Approximately 100,000 employees work temporarily in Romania, according to data from the Labor Inspectorate. And one of the periods when the demand for temporary employees increases considerably is the holiday season, when businesses have a higher volume of activity than the rest of the year. If you also want to hire temporary workers during this period, but you don't know if it's the best solution, we're here to help you. We present you the advantages and disadvantages of temporary work and permanent employment, so you can decide which option is right for your company.
Temporary work
Temporary employment means the employment of personnel for a specific period, in response to the specific needs of the company or to resolve urgent situations. The employment is made through a temporary employment contract, which can be concluded for a period of up to 24 months. This contract can be extended for successive periods which, added to the initially established duration, cannot exceed 36 months.
Advantages of Temporary Work:
1. Flexibility and adaptability
Companies can quickly adjust the number of employees based on workload. This is essential during busy periods, short-term projects, or replacing people who are temporarily absent.
2. Cost reduction
The costs of recruiting, training, and benefiting temporary employees are typically lower than those of permanent employees.
3. Access to specialized expertise
Companies can temporarily hire specialists for specific projects, to respond to temporary needs or problems that need to be solved urgently.
4. Avoiding unsuitable employees
If there is no compatibility between the employee and the company, the latter has the option to terminate the collaboration immediately after the completion of the temporary employment contract, without the need for long-term employment.
Disadvantages of Temporary Work:
1. Low stability
Compared to permanent employees, temporary employees may have a lower commitment to the company, which can affect continuity and performance.
2. Difficult integration
Pentru ca se afla in companie pe perioada limitata, angajatii temporari pot intampina dificultati in adaptarea rapida la noua echipa, la cultura organizationala sau la procesele interne.
3. Staff rotation
The more frequent the changes in temporary employees, the greater the risk of losing knowledge and skills within the team.
Permanent employment
Permanent employment, the most commonly used method in Romania, is a type of employment for an indefinite period. Staff is hired through a permanent employment contract or an indefinite contract.
Advantages of permanent employment:
1. Stability and continuity
A permanent job offers financial security and psychological comfort for employees. These factors can lead to greater loyalty to the company.
2. Professional development
Permanent employees have greater chances to develop professionally and advance in their careers within the company, which can increase their motivation and performance on the job.
3. Organizational culture
Permanent staff contributes to the development and maintenance of a solid organizational culture, improving team collaboration and efficiency.
Disadvantages of permanent employment:
1. High costs
Compared to temporary employment, permanent employment involves higher costs related to recruitment, salaries, benefits, and other compensation packages.
2. Lack of flexibility
Adapting to rapidly changing work demands can be difficult with a permanent staff.
3. Economic risks
In the event of unexpected declines in economic activity, employers may have difficulty managing the fixed costs associated with permanent employees.
4. Long-term commitment
Permanent employment can make it difficult to replace employees who perform poorly or are a cultural mismatch. In addition, the process of recruiting and training new employees can be long and expensive.
The choice between temporary and permanent employment depends on both the pros and cons, as well as the needs and objectives of your business. If you value long-term stability and the development of a strong organizational culture, hiring staff for an indefinite period is the right choice. On the other hand, if your business constantly needs flexibility and adaptability to market changes, temporary work is the ideal option.
If you have decided to bring temporary workers into your team, we at Smartemp, we offer you complete personnel leasing services!
We recruit or take on temporary employees and provide payroll and personnel administration services. We also develop occupational medicine, health and safety issues with our partners and implement the standards required by them in terms of benefits offered.