The coronavirus pandemic and the resulting sanitary restrictions have paralyzed virtually the entire economy in an unprecedented way. In order to limit the movement of people, the authorities have introduced an order to close many businesses – shops and service establishments, cinemas, hotels and restaurants. Other companies still operating are also recording declines in revenues. Thousands of people stay at home, and remote work is not possible in every industry. Employers are drastically reducing costs, including by reducing employment. What HR policy should be adopted during the pandemic, what solutions should be used and what conclusions should be drawn for the future?

According to the data of the Polish Chamber of Commerce, in Poland from 320 to 480 thousand people may lose their jobs in the optimistic variant, and even up to 1.28 million in the pessimistic one. Employers of Poland, on the basis of the survey, indicate that in the next 3 months as many as three-quarters of the surveyed companies are planning to reduce employment, because already today over 90 percent of them are experiencing a decrease in revenues[1]. On the other hand, according to economists from the Center for Economic Analysis, there may be over 780,000 people who will lose their jobs[2] There is no doubt that the labor market is in crisis, and it may take up to several months to return to a normal, stable state from before the pandemic.

How can employers react in the current situation?

“Employers are facing very difficult decisions. Some companies are trying to maintain the current level of employment by reaching for aid under the so-called anti-crisis shield and introducing downtime or reducing the number of full-time jobs. Not making redundancies comes at a higher cost, but it also has a positive aspect – greater dedication and loyalty of employees in the future and a smoother return to full after the situation has normalised. The second option is layoffs, which will temporarily relieve the company’s finances, but will slow down and hinder the recovery of business after the pandemic – comments Katarzyna Leśniewska, acting director of the recruitment department at LeasingTeam Professional.

Companies that had a safe HR policy before COVID-19, skilfully dividing the headcount into full-time and leased, permanent and temporary employees, will cope better in the current situation because they have lower fixed costs. However, even those whose structure is dominated by full-time employees and now have to make difficult decisions regarding group redundancies, it is important that they have the future in mind and carry them out in a legal, safe and least painful way for employees, e.g. by offering them an outplacement service that will enable the dismissed employees to find a new job, at least to some extent. “At LeasingTeam Professional, we have been carrying out such processes for many years and they turn out to be very effective. Many people find new employment, and thanks to the help they receive, they are more willing to return to their former employer after the crisis, if only the opportunity arises. Also, those who remain in the company look more favorably on the changes introduced and do not lose motivation to work – says Katarzyna Leśniewska.

It is worth turning to an experienced employment agency for another reason – it may turn out that it is looking for employees for its other clients and will be willing to take over some of the dismissed employees. – Although we are observing a decrease in the demand for new employees on the permanent employment market, in the area of temporary work we see a significant disproportion between industries – some are laying off, e.g. automotive, others are hiring, e.g. food and logistics. E-commerce is also less affected by the SARS-CoV-2 situation – there is a demand for employees to serve customers, or to complete and send parcels – emphasizes Katarzyna Bryła, Regional Manager at LeasingTeam.

Two scenarios for the future

Regardless of ad hoc actions, it is important for employers to also think about how to secure themselves for the future in order to be able to respond flexibly to both economic downturns and increases. In connection with the pandemic, two main scenarios are emerging, and in each of them a sustainable employment policy is indicated.

– ŻWe live in uncertain times, reality is changing dynamically, sometimes in a completely unforeseen way, which has been particularly acutely proven by the coronavirus pandemic. In such a situation, the use of temporary work and/or outsourcing in enterprises becomes more important, as it allows for conscious running of the business, reducing fixed costs – says Katarzyna Bryła from LeasingTeam.

In the optimistic scenario, the pandemic in Poland will not develop as drastically as in other countries and companies will return to operations wanting to make up for losses as soon as possible. This will require increased efforts, which involves increasing the number of employees. Internal HR departments, which are usually not large, will not be able to carry out mass recruitment in a short time, hence the support of a specialized HR agency, which also offers business-safe forms of employment, will be helpful.

In the pessimistic variant, the coronavirus will stay with us for longer, the slowdown of the pandemic will be slow – then the activity of enterprises will recover slowly, for fear of the recurrence of the threat. In such a situation, when it is not known whether the quarantine obligation will return, it is all the more cautious to invest in your own teams so as not to have to reduce them again. In unstable market conditions, the use of temporary workers may be an important, if not the only, condition for many medium-sized and large enterprises to return to activity and maintain business.

