Insights

How to continue cooperation with an employee who has to be laid off?

13.04.2020

Every day we receive more news about the redundancy and unfortunately the unemployment rate will be getting only higher within the coming months. Being laid off means a great loss for the employee, not only in terms of income, but often they will be also losing the work they enjoy, their dear colleagues, and daily work routine. However, the consequences of the redundancy are also tough for the employer.

Over the past years, the biggest challenge for the employers has been the deepening shortage of labor. The employers have been boosting their creativity to stand out with their hiring activities. They have been focusing on the employer branding, generating unbelievable motivation packages, and much more. All this to become an attractive employer to great candidates and to their own employees. Now, suddenly and in a very short time period, the employers have found themselves in the situation where, after all the effort and care invested, they will have to lay off some of those employees.

However, the reasons for redundancy can be very different. In one case, the employer indeed has no possibility to provide work or salary. In second case, which applies mostly to international and large corporations, the redundancy is part of the organisational strategy of lowering HR costs but keeping the work-load same. In both cases, the organisation will lose through redundancy employees with important knowledge and skills. But on the second case, there is a solution to help companies out – personnel leasing and staffing service.

What is personnel leasing?

This service allows the organisations to continue the cooperation with their current employees by handling over their employees to a staffing service provider and outsourcing them through the agency. Personnel leasing fee is a service fee and will not display in HR expenses, which in return will downsize the personnel costs. This will allow the company to keep their staff with critical qualification and continue working with full productivity with a lower HR cost. Furthermore, in case of change in the situation or strategy, the company will be able to take back their employees, without the need to start the hiring activities and trainings for new employees.In summary, personnel leasing and staffing service gives a great flexibility to companies and help them continue the cooperation with their employees.

Simplika has operated in Estonia since 2004 and provides personnel leasing and staffing services for organizations who cannot or in some cases decide not to hire their employees directly. More information https://simplika.ee/en/.

 

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