Consultants Outstaffing

Outstaffing is an effective tool for personnel management, widely used in various enterprises. It is a process of employees’ withdrawal out of a permanent staff of the company in order to optimize costs and simplify the management of personnel. At the same time, the staff are officially re-registered with the contracting organization. The contractor deals with staff maintenance but assigns it to the customer’s site to perform jobs.

Outstaffing of Consultants is an outstaffing service provided by a specialized agency. A new employer, who pays the salary and provides the necessary documents, but assigns the employees to the contractor on a subcontractual basis, recruits the staff. The latter does not enter into formal relations with the consultants, but only uses their services and pays for it to the outstaffer.

Benefits of outstaffing

The use of outstaffing services allows the contractor to gain many advantages:

• Reduced number of permanent employees. Since consultants are registered with another organization, the official size of the company staff is reduced;
• Reduction of ongoing costs. Decreased number of employees leads to a reduction in the Labour Compensation Fund (LCF), and hence, to a reduction in tax and social deductions; In addition, there is no need to conduct calculations for each employee. Instead, you just pay periodically for the services of the contractor in accordance with the contract;
• Desired tax category is preserved. Company’s legal status changes depending on the number of its employees. The official staff reduction enables the use an advantageous taxation scheme;
• No problems with employees. The contractor settles all disputes. The outstaffer addresses issues with personnel inspecting public services;
• The high quality of services.In accordance with the contract, the contractor receives remuneration only in the event of proper performance of their duties. Therefore, it is in their own interested for their employees’ work to be of a high quality.

Outstaffing allows the company to establish the process of clients informing without personnel management involvement. The contractor is responsible for the wellbeing of the staff, uses their services and pays for it on a contractual basis.

This approach reduces the company’s ongoing costs and frees up financial, labour, and temporary resources for the core business-the result of which is its increased performance and profitability!