The difficult situation in which we all find ourselves teaches that one should always be prepared for the worst. The economic crisis in 2009 was already such a lesson, but not all companies learned from it. When the economic situation was good, they hired employees mainly for full-time jobs, forgetting about the very important business principle that at least 10-20% of the staff should come from external employment, which in a crisis situation allows for quick and relatively cost-free optimization of employment.

[1] https://businessinsider.com.pl/firmy/zwolnienia-z-powodu-koronawirusa-w-kwietniu-jakie-firmy-i-gdzie-beda-zwalniac/s18zq6h

[2]https://biznes.radiozet.pl/News/Covid-19.-Nawet-780-tys.-Polakow-straci-prace-z-powodu-stanu-epidemii

On 16 April 2020, the premiere of the 18th edition of the report “Responsible Business in Poland 2019. Good Practices”, which included the Joyful Christmas Eve organized by us!

The annual charity initiative, which we have had the honour to prepare since 2018 as part of the Children’s Joy Foundation established by LeasingTeam, aims to organize fun with numerous attractions and handing out Christmas packages to children in need from the Piaseczno commune. Every year, many companies, institutions and volunteers join the campaign, helping this unforgettable event, thus supporting the local community and contributing to bringing joy to children from orphanages and charges of M-GOPS in Piaseczno.

The report published by the Responsible Business Forum is available for download here.

The report “Responsible Business in Poland. Good Practices” is the largest review of responsible business and sustainable development in Poland for a given year. The publication provides knowledge on how CSR is developing. It shows the diversity of practices and activities, as well as the number of companies engaging and communicating their initiatives (after the announcement of the Responsible Business Forum)tags.

We are happy to be among socially responsible companies – join us!

The last few weeks have been a particularly difficult and demanding time for all of us. Some of the LeasingTeam Group’s customers, to whom our employees were delegated under civil law contracts, were forced to close their branches. In order to survive this difficult time, these employees can take advantage of state support guaranteed in the special act, the so-called Anti-Crisis Shield. Below we provide the most important information and guidelines valid today.

HOW DO I GET SUPPORT IN MY FIRST MONTH?

What conditions must be met to benefit from the support?

What can you gain?

How to apply?

At the same time, we would like to remind you that applications for the downtime benefit can be submitted to ZUS no later than 3 months from the month in which the state of epidemic is lifted.

In connection with the above requirements, we ask interested Employees – Contractors to send to their coordinators:

Applications will be submitted successively, starting in April and in the order of applications received.

HOW TO APPLY FOR THE DOWNTIME BENEFIT FOR SUBSEQUENT PERIODS?

The first application for the downtime benefit is submitted to the Social Insurance Institution (ZUS) through the employer (LeasingTeam), while the subsequent ones are submitted by the Contractor independently in the month following the month in which the first benefit is paid. If the first benefit was paid in May, the second application can be submitted in June.

What conditions must be met to benefit from the supportagain?

How to apply?

What can you gain?

– Support in the amount of PLN 2080,

– However, if the sum of revenues from civil law contracts in the month preceding the month in which the application for the downtime benefit was submitted is up to PLN 1299.99 (less than 50% of the amount of the minimum wage for work in 2020), then the downtime benefit is due in the amount of the sum of remuneration under these contracts.

> If you have any additional doubts, check our Frequently Asked Questions about the downtime benefit.

To what extent will the Anti-Crisis Shield protect companies in Poland from bankruptcy? Will it help to keep jobs? These and many other topics were discussed in the Liberator broadcast by Andżelika Majewska in the Liberator broadcast in an interview with Jacek Szafadr on Radio dla Ciebie.

We encourage you to listen.

Go to the broadcast.

The coronavirus has an extremely strong impact on the economic situation in Poland, significantly deepening the economic slowdown in the country that has been observed for several months. How will the current situation affect the labor market? What conclusions can employers draw from it? Katarzyna Dąderewicz, Regional Director at the LeasingTeam employment agency, will talk about it.

Labour market before coronavirus

The fastest consequence of the economic slowdown for the labor market is a reduction in the number of jobs, which could already be seen last year. According to the data of the Central Statistical Office, at the end of the third quarter of 2019, the number of vacancies in entities of the national economy or their local units employing at least 1 person amounted to 148.6 thousand and was lower than at the end of the second quarter of 2019 by 3.2 thousand, i.e. by 2.1%. On the other hand, compared to the end of the third quarter of 2018, the number of vacancies was lower by 8.5 thousand, i.e. by 5.4%1

Does the above data mean the end of the employee’s market and wide access to specialists? Although the number of jobs is decreasing, it should be remembered that at the same time the demand for labor is not increasing. The economic activity of the Polish society is low. There is even talk of professional inactivity. This applies in particular to women, but also to young people2. According to Eurostat data, about 17% of Polish citizens aged 20-34 in 2018 were neither formally employed nor studying. This is one of the highest rates in the European Union. The proportion of young men who are not in education or employment was 9.6% compared to 23.5% of young women.

