Do you remember the era when employers could effortlessly fill all vacancies with domestic staff?
Today's job market has become a real challenge for Croatian employers who are looking for quality employees. To bridge this gap, many are turning to services that include worker secondment and employment mediation. These are processes that allow employers to access a wide pool of talent, both from Croatia and abroad.
What are worker assignment services
Worker secondment services imply the procedure by which agencies for the intermediation and assignment of workers provide temporary labor to employers. It is a form of cooperation in which workers formally remain employed by the agency, but provide their work contribution to another employer, that is, the user of the service.
This type of collaboration allows companies flexibility and adaptation to current labor needs, without the obligation of long-term employment. Agencies providing these services also take on administrative matters related to employees, such as paying taxes and contributions, which makes it easier for the employer to manage staff and reduces its administrative burden.
Definition of Worker Assignment
Assignment of workers refers to the process where the employer (beneficiary) temporarily hires a workforce that formally remains employed by the assignment agency. The agency is responsible for all obligations related to the employment relationship.
When assigning workers, the agency retains the role of formal employer, while the user of the services receives the right to manage and supervise the transferred workers. Services cover different sectors and specializations, adapting to the needs of the labor market.
In Croatia, it is possible to carry out seasonal work with the use of employee assignment services.
The beneficiary employer, using the transferred workers, can optimally correct its own personnel needs by tracking changes in business activity. Also, the beneficiary can focus on their primary activities while the agency manages recruitment issues.
Legal framework and regulation
The legal framework for the assignment of workers and employment mediation in the Republic of Croatia is based on a number of legal regulations.
- Labor law(NN 93/14, 127/17, 98/19) - regulates the employment relationship between the employee and the employer.
- Employment Mediation and Unemployment Rights Act(NN 80/08, 94/18) - regulates the activity of employment mediation.
- Occupational Safety and Health Act(NN 71/14, 118/14, 154/14, 94/18) - prescribes measures to protect the health of workers.
- Rulebook on the content of the contract of assignment of workers- defines the mandatory elements of the assignment agreement.
The Ministry of Labor and Pension System is responsible for the implementation of these regulations.
Compliance with the legislation ensures legitimate business and prevents possible sanctions and legal consequences for employers.
Benefits for employees and employers
Flexibilitybecomes a key aspect of the business.
The worker secondment service allows employers to quickly adapt the workforce to needs and projects. This means that employers gain access to qualified personnel in the short or long term, depending on the need, thereby increasing their competitiveness in the market. Workers, in turn, get the opportunity to work on different projects and in different sectors, which enriches their work experience.
Opportunity for professional developmentworkers are visibly increased.
Specialized employment agencies provide support to workers in finding jobs that match their competencies and ambitions, thus facilitating their professional development and advancement. Agencies also often offer additional education and the opportunity to acquire new knowledge and skills.
Increase in employabilitythrough diverse work experience.
Through the mediation activity, workers have the opportunity to quickly move to a new job, which means less time spent in unemployment. Employers, on the other hand, get access to a wide pool of talented candidates already previously evaluated by the agency, which speeds up the hiring process and reduces the risk of poor evaluation when selecting candidates.
Reduction of administrative burdensfor employers.
Thanks to the possibility of having recruitment issues serviced by the agency, employers can significantly reduce their own administrative resources and costs related to the recruitment and selection of labor. This includes savings in time and money that would otherwise have to be invested in processes such as publishing job advertisements, conducting interviews and testing candidates.
Compliance with legislationthanks to the expertise of agencies.
Agencies specializing in the assignment and mediation of workers regularly monitor legal regulations and are responsible for compliance with all rules and obligations. This ensures the legality and ethics of the hiring process not only towards employees, but also according to state norms, thus avoiding potential sanctions and legal problems for employers.
Employment mediation process
The employment mediation process begins with the identification of the employer's needs and the definition of specific requirements related to the open position. The agency then launches a selection process, in which it uses various methods of attracting candidates, including advertising, searching resume bases and using professional networks. After collecting applications, an assessment of the qualifications and competencies of the candidate follows with the aim of finding the ideal employee for the client.
The mutual reconciliation of the interests of the employer and the potential employee is a key task of employment agencies. The main purpose of this process is to effectively link supply and demand in the labor market, thereby allowing employers to fill jobs faster and with higher quality.
Steps in employment mediation
- The first step in the recruitment mediation process begins with the analysis of the employer's needs, defining the profile of the sought candidate and planning the recruitment strategy.
- This is followed by the publication of advertisements on the relevant communication channels.
- Then the agency carries out a selection process that includes the collection and sorting of resumes, with the pre-selection of candidates.
- The next step is to interview the pre-selected candidates, test their skills and check references.
- After the selection of the most suitable candidates, negotiations on the conditions of employment and the final selection and referral of candidates to the position are carried out.
- Finally, support is provided during the adaptation process of the new employees and their integration into the organizational culture of the company.
Legal aspects of the mediation contract
The employment mediation contract regulates the legal relations between the employer and the employment agency, defining the obligations and rights of both parties. It is a bipartisan document based on the principles of good faith and reciprocity.
It contains key elements such as the subject of mediation, the rights and obligations of the parties, and fees for the services provided. The duration of cooperation must also be clearly indicated.
