Have you ever wondered how you could protect your business from the risk of unwanted layoffs? How you could quickly adjust your team without long-term commitments that might later force drastic decisions? And, more importantly, how you could keep your employees motivated while ensuring business continuity?
In uncertain economic times, when companies cannot commit to long-term legal obligations, staff leasing is the solution to cover peak business periods. This practice—regulated in Romania under the Labor Code as “temporary agency work”—gives companies the flexibility needed to navigate economic downturns without resorting to layoffs. Discover the advantages of staff leasing and why it’s a more practical alternative than hiring long-term and later being forced into layoffs.
Flexibility in Cost Management
In times of economic uncertainty, every expense matters. Fixed costs such as salaries and benefits can put significant pressure on your budget. Staff leasing gives you the flexibility to quickly adjust headcount based on actual workload or short-term projects. In practice, you can maintain an optimal team without paying wages during slower periods.
Moreover, a leasing agency manages all administrative aspects: payroll, social contributions, leave management, or contract termination procedures. This allows you to focus on your business without losing time and energy on administrative tasks. According to the ISG Market Lens™ Business Process Outsourcing (BPO) study, companies that rely on temporary staff through leasing manage to cut operating costs by 15–20% during downturns compared to those that maintain only permanent staff.
Reducing the Risk of Layoffs
The decision to downsize impacts not only a company’s financial stability but also its reputation and employee morale. Staff leasing allows you to quickly adjust team size whenever necessary.
This means that employees with valuable knowledge and experience don’t have to be let go just because business activity temporarily slows down. By keeping your permanent team intact, you maintain cohesion, loyalty, and productivity—critical factors during economic hardship. Furthermore, research by the Upjohn Institute shows that companies using temporary staff reduce the risk of mass layoffs by 30% during recessions.
Access to Qualified and Specialized Talent
No matter how talented your permanent team is, sometimes you need specific skills for particular projects or urgent requirements. Leasing agencies have extensive databases of qualified candidates across various fields—IT, accounting, logistics, retail, pharma, call centers, marketing, engineering.
This enables you to quickly bring in the right people without spending months on recruitment and training. Moreover, according to a report by the International Labour Organization (ILO), companies that access skills through staff leasing adapt twice as fast to labor market shifts compared to those that rely solely on permanent employees.
Focusing on Strategic Activities
Managing human resources consumes significant time and energy—from interviews and contracts to performance reviews and leave planning. By outsourcing these processes through leasing, you can dedicate your resources to strategic business activities: product development, process optimization, and revenue growth.
This approach not only saves time but also gives you the agility to react faster to market changes. In PwC’s Global Workforce Hopes & Fears Survey 2024, 68% of U.S. hiring managers said they rely on staffing agencies to attract talent, cover seasonal workload fluctuations, and meet temporary staffing needs.
Compliance with Labor Regulations
Labor laws can be complex and constantly evolving. Non-compliance risks fines or costly litigation. With staff leasing, the agency assumes full legal responsibility for temporary employment: drafting contracts, managing social contributions, and ensuring compliance with health and safety regulations.
This protects your company from legal risks, letting you focus on growth. According to a report from EURES (European Employment Services), businesses working with leasing agencies face 25% fewer employee rights disputes compared to companies managing temporary staff directly.
How to Implement Staff Leasing in Your Company and Minimize Layoffs
1. Identify Your Company’s Specific Needs
The first step is to understand where gaps or overload exist clearly. Assess each department’s workload and identify projects requiring additional resources. Define not just the number of people but also their skills, experience, and estimated duration. This way, you can request the exact type of staff you need without incurring unnecessary costs.
2. Partner with Reliable Staff Leasing Agencies
Work with agencies that have proven experience, positive references, and strong market reputations. It’s critical that they comply with labor laws, provide transparency in selection, and deliver qualified staff. A trustworthy agency reduces legal and administrative risks and saves time in recruitment and selection.
How Smartemp Can Support You
Smartemp, with 13 years of experience in staff leasing and a decade of collaboration with multinational companies, provides complete support in identifying and attracting seasonal candidates tailored to each industry’s needs. We have extensive expertise in sectors such as retail, logistics, call centers, telecom, transport, HR, finance, IT&C, IT help desk, and office management.
