The True Cost of Seasonal Hiring: More Than Gross Pay

By the second half of summer, seasonal hiring is no longer only a workforce-planning question for many businesses. It is an opportunity to assess whether decisions made at the beginning of the season have delivered the expected results – both operationally and financially.

When planning seasonal recruitment, employers usually calculate salary costs with reasonable precision. Far less often, however, do they assess the full cost of employing a seasonal worker. These are not the same thing.

This year’s labour-market conditions make that distinction even more important. According to data from the Employment Service of Lithuania, registered unemployment stood at 7.7% at the beginning of July 2026 and was lower than a year earlier, while the number of registered vacancies exceeded 15,000 for the fourth consecutive month. Manufacturing, retail, construction, administrative services, accommodation and food-service businesses were among the most active recruiters.

Competition for workers remains high. As a result, replacing an employee who leaves during the season is becoming increasingly difficult.

The first cost category that is often underestimated is the hiring process itself.

Salary is only one part of a seasonal worker’s cost to the business. Recruitment, selection, mandatory health checks, onboarding, work equipment and, in some cases, accommodation or transport must also be considered.

In practice, these expenses are often treated as general administrative costs. As a result, they may not be included when calculating the true cost of employing an individual seasonal worker.

The intensity of the season is another important consideration. Seasonality does not change an employer’s legal obligations.

Working-time and rest-period requirements, rules on overtime and the principles governing pay for work performed on rest days or public holidays apply regardless of whether an employee is hired for three months or under an open-ended employment contract.

Busy periods may create operational pressure, but they do not remove the need for accurate working-time records, appropriate work organisation and timely payment.

As the season approaches its end, another important part of workforce management comes into focus: bringing employment relationships to a proper close.

The expiry of a fixed-term employment contract may appear straightforward. Yet this is often where employers make avoidable mistakes. The end of employment may not be formalised in time, working-time records may be corrected at the last minute, and final settlement may be left until the final working day.

Final payments, compensation for unused annual leave and inaccurately recorded working time are among the issues that can lead employees to bring claims before labour dispute commissions.

The cost of a seasonal employee should therefore not be assessed solely by reference to salary. It becomes clear over the entire employment lifecycle – from recruitment and onboarding to a correct final settlement and the ability to attract the employee back for the following season.