Foreign companies take the opportunity of staff leasing in Latvia
„In the past work covered the largest part of individual’s life, nowadays the life perception is changing and people are tended to balance their career and out-of-service life. This affects employment as well,” – tells J.Lobanovska.
„Simplika entered the Latvian market in 2005. It was the first agency offering staff leasing. This service seemed possible owing to our foreign owners who introduced this new for Latvia experience. It was a kind of innovation in the local market,” – recollects J.Lobanovska. The main objective of the company offering staff leasing is to relieve the clients’ companies from administrative burden and to propose flexible forms of employment, which would correspond to the situation at the clients’ companies and to the employee’s increasing willingness for flexible working hours. Historically these services were mostly used by foreign companies’ representative offices in Latvia, because, first, they are familiar with this service and labour legislation of most European countries that favours to this form of employment, and foreigners’ attitude to this kind of employment is different. Second, often these foreign companies have certain limitations in the amount of employees in the particular state. Therefore it is not uncommon when Simplika Ltd. ensures operation of entire departments to the clients. Another reason for staff leasing is administrative costs’ reducing, because the agency covers the duties of at least one professional, which should have been employed by the company. „When entering into the contract on cooperation with the client and hiring employees, we should act so that employment would meet the labour legislation and company’s inner standards,” – asserts J.Lobanovska. She also notes that about 80% of Scandinavian population is employed with mediation of employment companies, because their labour legislation is too specific and influence of labour unions is powerful. This is one of the reasons why Scandinavian companies prefer staff leasing and why Scandinavian companies launch their structural units in other states. Staff leasing has two trends: full-time staff and temporary staff. Specialization of Simplika Ltd. is so called “white collars”, or office staff, and 95% of them are long-term employees predominantly working in foreign companies’ representative offices. It is more common to replace an employee while s/he is on vacation or on sick leave. Even implementation of large-scale long-term projects is delegated to staff leasing agencies. One of the most interesting projects accomplished by Simplika Ltd. is leasing professionals who trained on new database introduced in the company for 3 months’ period, during which 10 gifted and cooperation-minded young employees travelled to companies’ branch offices in the entire Latvia’s territory with the purpose to train the local companies’ employees. This is a great professional experience for the experts and opportunity for the company to ensure particular processes easily and efficiently. The employees staffed for temporary short-term projects are often students who work alongside their studies or young mommies who cannot combine a full-term employment with baby care. «Temporary staffing provides an opportunity for young inexperienced persons to make first steps in their career, and practically every and all of them received a full-time job proposal after short-term projects with the assistance of Simplika,” – narrates J.Lobanovska. Therefore it is worth mentioning that staff leasing or temporary employment agencies positively influence employment. “Staff leasing in Latvia is at the beginnings of its development. The total amount of persons employed with mediation of association companies during a year (Latvian Association of Temporary Employment Agencies, LPDAA) in Latvia is about 500. It is too little. I believe in five years this figure will be three times more. Staffing business is closely related to general growth of economics,” reports J.Lobanovska. She also is aware of the fact that approximately 4500 employees are leased in Lithuania within a year. This numerical difference between Latvia and Lithuania points to conservatism of Latvian companies in this issue. What is more Latvia’s labour legislation, in contrast to Lithuania’s, does not encourage this flexible form of employment. Estonia is one step forward – temporary employment agencies changed their focus from low-skilled workers to high-qualified specialists in such spheres like IT, sales and marketing, assisting positions. „Temporary employment agencies are not tended to seasonal approach any more. International companies with their headquarters in Europe or some other place in the world invoke to staff leasing, where notion “temporary” means “at least one year’s period”. These companies expect to be ensured with every function related to recruitment from staff selecting to labour contracts administrating, HR payroll and waging, car rent, business trips administration, assistance in employees accommodations,” – tells J.Lobanovska.
Speaking on the process how HR specialists assess persons who changed their workplace quite often, J.Lobanovska explains that in case this process takes place during the studies or two years after university’s graduation such entries in CV would be acceptable, but if it happens later on a question comes up – why the applicant acts like this, except she is a young mommy, who needs temporary work to return to full-time environment after a maternity leave. Another category of persons who prefer being employed via temporary employment agencies are those who balance their work and other life activities.
“Dienas Bizness”, published on 21.05.2014. Journalist: Anda Asare