Personnel outstaffing is a flexible and modern technology of personnel management. Using it correctly, the manager gets the opportunity to fine-tune this tool and achieve the desired effect. However, outstaffing is not applicable everywhere, and in some situations it is ineffective and even harmful to the enterprise. There are not too many such situations, but it is necessary to know about them in order to avoid rash steps in the field of personnel management.
Highly qualified outstaffing companies
In Western countries, not only low-skilled workers at construction sites work under the outstaffing model, but also highly qualified specialists. Extensive statistics prove that the use of personnel outstaffing on such a large scale is entirely justified and rational.
But Russian business has its singapore email list own specifics: in Russia, it is customary to remove only unskilled personnel from the staff, and this is due to a number of reasons. Everyone knows how low the level of social guarantees of domestic hired employees is, and qualified specialists are trying with all their might to gain a foothold in enterprises that provide their full-time employees with a social package and various benefits.
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Outstaffing assumes that the employee is actually transferred to the provider company, which will then process the documents for him and support him throughout the entire term of the outstaffing agreement, pay vacation pay, sick leave, etc. Of course, a valuable, highly paid employee will feel very uncomfortable in such a situation and the prospect of being hired by another company may become a reason for his dismissal.
Even if such a highly qualified professional can be persuaded to outstaff, his loyalty and motivation will be zero. No one likes to realize that the employer leaves you in limbo for the sake of saving money and solving their own problems. A person will simply not have the motivation to work with full dedication and invest their strength and creativity in the prosperity of the company if it is so little interested in him.
Outsourcing of a small number of personnel
Not all HR specialists know how to use outstaffing of production personnel in a way that reduces costs. In many cases, customers outstaff several workers in order to maintain the simplified tax system and do not go further. This tactic has two drawbacks:
A customer without a personnel reserve from which to recruit new employees will have to conclude a new outstaffing agreement each time when recruiting staff. This is an additional burden on the HR department (which is forced to be distracted from other important issues) and a decrease in the financial efficiency of outstaffing.
Many provider companies have various tax incentives, which allows their customers to save on tax costs. The more employees are outsourced, the more money is saved.
Thus, the transfer of a large number of employees from the staff is not only the preservation of the right to a simplified taxation system, but also an opportunity to significantly reduce your personnel management costs and optimize the management process itself.