In order to succeed in business, you need to do everything quickly and correctly in other words – professionally. But what if your company is small and cannot afford a large staff with a wide variety of specialists? Besides, there is not always a need for certain types of work; that is, there is no reason to keep everyone on permanent staff. This is where outsourcing and outstaffing offer their advantages. In simple terms, attracting non-staff personnel or transferring certain processes to contracting companies is becoming more and more in demand.
So, let's see what outsourcing and outstaffing are, and what they can give the company.
What are outstaffing and outsourcing?
Outstaffing is a service that allows you to remove part of your employees out of the company’s staff. Your employee changes an official employer for an outstaffing agency. As for the employee, nothing else changes; he/she performs the same work, but the employer will be able to reduce his expenses by saving on taxes, etc.
Here are the main outstaffing benefits:
- Employees temporarily go to outstaffing staff if you do not have a workload for your specialists. Thus, a company saves on expenses (taxes, insurance, etc.), and your employees retain their workplaces, income and have some work to do. Everybody wins.
- All procedures are 100% legal. The conclusion of an employment contract with an employee, maintaining full reporting on employees, remuneration of labor, compliance with legislation, medical examinations, briefings, etc. – everything goes in a legal way.
As for outsourcing, this is the transfer of responsibilities for the implementation of any process to a third-party company. As a rule, outsourcing agencies are given the following tasks:
- Work on the search and selection of personnel.
- Work on personnel management.
- Keeping company reporting.
- Accounting activities.
- Records management.
Many people confuse the concepts of outsourcing and outstaffing or consider outstaffing as a kind of outsourcing. However, there are fundamental differences between them.
The difference between outsourcing from outstaffing
As for the form of labor relations, an outsourcing company can select personnel for its customers, and such a specialist will work in the company’s staff. In outstaffing, employees are removed from the company staff.
In outstaffing, your employees are officially registered in the company of a contractor, and in the outsourcing of a specialist, they conclude a subcontract.
As for labor remuneration, outstaffing personnel receives wages, while in outsourcing, it can be either wages or piecework wages.
Thus, we can say that the main difference between outsourcing and outstaffing is where the staff is registered – at the customer, or in a third-party company.
Outstaffing and outsourcing services
Outstaffing services are suitable both for individuals and companies. They allow you to redistribute and optimize staff costs, reduce taxation, simplify the process of office work, etc.
Outsourcing services will also help optimize costs and get a certain service without hiring the appropriate specialist.