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Interconnection Consulting I Vienna • Barcelona • Oberstdorf I www.interconnectionconsulting.com IC Market Tracking ® Temporary Staffing in CEE 2009 CEE-7 Key Indicators
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Page 1: Temporary Staffing in CEE 2009 - Personaldienstleister · 2015. 7. 3. · Industry production declined considerably during the recession with -13.9% in 2009. 2010 is going to be a

Interconnection Consulting I Vienna • Barcelona • Oberstdorf I www.interconnectionconsulting.com

IC Market Tracking ®

Temporary Staffing in CEE 2009CEE-7 Key Indicators

Page 2: Temporary Staffing in CEE 2009 - Personaldienstleister · 2015. 7. 3. · Industry production declined considerably during the recession with -13.9% in 2009. 2010 is going to be a

2© IC CONSULTING 2010 2

Copyright

� This report is your personal copy

� Unauthorised duplication, transmission or display of this report, or even an extract of it, are strictly prohibited

� In the event of contractual breech, the ordering company and/or persons will have to pay a contractual penalty of one hundred thousand euros.

� If you are not employed by the ordering company, please call +43 5854623-22 to obtain the authorisation to use the report

Author of the Report:Mr. Anton Voblikov� +43 5854623-70

[email protected]

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3© IC CONSULTING 2010 3

Slovak Republic: Temporary Staffing Market CEE

Highly Export Oriented Economy on the Mend

Business Environment

� After having experienced rapid growth in 2007 (+10. 6%) and still growing in 2008 (+6.2%), Slovakiadipped into recession in 2009 with a 4.7% contracti on of the GDP. A recovery for 2010 is afoot. The GDP is expected to grow by 3.4% this year. However, unemployment will reach its peak in 2010 (12.6%) and is forecasted to decline thereafter to 10.4% in 2012.

� Industry production declined considerably during th e recession with -13.9% in 2009. 2010 is going to be a good year for industry production with a plus of 15%, which means that it will almost reach levels seen before the crisis. Values of the Industrial Pr oduction Index (2005=100) were at 126.7 in 2008 and are expected to be 125.5 in 2010.

� Slovakia, like many small economies, is very export oriented with an export-GDP ratio of almost 83% in 2008, 70.1% in 2009, and 82.7% in 2010. Two very im portant indicators of economic sentiment, industry confidence and consumer confidence, had been fallin g continuously since first news of the financial crisis in 2008 emerged, but have been on the up aga in since. Industry confidence went from -30 in May 2009 to +1.2 in May 2009.

� It is a well-known fact that temporary staffing is an area most sensitive to economic ups and downs. Consequently, the figures above suggest that the do wnturn of temporary staffing in Slovakia will be transformed into a boom. Interconnection Consulting has forecasted that the temporary staffing market in Slovakia will grow by 12% in 2010, by 12.6% in 2 011 and 12.5% in 2012. Considering the large losses of 2009 (-21.4%), this means that the market value of 2008 will be reached again approximately at the end of 2011.

� This boom is backed by analysis that the car market – a very important part of the Slovak export-oriented industry – has recovered after the crisis. Industry production of transportation machinery increased by 20.6% in June 2010 (yoy).

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4© IC CONSULTING 2010 4

Slovak Republic: Temporary Staffing Market CEE

Varied Motivations for Temporary Workers

Business Environment

� TAW agencies have to react fast to changes in the b usiness environment. The importance of the car sector and the electrical industry, where positive developments have been witnessed, is a main driver of the development of temporary staffing in Slovaki a.

� The temporary staffing market in Slovakia has been regulated since 2004. Since that year the turnover as well as the number of agency workers has risen c ontinuously until the crisis of 2008. TAW relations in Slovakia are based on Labour Code, which defines employment and working conditions for temporary workers. TAW is however not regarded as a sector but as a form of personnel services to other branches of economy and collective bargaining as well as collective agreements are not applicable to TAW.

� TAW relations in Slovakia are based on an employmen t contract either between TAW agency and an employee or between a user company and an employee. Most of the employment contracts are signed for a maximum period of 6 months. However, Slovakia n law does not restrict the time of assignments.

� According to employers the main reasons for hiring temporary workers are as follows: possibility of flexible reaction to changes of the business cycle, demand for unskilled or specialised personnel as well as seasonal demand, reduction of the labour co st in the company (no contribution to compulsory insurance) as well as reduction of HR management.

� As one of the main motivation for job seekers to ta ke on temporary employment is the possibility of gaining more and differentiated work experience as well as on-the-job training. However, most of the temporary workers come from regions with high unemp loyment rates, so that the temporary work is the only chance for them to find any employment. Al most half of temporary workers in Slovakia (44%) are ‘unskilled’.

