meet the employer’s requirements. The level of employee matching increases significantly, and the time to deliver them is shortened. Employees, on the other hand, are becoming more and more efficient in adapting to new responsibilities and better acclimatizing to the company. As a result, all three parties benefit.

Over the past six months, companies have managed to develop procedures that have largely prepared them for the second wave of Covid. Employers, as well as employees themselves, approach the current situation with composure and do not make hasty decisions.

The situation on the labour market is much calmer than it was in the spring, when the coronavirus pandemic began. -First The wave of the pandemic has forced employers to make radical changes in the area of human resources management, work organization, and often also to remodel their business. The experience of the first wave of Covid, and thus the decisions made at that time, the effects of which continue to this day, prepared employers for the current situation. In March and April this year, enterprises had to react very quickly, often almost overnight. Today, with these experiences behind us, the business world operates with more peace of mind – analyzes Anita Obidowska, acting Regional Head of the Recruitment Department at LeasingTeam Professional.

Minimizing risk in companies. Calm and prudence dominate.

In the current situation, the most important thing is to be prudent and make well-thought-out decisions. The matter should be approached in a factual and procedural manner, adapting the organization of work to the new reality in such a way as to ensure maximum safety of employees and business continuity.

– In manufacturing companies that work in shifts, the staff is often divided into two teams that have no contact with each other. The development and implementation of procedures to minimize the risk of coronavirus transmission – e.g. temperature checks, hand disinfection, wearing masks and gloves, and in the case of canteens, installing plexiglass boards and providing protective equipment – is the basis for maintaining smooth work today. Our clients emphasize that by using such tools and maintaining great self-discipline in their use, they are able to reduce the risk of Covid in their organization as much as possible – says Katarzyna Dąderewicz, Director of the North-West Region at LeasingTeam.

When it comes to office work, in March and April it seemed that it would be difficult to replace face-to-face meetings, meetings and brainstorming sessions with online meetings. However, it turned out that it is possible. Companies and their teams have efficiently implemented the new work organization, without compromising engagement and activity. Working from home has become a standard that allows employers to increase the security of their teams.

Best practices: white collar outsourcing and blue collar temporary work

The first wave of the pandemic has shown that there are few industries that can feel completely safe in terms of maintaining business continuity. In view of such an uncertain economic situation, it is understandable that companies are taking a precautionary approach to increasing the number of permanent staff. They are more likely to choose safer solutions that do not involve additional fixed costs – e.g. hiring in the temporary work model or outsourcing selected areas of the organization’s operation. Thus, they are preparing for possible negative changes in the market, another halt of the economy and the losses that may result from it. If the scenario turns out to be optimistic, the company can quickly take over the recruited and trained external employees, growing its internal team.

– There are also inquiries about solutions that have not been popular so far, such as keeping a group of employees on the so-called stand-by – i.e. on stand-by, in case of covid in the plant and the need to quickly replace the missing staff by external contractors. In a situation where it is necessary to introduce quarantine, this may apply even to significant teams – 20 or 30 people. In the case of simple, uncomplicated work that does not require time-consuming training, such a solution can be successfully used. Of course, this involves additional costs, but at the same time it provides protection in the event of the entire department being shut down or changing – points out Marta Pilipowicz, Director of the South Region at LeasingTeam.

A new approach to recruitment processes

Companies are very prudent in making decisions about new recruitments, but we cannot talk about duplicating the scenario from the turn of the 1st and 2nd quarter of this year, i.e. categorically blocking or even reducing the number of jobs. On the contrary – some companies that made radical decisions to reduce employment in March and April are now reviving and need to replenish their human resources.

– Although a large number of workers were released into the labour market in the initial phase of the pandemic, the problem of labour shortages returned just a few months after the economy was unfrozen, especially in the face of a significant reduction in the number of workers from Ukraine. In the case of specialist positions that are difficult to fill, companies are much more likely to recruit for the company’s internal structures despite the pandemic. The situation is different with entry-level positions – there, the openness of companies to flexible forms of employment, including temporary work, has definitely increased – says Katarzyna Dąderewicz.

All these trends show the prudence and maturity of Polish entrepreneurs, which allows us to hope that the second wave of the pandemic will not be as difficult for the labor market as the first.

The situation on the labour market is diverse and dynamic. Currently, many industries are in the peak season, which means that it is necessary to increase human resources in organizations. Meanwhile, entrepreneurs are afraid of the second wave of the pandemic in the autumn, so they are very cautious about increasing fixed costs, more and more often opting for temporary workers or outsourcing services.

