It can be fixed-term (only for the duration of the contract for providing personnel to the client) or permanent—if the specialist is highly valuable and is expected to be permanently employed. When a client of an outstaffing company reduces staff, the company does not lay off the employees, but simply transfers them to other clients (other companies). For example, when an agreement is concluded, obligations and rights arise for the outstaffing company and the employees, but not for the staff and the client. A civil law contract, however, does not provide guarantees for things like vacation time.
Without a strong core, effectively outsourcing tasks will become more difficult over time. It's better when the team solves the assigned tasks themselves, even with the help of external specialists. However, all of the above-mentioned disadvantages can be mitigated by the effective and coordinated work of the outstaffing company's team. Only by engaging a professional outstaffing company with years of experience and strong references can you guarantee the integrity and reliability of the outstaffing mechanism.
Secondly, unfortunately, it sometimes happens that due to a company's lack of professionalism, the division between full-time employees and outsourced workers psychologically undermines trust in the company. From this perspective, outsourcing cannot serve as a tool for optimizing the company's internal management. To confirm expenses incurred, it is necessary to draw up a service report for the provision of personnel. A detailed report is preferable—detailed information on the activities of the outsourced employees will serve as an additional argument in favor of the organization. Depending on the management structure, the supplier assumes responsibility for the quality of the outsourced function.
The outstaffing company pays taxes and fees required by law, optimizes taxation, etc. Communications Solutions: Platforms for ensuring high-quality communications with clients and employees. Information Security Audit: Comprehensive assessment of the security of IT infrastructure and services. Bull: Developer of a flexible, scalable platform for digital business development. Platforms for ensuring high-quality communications with clients and employees.
Why Ventra Go! Isn't Outstaffing
Simply hiring an electrician to do this work would cost a pretty penny. Electricians are needed everywhere, but keeping them on staff is expensive, and they won't have enough work every day. Imagine a construction company with a diverse workforce, including electricians.
The moment a contract is signed can generate uncertainty among company employees and the fear of losing their jobs. VKS specialists have learned to mitigate all of the above risks through a well-established system of interaction with the client company's management and workforce. Furthermore, a proven employee incentive system guarantees high-quality and timely completion of your assigned tasks.
Many even associate the legal service of outsourcing personnel with illegal tax evasion. It turns out that outstaffing is a certain economic situation for an organization in which its employees are externalized. Despite its initial non-obviousness, this unusual solution can nevertheless offer certain advantages to the company using this approach. So, what is outstaffing in simple terms, and what opportunities does it offer? Another risk associated with outstaffing is the employees' negligence in their work.
How to optimize labor force efficiency
The question is who is contracted and what is the scope of the contract. Good specialists are always in short supply, and companies strive to collaborate with them for as long as possible. In-house startups are a common practice in the industry to implement a new idea with maximum speed and urgency. Sber, Yandex, Google, Mail.ru, and Microsoft are all creating mini-enclaves free from the shackles of the parent company. Then, once the project (or its MVP) is created, it is linked to the parent company, strengthening its brand and increasing user loyalty. I believe that industry doesn't play a key role.
Outstaffing has proven its cost-effectiveness, especially during a crisis, when companies need to quickly adjust their workforce. However, it would be unwise to recommend this approach to every company. The decision to switch to outstaffing depends on many factors and must be carefully considered to maximize the benefits of workforce optimization. It's crucial for employees to sign an employment contract with a reliable outstaffing provider; otherwise, they risk losing social benefits due to their employer's dishonesty. Otherwise, working with an outstaffing agency, despite its specifics, offers more advantages than disadvantages for employees. All accredited private employment agencies are included in the Rostrud registry, so before deciding to partner with one, it's best to check whether the outstaffing company you're considering is on this list.
Why is there so little IT outsourcing in Russia?
The relationship between the company, the outstaffed personnel, and the outstaffing contractor is shown schematically in Table 1. This HR technology only became widespread in the US and Japan in the 1970s, and arrived in Russia in the early 2000s. However, in the IT world, outstaffing has become more common due to the widespread shift to remote work. The outstaffing company's manager, with whom the client's representative communicates, manages the specialists. Moreover, the cost of our work is quite reasonable, considering the final positive result and SkyDynamics' extensive experience (over 10 years in the market). The employer doesn't need to waste time and money searching for a specialist with the required qualifications—this is handled by the service provider.
Increasing the number of employees without abolishing the simplified tax system
This is where outsourcing comes in handy, preventing months of wasted searching for suitable employees. A separate company provides the client with specialists ready to step up and strengthen the core team. There are several aspects of outsourcing that should be taken into account, and they outstaff it is Associated with employer risks. The biggest problem an employer can face is hiring an illegal outstaffing company. Therefore, all penalties for illegally employed workers, tax evasion, and potential violations of immigration laws will fall on the employer.
The business of such companies consists of finding clients with vacancies and transferring them to an outstaffing scheme, as well as comprehensively developing the transferred employees. (After all, it may happen that the current client cuts a given position, and then the more versatile the employee, the more in-demand they will be.) You are completely freed from any obligations related to labor relations with staff.
Having assessed the specifics of personnel outsourcing, its pros and cons, and the relevance of its application in the Russian context, there is no doubt that this form of HR management has a future. Some organizations outsource their entire staff except the CEO and chief accountant. In this case, there is no need to maintain personnel records, fill out timesheets, maintain workbooks, or perform many of the documents and procedures associated with HR administration. The labor inspectorate, migration service, and other regulatory bodies will not be able to fine a business for violations related to HR, immigration, or tax matters when using outsourcing. The risk of being left without a job is significantly reduced. Outsourcing is an independent type of business focused on the training, placement, and management of personnel.
The User bears all responsibility, as well as any potential consequences, for providing inaccurate or outdated personal information. Regarding the unified social tax, the payer in this case is the organization that provided the personnel, with whom these employees have concluded employment contracts. The construction company makes no payments to these individuals, and therefore has no taxable object. Outstaffing is particularly popular among large companies, allowing them to reduce the workload of their in-house specialists. Being classified as a commodity limits prices (and, in turn, wages).
