With nearly 3000 employees, the company has become the third-largest HR service provider in the market.
While Work Force registered 1665 employees in February last year, it is now the third largest HR service provider in the market with almost 3000 employees, the Hungarian company reported. There are several reasons for the nearly 70% growth, but one thing is for sure: there is a duality in the growing demand for temporary staffing.
On one hand, the economy is in a technical recession, and HR provider Work Force has seen redundancies among its own clients. However, there are also sectors where there is little sign of a slowdown, producing a product or service that remains in high demand.
"At the macroeconomic level, we are witnessing a series of negative signs, with high inflation and the central bank base rate, while Hungary's GDP has started to decline in the past two quarters and the unemployment rate has started to rise. We are also seeing the effects of these in our own client base, with redundancies and companies putting on the handbrake and waiting to expand rather than expanding. However, the majority of our partners are still focused on retaining and expanding their workforce," said Zoltán Czellecz, CEO of Work Force.
There are several reasons for the growing number of temporary employees. Some sectors are producing products or services for which there is still demand and market need (e.g. e-mobility, food). These are not necessarily driven by Hungarian purchasing power but by markets in other foreign countries. In addition, many people use temporary agency work because they are uncertain about staffing plans. In such cases, the flexibility that an HR service provider can offer to fill open positions is a great added value. All in all, it can still be said that the Hungarian labor market is still very low in supply, and supply is not necessarily present where the demand is too. "If a company has no choice but to let go 100 employees, a temporary employment agency has the ability to lend the redundant employees within its own client base to another company, even with accommodation, thus helping both parties. An employer with a fixed workforce usually cannot be so flexible," said Zoltán Czellecz.
The increase in recruitment from third countries has also played a big role in the growth of Work Force. By obtaining qualified temporary agency status, a simplified and fast-track process to hire third-country workers is available,resulting in a large increase in the number of foreigners working in the country in the second half of 2022. However, the majority of the total temporary workforce will still be domestic workers: 61% of the total workforce is Hungarian and 39% foreign.
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.