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5© IC CONSULTING 2010 5

Czech Republic: Temporary Staffing Market CEE

Comeback of Czech Exports Expected

Business Environment

� The Czech Republic had high rates of growth in the years leading up to the financial crisis (+ 6.8% in 2006), but a contraction of 4.1% in 2009. This was primarily caused by a sharp slowdown in industry production, automobile industry and external demand .

� Industry production declined by 1.8% in 2008 and by 13.6% in 2009. In 2010, industry production is expected to increase by 6%, in 2011 by 5.5%, and in 2012 by 5%. In terms of the Industrial Production index, this means that the level of 2007 (119.8; 20 05=100) will be reached again in 2012 (forecast: 119.3). Industry confidence has shown improvements only in recent months and has risen from -15 in September 2009 to 2.8 in May 2010. It had been as l ow as -34 in February 2009. Consumer confidence has risen from a low of -28.6 in February 2009 to - 9.8 in May 2010.

� Exports and imports dropped significantly in 2009 ( imports: from 142 billion USD to 105 billion USD, exports: from 146 billion USD to 113 billion USD). Both areas are recovering though, with forecasts indicating that imports will reach 110 billion USD in 2010, 122 in 2011 and 138 in 2012. Exports will reach 116 billion this year and climb up to 142 bil lion in 2012 – this is almost the level of 2008 (146 billion). Germany is the main origin of imports int o the Czech Republic with 30.8% of goods coming from there. Machinery and transportation equipment accounts for more than half of Czech exports (53%).

� The recession has hit the temporary staffing market in particular, as in the other countries of the CE E region. A minus of 19.2% in 2008 in terms market va lue was recorded. However, future growth rates can be expected to be a considerable 8.5% in 2010 and 1 0.4% in 2011.

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6© IC CONSULTING 2010 6

Czech Republic: Temporary Staffing Market CEE

Industrial Upswing Props up Temporary Staffing

Business Environment

� Temporary workers in Czech Republic are employed ma inly by international companies in the industrial sector. The share of industry as a custom er segment of temporary staffing in the Czech Republic is 46.6% (2010). Thus, the above quoted po sitive development in the industrial sector is an important driver of the expected boom of temporary staffing in the Czech Republic. Temporary staffing firms will increase their share of industrial worke rs if they have not already done so in the past mon ths.

� The temporary staffing market in Czech Republic has existed since 2004 but it is still less developed than in the old EU Member States. Similarly to the most Eastern European countries, TAW in Czech Republic is not regarded as an economic sector but as a personnel service to other branches of the economy.

� TAW relations in Czech Republic are not covered by a special law on TAW but regulations of Labour Code and the act on employment are applicable to it . Therefore, TAW relations are based on written arrangements in an employment contract or agreement on work. The employee is bound to the user’s instructions included in the agreement. The Labour Code does not restrict the extent of agency work and the duration of assignments. It is the role of “triangular-relations” between user company, temporary work agency and temporary worker.

� According to employers the main reasons for hiring temporary workers are as follows: possibility of flexible reaction to changes of the business cycle, seasonal labour demand and reduction of the labour cost in the company.

� The main motivation for job seekers to take tempora ry employment is unemployment. Most of the temporary workers have low qualifications or no qua lifications at all. On the whole it is still regard ed disadvantageous to work in short-term employment.

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7© IC CONSULTING 2010 7

Poland: Temporary Staffing Market CEE

Poland Not as Affected by Crisis

Business Environment

� Changes in the GDP of Poland during the crisis were less dramatic than in some o f the other CEE region’s states. Poland’s GDP did not contract in 2 009 (+ 1.8%) and after an expected plus of 3% in 2010 is forecasted to increase by 3.4% in 2011. How ever, exports dropped from 171 billion USD in 2008 to 148 in 2009 and bounced back to 157 billion in 2010. Imports dropped from 206 billion in 2008 to 150 billion in 2009 and will rise to 167 in 2010. It is important to note that the ratio of exports/GDP is relatively low in Poland (39.9% in 2 008, 41.2% in 2010) and therefore the country is less vulnerable to external economic developments.

� Private consumption did not decline during the inte rnational economic crisis and is set to reach 848 billion PLN in 2010 (up from 825 billion in 200 9).

� Unemployment is at 12.5% in 2010 and will be decrea sing gradually until 2013 when it is expected to be at 9.5%. Indicators of confidence were relati vely low in 2009 (industry: -24 , consumers: -26) but are expected to recover throughout 2010 (May 20 10: industry -13.9, consumers -16).

� The Polish market for temporary staffing, which con tracted by 10.9% in 2009, will recover due to a diversified Polish economy which will be further bo osted by the 2012 European Football Championship. According to Interconnection Consulti ng forecasts, growth rates will be around 13% in the coming two years.

