Personnel Leasing – Chance instead of crisis
In times of economic regression temporary employees are the first who are forced to leave a company affected by the crisis. This dismissal does not necessarily mean unemployment for these employees.
During the last weeks the media has published distorted information. It is the core business of suppliers of personnel leasing to find employment for his employees. For most of the qualified employees it has been no problem to get employed.
Upper Austria concentrates on export and on the sector of industry. Naturally after full employment Upper Austria is highly affected by the increase of unemployment.
It is importand to keep in mind that the employment rate in the industry of personnel leasing depends on the season. The employment during the winter season depends highly on the building sector and is 50 % lower than in summer. In 2008 the winter was very mild. Therefore it was possible to work through the winter and the employment was compared to previous years above average.
In 2009 the winter got colder and reached normal temperatures. However some companies that operate in the building sector, subconstruction work and classical craft sectors are still looking for skilled workers. An exhibition for energy in Wels (Energiesparmesse) showed that consuments are using more and more thermal energy and are spending their investments for improving the quality of their living conditions. This industry is a segment targeted by suppliers of personnel leasing in 2009.
Companies, which are using the the service of suppliers of personnel leasing are able to adjust their personnel according to their orders easily – in times of a booming economy companies the demand of personnel leasing in increasing. If there is a regression leased personnel is sent back.
During the last years the industry of personnel leasing, still an infant industry in Austria, was characterized by an increased demand and turnover. Companies new in this industry are confronted with a fall in demand for the first time.
Especially in hard times it is very important for suppliers of personnel leasing to be able to get employees with different qualifications and to have customers operating in various industry segments.
Well structured, quality orientated and fully automated working procedures do help companies to minimize costs and to withstand crises.
Suppliers of personnel leasing with a lot of employees but leased to only few customers and in addition the ones who are concentrated on companies that operate in the automobile industry and suppliers of car manufacturers are affected extensively by the crisis. These companies are the ones we need to worry about, says Mr. Zehetner.
Mr. Zehetner is convinced that a consolidation of the Austrian`s market of suppliers of personnel leasing is going to take place. “I reckon, that the number of Austrian`s suppliers of personnel leasing are going to be reduced by about 25 per cent. Especially for the big ones specialised on the (manufacturing) industry and as well for some medium sized companies with few customers and also specialised on the (manufacturing) industry it will be a hard time. For “newcomers” the near future is likely to be very risky too.
“I suppose further fusions are expected and an afresh start is predicted”, says Mrs. Zehetner.
To forecast the future develompent is difficult. Experiences show in times of a crisis a reduction of suppliers of personnel leasing and employees but on the other hand an increase of customers.
This increase of customers is not a surprise for Mr. Zehetner. Our customers reduce permanent employees in problematic marketing conditions. In case of sudden assignments or in case of unexpected incidences of the remaining personnel (sickness absence, accidents or nursing leave) they use our service and the demand of temporary staff increases.
As long as there is no trust in an economic boom our customers w`ont employ additional permanent employees.
Again, customers will come back to temporary personnel and hence to suppliers of personnel leasing. Some of our customers use the service of suppliers of personnel leasing as a form of financing because in general invoices of suppliers of personnel leasing need to be paid later than the salary/wages of their own permanent employees.
As soon as the economy booms again the employment rate of leased personnel is going to increase quickly. Past crises have shown this.
Mr. Zehetner mentions impending bad debt losses as the greatest risks for his industry. Generally, increasing insolvency is to be expected and therefore our customers are affected too. Due to the fact that suppliers of personnel leasing have to pay salaries/wages and social insurances for its employees, even if the supplier does not get the invoices paid from the customer, insolveny hits the suppliers twice as hard.
Mr. Zehetner has required a modification of IESG (Insolvency payment assurance fund) so that, in case of an insolvency of a customer, at least the already paid salaries and social insurance contributions are paid back from this fund.
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