Disadvantages of outstaffing:
Agencies do not have the right to apply simplified taxation systems - UTII, STS or patent.
Some categories of personnel (such as stateless persons, refugees, foreign citizens) are difficult to process.
Hired workers lose some of the benefits they would otherwise be entitled to if they were employed on a permanent basis.
Since customer companies marketing with stockholder database often change, the places of work of employees also change.
The hiring procedure is not controlled in any way. Since the outstaffing company is responsible for personnel records, the customer cannot independently select candidates for themselves or conduct interviews with them.
Outsourcing of line and other personnel is associated with risks:
You may come across a contractor who does not have a license for outstaffing services and the appropriate accreditation.
An outstaffing agency does not enter into employment contracts with personnel in order to avoid taxes. This is dangerous for employees if the contractor turns out to be unscrupulous.
If errors were made when formalizing employment relationships, the contract between the customer company and the contractor for hiring personnel may be invalid.
An incorrectly drafted agreement for personnel outsourcing services will lead to the same outcome - invalidity of the relationship between the parties.
Differences between outstaffing, leasing and outsourcing
In addition to outstaffing, there are also outsourcing and leasing. Outstaffing is the transfer of workers to the customer organization, and not just like that, but for the sake of performing a certain list of works within the timeframes specified in the contract.
With outsourcing, everything is simpler: the contractor company is obliged to perform some production functions and take on non-core business processes that the client company previously handled independently.
Outsourcing of personnel
Outsourcing in the Russian Federation is widespread in the areas of accounting, marketing, legal and transport services, and personnel records.
The outstaffing model of cooperation requires providing the employee with a workplace, salary and instruction.
Outsourcers never become employees of the customer organization: they are paid strictly for the work performed, and they often have a flexible work schedule. This distinguishes them from workers hired as part of outstaffing.
So, the differences between outsourcing and outstaffing of personnel are:
Different methods of calculating salaries: a fixed salary for outstaffing companies versus payment on an actual basis for outsourcers.
Hiring method: outstaffing is always the employment of personnel on the staff of the client company, while outsourcing is a regular contract.
The principle of work organization: outstaffing is always limited in time and the terms are specified in the contract, while outsourcing covers the full cycle of work.
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The list of employee responsibilities also distinguishes these two formats of cooperation: outstaffers are engaged in any activity, while outsourcing usually entrusts intellectual tasks such as personnel records management, accounting, and legal support.
Personnel outsourcing, in which a professional HR agency is engaged in training, development, accrual of benefits, salaries and insurance compensation for employees, is called personnel leasing. In the USA, only REOs — professional employers — have the right to provide such a servic