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

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

According to data from IBGE, Brazil has approximately 33 million formally employed workers hired under the CLT, while around 24 million work as freelancers or service providers. Both modalities have advantages and disadvantages that must be carefully analyzed

SecondDaiane Milani, businesswoman specializing 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 the projects, organizational culture and long-term cost-benefit. The flexibility and specialisation of service providers can be a competitive advantage in certain scenarios, while the security and stability of CLT are fundamental for companies seeking to build a cohesive and engaged team., explain. 

CLT hiring: advantages and disadvantages

• Stability: offers a more stable and secure employment relationship for both employer and employee
• Employment benefits: right to paid holidays, 13th salary, FGTS (Guarantee Fund for the length of service), licença-maternidade/paternidade, among others
• Engagement and loyalty: Promotes greater employee engagement and loyalty, ensuring that all labour rights are fulfilled
• High costs: It can be costly for the company, due to the workload and bureaucracy involved, mainly for small and medium-sized enterprises

Hiring 'PJ' service providers: advantages and disadvantages

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

Milani also reflects on the subject in the sphere ofbrandingof the contracting company. ⁇ It is essential to align the choice with brand identity and corporate values. Contracting via CLT can reinforce the culture of stability and commitment, essential for brands that value loyalty and long-term development, punctuate

Already on the contracts known as PJ, the expert believes that service providers offer the flexibility and innovation needed for brands operating in dynamic markets and needing fast and specialised solutions. The key is to understand how each contract model can strengthen the brand value proposition and the customer experience, relates. 

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, in employee satisfaction and in the ability of the business to innovate and adapt. 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 organisation, finalizes