Benefits of working with Smartemp:
- Recruitment of temporary staff using our database and direct search (headhunting). We start early to ensure you have the right people in place for peak season.
- Organizing orientation meetings with temporary employees to brief them on required documents, working conditions, and job descriptions.
- Drafting and signing all employment documents: individual labor contracts, internal regulations, declarations on additional income, dependents, and health insurance.
- Preparing addenda and decisions; submitting employee records to authorities.
- Designing timesheet templates tailored to client needs.
- Processing and paying salaries, vacation, medical leave, and related taxes.
- Prepare and submit the 112 tax declaration.
- We provide full management of meal vouchers.
Take Advantage of the FlexWork Offer!
Smartemp FlexWork is more than just recruitment—it’s a complete temporary staffing package tailored to today’s business needs. It allows you to:
✅Quickly find suitable candidates for operational and support roles.
✅Fully outsource administration: contracts, addenda, salaries, benefits, tax filings.
✅Ensure compliance with labor laws through an authorized partner with 13+ years of HR experience.
✅Easily integrate temporary staff into your team, with guidance from Smartemp specialists.
✅This saves internal resources while ensuring all hires are legal and effective.
🧩 Services Included in the Smartemp FlexWork Package
✅ Fast Recruitment and Selection
Job posting and promotion included in the fee
Screening and interviews completed within 5 days
Presentation of the most suitable candidates
✅ Contract Drafting and Personalized Legal Advice
Writing contract drafts and addenda
Legal Guidance
Assistance with extensions or direct hiring
✅ Employee Integration Support and Monitoring
Informing employees about internal regulations
Permanent HR contact available
Monitoring employee adaptation throughout the collaboration
🎁Bonuses and Additional Benefits
In addition to standard services, Smartemp FlexWork provides extra advantages:
Free digital guide: “How to Legally Manage Temporary Work”
10% discount on administrative costs for long-term contracts with at least 10 employees
Try & Hire option—turn temporary collaboration into permanent employment
Optional add-ons (extra fee): feedback reports, operational training for temporary staff
3. Set Clear Terms in Leasing Contracts
Staff leasing contracts should be detailed and balanced. Negotiate terms favorable to both sides: duration, payment, responsibilities, and termination clauses. A clear contract reduces misunderstandings and protects you from unforeseen issues. Performance indicators can also be included to ensure quality staffing.
4. Monitor Leased Employees’ Performance
Although legally employed by the agency, leased staff work directly in your company. Evaluate their performance regularly to ensure tasks are completed at the expected level. Monitoring not only maintains high standards but also provides grounds for renegotiation or replacement if needed. Regular feedback supports professional growth for temporary staff.
5. Integrate New Colleagues into Your Team
A leased employee who feels excluded will perform poorly and lack motivation. Even if they’re officially employed by the agency, it’s in your interest to integrate them. Provide access to necessary resources, involve them in internal communication, and encourage collaboration with permanent staff. Proper integration of temporary workers can significantly reduce future layoffs.
Staff leasing is a flexible and effective solution for navigating today’s economic challenges. By adopting this model, you can protect your permanent employees from layoffs, optimize costs, and gain rapid access to specialized skills—ensuring your company’s stability and long-term success.
If you need assistance implementing staff leasing or want to learn more about how this solution can be adapted to your business needs, contact the Smartemp team at office@smartemp.ro or 0738 662 370.
Sources
PwC Global Workforce Hopes and Fears Survey 2023
PwC. (2023, June 20). Global Workforce Hopes and Fears Survey 2023.European Labour Authority (EURES)
European Labour Authority. (2022). Labour shortages and surpluses in Europe.- Eff Global – A specialist available immediately or personnel outsourcing in a nutshell
- OutsourceAccelerator.com – HR Outsourcing: The Ultimate Guide
Read also:
Why You Should Prepare Your Workforce Now for Black Friday and the Holiday Season
10 Signs You Need Staff Leasing – Even If You Haven’t Realized It Yet
