• Kseniya Lukyanova

Why outstaffing is relevant for business

The consistent development of management inevitably provokes the emergence of all new and innovative business solutions, opportunities for their organization, and practical use.

Photo by Campaign Creators on Unsplash

For example, with the advent of personnel leasing and outsourcing, it became possible to significantly simplify the process of personnel policy management. Another, no less effective technology of recent times is outstaffing.

Not everyone is familiar with such a form of employee-employer relationship as outstaffing. However, in modern economic conditions, many employers are increasingly using outstaffing as an anti-crisis management tool.

The meaning of outstaffing is simple: a company, wanting to focus on its core business and not be distracted by various HR problems, agrees with an intermediary organization that provides it with a staff of employees. The latter is legally their employer and solves all issues related to subordinates' selection, salary, and registration. It also maintains all accounting and personnel documentation.

At the same time, employees fully work in the customer's company, but they are on the staff of the provider company. The service is also popular among Western and American startups who want to get the specific experts they need for development without unnecessary delays, which are difficult to find in any other way.

People work in the same way as full-time employees on the staff. They carry out their usual duties, often even in the office of the client company. But without unnecessary legal complications and without the risk of costs. If an employee does not come up, the outstaffer simply changes him for free, so you don't have to fire anyone.

Here are some benefits:

  • A reliable provider of outstaffing services is an additional guarantor of compliance with all the terms and conditions of the TC. For such a provider, this service is the whole business, and he values his reputation.

  • The ability to provide flexibility in personnel management. The number of labor force corresponds to the real volume of work. Employees are not idle if they are not busy. At the same time, the possibility of rapid expansion remains, especially if the IT department is recruited.

  • Facilitate the task of finding valuable personnel. Outstaffers usually already have such, they value them, while the search usually requires a lot of resources, both time and budget.

  • The ability to reduce the administrative and financial burden on the company while maintaining direct management of employees.

  • No problem of staff turnover.

  • Reducing the risks of insurance and other unforeseen events with personnel.

  • Removal from the company of the obligation to deal with labor disputes with employees.

Reducing costs (including time) for attracting and servicing personnel leads to a decrease in the cost of each man-hour of work of the company's employees. This leads to a decrease in the cost of production and, as a consequence, to an increase in the actual (non-accounting) profit of the organization. This is why outstaffing has been successfully practiced in Japan and the United States for over 50 years.

Businesses these days must be flexible and have a staff capable of responding to an ever-changing environment. This has never been more obvious than with the COVID-19 pandemic.

Outstaffing, as a practice, turned out to be very useful - before a pandemic and even more so during a pandemic. This allows businesses to increase their capacity and productivity to meet unforeseen or urgent requirements. This is an option that works well to improve productivity and efficiency and reduce costs outside of a global pandemic.

If you still think this is a little discouraging, then you can start by redirecting low-value tasks first. This can include repetitive activities that require less skill, such as data entry. You may want to consider outstaffing a highly specialized activity like website building or graphic design when you're happy with the result.

If you have already planned to reallocate staff for some of the needs of your business, then prepare all the information about the company or individual details that you want to work with. When it comes to outstaffing, this is a very important step. Also make sure the team you are working with is competent, trustworthy, and working on similar projects.

As an experienced and proven outstaffing partner, we will be happy to answer any questions or help you grow your business. Your success is our mission!

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