Scaling Up in 2023

The business world of 2023 presents significant challenges for Austrian companies. Rising costs and inflation are putting a strain on the job market. In May 2023, we are seeing the first reversal of trends in two years: For the first time since 2021, the number of job seekers in Austria is increasing. In the tourism and construction industries, 4.6% fewer employees are currently being employed compared to the previous month, and a total of 331,000 people in Austria are unemployed.

So, what does this mean for companies that want to hire new employees?

There is an initial cautious signal that it will be overall easier to hire new personnel in the future. However, the challenge of the past years remains the same: How do you find the right employee among the available candidates?

Recruitment: High costs or efficient personnel acquisition?

Get some assistance: Recruitment agencies or permanent placement services support companies in finding and permanently hiring employees through external service providers. This approach offers advantages for companies striving for growth but struggling to find suitable candidates.

Personnel service providers provide access to a broader pool of candidates. They often use extensive databases and diverse procurement methods. This ensures the selection of the best candidate for each position.

Although the search and selection process is associated with costs that may initially seem significant, the indirect costs of an unfilled position are often even higher. Administrative burdens, overtime of colleagues, or a decrease in performance are added to potential revenue loss. The longer a position remains vacant, the higher the overall costs rise.

Therefore, consider right from the start of a new or replacement hiring process whether you want to engage a personnel consultant and make a realistic assessment of whether you can fill the position yourself.

Payroll Services: Focus on core business

Payroll services optimize internal headcount and provide flexibility for the core workforce. In times of tight personnel budgets, this offers advantages for covering peaks without hiring a permanent employee.

Payroll services also ensure accuracy and compliance with regulations. This allows companies to minimize the risk of errors in payroll or even misclassification and underpayment according to collective agreements, completely excluding penalties. Compliance with changing regulations becomes easier as service providers always stay up to date with the latest laws. This allows you to focus on your core business and outsource administration.

RPO Partner: Do what you do best – outsource what is inefficient

Recruitment Process Outsourcing (RPO) has gained popularity as an efficient strategy for managing the entire recruitment process. By outsourcing to external service providers, companies can focus on their core business activities while benefiting from specialized expertise.

RPO providers specialize in tasks such as candidate sourcing and selection, often utilizing advanced technologies. This often speeds up the hiring process and reduces time to hire.

When you have significant personnel needs, consider which parts of the personnel acquisition process you want to handle internally. Outsource everything that is outside your area of expertise and keep the steps in-house where you already excel.

In doing so, you enhance the impression that candidates receive of the application process and, subsequently, increase attractiveness as a potential employer. Reports from HRO Today and PeopleScout also indicate cost savings of up to 50% compared to recruiting processes without RPO support.

Conclusion

Outsourcing recruiting or other HR processes to an external HR partner offers many advantages for companies. If you would like to benefit from some of these advantages, please feel free to contact us at any time. We are happy to support you in recruiting new employees, outsourcing parts of the recruitment process, or with our payroll services.