Although it can be assumed that the statistics are underestimated and some of the above-mentioned people work illegally, the Polish labour market is struggling with additional unfavourable factors, such as the ageing of the population and low fertility rate, as well as social programmes that do not encourage people to take up work. At the same time, the closure of vocational schools reduces the number of employees with this profile

Labour market in the face of coronavirus

The coronavirus pandemic has a strong impact on the global economy, the negative effects of which are also visible on the labor market. As an employment agency, we observe several of the most common phenomena.

  1. Manufacturing companies (e.g. automotive, household appliances/electronics, electronics) are running out of components, so they limit or suspend their operations for 1 month, and therefore send employees on vacation or on the so-called downtime. If the situation does not change, there is a high risk of redundancies.
  2. Companies are suspending recruitment processes, both mass and single. On the one hand, employers in such an uncertain situation do not want to decide on additional fixed costs, on the other hand, not everyone is prepared in terms of equipment to provide remote work.
  3. Paradoxically, some companies have a high demand for employees (e.g. grocery stores) due to the increase in demand for their services/products, but also due to the departure of a large part of the permanent team on holidays or sick leave. These companies urgently need temporary workers, but in the current situation, they are very apprehensive about taking up work and often give up employment options.
  4. Currently, many companies in Poland rely on employees from abroad (mainly from Ukraine). In the context of closed borders, such a business model may prove to be a huge threat to companies, not only due to the lack of availability of workers, but also due to the increase in labor costs when it is necessary to hire domestic employees.

As you can see, the situation on the labour market is very diverse. We are dealing with both the release of human resources on the labour market and the short-term, greater demand for them. In both cases, a safe solution is to use a temporary employment service and/or outsourcing services. The greatest value we gain is the transformation of a fixed cost (salary) into a variable cost (a VAT invoice from an employment agency). An employer can reduce part of the staff relatively quickly in the event of an economic downturn or such an unforeseen situation as the coronavirus pandemic. In fact, he pays for the hours he actually earns, which provides him with greater financial security and comfort of running his business. However, this is not the only advantage of working with an employment agency. When the situation with the coronavirus calms down, companies will most likely have to “catch up” with production, and thus rapidly expand their teams. In order for this process to go smoothly and quickly, it will be necessary to use a temporary employment agency with large recruitment resources. Internal HR departments, which are not numerous in most companies, will not be able to cope with such a challenge and recruit people to work quickly enough.

In the face of a potential economic downturn, redundancy management is also a frequently arising issue. This is where the outplacement service is the answer. A well-conducted practice, taking into account the needs and sense of security of the employee, has a positive impact on the employer’s image and significantly reduces the risk of possible legal claims. Support and preparation of dismissed employees for the new professional situation is an important element of responsible business conduct, which translates into greater trust in the company, prevents the transfer of sensitive data and company secrets to the outside world, and also affects the level of job satisfaction of people who have remained in its structures.

The labour market has effective solutions

The coronavirus pandemic combined with the previously recorded economic decline have made employment issues a very difficult and sensitive area for employers. Business development requires hiring the right staff, but the spectre of an economic downturn or unforeseen situations, such as the current one, raises great fears of long-term commitments. However, there are solutions on the market, such as temporary work or employee outsourcing, which effectively mitigate risks, while providing access to the necessary number of employees. In the face of the current situation on the labor market, these solutions are gaining in importance.

1 https://stat.gov.pl/obszary-tematyczne/rynek-pracy/popyt-na-prace/popyt-na-prace-w-trzecim-kwartale-2019-roku,2,35.html
2 https://stat.gov.pl/obszary-tematyczne/rynek-pracy/pracujacy-bezrobotni-bierni-zawodowo-wg-bael/aktywnosc-ekonomiczna-ludnosci-polski-iii-kwartal-2019-roku,4,35.html

The coronavirus (COVID-19) is wreaking more and more havoc on companies in Poland every day. A large number of companies cannot switch to remote work, so they are forced to close their plants or significantly reduce their operation for an unknown period of time. As a result, the question arises as to how to deal with employees who constitute a significant fixed cost, and in the final situation, i.e. redundancies, how to carry them out in a safe way for the company, without forgetting about the employees.

