Outstaffing is the possibility of using personnel owned by another company, or hiring labor outside the state. Outstaffing differs from outsourcing in that workers are hired for a short period of time, often to perform seasonal or other temporary work.
What is outstaffing?
Outstaffing is an organizational decision of an enterprise, which involves the admission of new employees to the organization without enrollment in the state, or - the formal withdrawal of their own employees from the state. In other words, outstaffing is the use of physical or intellectual labor of workers officially employed in another enterprise. To do this, the employer turns to a specialized outstaffing agency, which is engaged in the search and employment of employees in its own staff with their subsequent transfer to the customer company. In addition, the outstaffing agency provides services for the transfer of employees from the balance of the employer to the balance of the recruitment agency.
Such a staffing solution allows the customer to have a full-fledged staff of employees working on its territory. At the same time, they will be formally registered in another organization.
It is important to note that the outstaffing agency also provides support services such as:
- search for necessary employees;
- registration of foreign specialists;
- personnel audit;
- HR document management;
- sending notifications to the Federal Migration Service;
- providing legal protection and more.
A full list of services provided can be found in the appropriate section on the company's website.
At the same time, the activity of an outstaffing agency is absolutely legal. Therefore, in case of inspections by control and supervisory services, it is enough for the employer to provide the latter with an outstaffing agreement. This circumstance will automatically redirect the entire audit procedure to a recruitment agency, because the employees are officially employed by the outstaffer. It is important to add that the outstaffing agency also bears the legal responsibility for the personnel, as well as the payment of fines issued by public services.
What are the benefits of outstaffing?
Making a personnel decision to transfer the staff of an enterprise to outstaffing gives the employer many advantages, most of which are mainly related to legal aspects.
Therefore, we can highlight the key benefits for the employer when using the services of an outstaffing agency:
- there is no need to maintain document management for employees, as a result of which the burden on the personnel department is significantly reduced;
- when hiring foreign outstaffing specialists, there is no supervision from the migration services;
- protection against inspections by regulatory authorities;
- 100% absence of fines and sanctions.
In addition, the employment of specialists under the outstaffing scheme relieves you of the obligation to conduct quarterly briefings on labor protection and fire safety, as well as to submit various types of reports to civil services. Moreover, in the case of foreign employees, you do not need to notify the migration service about the employment of a foreign citizen and his dismissal.
But still, the main problem faced by all employers with foreign employees is related to tracking innovations in migration legislation. In addition, not all business leaders have the opportunity to receive up-to-date legal information in a timely manner. However, ignorance of the law does not relieve responsibility. Therefore, in case of making any mistakes in the work, most likely, you will have to pay fines.
Also, the transition to outstaffing improves production and financial performance. Namely:
- the cost of maintaining an accountant and a personnel specialist is reduced;
- the company's capital is protected from large fines;
- improves the efficiency of the enterprise, based on the calculation of profit / profitability per employee;
- you can work under a simplified taxation system with a reduced income tax rate.
It should be noted that the management of outstaffing personnel is no different from the management of full-time employees. Even if, for example, you are not satisfied with the work of any specialist, you can promptly and legally dismiss him.
Who is outstaffing suitable for?
The outstaffing service can be relevant for almost all employers. However, the adoption of such personnel decisions can be based on several reasons:
- if the employer has no experience or is afraid to employ foreignersexperts, since the procedure for registering migrants is complex and requires certain knowledge;
- the strategy of the company is to increase profits by reducing the costs of staff salaries;
- there are no specialists in the field of jurisprudence and personnel records in the staff of the enterprise, or there is no specialist who understands migration legislation;
- had a bad experience with checks resulting in heavy fines or penalties;
- it is planned to increase the staff of the enterprise, but it is important to stay on the simplified tax system;
- the employer wants to get rid of the documentary routine associated with personnel records of migrants.
And this is only part of the reasons for the employer to switch to outstaffing.
Scheme of work
The outstaffing service is not only beneficial for the employer, but also the scheme of work for it is very simple. Our work plan can be divided into 5 preparatory stages and 3 work processes that are carried out monthly.
Training:
- You contact us or send an application for outstaffing to our company;
- We discuss all issues and agree on the price of the service;
- Your representative sends electronic copies of documents to employees of your company;
- We are preparing an outstaffing agreement and a package of personnel documents;
- Sign the contract.
Collaboration process:
- At the end of the month, we issue an invoice for services;
- You pay your bills monthly;
- From the money transfers we make, we pay salaries to your freelancers.
In the event that an inspection arrives at one of the facilities of your enterprise, we will immediately visit you to provide all the necessary documents and provide legal protection.