What is Outstaffing: Advantages and Disadvantages

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Do you know why companies are often ruined, especially those that sell goods or provide services?

Because they have to spend too much money on staff maintenance.

Everyone knows that qualified professionals need to pay decently, but how can the firm do it, that it only gets on its feet?

But there is such a wonderful phenomenon as outstaffing!

Never heard of it?

It's no wonder that not many people know what is outstaffing.

This is a relatively new phenomenon for our latitudes, whereas in Europe and, especially in the US, it is in high demand.

Domestic entrepreneurs can also use this service to work with personnel, which has many advantages.

What is attestsing and what are its features?


The term "outstaffing" itself is derived from two English words: out, which translates as "outside" and staff - "personnel."

If you explain in simple language what an outstaffing is, you can characterize this phenomenon as an opportunity to use the personnel of another company for your own purposes.

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Naturally, we are not talking about serfdom( one landowner agreed with another for tea, so that he gave him the field of serfs to remove), but about a legal contract with prescribed conditions of cooperation and payment for services rendered.

What do I mean?

Now I will explain with an example.

Imagine that there is a construction company in the staff of which there are different people, including electricians.

Who does not need electricians?

Electricians are needed by all, but keeping them in the state is expensive, and they will not work every day.

Why pay a bet?

For periodic replacement of light bulbs?

It's stupid, I agree.

But after all, from time to time some company needs to install sockets, some - fix the wiring, some - mount fixtures, etc.

If you just hire an electrician to perform these jobs, you'll have to pay a tidy sum.

But there is outstaffing.

You are applying to a construction company to sign a contract with their electrician.

The contract prescribes what kind of work the specialist should perform, for what time, etc.

What is Outsourcing?

The customer company will be able to save, because this electrician receives the salary in the company that provides outstaffing services, and his salary for the week( for example) will still be less than hiring an electrician from outside.

And even the percentage that you must deduct to an outstaffer company for their specialist, and even their tax expenses, and the electric wage - the account for all this you get from the construction company - will still allow you to save.

In addition, you will have a serious construction company with a good reputation, and not with an incomprehensible shabashnik on the announcement in the newspaper.

What is outstaffing: the history of origin

Outstaffing is a relatively new phenomenon not only in post-Soviet countries, but also in the US and Europe.

It was first introduced in the US in the 60s of the last century, although only a few companies used it at the time.

But in the 1990s everyone remembered about such a useful invention.

The reason for this became bureaucratic delays in the design of a new employee, which the state was harassing private companies.

American businessmen began to look for a way out of the current situation, so as not to spend too much time and effort to design a new employee and remember about outstaffing.

Gradually, the opportunity to use the personnel of another company for their own purposes began to be used in other countries.

In Russia, Ukraine and Belarus this phenomenon has not yet become widespread, but the first steps in this direction have already been taken.

Outplacement: how to dismiss people correctly?

Over half a century of its existence, outstaffing has suffered several changes and now exists in two versions:

  1. The outstaffer is looking for you on the application of a suitable specialist and arranges it for his staff or provides a person from his state to perform a certain amount of work.
  2. The outstaffer takes an employee to your staff, which you were forced to fire, but he still continues to work for you.

    Companies are resorting to this kind of outstaffing in order to pay taxes under a simplified scheme or to unload their personnel department, or to get rid of problems with the migration service.

What are the advantages of outstaffing?


Naturally, outstaffing, like any other phenomenon, has both advantages and disadvantages.

The main advantages of outstaffing include the possibility:

  1. Reduce the basic payroll.
  2. Avoid bureaucratic red tape associated with the design of an employee for a permanent or temporary place of work( this is what the outstaffer is doing).
  3. Reduce the burden on the accounting and human resources department of the company.
  4. Spend too much time, effort and money on finding qualified personnel.
  5. Fill in the gaps in unpopular specialties that are not needed in the state, but are required only from time to time.
  6. Remove problems with the turnover of frames.
  7. Pay taxes on a simplified scheme, even using the labor of more people than prescribed by law, and the Tax Office will not be able to make a claim against you, because the company pays the taxes to it outstaff.
  8. Optimize the staffing of your company.

How do I get a job?

Are outstaffing disadvantages?


It would be unfair to say that outstaffing has only advantages.

There are some drawbacks, among them:

  1. Not very good attitude of the employees whom you hired in the outstaffing system, to you and to the duties performed, because you are not their direct employer.
  2. Difficulties with the control of hired employees and a small amount of leverage on them, for example, you can not motivate them with bonuses or promotions, just as you can not threaten to lay off.
  3. Failure to unite their employees in one team because of the constant replacement of the staff and the appearance of new people in the state.
  4. A violation of the contract by an employed employee, for example, it does not fit within the specified time limits or it can not perform the entire scope of work.
  5. Fraud on the part of the company-outstaffera, who, wanting to save, keeps in the staff of hack-laborers or illegal immigrants, or do not understand whom yet.

From the video below, you will learn about the conditions for using

outstaffing in accordance with the laws of the Russian Federation:

In which areas is most often used outstaffing?

In principle, outstaffing can be used in various areas, but most often it is resorted to by owners:

  • cafes, restaurants, catering companies and other establishments that feed the population;
  • stores and supermarkets - here for a temporary position you can take any: the seller, until you find someone who will work on an ongoing basis, the loader, when a particularly large consignment of goods arrives, the manager, so that he puts the business on his feet, etc.;
  • production plants - when you need specialists who do not have a place in the state to do something or to eliminate a problem, for example, electricians, furniture collectors, technologists, etc.;
  • of agricultural enterprises - most often employees are hired for seasonal work;
  • trading companies, when you need distributors or advertising agents;
  • hotels, sanatoriums, boarding houses, especially those that have seasonality;
  • cleaning companies, when a large number of orders can not cope with the existing staff.

But, of course, these are just examples.

Knowing now, what is outstaffing, you can use its services when you need it, no matter what business you are doing.

  • Mar 04, 2018
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