5 Reasons Why Temporary Labour Should Be a Big Point in Your 2019 Budget
It’s a fact that using a staffing agency to hire temporary employees gives your company many benefits. Filling vacant positions can be time consuming and cost the company lost productivity and revenue. But did you know there are also benefits to using a staffing company that hires workers under the A1 program?
What is the A1 Program?
Briefly, the A1 program allows temporary staffing agencies, such as Contrain, to hire employees in an EU country (for example: Poland), and send them to work abroad in other EU countries. There are certain benefits for the clients of staffing agencies that are under this program.
Benefits of the A1 Program
- Competitive Price
The A1 legislation allows employees from one country to work abroad within the EU, all the while maintaining their social security contributions in their home country, rather than where the client company is based. Since Poland requires a relatively lower amount of social contributions, this makes up the difference in price between Polish A1 agencies and local providers.
- Higher Net Salary for Temporary Workers
Every agency is required to follow the Equal Pay rules and keep paying the same gross salary to their employees, just as the user employer would do. However, thanks to the lower amount of social contributions required in Poland, workers tend to receive a higher net salary compared to local providers when working in other EU countries (for example, on average the net salary of polish A1 workers in Germany is higher at 9%, and in the Netherlands by about 12%). The benefit is a higher level of loyalty and motivation to work from the workers due to increased take-home pay.
- Continued Insurance
The A1 program is a benefit for temporary workers who go abroad as they are allowed to keep their Polish insurance. If their families are enrolled in the Polish insurance system, they’ll be allowed to maintain their insurance, even though their family member goes to work in another EU country.
If the temporary employee were to choose to work with a local agency (in another EU country), then he and his family would lose their Polish insurance benefits.
Under the A1 program, not only can an employee keep their (and their family’s) Polish insurance, but they can use their health insurance abroad due to the European Health Insurance card. Continued Insurance gives a peace of mind to the employees what allows them to focus more on their jobs.
- Higher Employee Retention
Many employees choose to go abroad and stay for longer periods; as a result, they’re less likely to resign on a day-to-day basis. It costs time and money to travel all the way back to their home country. Contrain’s rotation rate is only about 10% and all the employees who leave the project are exchanged by our dedicated recruitment team.
- Employee Motivation
Employees working with a company such as Contrain are highly motivated to work. They are keen to work more hours (max of 10h a day and 60h a week) and are more flexible than the employees of local providers in terms of hours worked, availability on weekends, holidays and even working night shifts. Employees are motivated by higher take-home pay, etc.
As you can see, working with a staffing agency that utilizes the EU’s A1 program offers benefits not only for your company, but also for the employees. Your company will benefit from employees who are happier and more motivated to work due to the benefits they have under the A1 program.