Outstaffing staff - what is it? Services, contract and essence of outstaffing

Any company forms a staff of its employees,based on the criteria for ensuring business performance. However, sometimes you have to face a situation where the costs and time spent on recruiting, adapting or training new professionals are not economically viable. In this case, the outstaffing of personnel comes to the aid of entrepreneurs, acting as an effective tool for attracting freelancers.

Consider the essence of these services, whatthe subject of the contract with the outstaffer, what advantages does the customer receive working in conditions of tough market competition, what risks he may face and how to avoid them.

Outstaffing: unlocking the concept

Acting in the interests of the client, outstafferprovides him for the period of the implementation of a specific project or the execution of seasonal work by competent specialized specialists with the necessary level of qualification, experience and professional knowledge.

In other words, staff outstaffing isregistration in the staff of the provider company, actually being the formal employer for the personnel involved, part of the employees of the client company. At the same time, all the routine work related to personnel management, compliance with civil and labor law (including the provisions of the federal legislation on hiring foreign citizens), transferring taxes, charging and paying wages falls on the outstaffer’s shoulders.

Briefly about foreign experience

USA, Canada, Western Europe goodfamiliar with what outstaffing staff. During the decades that have passed since the first outstaffers appeared (the period of economic recession of the 70s of the 20th century), they managed to appreciate the potential of material benefits from the services of temporary provision of freelance specialists.

For clarity, you can bring only a few numbers. For example:

• Outstaffing services market volume indicators are estimated at billions of dollars (7 billion - Germany, about 38 billion - Great Britain, 80 billion - United States);
• the number of workers employed in the framework of the agreement with the outstaffers is from 7 to 10 million people (in the countries of the European Union and the USA, respectively);
• the growth in demand for the supply of the outstaffing industry is about 30% annually

Specificity of the Russian market

In Russia, the start of the popularity of this type of servicebegan in the late 90s of the last century. First of all, this was due to the economic crisis, which persistently pushed entrepreneurs to address the issue of optimizing personnel policy through rational and economically sound use of labor resources.

At present, staff rent (outstaffing) -completely ordinary and familiar practice in Moscow and many other large Russian megalopolises. Initially, the ranks of “out-of-the-staff” employees were filled up with narrow qualifications, who performed a small segment of work of a certain profile, and top managers. Over time, they were joined by ordinary freelancers (for example, cooks, workers in packing rooms or warehouses, stewards, waiters, porters, etc.).

Preparation of contract

Staff outstaffing services are providedto the customer on the terms of the contract. In order to actually ensure the economic benefits of the agreement being concluded and to prevent the likelihood of undesirable questions from the representatives of the supervising bodies, proper attention should be paid to this document. Without fail, it should include specific and as complete information as possible about the rights and obligations of the parties, the scope of their powers, the terms of interaction and the services provided.

Details of the functions performedselected specialists in the interests of the client side, as well as requirements regarding the qualification of these freelancers. Clearly stipulates the amount that will be paid to the outstaffer for services rendered. In this case, the contractor undertakes to bear the costs of providing social guarantees (payment of sick leave, benefits, etc.), to transfer taxes and insurance premiums, to pay wages to employees involved in the framework of a civil law contract. In addition, the outstaffer takes over the resolution of labor disputes and disputes.

When is staff outstaffing necessary?

Consider the feasibility of attracting a certain number of employees to temporary work on the example of a commercial organization.

• The company is expanding the range promoted byproduct market and needs sales representatives who will actively stimulate demand for new brands. It is indisputable that in this situation it is much more profitable to use employees “from outside” than to issue them to the state with regard to subsequent dismissal.
• The company has a staff member, greatcoping with his official duties, perhaps he is not even fully loaded. However, for the period of his illness or vacation, the services of outstaffers will be quite appropriate.
• Staffing does not provideAdditional specialists for the implementation of the seasonal project, or there was a need to perform work that was not planned under the current budget.

Benefits

In comparison with the direct hiring of labor, outstaffing allows a customer to receive a number of tangible benefits. What is this about?

• Reduces the burden on personnel service and accounting department, as a result, reduces administrative costs.
• There are no risks associated withliability for violations of labor laws (including laws on the labor activities of foreign citizens) and the occurrence of insurance claims.
• It is possible to ensure maximum compliance of the number of employees with the actual amount of work and flexible personnel management.
• The funds required for the organization of training and staff development are saved.

What is the difference between outsourcing and outstaffing?

Under outsourcing is meant the actualtransfer of certain functions of the customer organization to an outside (external) contractor. Thus, labor and financial resources are released, which can be directed to addressing issues that require priority consideration and increased attention. What else is the key difference between such business models as outsourcing and personnel outstaffing?

The task of employees hired under the contractoutsourcing, - the provision of a specified service (accounting, personnel records, legal support or otherwise). At the same time, they are employees of the outsourcing company and can carry out their activities in the customer’s territory or in the contractor’s territory without direct interaction with the client of the outsourcing company.

Outstaffing is different. This service involves the provision to the customer of certain professionals who work at the place of its location, without entering into direct labor and civil law relations with it.

Outstaffing as a tool for hiring migrant workers

It's no secret that the recruitment of foreigners inThe Russian Federation is associated with certain difficulties due to the strict requirements of immigration legislation, which provides for significant penalties for violations, and the presence of quotas. Under these conditions, the outstaffing of foreign staff avoids many problems.

Outstaffer company carries out all personnelprocedures within the framework of existing laws, drawing up a complete set of permits, giving the right to attract foreign citizens to work. As a result, the customer of services saves on the acquisition of specialized manuals or journals and the training of full-time specialists in courses and seminars on the recruitment of migrant workers. But most importantly, he saves himself from any complaints from the labor inspectorate, the migration service or the prosecutor's office.

"Pitfalls" procedure

For objectivity, it should be noted that, exceptbenefits, staff outstaffing can be fraught with hidden risks. In particular, there is the likelihood of concluding an obviously unfavorable contract with a firm specializing in the provision of services of this profile.

Such a document containing provisionsContradicting legislation, can be invalidated in a court of law, and therefore, will be the starting point for considering the issue of bringing the contracting party to legal responsibility and imposing penalties. Avoiding negative consequences will allow cooperation with professionals who take into account all requirements of the FMS and FTS when drafting a contract.

When is outstaffing prohibited?

The right to provide staff haveexclusively legal entities having respective accreditation (No. 116-ФЗ dated 05.05.2014). The ban on outstaffing (as a type of activity) applies to individual entrepreneurs and companies that do not meet certain criteria in terms of the size of the share capital, the seniority of a manager, etc.

In addition, federal legislationprohibits the use of outstaffers to replace workers participating in strikes when hiring crews of river-sea vessels and ships, specialists to work in production areas with hazardous working conditions (grade 3, 4) and hazardous facilities (I, II class).

In other cases, when responsiblea professional approach to personnel outstaffing is an excellent solution for business representatives who are interested in optimizing staffing levels, reducing costs and maximum concentration on solving strategic tasks.