Despite the volatile economic environment, Work Force HR closed the year with record results, reporting net sales of €16.5 billion by the end of 2022. Temporary staffing continued to be the most profitable business, with manufacturing production the number one sector in the company's client portfolio. Recruiting domestic labor is becoming increasingly difficult, but the acquisition of certified temporary agency status has opened new doors for recruitment abroad.
Last year, a number of unexpected external factors influenced micro- and macro-economic developments, and Work Force HR was constantly faced with new challenges. The Russian-Ukrainian war had a major impact on the company through recruitment abroad and the Ukrainian workers already here, compounded by supply chain issues, inflation and central bank interest rate hikes. ,,Many unexpected problems required solutions, so we had to change our strategy significantly," said Zoltán Czellecz, CEO of Work Force.
However, despite the difficult circumstances, the company managed to close last year with record results, with a sales revenue of HUF 16.5 billion, a 65 percent increase compared to the sales revenue of HUF 10 billion a year earlier. Temporary employment continued to be the most profitable business, and in 2022, as in 2021, the strongest sector in the client portfolio was manufacturing production, with the manufacturing industry experiencing the highest demand for labor. Manufacturing operator positions were the most popular manual jobs, while customer service jobs in white-collar lending attracted the most applicants. In addition, the presence of the service sector in their customer base increased, financial and utility service providers accounted for more than 10 percent of the total sales revenue.
The Qualified Temporary Worker status has opened new doors for the company, allowing them to lend third-country workers to their domestic clients in a simplified and fast-track procedure. In 2022, more than 300 third-country workers were employed through Work Force. ,,The experience so far has been very positive, our partners are satisfied with the work and the attitude of our foreign workers. The third-country workers coming to Hungary also feel comfortable with our clients, which is also reflected in the fact that we have not experienced any fluctuation among them so far," said Zoltán Czellecz.
Last year was also an unusual year for benefits, as many employers tried to compensate for inflation and keep the purchasing power of wages at the same level. There were more salary increases than usual in previous years, with many HR service provider partners increasing salaries in 2-3 rounds in 2022. In addition, one-time benefits such as the utility allowance appeared, which helped employees as a wage supplement or as a one-time element. In Work Force's experience, the average rate of wage increases was in the order of 15 percent last year, but there were also examples of workers' salaries being increased by 25 percent to avoid inflation being passed on to workers as their own loss.
The Job Force School Cooperative, which is part of the company , also closed the year successfully, with a turnover of nearly HUF 614 million. Companies operating in the retail sector employed the most student workers last year, while tourism and catering were also in high demand for young people during the summer. Merchandise stocker and cashier positions were popular, and internships are increasingly being sought by students looking for professional development.
,,We are optimistic about 2023. We will serve more customers than last year, we will hire workers from more countries, such as Kyrgyzstan, we will improve our services and we will further digitalise our operations this year. We plan to open new branches this year, while at the same time increasing the size of our internal team by 25%. As domestic recruitment continues to tighten, we will continue to look for innovative solutions and strengthen internal knowledge sharing. It is important to highlight that in 2022 we have also significantly strengthened our white-collar recruitment competencies, enabling us to successfully expand our clients' headcount from trainees to senior management positions, " said Zoltán Czellecz, CEO of HR services provider Work Force HR.
About Work Force
Work Force Ltd., a 100% Hungarian owned company, has been in the business of temporary and labor brokerage since 2003. Thanks to our experience, up-to-date market knowledge and expertise, we provide complex solutions to meet the growing labor needs of our partners. Our clients include manufacturing and production companies as well as companies in the service sector. With 8 offices nationwide, it ensures the continuous availability of the right workforce for 300 clients.