� This has to be interpreted with the recovering indu strial sector (+10% production in 2010, +8% in 2011) in mind. Previously, the drop of 3.8% in indu strial production (2009) had caused problems for temporary staffing in Poland.

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8© IC CONSULTING 2010 8

Poland: Temporary Staffing Market CEE

Temporary Staffing Is an Important Part of Economy

Business Environment

� Temporary staffing in Poland became an important pa rt of Polish economy and in recent years it has experienced a dynamic growth. According to Inst itute of Public Affairs temporary staffing market can be regarded as a separate sector. Almost 45% of companies on the Polish market declared hiring temporary workers and around 97% of temporary workers were employed in Poland. 3% of them were directed to other countries like Holland, Norway, France and Germany.

� Temporary staffing market is regulated by a law on temporary employment from 2003 which has been amended at the beginning of 2010. Individual t emporary relations are based on two types of contract: civil contract and employment contract su bjected to the Labour Code. TAW in Poland is subjected to collective bargaining.

� Polish regulations on temporary staffing were amend ed at the beginning of 2010. Now, workers can be assigned to an employer for 18 months within a 3 6 month period.

� According to employers, the main reasons for hiring temporary workers are as follows: possibility of flexible reaction to changes of the business cyc le, seasonal labour demand, lack of workforce at labour market, reduction of HR costs. Moreover, “th e Polish labour market is becoming very much an employees’ market, with employers struggling to r ecruit the stuff they need”.

� The main motivation for job seekers to take up temp orary employment is the possibility to find a job but it is also a conscious decision of skilled and graduated workers, who could receive higher remuneration as temporary workers than if they were employed full-time.

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9© IC CONSULTING 2010 9

Hungary: Temporary Staffing Market CEE

Hungary Hit Hard by Crisis

Business Environment

� Hungary has secured an IMF-loan in 2008 worth 25 billion US D since it had been unable to service its short term debts in the wake of the financial crisi s of 2008. Hungary’s GDP was close to stagnation (+0.5%) in 2008 and decreased by 6.3% in 2009. For 2010, a growth of 0.3% is expected and forecasts indicate that the growth rate will be 2.5% in 2011. For temporary staffing, which reacts sensitively t o changes in GDP, this is a positive signal in genera lly difficult times for Hungary, which was hit hard by the economic crisis.

� Exports dropped from 107 billion USD in 2008 to 82 billion USD in 2009 and imports from 108 billion in 2008 to 77 billion in 2009. Together with the low l evel of domestic consumption – down by 7% in 2009 –and the government’s austerity measures, these were important reasons for the contraction of GDP.

� The contraction of industry production was calculat ed to be -17.6% in 2009 and is expected to be at +6% this year.

� Positive signs can be found in indicators of confid ence. During 2009, industry confidence was at a low of -55.9 in April but has since risen to -38 in May 2010. Consumer confidence rose from -68.8 in April 2009 to -26 in May 2010.

� After the hammering of the Hungarian Forint (HUF) d ue to political instability and the economic crisis , it reached a low of 317 Forint to 1 Euro in March 2 009. It has since recovered somewhat and was at 276 HUF to 1 Euro in May 2010 (average). Interest rates in Hungary are still considerably higher than in t he EU on average with 7.5% (Hungary) to 3.4% (EU).

� After the massive hit taken by temporary staffing a gencies in 2008 (-30.8%), the sector has recovered on a low level with a plus of 6.2% in 2009. For 201 0, a plus of 14.5% is expected and +22.7% in 2011. This would mean that by 2012 the level of 2008 woul d be reached again in terms of value.

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10© IC CONSULTING 2010 10

Hungary: Temporary Staffing Market CEE

Far Reaching Changes in 2006

Business Environment

� Far reaching changes were in legislation were intro duced in Hungary in 2006 due to concerns “over undeclared work and the potential abuse of agency w orkers. First, the agency is now required to provide a user company with proof of agency worker’ s lawful status, such as employment contracts (including agreed wages) and social security detail s, as well as evidence of agency registration.”(TAWCB 2009)

� If a temporary employment agency fails to provide t he above documents, it is being assumed that that the employment relationship exists with the user en terprise. The intended effect of this is that the us er company looks after temporary workers too. The law also entails provisions that temporary workers are entitled to the same pay as permanent staff.

� According to employers the main reasons for hiring temporary workers are as follows: possibility of flexible reaction to changes of the business cycle, seasonal labour demand and reduction of the labour cost or cost of HR management in the company, repla cement of company workers that do not meet company requirements, replacement workers on leave and project work.

� The main motivation for job seekers to take tempora ry employment is the high unemployment, better working conditions or even individual needs for fle xibility in the professional life.

