Outstaffing for promoters

Outstaffing is the process of re-registration of employees with a contracting organization. It is implemented by the dismissal of employees and their subsequent registration with the new employer. The outstaffer carries out the registration as well as the calculation, and payment of salary to each employee. The company pays the business partner for outstaffing services in accordance with the terms of the contract, but does not participate in personnel management and maintenance.

The outstaffing of promoters is the process of their re-registration with the professional outstaffing agency. Upon dismissal and employment with a new employer, the latter assumes full responsibility for staff maintenance. Funds to pay salaries are provided by the contractor.

Benefits of outstaffing

The benefits of outstaffing are obvious:

• Reduced number of permanent staff. Since employees are registered with the contracting organization the company’s official staffbody is reduced;
• It reduces the burden on the company’s HR and accounting departments. Outstaffing of promoters simplifies the work of specialists in the enterprise, because there is no need to solve minor tasks;
• Desired tax category is preserved. Company’s legal status changes depending on the number of its employees. The official staff reduction allows for an advantageous taxation scheme;
• Reduced ongoing costs. A reduced number of promoters leads to a reduction in the Labour Compensation Fund. In turn, the base of tax and social deductions is reduced;
• Multiple calculations for each employee are replaced with periodical payments to the contractor on a contractual basis;
• Increased performance of core activities. The financial, labour and monetary resources released from non-core activities are allocated for the development of the main corporate business.

Professional outstaffing allows the organization to achieve better competitive results, because the contractor does not need to focus on minor tasks. They obtain the necessary benefits from promoters’ activity, but delegate the responsibilities for their maintenance and management to a reliable contractor!