Lower level, temporary workers – not too bad, but without euphoria

Blue collar employees, especially temporary ones, felt the consequences of the March lockdown the most. July brought the long-awaited return of the PMI index for Polish industry above the key level of 50 points. According to the latest survey, Poland recorded a result of 52.8 points compared to 47.2 points in June.

– The increase in the PMI index directly translates into the demand for employees. Since June, we have been recording a regular increase in orders in most manufacturing industries. Although they are largely due to the ongoing season, it is pleasing that our regular, year-round customers are also already expanding their teams with temporary workers, returning to full production capacity. We continue to observe the most difficult situation in the automotive industry – says Agnieszka Haponik, Business Development and Marketing Director at LeasingTeam Group

The unfreezing and acceleration of the economy stimulated the labour market – average employment in the enterprise sector in Poland increased by 12k FTEs in June compared to May. Although this result is pleasing, there is a long way to go to rebuild the number of jobs from before the pandemic. Despite the higher unemployment among Poles, many companies have a real problem with completing teams.

In Poland, many companies rely on employees from Ukraine. When the lockdown was introduced, most of them left for their home country because the government announced too late that work permits would be automatically extended. Currently, Ukrainians want to return to the Polish labor market, but the extended waiting time for statements or the forced 14-day quarantine mean that the return process is not as fast as to meet the recruitment needs of companies.

– Currently, a large number of Poles are looking for employment, but most of them do not want to take up certain jobs, e.g. repetitive and monotonous, in shift systems, 12 hours a day, etc. Rates also play a major role – citizens from Ukraine are still willing to take up employment for lower wages than Poles. In the era of savings, this is a key factor for many employers – says Agnieszka Haponik, and then adds “We recommend companies that cannot wait for people from Ukraine to open up to employees from Nepal, Ethiopia or Moldova, a large group of whom already live in Poland and are willing to take up work. However, it is worth remembering that these people usually speak only their mother tongue and English.

White collar and IT specialists – greater interest of employers in outsourcing

While a large part of blue collar temporary workers lost their jobs as a result of the March lockdown, the white collar staff mostly came out of this situation unscathed. The negative consequences in their case were mainly limited to a reduction in the number of full-time jobs or the elimination of some non-wage benefits.

“Although we have not yet recorded significant layoffs among white collar employees, we observe that employers are afraid of a second wave of the pandemic in the autumn and winter, calculate costs, develop forecasts and analyse the state of employment. As a result, we receive an increased number of inquiries about white collar outsourcing – companies want to plan fixed costs in relation to variable costs with even greater awareness – says Anna Jurkiewicz, Regional Outsourcing Manager at LeasingTeam Professional.

Among the areas that suffered the least in the pandemic, IT is the most noted, although this industry is also feeling the effects of the crisis.

– Employers have limited development activities, leaving mainly those related to the maintenance of existing or previously started projects. In addition, foreign capital has begun to support its own economy, as a result of which projects implemented in Poland are suspended or taken over by the headquarters – says Anita Dąbrowska, Member of the Management Board of IT LeasingTeam.

IT specialists looking for employment are already appearing on the market. Accustomed to high salaries in recent years, they will now have to face greater requirements of the employer, and perhaps even reduce their financial expectations a bit. However, they do not have to worry about finding a job. In the era of digitization, process automation and preparation of infrastructure for remote work, employment should not be lacking for them.

As with the blue collar, the IT industry is also showing increasing interest in outsourcing. – Companies strive to reduce fixed costs and do not want to make long-term commitments, hence they more and more often keep key employees on a full-time basis and employ other team members in the form of outsourcing – explains Anita Dąbrowska.

Managerial staff – a difficult exam

Although the negative consequences of Covid-19 in the context of lower positions are mainly discussed, it is important to be aware that the management has also felt the effects of the pandemic in many aspects, both those related to adapting the business to the current reality and those related to personnel policy. Crisis management means the need to quickly respond to market volatility, remodel the work of many people, develop new procedures, make and implement decisions that are not always popular.

The time of the pandemic was and still is a difficult test for the managerial staff, often revealing competence gaps in crisis management. Regardless of this, in the era of declining turnover and an uncertain future, many companies are forced to tighten their belts: reduce fixed costs, suspend investments, changes in the structure and functioning of the company, e.g. by merging departments or moving some processes abroad. All this has resulted in the reduction of jobs at the highest levels, which are recovering very slowly.