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11© IC CONSULTING 2010 11

Slovenia: Temporary Staffing Market CEE

Slovenia Recovering After Crisis

Business Environment

� Slovenia, the ‘model pupil’ of Central and Eastern European st ates, could not escape the economic downturn. Although it was not hit as badly as neigh bouring Hungary, the GDP still contracted by 7.8% in 2009. It is expected to grow again in 2010 (+1.3 %) and 2011 (+2.1%). Figures have just been release d that the second quarter of 2010 was the first with significant growth rates since the start of the recession in September 2008.

� Industry production declined by 17.5% in 2009, and for 2010 a growth of 5.5% is expected. This is an important indicator for the development of temporar y staffing since around 40% of all temporary workers can be found in the industrial sector.

� The two leading indicators, industry confidence and consumer confidence, have been displaying positive trends. Consumer confidence rose from -41. 1 at the start of 2009 to -23.4 in May 2010 and industry confidence even reached positive figures w ith +0.4 in May 2010 – it had been -35.2 at the beginning of 2009.

� Slovenia is vulnerable to external economic develop ments with and export-GDP ratio of 59% in 2009 and an expected rate of 55% in 2010. This rate had been as high as 70% in 2007 and will very probably rise again once the economic situation improves – th e currently forecasted ratio is 73.5% for 2013.

� Exports collapsed during the crisis (-15.6% in 2009 ) but are now recorded at growth rates of 3.7% (2010).

� The current situation sends positive signals to tem porary staffing agencies, although it will take som e time to recover form the shocks of 2009 where a min us of 24.2% was recorded. Currently the temporary staffing market is growing at 8.8% (2010) and will grow a further 9.6% in 2011.

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12© IC CONSULTING 2010 12

Slovenia: Temporary Staffing Market CEE

Temporary Work as Chance to Enter Labour Market

� Temporary staffing in Slovenia represents an integr al part of its market. Its is comparatively well regulated. TAW relations are based on Law on Labour Relations, Law on Employment and Unemployment Insurance, Law on Public Agencies, Reg ulations on conditions for performing the activity of employment agencies and Decree on payme nts to employment brokerage agencies. TAW services have strongly developed in the past years, mostly due to the lack of low educated as well as qualified workers in the view of recent stable and dynamic economic growth. Collective bargaining is not applicable to TAW.

� The individual TAW relations are based on an employ ment contract, that is narrowly defined in Law on Labour Relations. The employment contract between t emporary worker and a temporary work agency can be signed as a fixed-term contract (definite) o r open ended contract (indefinite). The duration of assignment is restricted by law to 1 year. On avera ge temporary workers are employed for 6 to 12 months. About 30% become permanent employment contr acts by the user company. Temporary workers are mostly employed by large international companies from such sectors like industry, commerce and logistics.

� According to employers the main reasons for hiring temporary workers are as follows: possibility of flexible reaction to changes of the business cycle, seasonal labour demand, lack of workforce at labou r market, reduction of HR costs.

� The main motivation for job seekers to take tempora ry employment is the possibility to find an employment for first-time job seeker or for people re-entering the labour market.

Business Environment

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13© IC CONSULTING 2010 13

Bulgaria: Temporary Staffing Market CEE

Young Market Will Expand in the Future

Business Environment

� Up to 2008, Bulgaria experienced GDP growth rates of up to 6.6% (2004) a nd the rate was 6% in 2008. The crisis hit in 2009 when the GDP contracte d by 5% and by 0.1% in 2010. Needless to say, this had significant impact on the temporary s taffing industry as well.

� While industrial production grew at 9% in 2007, it expanded by only 0.8% in 2008 and shrank by 17.4% in 2009. Industrial production is expected to grow by 1.4% in 2010.

� Exports, which made up 60.5% of Bulgaria’s GDP in 2 008, declined considerably from a value of 23 billion USD in 2008 to 17 billion in 2009. Bulga ria’s confidence indicators have not shown significant change throughout 2009. Industry confid ence was at -14.9 in August of 2009 and at -9.3 in May 2010. Consumer confidence was at a low o f -50 in March 2009 and measured at -43 in May 2010.

� Unemployment in Bulgaria is currently at 9.6% and w ill decline in the years to come. In 2013 it will be 6.3% according to current forecasts. Privat e consumption, which fell by 6.3% in 2009, will recover and grow again in 2011 (+1.9%)

� Given these signals, temporary staffing in Bulgaria has been forecasted by IC Consulting to grow by 8% (2010) and 9% (2011).

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14© IC CONSULTING 2010 14

Bulgaria: Temporary Staffing Market CEE

Still Waiting for Regulation

Business Environment

� The temporary staffing market in Bulgaria started t o develop strongly only in the second half of 2006. Till now Bulgarian government did not manage to regulate this market. Consequently, TAW relations are not based on any legislation and it can not be treated as a sector. Moreover, employment relations are based on civil contracts, which have no foundation in labour legislation.

