Why the Agency Model Is Gaining Ground?

At a manufacturing company in Serbia, the owner and general manager sat down to review the performance of their entire staff, especially their HR department, after a second consecutive quarter of poor results. They wanted to understand not just the drop in productivity, but also the rising employee turnover rate.
Their first step was to analyze why employees weren’t staying, although the average monthly salary was well above the regional standard. As they reviewed resignation letters and exit interviews, a pattern emerged. People were leaving for a range of reasons: vacation requests had to be submitted a month in advance (even though the legal requirement is 15 days),miscalculated sick leaves, team morale was low, and the company culture leaned more toward penalties than rewards.
The next step was to meet with the HR team and ask for proposed solutions to what had become a serious obstacle to business continuity. That conversation revealed a hard truth: while the team existed on paper, real solutions were nowhere in sight, and they were far from being equipped to deliver them.
What followed was a period of disillusionment and a string of tough questions. One stood out and triggered a deeper analysis:
“How much is our internal HR team costing us?”
Not just in terms of salaries and contributions, but in lost time, missed opportunities, poor hiring decisions, and sluggish administration. Beneath the surface, they discovered a chronic lack of structure, strategic thinking, and problem-solving.
A month later, the owner found out about us. He reached out to learn more about the agency-based HR model. What he discovered was eye-opening: instead of relying on a small in-house team trying to cover everything, from recruitment to legal compliance, he would gain access to an entire, specialized unit: recruiters, legal experts, HR administrators, and trainers, all working efficiently and in complete alignment with current labor laws.
When they received our proposal, the financial comparison was clear. What they were spending on fixed salaries far exceeded the cost of our flexible, results-driven service.
Within a month, we had established a stable and transparent partnership. By the following quarter, improvements in both metrics and morale were visible. Our collaboration continues to this day, to mutual satisfaction.
Not every company is in the same phase of growth, but most, at some point, realize they don’t have to do everything alone. In today’s business environment, speed, accuracy, and strong, stable teams are no longer a luxury—they’re a competitive advantage.

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