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... as the world labor markets mature, we have the potential to ... Mainly replacement secretaries for vacations and illness cases. Local Practice Barona O ... – PowerPoint PPT presentation

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Title: Contractual

Contractual Temporary Employment Services
  • The Contractual employment is setup while the
    service provider renders number of people to be
    deployed by customer organisation on daily basis
    whereas those individuals are formally employed
    by service provider.
  • Also called temporary employment services

As opposed to
  • Outsourced Service
  • Within the outsourced service framework the
    operational controls over the work process remain
    with the contracted company
  • Contract with a private enterprenuer
  • The contractual relations are with the private
    individual who performs agreed tasks

Why Contractual?
To set off volatility of workload
  • Flexibility to obtain and release excess resource
    depending on business needs
  • Opportunity to use external recruiters resource
    for staffing up promptly

To Manage Headcount
  • Productivity indicator management limits the
    recruitment of full time employees in public
  • Contractual employees enable companies to
    complete the business actions without
    contradicting corporate headcount limits

To satisfy local needs of employment
  • Employment relations have local character taxes,
    insurances, pension-schemes etc. All that needs
    to be administrated by employer
  • Contracatual employment provides Plug Play
    environment for non-resident employers without
    building its own administrative procedures in
    each location

Managing specific competencies
  • Companies have difficulties to maintain the
    professional development of unique professionals
    in the company
  • Contractual employment services company can team
    together specific professionals that will enable
    individuals to maintain their professional

To manage risks
  • Responsibility with the institutional partner as
    opposed to private individual allows to decrease
    the risks

  • All in all better quality and flexibility on the
    same cost level.

Global Temp Industry
  • Total Industy turnover of 140 billion
  • Temp staffing doubled since 1980
  • Over 2 of workforce in major markets
  • Biggest Players
  • Manpower
  • Adecco
  • Established business practice in Central European
    countries PL/CZ/HU

Manpower blue collar
  • Turnover in 2002 reached 11.8 billion
  • Present in 63 countries, staffing 1.6 million
  • On a global scale, it is clear that there is
    great opportunity for our industry to grow, as
    only a handful of countries have more than 1 of
    their working population in flexible employment
    environments, while all mature markets are over
    2. This means that, as the world labor markets
    mature, we have the potential to double our
    business in nearly every country in our network.
    CEO of Manpower, Mr. Jeffrey A. Joerres

Adecco white collar
  • Turnover in 2002 stabilised at 17,9 billion
  • Present in 63 countries, 650 000 associates
  • 64 revenues from Europe, and over 50 of that
    from France

Effects on Society
  • Liquidity of labour market
  • Less rigid deployment of an individual more
    activity from potential employers decreased
    unemployment and increased economic growth
  • Better chances for people with special needs

Where is already operational?
  • Construction industry
  • Port
  • Sales frontdesk

What are the obstacles
  • Legal environment
  • Changed model of managerial control -
    predictability and feeling of security
  • Prestige of employers (size matters!)

Influence on employees
  • White collar
  • earning opportunity professional
  • - additional enterpreneurial risk
  • Blue collar
  • increased opportunities of deployment
  • - shorter periods of clear engagement

Legal progress in Lithuania
  • Changes of the Labour Code
  • Expected status achieved status
  • Current activity

Local Practice - Helmes
  • Contractual employees in IT field
  • Competency based advantages
  • Better challenge and learing environment for the
    IT specialists
  • Contracts from 3-24 months
  • So far 25-30 loyal customers

Local Practice CVO Group
  • Responsive to need of international customers
  • Providing Plug Play environment
  • Expanding practice on generalist temporary
  • Advantage in effective recruitment capability

Local practice Varumees
  • Blue collar employees in Muuga Port
  • Staffing up the loading teams for stividoring
    activities in the Port
  • 80-350 contracuals deployed at the time
  • Employees have contracts for definite time period
    (1-3 month)
  • Short lead times to recruit unemployed people
    from surrounding areas

Local Practice - Sekretärikeskus
  • Wide scope of secretarial services including
    contractual employees for secretarial jobs
  • Mainly replacement secretaries for vacations and
    illness cases

Local Practice Barona OÜ
  • One of major Finnish serviceproviders
  • Establishing operations in Estonia to satisfy
    Finnish corporate customers that have already
    daugther companies in Estonia
  • No active practice in Estonia yet

Local Practice - Alfa
  • Well established in Finland
  • Have shown initiative to establish operations in
    Estonia by advertising CEO position and carrying
    out market research
  • Have not established Estonian operations yet

Local Practice Sales Campaigns
  • OÜ Sales Force OÜ Pulver in Estonia
  • Trained and ready-to-use employees to be deployed
    at POS promotional campaigns
  • More of a type of outsourcing the whole activity
    than temp agency