� The last time (2007) the Ministry of Labour and Soc ial Policy suggested a new draft of laws aiming at regulation of temporary staffing market i n Bulgaria, this draft was rejected by representatives of trade unions.

� Back then, employers put even more pressure on Bulg arian Ministry to regulate the temporary staffing market in a way that would allow more flex ible forms of employment. The main argument was to decrease the number of potential em ployees till 2008. According to representatives of the Institute of Social and Trad e Union Research (ISTUR) in Sofia, there had been 17% deficit of employees in some sectors in 20 07.

� In Bulgaria, temporary employment has no legal basi s as such. However, a legal review is currently in progress.

� Agency work in Bulgaria is limited and regulated un der a contract of services. For agency workers, this means that there is little regulation of working conditions. Both unions and employers have called for legislation.

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15© IC CONSULTING 2010 15

Romania: Temporary Staffing Market CEE

Economic Growth With Positive Effect on TAW

� Romania has experienced very strong growth in the past year s, reaching 7,1% in 2008. This development was based to a large degree on foreign direct investments. Consequently, in economically positive times, Romania presents a hig h potential market but at the same time it bears high risks in times of economic crisis.

� Latest figures for industry production show that th e contraction of 2009 (-5.5%) will be overcome in 2010 when 5% growth can be expected. In the years to come, growth will be between 3% and 5%.

� Indicators of confidence have been declining slight ly in the first half of 2010 in the area of consumers. They were at -47.7 in January 2010 and - 55.6 in May 2010. Industry confidence stayed approximately at the same level. It was -10. 2 in January and -9.9 in May 2010.

� Unemployment will reach its peak in 2010 with 10.9% and decline thereafter to 10.3% in 2011 and 9.6% in 2012. That rate of consumer price increases , which were +7.8% (yoy) in 2008, have slowed down since and are expected to be at 4.5% in 2010.

� Temporary staffing is expected to show growth rates of up to 11% (2012) which is to a large degree due to the fact that the biggest customer se gment, the industry, is expected to develop positively in the coming years.

Business Environment

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16© IC CONSULTING 2010 16

Romania: Temporary Staffing Market CEE

Temporary Work in Seasonally Sensitive Sectors

Business Environment

� Romania is a good example for a country where tempo rary workers are used to counter shortages in seasonally sensitive sectors. For inst ance, it is used to replace employees taking summer or Christams holidays in sectors such as manu facturing, civil engineering, retail, IT, and secretarial services.

� The temporary staffing market in Romania has existe d since 2003. However, the strong growth was accelerated only in 2006. TAW is regulated in d etail and seen as a sector in Romania providing services to other sectors of economy.

� TAW relations are based on Labour Code. There are t wo types of employment contracts applicable to TAW: employment contract between a te mporary work agency and an employee –temporary employment contract, employment contract between a temporary work agency and an user company – sourcing contract. According to on e of the leading temporary staffing companies in Romania, the length of an average assi gnment is 3 months.

� According to employers the main reasons for hiring temporary workers are as follows: possibility of flexible reaction to changes of the business cycle, demand for unskilled or specialised personnel as well as seasonal demand.

� The main motivation for job seekers to take tempora ry employment is the possibility of gaining more and differentiated work experience as well as on-the-job training. Moreover, there is a higher probability of receiving a permanent employm ent by the preferred employer or to be directed to other EU Member States.

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17© IC CONSULTING 2010 17

Definitions & DemarcationsCEE-7: Remarks to Calculations

Source: CIETT 2010, IC Consulting

� Total number of private employment agencies is the total number of private employment agencies in one country (active or in active) with a total n umber of branches in one country.

� Total number of internal staff is the total number of internal employees working for all private agencies in one country.

� Total number of individual agency workers on a year ly basis is the sum of all individuals having worked as an agency worker for at least one hour ov er a period of one year in one country.

� Full Time Equivalent is the total number of hours w orked by all agency workers in a country over a period of one year divided by the average number of hours worked over a period of one year by a worker with a full-time job with an open-ended cont ract. In case of not exact data FTE can be calculated pro-rata: full-time employed counts as 1 00%, part-time employed for 20 h counts as 50% and the average duration of assignments is expresse d as a % of 12 months. Thereby the most important data for such calculation are, above the total number of temporary workers, the average duration of assignments, share of part-time and ful l-time employed.

� Average number of hours worked by an individual age ncy workers during one year has been calculated as a division of the total number of hou rs worked by all agency workers in a country during one year by the total number of agency worke rs in a country during one year.

� Agency work penetration rate has been calculated as follows: daily average number of agency workers (FTE as defined above) divided by the total active working population in a country.

� Total number of assignments is the sum of all assig nments by all agency workers in one country over a period of one year where one assignment is e quivalent to one individual executing the same occupation in the same company (can include multipl e renewals of contract).