– The first months after the lockdown saw the blocking of most permanent recruitment, in particular for higher and highest positions. The first symptoms of unfreezing budgets appeared in May-June, although the number of open recruitment processes for senior management is still much lower than at the beginning of the year. Meanwhile, the flow of CVs for these positions is twice as high – says Katarzyna Leśniewska, acting director of the recruitment department at LeasingTeam Professional.

Undoubtedly, the crisis caused by the pandemic and the forecasted unemployment have changed the approach of employers and employees. The requirements for candidates for the most important positions are already and will be higher and higher.

What information should be included in an employment contract so that you can feel safe?

They are regulated by Article 29 of the Labour Code, but their absence does not determine the validity of such a contract. Good to know!

When signing the contract, it is worth paying attention to whether it contains the following information:

1. The parties to the contract, i.e. between whom the contract is concluded,

2. Type of work – position or scope of activities that the employee will perform,

2. Type of employment contract – information whether it is a trial period, definite or indefinite or for a substitute,

3. Date of conclusion of the contract (may be different from the date of commencement of the contract)

4. Place of work

5. Date of commencement and end of work

6. Working time – information on whether it is a full-time job or another hourly work.

7. Remuneration for work – including additional components of remuneration, e.g. bonuses.

8. Signatures – a key element confirming the validity of the document.

Each contract may contain additional provisions, e.g. a ban on competitive activity, an allowance for overtime work, a longer notice period, the right to a mobile phone, laptop or company car and the rules for using them, but this depends on the will of the parties.

Nearly 100 years ago, Henry Ford stated that “if there is something that we cannot do more efficiently, cheaply and better than our competitors, it makes no sense for us to do it; We should hire someone to do the job better.” It is difficult to accuse this thought of a lack of logic. However, outsourcing, because this is what we are talking about, has long been perceived in Poland as a controversial and dangerous practice that exposes the entrepreneur to the accusation of pretending to lack an employment relationship in order to avoid public and legal obligations (payment of social security contributions or taxes). Fortunately, this is beginning to change, m.in due to the recent judgment of the Supreme Court, which ruled that employee outsourcing cannot be attributed to appearances. Anna Wiluś-Antoniuk, attorney-at-law at LeasingTeam, an employment agency specializing in outsourcing employees and HR services, talks about the recent changes in the case law.

The lack of legal regulations and the unfavorable case law of the courts so far caused that entrepreneurs approached outsourcing with great caution. Although Polish law does not operate on the principle of precedents, the Supreme Court’s judgment is a strong argument not to be afraid of this form of using external resources.

CHANGE IN THE APPROACH OF POLISH COURTS

The Polish judiciary is beginning to notice the accuracy of H. Ford’s statement, granting the outsourcing agreement the status of a full-fledged, legal form of cooperation in business transactions. In its judgment of 2 October 2019 (case no. II UK 103/18), the Supreme Court resolved the dispute between ZUS and F. Sp. z o.o., in favour of the latter. Company F., the owner of DIY stores, entrusted their service to R. Sp. z o.o. based on its staff. As the employees of R.“s company were subject to the substantive supervision of F.” s company, in the opinion of ZUS, they should be treated as its own staff. Although the courts of first and second instance agreed with ZUS, the Supreme Court overturned the appealed judgment of the Court of Appeals, finding that even if in practice the staff of company R. performed work for company F. (the owner of the stores), it cannot be presumed that there was a relationship of “employment” between external members of the store staff and company F. The judgment of the Supreme Court proves that the way of thinking “automatically” and “shortcuts” is erroneous and does not constitute a sufficient argument, to challenge actual outsourcing.

THE RIGHT BUSINESS CONCEPT

The name outsourcing is an abbreviation created from three English words – outside-resource-using, which means the use of external sources. As a legal relationship, outsourcing is one of the unnamed contracts, permissible in the light of the principle of freedom of contract. It is nothing more than using the competences and skills of external entities to take care of separate tasks or functions of the client, often those that do not belong to the main area of its activity. Figuratively speaking: Henry Ford knew how to produce cars, but he was not an accountant or a lawyer, nor was he interested in running an employee canteen or organizing the cleaning of the factory floor. For these activities, every modern “Henry Ford” has not only the right, but also the rational justification to employ an external entity. The idea of outsourcing is to “expand access to physical, informational, and other intangible, as well as human resources, without increasing the size of the parent organization.”