COOPERATION WITH TEMPORARY EMPLOYMENT AGENCIES

In order to protect yourself against unexpected economic situations (slowdown, crisis, pandemic), it is recommended to maintain flexible employment (temporary work) at a level of min. 10-15%, and preferably 20%. Thanks to cooperation with temporary employment agencies, in crisis situations it is possible to react much faster and optimize employment and possible financial losses.

Examples of how cooperation with an employment agency affects the flexibility of companies in terms of hiring employees

1. Companies cooperating with employment agencies on an ongoing basis as part of temporary work can suspend orders for employees almost overnight, and in a critical situation, resign from all temporary workers. This is an immediate saving, without the need to introduce a complicated process of group redundancies.

2. Cooperation with a large and reliable employment agency has an additional advantage in that it will make every effort to place suspended/dismissed temporary workers to work with other clients who need additional hands in the era of coronavirus. This will affect not only the positive perception of the agency by employees, but also the maintenance of a positive image of the client himself.

3. What’s more, the agency can also support you with the dismissal of internal employees. On the one hand, you can guide your company through the entire process of collective redundancies in such a way as to minimize the risk of possible legal claims of employees, and on the other hand, you can offer them a job with other clients of the agency, just like in the case of temporary employees, or carry out the Outplcement program.

4. Remember, the coronavirus crisis will end sooner or later. Companies will be forced to make up for losses by increasing production and thus employment. In this situation, an employment agency will be indispensable , because internal HR departments will not be able to carry out numerical recruitments in a short time. What’s more, the better the agency/company behaves towards employees, the greater the chance that they will return to work.

Do you want to protect as many jobs as possible, despite layoffs? Contact us – click. We will find the best solution for the company and employees.

HAS THE DECISION ON REDUNDANCIES BEEN MADE? DO IT SAFELY – OUTPLACEMENT

If the decision to redundancies has been made, the employment agency can support you in safely carrying out the process of group redundancies, but also in maintaining the best possible image among employees by providing the outplacement service.

The process of collective redundancies is a complicated procedure that requires thorough knowledge of labor law. Its improper conduct has very costly and time-consuming consequences in the form of, for example, many court hearings and possible financial compensation.

The process of group redundancies should be supplemented with an outplacement service, i.e. a program to support employees in looking for a new job in line with their competences. Outplacement is associated with benefits for both employees and the employer. These include:

1 – support for the management of a specialised employment agency in making decisions regarding redundancies

2 – minimizing the risk and reducing the costs associated with possible lawsuits of dismissed employees

3 – positive impact on the satisfaction of employees remaining in the company and their job satisfaction

4 – strengthening the sense of security of employees remaining in the company, ensuring that they will receive help in a possible situation of dismissal

5 – positive impact on the company’s image, also in the eyes of future employees

6 – psychological and substantive assistance for dismissed people

The outplacement process is carried out by LeasingTeam Professional – a company belonging to the LeasingTeam Group. Outplacement consists of 4 stages:

1. Consultant’s duty – introductory session preparing for joining the Outplacement program

2. Introductory session – a several-hour introductory meeting with employees on the labour market

3. Workshop – an all-day meeting with program participants, during which we discuss all the necessary topics related to the labor market, CV, job interview, etc.

4. Individual consultations – several hours of consultations with employees in the form of a Labour Market Audit. We will develop further stages of the employee’s activities and each of them will receive individually prepared job offers.

Are you interested in the outplacement process? Contact us – click, we will tell you about the details.

We would like to inform you that out of concern for the safety and health of our employees, from 17.03 until further notice, LeasingTeam and other companies of the LeasingTeam Capital Group are working remotely.

Therefore, our stationary offices operate to a limited extent and are available to you by appointment. We kindly ask all candidates and guests for understanding.

We encourage you to contact us by phone at: 22 460 50 00 (call to the secretariat; information about job offers) or 602 332 021 (HR and payroll topics).

Greetings!

#ZostanWdomu

  1. How are the effects of the coronavirus epidemic in the world or may be felt in the near future by employers in the manufacturing industry?

