We hope to help you by summarizing the criteria which you can use to minimize the risk of normal business operation and maximize benefits when using the services of an employee leasing company to satisfy temporary or permanent headcount needs.
A company is as valuable as its employees. This applies to everyone from decision makers to receptionists. As the competence and attitude of your people is exceptionally important for the success of your business, it is essential to choose a service provider with whose help you can employ the right people.
Temporary staffing agencies which have been in business for decades have already seen various kinds of regulations and been through various business situations on the labor market. The business of service providers with flexible and efficient services and an extended portfolio is secure in an uncertain economic environment as well. Company information systems provide reliable data on business activities, financial standing and payment discipline which you can and should before the conclusion of contract.
It is easy to get information on the following:
Professional and financial stability is especially important because employees on lease are on staff with and receive their wages from the leasing company; if the leasing company fails to comply with its legal obligations, the client company may be retroactively classified as the employer with all relevant legal and financial implications.
Experienced temporary staffing companies can determine the optimal method for recruitment and selection in a given industry and they often take care of these tasks faster and cheaper than companies themselves would. Using their database of thousands of employees, they can supply valuable information on the abilities, wage needs and motivations of the workforce available. They follow changes in legal regulations precisely and adjust quickly; furthermore, with their extensive experience, they can reduce personnel spending and make it more transparent. You should choose a partner that has an office in your area of operation as this implies knowledge of the local labor market. Working with a labor lending company with a national network may also be advantageous as their local offices are able to resolve potential capacity shortages and help in the commute of the employees with the required professional qualifications.
The calculation of the lease fee is either based on a mutually agreed gross wage or the total employment expenditure. There are a number of common calculation methods based on both multipliers and lump sum fees. When requesting proposals, you should clarify the structure of the quotations you expect to ensure easy comparability of fees. If you are not familiar with the current regulation of the taxes and contributions on wages, a number of calculators are available on the internet for this purpose. You should be a bit cautious if the quoted fee is almost identical to the total employment expenditure as, in this case, the lease fee does not cover the other costs of the service (recruitment, selection, project management, payroll calculation, labor administration) and the consequences of applying “tricky” solutions like this affect both the employee and the client company.
Employee leasing companies typically register with the Labor Office when they perform their activities publicly. An equally important element of safe cooperation is the existence and value of the liability insurance policy of our employee leasing partners. Other information to look out for is whether the service provider is included on the list of companies with no public debt put out by the Hungarian Tax and Customs Authority. The above guarantees, combined with the application of a quality assurance system, should be enough for you to be sure that you will receive a legitimate and regulated employee selection, project management and administration service.
Even in the case of multiple-year cooperation, testing your current partner against other market players may be useful. Tendering has a number of advantages: you will get more information to make your decision which prompts healthy competition, you can expect a higher level of service and you are quoted competitive fees even if the evaluation of the offers received confirms your previous decision and you keep your current supplier.