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Temporary employment: Eurofirms chooses Chile as its regional hub

InvestChile - October,22,2024

Spain’s leading temporary employment company, Eurofirms Group, is determined to conquer Latin America after debuting in Chile, where it already has branches in Rancagua and Concepción and 2,000 employees. 

mujer logistica

«Eurofirms Group is betting on Chile, where it plans to set up its Latin America hub,» announced the Spanish temporary personnel management company’s Country Leader for Chile, Peru and Brazil, Reyes Mancebo, according toDiario Pulso. «Invoicing projections for year-end are at approximately €25 million (US$27.6 million),» she added. 

The figures are encouraging for the firm after facing Chile’s social uprising and the COVID-19 pandemic shortly after arriving in the country in July 2019. As Spain’s leading temporary employment company, Eurofirms Group is determined to conquer Latin America after debuting in Chile, where it already has branches in Rancagua and Concepción and 2,000 employees. 

Ms. Mancebo explained that the first countries in the South American offensive would be Peru and Brazil, two markets where Chilean investors have primarily put their chips on retail, mining, agriculture and timber. 

The executive explained that the idea is to accompany Chilean investors in those markets. For example, suppose a retailer in Chile hires our services and wants to continue expanding operations in the Southern Cone. In that case, it can «count on us—with the same know-how, experience and efficiency—in several Latin American countries, including Peru and Brazil.» 

Eurofirms also aims to work with international companies that choose Chile as an operations base for their own expansion plans. 

«One of our aspirations is to continue building a presence in the market and adding new customers, especially in the logistics, retail, timber, and mining supply industries. We also want to expand as a brand by adding more offices in Chile,» she told Pulso. 

Sales grow 40% 

Temporary workers have become increasingly important in the Chilean economy, especially in labor-intensive sectors. Despite the absence of recent official figures, estimates put the annual figure for people working for human resources contractors at two million. 

Agriculture alone employs one million seasonal workers. In the wake of the pandemic, the logistics and retail industries experienced the most growth in temporary employment. 

«In just five years, we have positioned ourselves as leaders in managing temporary service personnel,» said the executive, reporting that the firm had increased invoicing by approximately €19 million in 2023. In the first half of 2024, that figure continued to grow to 40% more than in the same period of the previous year. 

Bear in mind that, just months after arriving in Chile in July 2019, the firm faced the COVID-19 health crisis and related mobility restrictions, which directly impacted the working world. 

Logistics and retail 

According to Eurofirms Group, the logistics, retailand timber industries are driving labor demand. «These productive sectors currently require high-quality temporary services. The proper functioning of the industry relies on a robust logistics sector, which is growing daily and, therefore, requires support in terms of personnel searches and selection,»  Reyes Mancebo remarked. 

The firm is also jumping on the upcoming mining boom, announcing large investment projects in different parts of the country. 

The Chilean Labor Market  

«Several factors explain the Chilean labor context, but one points to the way demographics are growing. Young people in Chile today have more work opportunities, but they also have the highest level of turnover and absenteeism,» she said. 

«This could become a problem for industries that need this type of employee profile because finding them is already challenging. This is where we come in as a solution. Instead of companies having to spend time, resources, and money on in-house selection processes, we present a portfolio of temporary workers with the qualities they seek and who are available to start work immediately,» added the executive. 

According to Eurofirms Group data, «In Chile, temporary workers are predominantly young people up to 30 years old. The industries with the greatest need for these employees’ services are logistics, retail, hospitality, general industry (factories and/or production lines, in general) and specific industrial activity (timber sector).» 

«One sector with a particularly high need for temporary workers is the hotel industry, especially the luxury or 5-star hotel segment. The segment generates between 200 and 400 weekly shifts with daily pay ranging from Ch$30,000 to Ch$40,000,» reported Reyes Mancebo. 

The executive pointed out that temporary workers can access paid training and earn above minimum wage without needing a university degree. «For example, in logistics, people as young as 25 can get crane operator jobs with salaries of up to Ch$800,000 per month—60% more than the current minimum wage,» she explained. 

In addition, it can take temporary workers one to three weeks to find a job in Chile. 

Would you like to find out more about Chile’s labor market? Check out the following article.  

Learn more about this topic here

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