More and more companies are moving away from traditional ways of managing people in favor of more innovative methods. So what is the essence of such a new, but already quite common concept as outstaffing? If you want to hire remote software development team, please, visit our website https://Remotal.io
Outstaffing: what is this procedure
If you want to know the essence of outstaffing, and what it is in simple words, then this concept can be described as the withdrawal of staff from the state. There are three parties involved in this process: the host company, the recruitment agency, and the hired employees. The actual employer of specialists is precisely the intermediary company, and labor relations arise with it. When signing an outstaffing contract, specialists will perform certain work for the host enterprise, while the staff continues to be registered with a private employment agency.
Thus, the intermediary company transfers part of its personnel for another enterprise for temporary use.
Financial benefits from outstaffing
Most are interested not only in the question: “Outstaffing: what is it?”, But also why such a procedure is needed. Traditionally, companies have hired employees to perform the tasks they need, so why change anything? Moreover, you will have to pay for the services of an intermediary company.
On the one hand, everything is true, because such services cannot be free. But if we consider everything in more detail, and then make the necessary calculations, we can understand that outstaffing is very profitable financially.
It should be noted that the process of hiring employees is quite lengthy and laborious. At the same time, if you remove specialists from the staff, you can reduce costs for:
- search for a specific job. You can apply to a special recruitment agency both in order to withdraw existing employees from the state, and in order to hire new ones. At the same time, most intermediary companies have a wide base of available employees. Thus, you will not need to spend time and effort searching for suitable specialists;
- personnel management. Since the employee does not work for you, you do not need to form his personal file, draw up various certificates, sick leave, take him into account when submitting statistical reports, and so on. Thus, the burden on personnel officers is significantly reduced (as well as the required salary for this service);
- wages and related taxes. All this will be handled by a recruitment agency. So you can save on your own accounting service.
Large enterprises that use outstaffing can reduce their costs for these items up to 5 times. Most companies apply for such a service precisely because they are looking for additional financial benefits.
Other Benefits of Outsourcing
But the advantages of outstaffing do not end with financial benefits. This service has a number of other benefits, including:
- solving staffing issues. And it does not matter why you cannot increase the number of your own employees (corporate policy does not allow, increasing the number of employees will lead to the fact that it will be impossible to remain on the simplified taxation system, and so on). With the help of the withdrawal of personnel from the state, you can quickly attract the required number of employees, without increasing the formal number of employees;
- increasing the flexibility of personnel management. Specialists hired in this way already have all the necessary skills to complete the task. In addition, this way you can concentrate on your core business by shifting secondary tasks to the outstaffing company;
- no need to interact with regulatory authorities. Since the employees are not registered with you, the intermediary company bears all responsibility. This also applies to the timely payment of salaries and deductions from it. Thus, you will not be subject to sanctions and fines related to this.
What staff can be outsourced
There are no restrictions on which employees can be hired using outstaffing. As a rule, it is most profitable to remove the following categories of employees from the state:
- line staff. It is possible to withdraw from the state the main labor force, which is engaged in the production of products and the provision of services.
- foreign experts. The process of hiring such employees can be quite difficult, and in the case of outstaffing, all problems associated with documentation will be transferred to an intermediary company;
- temporary staff. So you can hire the workers you need, while not paying them severance pay.
You can withdraw out of state from one person. The maximum number of external workers in this case will depend on the number of all specialists of the enterprise (the share of non-staff personnel should be up to 10 percent, if it exceeds this indicator, then the consent of the relevant trade union is required).
Who can provide outstaffing services
At the beginning of 2016, labor legislation underwent a number of changes. If earlier any company could provide staff for rent, now their number has significantly decreased. So, at the moment, only companies that have passed accreditation can provide outstaffing services. To do this, they must comply with a number of rules that relate to the size of the authorized capital, the education and work experience of the CEO, as well as some other nuances.
How to order an outstaffing service
If you want to bring some of your specialists out of the state, then it is very important to find a trusted company with a lot of positive reviews. It is such a firm that “Your Personnel Advisor” is. With us you can count on:
- prompt resolution of the issue. The whole procedure with us will take a minimum time period;
- favorable terms of the deal. We fully understand the peculiarities of the business of our specialists, so that we can offer optimal conditions;
- individual approach to all clients;
- extensive experience in providing such services. Our company has been engaged in such activities since 2009, during which time we have managed to serve more than 120 enterprises, among which there are such market leaders as Borjomi, Ceresit and Henkel.
You can learn more details about the outstaffing service from our specialist by contacting him by email or phone.