Outstaffing
OUTSTAFFING - one of the instruments of personnel management, which allows companies to respond flexibly and quickly to regulate the number of employees at individual sites with no change in the number of personnel employed in the company.
The need for this service is where a company:
• have restrictions on the number of personnel and intends to reduce the numbers, without any loss of skilled personnel;
• plans to hire staff in the regions, while not opening branches or representative offices;
• interested in reducing the administrative costs of maintenance personnel records and payroll;
• interested in entering the world's stock exchanges and wishes to have a high rating in productivity (the ratio of output and the number of full-time staff)
Outstaffing benefits:
• Reducing staff quantity;
• Preserving direct operational management of the employees;
• Reducing costs for personnel;
• Absence of the labor disputes risk, such risks are borne by a service-provider;
• Possibility to build multilevel motivation mechanisms, including nonfinancial incentive for the employees to be transferred into the company's staff;
• Possibility of any term employment;
• Reducing HR and accounting functions;
• Reallocation of the balance sheet items by means of transfer costs for remuneration of payment into costs for external agencies;
There are 3 sides concluding an outstaffing bargain – a company-client, its employee and a leasing agency, which instead of searching the employee for the employer just takes necessary employee on its own staff. An employee signs with the agency a written statement and from this moment the official employer of the outstaffing employee is the agency that calculates his salary and provides him with social guarantees. But practically the employee continues to work for his previous employer.
Thanks to the outstaffing practice the company can concentrate on its business not distracting for tasks such as salary and tax
The need for this service is where a company:
• have restrictions on the number of personnel and intends to reduce the numbers, without any loss of skilled personnel;
• plans to hire staff in the regions, while not opening branches or representative offices;
• interested in reducing the administrative costs of maintenance personnel records and payroll;
• interested in entering the world's stock exchanges and wishes to have a high rating in productivity (the ratio of output and the number of full-time staff)
Outstaffing benefits:
• Reducing staff quantity;
• Preserving direct operational management of the employees;
• Reducing costs for personnel;
• Absence of the labor disputes risk, such risks are borne by a service-provider;
• Possibility to build multilevel motivation mechanisms, including nonfinancial incentive for the employees to be transferred into the company's staff;
• Possibility of any term employment;
• Reducing HR and accounting functions;
• Reallocation of the balance sheet items by means of transfer costs for remuneration of payment into costs for external agencies;
There are 3 sides concluding an outstaffing bargain – a company-client, its employee and a leasing agency, which instead of searching the employee for the employer just takes necessary employee on its own staff. An employee signs with the agency a written statement and from this moment the official employer of the outstaffing employee is the agency that calculates his salary and provides him with social guarantees. But practically the employee continues to work for his previous employer.
Thanks to the outstaffing practice the company can concentrate on its business not distracting for tasks such as salary and tax