� Average length of assignments is the total number o f hours worked divided by the total number of assignments.

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18© IC CONSULTING 2010 18

5,8 3,33,56,8 2,4 3,0

-7,8

1,2

1,70,6 1,50,90,82,73,0-4,0

'06 '07 '08 '09 10e 11f 12f 13f

SLO Euro Area

4,0 3,3

0,61,0

2,6 3,5

-6,3-0,3 1,7

0,6

1,50,9

0,82,7

3,0 -4,0

'06 '07 '08 '09 10e 11f 12f 13f

HU Euro Area

8,53,86,2

10,6

3,2 3,6

-4,7

3,0

1,70,6 1,50,90,82,73,0 -4,0

'06 '07 '08 '09 10e 11f 12f 13f

SK Euro Area

6,8 3,22,56,1

2,0 3,3

-4,2

0,9

1,70,6 1,50,90,8

2,73,0-4,0

'06 '07 '08 '09 10e 11f 12f 13f

CZ Euro Area

6,2 3,45,06,83,4 3,71,8 3,0

1,70,6 1,50,90,82,73,0

-4,0

'06 '07 '08 '09 10e 11f 12f 13f

PL Euro Area

Hungary Strongest Affected By Crisis

Poland

Europe CEE 5: Real GDP change from previous year in %

Czech Republic Slovakia

Hungary Slovenia

Source: European Commission, 2010

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19© IC CONSULTING 2010 19

7,9 5,27,16,04,0 4,9

-7,1

0,3 1,7

0,6

1,50,90,82,73,0-4,0

'06 '07 '08 '09 10e 11f 12f 13f

RO Euro Area

6,3 4,56,06,22,8 4,0

-5,00,1

1,70,6 1,50,90,82,73,0

-4,0

'06 '07 '08 '09 10e 11f 12f 13f

BG Euro Area

Bulgaria And Romania Will Sharply Slow Down

Bulgaria

Bulgaria and Romania: Real GDP change from previous year in %

Romania

Source: European Commission, 2010

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20© IC CONSULTING 2010 20

1.377.1331.529.744

1.265.563 1.371.4001.529.209

1.733.2251.919.675

2007 2008 2009 2010e 2011f 2012f 2013f

10,8%13,3%11,5%8,4%11,1%

-17,3%

8,7%

CAGR 09-13f

Personnel Services: Total Market Development 2007 - 2013f

Total Market Analysis & Forecast

Turnover in 1.000 EUR

Annual Change in

%

Forecast

Strong Increase After 2009

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21© IC CONSULTING 2010 21

Personnel Services: Turnover in Mio. € and Share of Sales in %, 2009

Total Market Analysis & Forecast

77,7% by Temporary Staffing Activities

99.159

198.077

1.021.197

OtherServices

PermanentStaffing

TemporaryStaffing Other

Services 7,5%

Permanent Staffing 15,0%

Temporary Staffing 77,5%

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22© IC CONSULTING 2010 22

187.753215.364

186.824 205.015 219.920240.526

263.057

2007 2008 2009 2010e 2011f 2012f 2013f

9,4%9,4%7,3%9,7%14,7%

-13,3%

7,1%

CAGR 09-13f

Permanent Staffing: Total Market Development 2007 - 2013f

Total Market Analysis & Forecast

Turnover in 1.000 EUR

Annual Change in

%

Forecast

9,7% Change in 2010

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23© IC CONSULTING 2010 23

103.753 105.66095.342 98.039

110.222123.333

135.433

2007 2008 2009 2010e 2011f 2012f 2013f

9,8%11,9%12,4%2,8%1,8%

-9,8%

7,3%

CAGR 09-13f

Other Services: Total Market Development 2007 - 2013f

Total Market Analysis & Forecast

Turnover in 1.000 EUR

Annual Change in

%

Forecast

Other Services With 7,3% CAGR

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24© IC CONSULTING 2010 24

1.085.6271.208.720

983.396 1.068.3471.199.067

1.369.3661.521.186

300.157315.856

254.800

295.033272.332

340.573

373.5592007 2008 2009 2010e 2011f 2012f 2013f

11,1%14,2%12,2%8,6%11,3%

-18,6%

6,9%

-19,3%

5,2% 9,7%8,3% 15,4%Value

Quantity

8,0%

9,1%

CAGR 09-13f

Total Market Analysis & Forecast

Quantityin

Employees

Turnover in 1.000 EUR

Annual Change in

%

Temporary Staffing: Total Market Development 2007 - 2013f

Number of Employees Decreased on 19,3% in 2009

Forecast

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25© IC CONSULTING 2010 25

147.357114.693 123.554 136.978

160.901179.166

119.351

96.548103.878

112.099

128.499

139.976

50.235

43.55844.900

51.172

54.417

140.810

111.834

45.95647.513

2007 2008 2009 2010e 2011f 2012f 2013f

4,6%

9,3%

7,7%

CAGR 09-13f

Total Market Analysis & Forecast

Qualifications: Market Development 2007 – 2013f, Quantity

Skilled & Handcraft

Unskilled

Graduates & Others

Forecast

Unskilled will Reach 179.166 in 2013...