The primary purpose of outsourcing is to enable the client to focus on his main business goals and tasks, by entrusting the performance of selected (necessary to maintain the company) activities in the hands of other entities that are willing and able to deal with them. Importantly, outsourcing is not only an opportunity to take advantage of external, specialized competences in a given area, but also to optimize organizationally and financially. There is no need to hire your own staff, and by outsourcing a certain amount of responsibilities, the internal staff is relieved so that they can devote time to dealing with the company’s priority matters.

FLEXIBILITY OF THE OUTSOURCING AGREEMENT

A characteristic feature of an outsourcing agreement is adaptation to the nature of the client’s relationship with the service provider. It has individual features, but also typical m.in. for contracts of mandate, contracts for the provision of services or contracts for specific work. It can have both the features of one of them and several together. This is also how outsourcing is perceived by the Supreme Court, referring to its previous rulings in the judgment cited above: “In practice, an outsourcing agreement may take various forms, e.g. the so-called employee outsourcing, i.e. the use of employees of an external company to perform specific services, which in financial terms may be a beneficial alternative to hiring one’s own employees. Other forms of outsourcing occurring in trade may concern, for example, the following services: IT, accounting, logistics, transport, administrative or marketing services (judgment of the Supreme Court of 18 June 2019, I UK 159/18, unpublished)”. Importantly, the Supreme Court, when assessing the facts related to outsourcing, distanced itself from any automatic assessments. Thus, the Court confirmed that the fact that the beneficiary of a person’s work is a specific entity does not at all determine that it is this entity that acts as an employer or a civil law principal towards that person. Similarly, performing work in a place designated by the employer/principal (the service recipient in the outsourcing agreement) and located in the workplace of another entity (the service provider in the outsourcing agreement) and under its direction, does not automatically result in the establishment of an employment relationship or a mandate relationship with that entity. Therefore, it cannot be assumed that an outsourcing agreement is an inherently sham activity, aimed at concealing the establishment of a legal relationship (employment, mandate) by the person using the work with the persons providing it.

GOING BEYOND THE BOX

It is worth remaining open to the opportunities offered by outsourcing, especially that contrary to the dogmas of labor law, which until recently were applied thoughtlessly, it is becoming a full-fledged element of the Polish business and, most importantly, legal reality. Let us emphasize that the provisions of the labor law do not apply to civil law contracts – both ordinary mandate and outsourcing. On the contrary – it is to employment contracts that the provisions of civil law may apply (by virtue of the reference from Article 300 of the Labour Code). The pension authorities (ZUS), which remain in the shackles of thinking in terms of labour law, should change their reasoning, since in the matter of outsourcing all legal argumentation should refer to the principles of civil law. And it is based on the foundation of freedom of contract, i.e. the parties themselves decide what kind of relationship and on what terms they want to establish. Therefore, the relations between entrepreneurs and people performing specific tasks for them do not always have to be cut out with the same mold of employment or mandate relationship, like cakes. They can come from outsourcing of services, in which the person using the work does not establish any legal relationship with the person performing it.

SECURE SOLUTION

Unfortunately, the fear of entrepreneurs against using outsourcing is the aftermath of abuses that took place in the past, and consisted mainly in simulating the outsourcing process in order to not pay and/or avoid public and legal obligations, i.e. social security contributions or taxes, by companies providing the service. As in any business relationship, also in the case of an outsourcing agreement – if there are abuses, as a result of which public and legal obligations are not settled, there are also serious grounds to question it. Since outsourcing assumes joint responsibility, the negative effects of such omissions were felt by the companies commissioning this service – they had to pay the outstanding dues. Choosing a reliable, experienced and legally operating outsourcing company eliminates such threats, allowing you to fully benefit from the advantages of external employment: flexibility, the ability to quickly respond to changing market and company conditions, cost reduction, or organizational improvement.

While Poland is still managing to slow down the expansion of COVID-19, in many countries the pandemic is taking the form of an unbridled element. The global economy is facing a deep recession. Most companies and managers limit their activities only to preventive activities, because defeatism spreading from everywhere takes away the courage to think in the long term. However, only those who act temporarily and plan for the future emerge victorious from each crisis. How to take advantage of the time of slowdown in the HR area is told by Andżelika Majewska, Vice President of the LeasingTeam employment agency.

