Outstaffing is a popular modern personnel management tool, which is characterized by its high level of efficiency. It is a process whereby employees withdraw from the permanent staff body of the company through their dismissal and subsequent registration with an outstaffing agency.
Advantages of outstaffing
The constant growth of service popularity is the best evidence of its effectiveness! The outstaffing of courier service provides the company with important advantages:
- Reduced number of permanent staff. The staff are registered with another organization, therefore the official number of employees in the company decreases;
- Simplified management of HR records. Delegating the responsibilities of personnel management of the contractor reduces the burden on the company’s HR and accounting departments;
- Reduced ongoing costs. No company employees amongst the workersmeans no need to calculate and pay them a salary;
- Reduced gross deductions from the payroll. Reduction in the aggregate Labor Compensation Fund (LCF) leads to a reduction in tax and social deductions;
- The problems with staff are lessened. If employees are dissatisfied with the level of salary or other terms of cooperation, they file claims to their official employer;
- Resolved issues with public services. The violations of labour legislation can be identified in the course of inspection by the public services;
- Desired tax category is preserved. Company’s legal status changes depending on the number of its employees. If employees are engaged in the terms of subcontract, which is not as permanent staff, this allows the company to apply a profitable tax scheme.
Outstaffing of housing cooperative personnel is a good opportunity to organize the maintenance of collective property with the help of a reliable partner. They register, provide up-to-date information and salary to employees, and provides their services to an contractor to achieve a profitable commercial result.
The company, through the delegation of minor responsibilities to the contractor, is relieved from many concerns and can allocate the released financial, labor, and time resources for the development of core activities. This leads to an increase in its performance and stable increase in profits!