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26© IC CONSULTING 2010 26

46,9% 46,5% 45,0% 45,4% 46,4% 47,2% 48,0% 46,4%

37,3% 37,7% 37,9% 38,1% 38,0% 37,7% 37,5% 37,8%

15,8% 15,8% 17,1% 16,5% 15,6% 15,0% 14,6% 15,8%

2007 2008 2009 2010e 2011f 2012f 2013f Avg, Share

Total Market Analysis & Forecast

Qualifications: Market Development 2007 – 2013f, Quantity in %

Skilled & Handcraft

Unskilled

Graduates & Others

... And Increases to 48% of the Market

Forecast

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27© IC CONSULTING 2010 27

61.729 53.804 55.965 60.015 67.659 73.355

164.222

125.707 136.516149.525

172.948191.015

12.763

10.86012.506

14.908

17.104

40.70541.715

35.70038.277

40.871

47.220

51.57837.838

40.509

58.941

155.621

11.198 12.133

29.06828.728

35.42733.693 32.489

2007 2008 2009 2010e 2011f 2012f 2013f

6,4%

9,5%

7,6%

7,1%

8,7%

CAGR 09-13f

Total Market Analysis & Forecast

Forecast

Job Groups: Market Development 2007 – 2013f, Quantity (New Segmentation)

136.516 in Industry & Engineering in 2010

Services

IT/Telecoms

Admin & Office

Others

Industry & Engineering

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28© IC CONSULTING 2010 28

19,6% 19,5% 21,1% 20,6% 20,3% 19,9% 19,6% 20,3%

51,8% 52,0% 49,3% 50,1% 50,7% 50,8% 51,1% 50,4%

3,7% 4,0% 4,3% 4,6% 4,1% 4,4% 4,6% 4,4%

13,6% 13,2% 14,0% 14,1% 13,9% 13,9% 13,8% 13,9%

11,2% 11,2% 11,3% 10,7% 11,0% 11,1% 10,8% 11,0%

2007 2008 2009 2010e 2011f 2012f 2013f Avg, Share

Total Market Analysis & Forecast

Job Groups: Market Development 2007 – 2013f, Quantity in %Forecast

Industry is Market Leader With Over 50% Shares

Services

IT/Telecoms

Admin & Office

Others

Industry & Engineering

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29© IC CONSULTING 2010 29

Table of Contents

I. The Players

III. Profile of Agency Workers

II. Agency Workers in Numbers

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30© IC CONSULTING 2010 30

Table of Contents

I. The Players

III. Profile of Agency Workers

II. Agency Workers in Numbers

1. Total number of private employment agencies and Branches

2. Total number of internal staff

3. Total annual sales revenues of the industry

5. Growth of the Industry by revenue (year-on- year)

4. Turnover Breakdown

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31© IC CONSULTING 2010 31

Poland Still with Most PEAs…CEE-7: Number of Private Employment Agencies and Branches 2009

The Players

59

131

129

335

667

1.598

1.842

140

182

194

465

977

2.042

2.291

Slovenia

Bulgaria

Romania

Slovakia

Hungary

Czech Rep.

Poland

BranchesPrivate employment agencies

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32© IC CONSULTING 2010 32

…and the Highest No. of Internal StaffCEE-7: Number of Internal Staff 2009

The Players

368

535

1.007

2.723

2.735

3.518

4.236

Slowenien

Bulgaria

Slowakei

Ungarn

Czech Rep

Romania

Poland

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33© IC CONSULTING 2010 33

Romania is Almost as SlovakiaCEE-7: Total annual sales revenues of the industry 2009

The Players

18.279

78.261

78.746

107.265

223.343

226.136

533.532

Bulgaria

Romania

Slovakia

Slovenia

Czech Republic

Hungary

Poland

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34© IC CONSULTING 2010 34

81,8%

85,7%

71,4%

71,1%

53,8%

86,5%

62,0%

12,1%

10,8%

22,6%

22,8%

13,5%

10,7%

35,0%

6,0%

6,1%

32,7%

6,1%

2,8%

3,0%

3,5%

Poland

Slovakia

Romania

Czech Republic

Slovenia

Hungary

Bulgaria

Temporary StaffingPermanent StaffingOther Services

Temporary Staffing is Leader in All CountriesCEE-7: Turnover Breakdown 2009 (in %)

