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

Any company forms the staff of its employees, based on the criteria for ensuring the effectiveness of the business. Nevertheless, sometimes you have to deal with the situation when the costs of funds and time for selection, adaptation or professional training of new specialists are economically inexpedient. In this case, outstaffing of personnel comes to the aid of entrepreneurs, acting as an effective tool for attracting freelancers.

Let's consider what the essence of these services is, what is the subject of the contract with the outstaffer, what are the advantages of the customer working in conditions of tough market competition, what risks he can face and how to avoid them.

Outstaffing: we reveal the notion

Acting in the interests of the client, the outstaffer grants him / her for the period of the implementation of a certain project or the performance of seasonal works of competent specialized specialists possessing the necessary level of skills, experience and professional knowledge.

In other words, staff outstaffing is the design of the company-provider, which is actually a formal employer for the personnel involved, part of the employees of the client company. At the same time, all routine work related to personnel management, observance of civil and labor law norms (including the provisions of federal legislation on hiring foreign citizens), transfer of taxes, calculation and payment of wages, falls on the shoulders of the outstaffer.

Briefly about foreign experience

The USA, Canada, the countries of Western Europe are well acquainted with what is outstaffing of personnel. For decades, since the emergence of the first outstaffers (the period of the economic recession of the 1970s), they were able to appreciate the potential of material benefits from temporary provision of freelance specialists.

For clarity, only a few figures can be cited. For example:

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

Specificity of the Russian market

In Russia, the start of the popularity of this type of services began in the late 90s of the last century. First of all, this was due to the economic crisis, persistently pushing entrepreneurs to solve the issue of optimizing the personnel policy through rational and economically justified use of labor resources.

For today, the rent of personnel (outstaffing) is a very common and common practice in Moscow and many other large Russian megacities. Initially, the ranks of "staffed" staff were replenished by specialists with narrow qualifications, performing a small segment of the work of a certain profile, and top managers. Over time, they were joined by ordinary freelancers (for example, cooks, workers in packing shops or storage facilities, stewards, waiters, loaders, etc.).

Preparation of contract

Staff outstaffing services are provided to the customer on the terms of the contract. In order to effectively ensure the economic benefits of the agreement being concluded and to prevent the possibility of undesirable questions from representatives of the supervisory bodies, proper attention should be paid to this document. On a mandatory basis, it should include specific and maximum information about the rights and obligations of the parties, the boundaries of their powers, the terms of interaction and the services provided.

The functions performed by selected specialists in the interests of the party-customer are detailed, as well as the requirements regarding the qualification of these freelancers. The amount that will be paid to the outstaffer for the services rendered is clearly specified. At the same time, the contractor undertakes to bear the costs of providing social guarantees (payment of sick leave sheets, allowances, etc.), transfer taxes and insurance premiums, pay salaries to employees involved in the formal civil-law contract. In addition, the outstaffer takes over the resolution of labor disputes and disagreements.

When is it necessary to outstaff staff?

Let's consider expediency of attraction for temporary works of a certain number of employees on the example of a commercial organization.

• The company is expanding the range of products promoted to the market and needs sales representatives that will actively stimulate demand for new brands. Undoubtedly, in this situation it is much more profitable to use "from outside" workers than to formalize them in the light of subsequent dismissal.
• In the staff of the company there is an employee who perfectly copes with his job 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 provide additional specialists for the implementation of the seasonal project, or there was a need for work that was not planned within the current budget.

Benefits

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

• The burden on the personnel service and the accounting department is reduced, as a result, administrative costs are reduced.
• There are no risks associated with bringing to responsibility for violations of labor legislation (including laws on labor activity of foreign citizens) and the occurrence of insurance cases.
• There is an opportunity to ensure the maximum correspondence of the number of employees to the really existing scope of work and flexible personnel management.
• The funds necessary for the organization of training and staff development are saved .

What is the difference between outsourcing staff from outstaffing?

Outsourcing means the actual transfer of certain functions of the contracting authority to a third party (external) contractor. Thus, labor and financial resources are released, which can be used to address issues that require priority consideration and increased attention. What else is the key difference between such business models as outsourcing and outstaffing of personnel?

The task of employees hired under an outsourcing agreement is to provide a specified service (accounting, personnel records, legal support, or otherwise). At the same time they are employees of the outsourcing company and can perform their activities on the territory of the customer or on the territory of the contractor without direct interaction with the client of the outsourcing company.

Outstaffing is of a different nature. The given service assumes granting to the customer of the certain experts who work on a place of its finding, not entering with it directly in labor and civil-law relations.

Outstaffing as a tool for hiring migrant workers

It is no secret that the employment of foreigners in the Russian Federation is associated with certain difficulties, due to the stringent requirements of migration legislation, which provides for significant penalties for violations, and the availability of quotas. In these conditions outstaffing foreign personnel allows to avoid many problems.

The outstaffing company carries out all personnel procedures within the framework of the existing laws, drawing up a complete set of licensing documents that give the right to attract foreign citizens to work. As a result, the customer of the services saves on the purchase of specialized methodological aids or magazines and the training of full-time specialists in courses and seminars on hiring labor migrants. But most importantly, he relieves himself of any claims from the labor inspectorate, the migration service or the prosecutor's office.

"Pitfalls" procedure

For objectivity, it should be noted that, in addition to benefits, staff outstaffing may conceal hidden risks. In particular, there is a possibility of concluding an obviously unprofitable contract with a company specializing in the provision of services of this profile.

Such a document containing provisions that contradict the legislative norms can be recognized as invalid in court and, therefore, will become the starting point for consideration of the issue of bringing the contracting party to legal responsibility and imposition of penalties. Avoiding negative consequences will allow cooperation with professionals taking into account all the requirements of FMS and FTS in drafting the contract.

When outstaffing is prohibited?

The right to provide personnel is available exclusively to legal entities that have appropriate accreditation (No. 116-FZ of 05/05/2014). The prohibition on outstaffing (as a kind of activity) applies to individual entrepreneurs and companies that do not meet certain criteria in terms of the amount of authorized capital, seniority, etc.

In addition, federal law prohibits recourse to outstaffers to replace workers participating in strikes, hiring crews of river-sea vessels and sea vessels, specialists for work in hazardous areas (grade 3, 4) and Dangerous objects (I, II class).

In other cases, with a responsible professional approach, staff outstaffing is an excellent solution for business representatives interested in optimizing the staffing structure, reducing costs and maximizing concentration on strategic tasks.