The coronavirus has hit manufacturing and industrial companies that manufacture their products based on components from China. In particular, the following sectors were affected: automotive, electronic equipment (TVs, mobile phones), IT (computers and IT tools), household appliances/electronics. Some of our customers representing these industries are already signaling shortages in components that have not arrived from China because they were stopped at the border or even not produced due to the closure of factories there. As a result, these companies are forced to reduce production and thus reduce the demand for temporary workers. Our data shows that this is not yet a large scale, because we are talking about about 1-2% of customers, but we are observing increasing anxiety on the market, which is further exacerbated by the uncertain economic situation that companies have been facing for several months. All this inhibits companies from placing new orders for temporary workers. Going further, if the coronavirus gains momentum, there is a real probability that as a preventive measure, in order to reduce the risk of infections and illnesses, an appeal will be made about the need to temporarily suspend production, in which, after all, we are dealing with large groups of people.

The situation in which the market has found itself in the face of the threat of the pandemic shows how important it is to implement temporary employment services in responsible business conduct. Companies that do not use this solution will suffer much more financially, as they will either be forced to send employees on forced paid leave or will incur costs caused by layoffs, which will increase further when the situation returns to normal and it is necessary to invest in further recruitments to rebuild the number of teams. A company using temporary workers first reduces employment in this employee group, thanks to which the permanent team has a chance to remain unchanged without additional financial consequences for the employer.

  1. In connection with the emergence of the coronavirus in Europe, have you noticed that manufacturing employers are reducing the demand for employees beyond seasonal effects or there are other signs of a decrease in demand for labor in the coming weeks?

There is certainly anxiety among employers caused by reports about the spread of coronavirus in Europe. The problem is beginning to affect an increasing number of companies in Poland – initially those cooperating with China, now also with Italy and Germany. Although it is not yet possible to talk about the suspension of cooperation with employment agencies, there is a noticeable greater restraint in orders for additional temporary workers, and in a few cases orders are withdrawn or suspended for a month, with the option of extending the time.

In the case of companies producing in Poland, from Polish components and those cooperating with Chinese companies located in a safe area – we do not observe any major negative consequences at the moment. Production and thus orders for temporary workers are proceeding as planned. The situation is different with companies that directly or indirectly cooperate with Chinese or Italian suppliers located in endangered areas. Here there are already cases of reducing production and thus hiring temporary workers.

At this point, it is worth mentioning that reducing the number of employees in the manufacturing sector will free up human resources on the market, making it easier to find an employee. In other words, restrictions on hiring with clients (i.e. a decrease in orders for staff) will leave agencies with resources in the form of employees. Companies whose production is not related to the Chinese market may benefit from this. On the other hand, the closure of borders has significantly reduced the number of workers from across our eastern border.

Katarzyna Dąderewicz, Regional Director at LeasingTeam, answered questions from PAP.

After this year’s assessment by the EcoVadis rating agency, LeasingTeam maintained the silver CSR certificate, while improving its score by 2 points, from 54 to 56. The result obtained by LeasingTeam is equal to or higher than the result of 79% of other companies surveyed by EcoVadis in the area of recruitment / temporary employment. In other words, the company was among the top 21% of companies rated by Eco Vadis.

The EcoVadis Silver certificate held by LeasingTeam Group is a testimony that the company acts in relation to its business partners, employees/associates and the natural environment in a conscious and responsible manner, guided by CSR standards. The framework of action defined by the organization has a real reflection in the daily functioning of the company.

– The CSR policy of LeasingTeam Group covers all 7 areas according to the ISO 26000 standard. We are convinced that only transparent and responsible management of the company in the organizational and employee areas, as well as in the social and environmental areas, will bring success to the organization, both in relations with business, employees and the local community. Year by year, we implement new CSR initiatives, thanks to which we are becoming a more and more socially responsible company. In 2019, on the one hand, we made extensive investments in the IT infrastructure, thanks to which, m.in other things, we significantly reduced electricity consumption, and on the other hand, we doubled the number of charges in the Joyful Christmas Eve campaign dedicated to the Piaseczno community. In 2020, we are planning further activities – said Agnieszka Haponik, Marketing Director at LeasingTeam Group.

The activities and practices carried out by suppliers in the field of corporate social responsibility are evaluated by the EcoVadis agency in terms of sustainability and performance, on a scale from 0 to 100 points, within 21 criteria, in 4 areas: natural environment, social activities, ethics, supply chain. The methodology used is based on international corporate social responsibility standards, including the Global Reporting initiative, the UN Global Compact and the ISO 26000 standard.

The main benefits of implementing the EcoVadis standard are:

Learn more about CSR and our Happy Christmas Eve campaign.

We invite you to cooperation. Contact us.