It is mandatory to comply with laws and regulations governing employment mediation, including the Employment Mediation Act and rights to monetary compensation during unemployment. The contract should also include provisions on confidentiality and protection of personal data of candidates.
It is important to outline the mechanisms for resolving possible disputes between the parties, which include provisions on mediation or arbitration. This helps prevent lengthy court proceedings and facilitates the speedy resolution of conflicts.
When concluding a mediation contract, it is necessary to comply with the provisions of the Law on Obligatory Relations, which sets out the general conditions for concluding and executing the contract. All clauses should clearly explain rights and obligations in order to avoid future ambiguities or legal disputes.
When hiring foreign workers, it is additionally important to refer to the regulations governing work and residence permits. Also, it is necessary to take into account international treaties and bilateral agreements that may affect the employment of foreign workers.
How to choose the right agency
When choosing an agency for the assignment of workers and employment mediation, it is essential to verify its license and registration. The agency must be registered with the Ministry of Labor and Pension System and have a valid license that allows it to carry out intermediary activities. This ensures that the agency is subject to regulatory checks and adheres to legality in its operations.
It is also recommended to research the reputation and experience of the agency in the sector for which the workers are hired. It is worth studying references and feedback from previous clients, which can help assess the quality of the agency's services. In addition, the agency should have professional staff who understand the specific needs of the sector and are able to find suitable candidates who meet the required qualifications and skills.
Criteria for evaluating agency services
When choosing a worker assignment agency, it is essential to know the criteria that ensure the quality and reliability of services.
- Licensing and Registrationagencies with competent authorities
- Experience and specializationfor certain industries or sectors
- Reputation and referencesthat testify to previous successful jobs
- Understanding of legal regulationsand international contracts related to employment
- Transparency of proceduresconcessions and mediation
- Ability to find qualified candidatesaccording to the specific requirements of the job
- Support in the integration and adaptation processemployees in the work environment
- Availability for consultation and supportafter the recruitment process
Agency support not only ends with finding candidates, but also includes the process of their integration.
A good agency provides continuous support and optimizes the hiring process for the benefit of both parties - the employer and the worker.
The importance of transparency and trust
Transparency is the foundation of all business cooperation.
Transparency and trust are key factors when choosing a worker assignment agency. In the labor market, where relations between employer and worker are often complex, clarity and openness in communication are of paramount importance. This creates the foundation for a long-term and stable business relationship.
Trust creates a safe environment for doing business.
Agencies that promote transparency strengthen trust with employers. Doing business without hidden intentions and unforeseen costs creates a platform for efficient work and positive business results. The Agency's transparent policy underpins its reliability and integrity in recruitment mediation.
Without trust, there are no successful business relationships.
Transparency and trust are essential for the successful management of HR processes. Transparent communication enables the timely exchange of information, ensuring compliance with legal regulations and international standards, and supports effective human resource management.
All of the above forms the basis of a successful business.
Effects on the labor market
Employee secondment and recruitment mediation services have a significant impact on labour market flexibility. With these services, companies can respond quickly to the changing needs of the market, adapting their workforce without time-consuming processes of hiring new employees. Employment agencies thus act as regulatory mechanisms that help maintain a balance between supply and demand for labor.
On the other hand, the growing demand for worker secondment and mediation services may indicate structural problems within the labour market, such as a lack of certain skills or flexibility in the workforce. The introduction of foreign workers through recruitment agencies can be a solution to these problems, but it can also encourage the building of dependence on external sources of labor, which requires a thoughtful approach and long-term strategies in human resource management.
Assignment services and market flexibility
Worker assignment services provide companies with the ability to quickly and efficiently adapt to market trends. This flexibility is crucial in dynamic economic sectors.
Through the secondment service, employers have access to a wide pool of specialized labor on a fixed-term basis without the need for permanent employment, which greatly reduces long-term labor costs and increases operational efficiency. Furthermore, the possibility of rapid worker mobility between different projects and geographical locations allows companies to make the most of existing capacities and better cope with market volatility and unpredictable periods.
The high degree of adaptability covered by secondment services contributes to reducing the mismatch between supply and demand for labour in the market. This facilitates access to the necessary skills in the short term, which is particularly important in sectors where these skills are in deficit or in peak business seasons.
Additionally, flexible models such as worker secondment allow companies to focus on their core competencies, without the added burden of human resource management. However, despite the positive effects, the assignment of workers requires harmonious regulation in order to avoid legal uncertainty and ensure the protection of workers' rights. The adaptability provided by divestment should therefore be carefully balanced with long-term sustainability and social responsibility.
The impact of mediation on unemployment
Employment mediation reduces the periods of inactivity of workers by looking for new opportunities for them. This directly affects the reduction of unemployment.
Mediation agencies act as intermediaries between the unemployed and employers, facilitating the recruitment process and contributing to greater employment. Their service significantly reduces the time of job searches.
By connecting the right candidates with suitable jobs, mediation promotes a more efficient distribution of labor. This has a positive effect on economic growth and reduces the social costs associated with unemployment.
In narrowly specialized industries, intermediation makes it possible to quickly fill jobs, which is especially important for maintaining competitiveness in the global market. Such dynamics reduce sectoral unemployment.
Overall, mediation contributes to an increase in employment and accelerates economic activity and the prosperity of society as a whole.
