How is body leasing different from permanent recruitment?

Basic definitions

Body leasing and permanent recruitment are two completely different approaches to sourcing competencies and human resources within a company. Permanent recruitment is the traditional process of finding, selecting and hiring an employee on a permanent (or fixed-term) contract, who becomes a full-fledged member of the organization. Body leasing, on the other hand, as has been mentioned many times, involves the temporary hiring of an IT specialist from an external provider who works for a client, but is not formally a full-time employee.

Goal and time perspective

The main goal of permanent recruitment is to acquire a long-term employee who will grow with the company, build its intellectual capital and contribute to its strategic goals in the long term. Body leasing tends to be more tactical and short-term in nature (although contracts can last for many years as well) – it is used to quickly fill in missing resources for the duration of a project, to cover a temporary increase in demand or to acquire specific, niche competencies.

Form of employment and legal relationship

In the case of permanent recruitment, an employment relationship regulated by the Labor Code is established, with all its consequences (rights and obligations of the employee and employer, vacations, notice periods, protection against dismissal, etc.). The employee is directly employed by the company. In body leasing, there is no direct employment relationship between the specialist and the client. The specialist is usually bound by a contract (employment or B2B) with the body leasing provider, and the client uses his services under a service contract with the provider.

Speed and flexibility of resource acquisition

Body leasing offers much greater speed and flexibility in getting the specialists you need. The process of finding and implementing a contractor is usually much shorter than the full cycle of permanent recruitment. This allows for a dynamic response to project needs. Terminating a contractor is also simpler and faster than firing a full-time employee.

Costs

The cost comparison between the two models is complex. Permanent recruitment involves the cost of the recruitment process and then the full cost of hiring (gross salary, employer’s Social Security contributions, vacation costs, training, benefits, workplace maintenance). Body leasing rates (hourly/daily) may seem higher than a full-time employee’s gross salary, but do not include many of the employer’s additional costs. Short-term, body leasing can be cheaper, especially for projects with fluctuating demand. Long-term, for stable needs, hiring a full-time employee may be more cost-effective.

Control and commitment

Full-time employment gives the company full control over the employee and his or her development, and is usually associated with greater long-term commitment and loyalty of the employee. In body leasing, the client has control over the contractor’s tasks, but his or her commitment and loyalty can potentially be lower (although this is not the rule).

When to choose which model?

Permanent recruitment is suitable when a company needs an employee on a permanent basis, for a key role, wants to invest in their long-term development and build a stable team. Body leasing is a good solution for temporary, project-based needs, requiring quick access to specific competencies or great flexibility in scaling the team. Both models can also coexist in the same organization, complementing each other.


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ARDURA Consulting

ARDURA Consulting specializes in providing comprehensive support in the areas of body leasing, software development, license management, application testing and software quality assurance. Our flexible approach and experienced team guarantee effective solutions that drive innovation and success for our clients.


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