The article explains:
About outstaffing in simple words
Advantages, disadvantages and risks of outsourcing personnel
Differences between outstaffing, leasing and outsourcing
Cases in which outsourcing of personnel is resorted to
Companies that benefit from outsourcing personnel
Cases when outsourcing is prohibited
5 steps to hiring personnel through outstaffing
5 criteria for choosing an outstaffing company
Requirements for an outstaffing company
Concluding an agreement with an outstaffing company
3 mistakes in implementing personnel outstaffing in a company
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Outstaffing is a tool for hiring specialists profitably. With it, you don’t have to come up with a catchy job posting, conduct dozens of interviews, and then rack your brains over who to choose. Outstaffing is much simpler: contact an agency, voice your requirements for a future specialist, sign a contract, and the next day the employee starts his duties.
This type of hiring scheme is not suitable for everyone. Moreover, in some situations it is prohibited by law. For example, your factory workers went on strike, and you decided to replace them by contacting an outstaffing company. There are few such restrictions, but they should be studied before applying for hiring personnel.
About outstaffing in simple words
The simplest way to define outstaffing is to take employees off the payroll.
Personnel outstaffing is the transfer of employees to the staff of a third-party outstaffing company, which takes on the role of employer and all associated responsibilities in relation to hired workers, but at the same time they continue to work in their old jobs and their functionality does not change.
Outstaffing is related to high management technologies and is a special form of labor relations, which involves the official re-registration of workers on the staff of another company with which an agreement has been concluded for personnel outstaffing services.
For the workers themselves, nothing essentially changes: they perform the same duties in the same place - on the territory of the company that was their previous employer. But officially they are now listed as employees of the new outstaffing company, and it does everything that the Labor Code of the Russian Federation obliges it to do: pays them salaries, interacts with government agencies, calculates taxes, ensures that the employees have everything in order with their documents, and also carries out personnel records.
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The technology of personnel outsourcing in the format we are accustomed to began to be used around the 1960s in the USA and other developed countries. It reached its maximum popularity only by the 90s, when new laws regulating personnel management were adopted. Now American small and medium-sized companies were forced to spend a lot of resources on paperwork, and no one was happy with this.
Laws concerning personnel management began to be implemented in the early 80s, and this process ended in the 2000s. Businesses had to choose between spending time and labor resources to comply with all the new requirements and searching for alternative solutions. This is how outstaffing appeared.
In the Russian Federation, outstaffing as a phenomenon appeared somewhat later, after 1998 and the severe economic crisis. At the same time, outstaffing of personnel has not become as popular as in the USA, where this format of labor relations is built on a clear legislative basis, and all implementation schemes have long been worked out. Today in the States, at least 80% of all small and medium-sized enterprises use the outstaffing service. And, since new firms are opening daily, we can predict an increase in the scale of application of this technology.
Outsourcing in personnel management is beneficial not only for enterprises, but also for the employees themselves: it gives them access to various benefits and a full social package (which small firms would not be able to provide them with).