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People management: what is the best format for hiring employees for your business?

In people management, the choice between hiring via CLT (Consolidation of Labor Laws) or by service providers is a strategic decision that can directly impact the sustainability of a business. 

According to IBGE data, Brazil has approximately 33 million formal workers hired via CLT, while about 24 million act as freelancers or service providers. Both modalities have advantages and disadvantages that must be carefully analyzed.

According to Daiane Milani, a businesswoman specialized in branding and human development, the choice between CLT and service providers should be guided by the company's strategy and the type of work to be performed. “It is essential to consider the profile of projects, organizational culture and long-term cost-benefit. The flexibility and specialization of service providers can be a competitive advantage in certain scenarios, while the safety and stability of CLT are fundamental for companies seeking to build a cohesive and engaged team”, he explains. 

CLT hiring: advantages and disadvantages

  • Stability: offers a more stable and secure working relationship for both the employer and the employee.
  • Labor benefits: right to paid vacation, 13th salary, FGTS (Service Time Guarantee Fund), maternity/paternity leave, among others.
  • Engagement and loyalty: Promotes greater employee engagement and loyalty by ensuring that all labor rights are met.
  • High costs: It can be costly for the company, due to the labor costs and bureaucracy involved, especially for small and medium-sized companies.

Hiring service providers & PJ’: advantages and disadvantages

  • Flexibility: Allows hiring for specific projects, without the need for employment and the respective charges.
  • Cost reduction: It can be an interesting option for companies looking for more flexibility and cost reduction.
  • Legal risks: It is important that the service contract is well defined to avoid future legal problems, such as the characterization of a disguised employment relationship.

Milani also reflects on the subject in the sphere of branding it is essential to align the choice to brand identity and corporate values.Hiring via CLT can reinforce the culture of stability and commitment, essential for brands that value loyalty and long-term development”, he points out

Regarding the contracts known as “PJ”, the specialist believes that service providers offer the flexibility and innovation necessary for brands operating in dynamic markets and need fast and specialized solutions.“The key is to understand how each hiring model can strengthen the brand value proposition and the experience offered to the customer”, she reports. 

For the employer to make a decision, it is important to assess not only the immediate costs, but also the long-term impact on organizational culture, employee satisfaction and the ability to innovate and adapt the business. “With a careful analysis and aligned with strategic objectives, companies can make more assertive decisions, ensuring people management that contributes to the sustainable growth of the” organization, he concludes.

E-Commerce Uptate
E-Commerce Uptatehttps://www.ecommerceupdate.org
E-Commerce Update is a benchmark company in the Brazilian market, specializing in producing and disseminating high-quality content on the e-commerce sector.
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