The Players

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35© IC CONSULTING 2010 35

-6,3%

-15,0%

-19,2%

-21,3%

-21,4%

-24,2%

-25,0%

Poland

Romania

Czech Republic

Bulgaria

Slovakia

Slovenia

Hungary

All With Market DecreaseCEE-7: Growth in terms of value of the Industry year-by-year 2008/2009

The Players

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36© IC CONSULTING 2010 36

Table of Contents

I. The Players

III. Profile of Agency Workers

II. Agency Workers in Numbers

1. Total number of individual agency workers on a y early basis (headcount)

2. Total numbers of hours worked by agency workers

3. Agency work penetration rate

4. Average number of hours worked

5. Total number of assignments

6. Average length of assignment

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37© IC CONSULTING 2010 37

Lowest FTE in SloveniaCEE-7: Number of Agency Workers and FTEs 2009

Agency Workers in Numbers

2.828

5.959

14.492

10.160

34.266

22.153

85.101

6.074

8.894

26.101

48.844

56.411

109.991

495.661

Slovenia

Bulgaria

Slovakia

Czech Republic

Hungary

Romania

Poland

No. of Agency WorkersFTEs

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38© IC CONSULTING 2010 38

Poles Worked 121.834 in 2009CEE-7: Total Number of Hours Worked by Agency Workers 2009 (in Thousand)

Agency Workers in Numbers

7.029

10.200

24.732

28.236

53.903

58.901

121.834

Slovenia

Bulgaria

Czech Republic

Slovakia

Romania

Hungary

Poland

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39© IC CONSULTING 2010 39

CEE-7: Agency Work Penetration Rates 2009

Highest Penetration Rate in Czech Republic

Agency Workers in Numbers

1,4%

1,0%

0,8%0,7%

0,5%0,4% 0,3%

CzechRepublic Hungary Slovakia Romania Bulgaria Poland Sloveni a

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40© IC CONSULTING 2010 40

Slovakia Work MostCEE-7: Average Number of Hours Worked per Agency Worker 2009

Agency Workers in Numbers

288

437

437

840

910

1.014

1.021

Poland

Czech Republic

Romania

Hungary

Bulgaria

Slovenia

Slovakia

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41© IC CONSULTING 2010 41

Slovenia with the Lowest No. of AssignmentsCEE-7: Number of Assignments 2009

Agency Workers in Numbers

4.309

9.615

31.547

32.003

44.147

136.736

350.933

Slovenia

Bulgaria

Hungary

Slovakia

Czech Rep.

Romania

Poland

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42© IC CONSULTING 2010 42

Poland With Shortest Duration in 2009CEE-7: Average Duration of Assignments 2009 (in Months)

Agency Workers in Numbers

6,8 6,66,0 5,9

3,73,1

2,4

Slovakia Slovenia Bulgaria Hungary Czech Rep Romania Pola nd

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43© IC CONSULTING 2010 43

Table of Contents

I. The Players

III. Profile of Agency Workers

II. Agency Workers in Numbers

1. Age distribution

2. Gender distribution

3. Initial education of agency worker

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44© IC CONSULTING 2010 44

Czech Republic with Highest Share of Young Workers

<21

21-25

26-30

31-45

>45

CEE-7: Age Groups 2009

Profile of Agency Workers

6,0% 5,0% 4,4%10,2% 6,6% 7,0% 4,5%

28,8%21,8% 22,0%

24,0%24,4% 19,5%

16,9%

23,3%

24,5% 26,3%

29,7% 32,9%34,0% 43,0%

33,4%

32,0% 31,9%

23,4% 23,8% 34,0% 27,3%

8,4%16,8% 15,4% 12,7% 12,3%

5,5% 8,3%

RomaniaCzech

Republic Hungary Poland Slovakia Slovenia Bulgaria

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45© IC CONSULTING 2010 45

Slovenia and Slovakia Dominated by Men

Male

Female

CEE-7: Gender Distribution 2009

Profile of Agency Workers

44,4% 45,4%51,3% 51,5% 51,5%

56,0% 57,1%

55,6% 54,6%48,7% 48,5% 48,5%

44,0% 43,0%

Hungary Poland Bulgaria RomaniaCzech

Republic Slovenia Slovakia

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46© IC CONSULTING 2010 46

Bulgaria With Over 45% Graduates

Graduates & Others

Unskilled Worker

CEE-7: Initial Education of Agency Workers 2009

Skilled & Handcraft

Profile of Agency Workers

28,9%

41,2% 43,0% 43,6% 47,8% 47,6%55,5%

26,0%

27,6%

42,0% 38,0%

42,4% 38,5%33,0%

45,1%

31,2%

15,0% 18,4%9,8% 13,9% 11,5%

Bulgaria Romania Slovakia PolandCzech

Republic Hungary Slovenia


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