The largest corporations in the United States are reducing their spending by record due to the all-encompassing and unpredictable coronavirus pandemic1. And this is not surprising. Throughout Europe, including Poland, companies are hoarding cash, saving, minimizing or completely abandoning investments. The priority is to maintain financial liquidity. However, it is increasingly said that the economy cannot afford downtime, and cash alone will not provide business with a future. A holistic approach to fixed costs is necessary. We are now passing the test of management flexibility, but we must be aware that it will continue for some time – the peak wave of infections announced by the government and a return to reality after the pandemic are ahead of us. According to the forecasts of the International Monetary Fund2 , this year the global economy is expected to fall into a 3% depression (for comparison, during the crisis in 2009 it was -0.3%), but in the next year, i.e. 2021, global growth is expected to reach the highest rate in years of +5.8%.

RECRUITMENT

The largest share in the profits from future growth will be achieved only by organizations that will be able to dynamically respond to the rapidly growing market needs, i.e. those that will have easily available human and financial resources and a strategy for their effective use. So should we suspend the processes carried out so far? The answer is not obvious, but using the downtime period for what we should do anyway to make our business more effective in the future is important. Many corporations are now deciding to renovate offices, modernize production lines, rebuild IT systems, and recruit specialists with niche qualifications at several stages. Until recently, the employee’s market made the last task quite difficult and required a competitive offer from the employer. The decrease in demand for new employment visible since March and the reduction of current resources make it easier to recruit a highly qualified employee for a relatively lower salary.

EXTERNAL EMPLOYMENT

In view of the employee’s labour market from only 2 months ago and the amendment to the Act on Temporary Employment (as a reminder: in 2017, the responsibility for the time of posting an employee was transferred from the employment agency to the employer), very often large organisations began to take over external resources to their structures. This gave the impression of greater employee loyalty, commitment or efficiency. However, this has not been confirmed by any research, and even niche research conducted on selective professional groups has shown that people working under flexible forms of employment value them highly, and they are skeptical about every change, even for the “better”, because it requires verification of habits or family life. The process of quite widespread absorption of temporary workers has contributed to increased employment, and now results in the need for redundancies. What’s more, these employees are the most vulnerable group in the organization due to the type of positions, seniority, or their easy replacement.

Today, more than ever, the safest and optimal solution is to use various forms of external employment: temporary work, body leasing or outsourcing, which allow for a faster and much less costly response to the dynamically changing situation of the company.

FLEXIBILITY

An economic slowdown always makes us reflect on how to react quickly and flexibly to changes and how to protect ourselves against similar situations in the future. Research conducted after the economic crisis in 2009 by Boston Consulting Group3 among German companies showed that those entities that used various forms of external employment survived the crisis with much smaller declines compared to companies employing only full-time employees (within the organization). German entrepreneurs who relied on external resources motivated it primarily by the ability to quickly respond to business requirements (about 80% of respondents), the desire to increase employment flexibility (about 67%), the possibility of trying out potential permanent employment (53%), and the desire to keep fixed costs low (35%). The German economy was then experiencing a GDP decline of -4.5%. Polish entrepreneurs, although not affected by such a large decline in GDP in 2009 (-0.3%), also drew appropriate conclusions, but the employee’s market has recently significantly changed the assumptions of the employment strategy.

Meanwhile, we have another turn in the economy. The economic crisis predicted by analysts was ultimately caused by the COVID-19 coronavirus, which no one predicted. The recession will undoubtedly verify the strategies and methods of doing business. Solutions that will enable quick response to changes will gain popularity – short-term rental of offices, cars, but also flexible forms of employment, allowing for much easier access to human resources, not only those easily replaceable, but also specialized or project (long- and short-term). Employees, in turn, will have the opportunity to manage their time more freely and reconcile private and professional life.

In most companies, human resources are a basic fixed cost. They are also a key investment that plays the most important role in the expected development or growth. Layoffs or restructuring will not help in the future, but redefining forms of employment will. After the pandemic period, we will return to a different reality, richer in experience, full of inevitable changes, but also good reflection for the future. HR strategy has always had a huge impact on business assumptions, so the verification and review of its concept will be critical for the further fate of any organization. Difficult periods have their undeniable drawbacks, but by seeing value in them, we can prepare better for any eventuality. As Peter Drucker used to say – we will have the ability to create the future instead of predicting it.

3 Source: “Adaptive to change”, International Confederation of Private Employment Agencies, The Boston Consulting Group, 2019.