Subject
What is outstaffing and what myths hinder business
Outstaffing: what is it?
In what cases the outstaffing of personnel is used
Pros and cons of outstaffing employees for business
Potential risks
What is outstaffing and what myths hinder business
In the conditions of an unstable market, outstaffing of the company's personnel can be a salvation for a large enterprise. After all, this form of labor relations allows you to attract qualified personnel without official registration to the staff of the organization, without burdening the business with additional tax burdens.
Outstaffing: what is it?
First, you need to understand in more detail what outstaffing of personnel is. In simple words, this is "rental" of staff. It is relevant when the business needs to be launched as quickly as possible and there is simply no time to search for and train personnel. Or - reducing the tax burden on enterprises with an "inflated" staff of specialists.
In any case, as a customer, you will receive the required number of employees who meet your criteria for competence, but you will not register them in your staff, since legally their employer will be the outstaffing company. Moreover, the employees will work full-time in your company, and the responsibilities for the payment of wages and reporting will fall on the shoulders of the service provider.
In what cases the outstaffing of personnel is used
The service came to us from the west, where this model of cooperation is in demand among startups who want to get the specialized experts, they need as quickly as possible.
At the same time, it is worth noting that that the following professions are most often taken out of state:
• Secretaries;
• Designers;
• Translators;
• Work specialties;
• Marketers;
• Builders.
That is, everyone whose services are not needed all the time. And even despite the legal affiliation to another company, the dismissed employee remains in place and continues to do the same. And the organization that performs outstaffing of personnel deals with the payment of salary, payment of taxes, registration, sick and vacation pay.
Pros and cons of outstaffing employees for business
For an employee, outstaffing means that the company hires him outside the official staff. That is, he will perform the same duties in an organization to which he, de jure, does not belong. It would seem like a minus, but in fact, if he cooperates with a reliable service provider, this becomes an additional guarantee of compliance with the terms of the labor code.
For companies, the advantages of outstaffing are obvious:
• Reduction of income taxes due to an increase in expenses reflected in the balance sheet;
• Reduction of costs for the maintenance of full-time employees in periods when their services are not needed;
• Provides more flexible personnel management, allowing to control the number of workforce in accordance with the actual volume of work;
• Reducing the risks of insurance or unforeseen events with the company's employees;
• Simplification of consideration of labor disputes with workers or specialized specialists;
• Prompt selection of a qualified expert for a vacant position before registration of a full-time employee.
Potential risks
Why doesn't everyone outsource their employees? All because there are risks. There are not many of them:
• Absence of a clear justification of the contract from the point of view of the current legislation;
• Presence of additional costs related to the payment of taxes per employee by the outsourcing company;
• Potentially increased interest from control bodies and authorities;
• Lack of full control over the company's tax and personnel records.
At the same time, they are relevant only in the case of cooperation with an unscrupulous service provider. Fortunately, the government made sure that such players remained on the market as little as possible by adopting amendments to the current legislation. And today, staff outstaffing is an excellent solution for companies that want to do everything as efficiently and qualitatively as possible, while maintaining competitiveness.
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