Outstaffing of drivers

Outstaffing is the process of employees’ withdrawal from the body of permanent staff. It takes place in two stages. Firstly, the employees leave the company. Secondly, they are registered with another organization. And although the statutory format of the relationship changes, the actual cooperation procedure remains the same: staff performthe same functions as before in the former workplace.

Contract drivers’ management is the delegation of the HR management role to the contractor in relation to employees of various professional categories. This management approach allows you to work in logistics and transport companies without having to take care of staff maintenance.

What are the benefits of contract HR Management?

The use of the services of personnel formally registered with another organization has many advantages:

• Quality performance of duties. The company signs a formal cooperation agreement with the contractor. And this means that the outstaffer is personally interested in the qualitative performance of the functions delegated to him, because he receives remuneration for the provision of services.
• Reduction of permanent staff. Although the staff, in fact, work at the customer’s site, they are officially registered with another organization.
• Simplified HR management. Since the outstaffer is the employer for the staff, they takecare of signing the labour agreements, settlements and payment of salary.
• Optimization of costs. First, the reduction of permanent staff leads to a decrease in the aggregate labour compensation fund. Secondly, this leads to reduced base for social and tax deductions. Thirdly, multiple payments to each employee are replaced by the regular settlements with the contractor.
• Exclusion of problems with personnel. If employees are registered illegally or other violations of the law are identified, the risk of obtaining fines is borne by the contractor. And in the case of staff dissatisfaction, the settlement of disputes and disagreements is also handled by the outstaffer.

The outstaffing of drivers is a good opportunity to establish a smooth process of the transportation of various valuables without the need for personnel management. This task is assigned to the contractor. The business owner just utilizes the services of experienced drivers and pays the outstaffer for this. The unspent labour and cash resources of the company can be allocated to the core business, which strengthens the company’s revenue position!