Contractual

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Contractual Temporary Employment Services
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Definition

• 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

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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

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Why Contractual?
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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

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To Manage Headcount

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

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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

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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
  knowledge

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To manage risks

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

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

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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

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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

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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

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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

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Where is already operational?

• Construction industry
• Port
• Sales frontdesk

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What are the obstacles

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

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Influence on employees

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

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Legal progress in Lithuania

• Changes of the Labour Code
• Expected status achieved status
• Current activity

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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

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Local Practice CVO Group

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

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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

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Local Practice - Sekretärikeskus

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

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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

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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

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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