How can outstaffing help a business?

How can outstaffing help a business?
Photo by Cytonn Photography / Unsplash

This, relatively new concept, is now faced only by those who are directly related to a business that involves a team of human resources. For certain reasons, the owner of a company or firm has the need to reduce the number of staff to a minimum. And the activity of the enterprise should not be affected. How to be?

There is a possibility of formal removal of employees from the staff, while retaining in fact the entire team. This is called outstaffing.

What are the advantages of this procedure?

If for the director of any enterprise the presence of a large number of employees creates certain difficulties related to registration, taxes, accounting, etc., thanks to outstaffing all these unpleasant worries can be entrusted to the so-called provider of relevant services. All employees remain at their workplaces, but officially they work for the outstaffing company. The owner of the company and the provider conclude an agreement between themselves on the provision of labour, in which case the latter assumes all the obligations for the registration of personnel. In this way, the client firm in some cases retains only the administrative staff.

Outstaffing services can be indispensable when you need seasonal workers or employees for a specific project. It is not very convenient to hire people and then fire them after a short period of time. Therefore, it is more practical to turn to the services of an outstaffer, which, as a rule, already has a whole staff of qualified workers in different areas.

It may seem that the most unprotected party in the outstaffing procedure is the employees themselves. The hiring firm is not responsible for them, as it has no legal relations with the staff. And in fact their activity is not connected with the company-provider. But in fact, any employee in this case is bound by obligations with the outstaffer, and it, in turn, bears all the responsibility on the basis of contractual relations with a particular person. The rules here are simple - regardless of which party you are, carefully study the contract or agreement before signing it. This is the only way to avoid misunderstandings when questions arise about your rights and obligations.