Stages of hiring an outstaffing company
The outstaff model has existed on the market for more than 15 years, but companies do not always know what it is and how it will help their business.
Further in the article, you will find out why an outstaffing company is hired, what functions it will perform and the benefits of this kind of cooperation.
In short, outstaffing is the withdrawal of personnel from the staff. There is a company that needs specialists, there is an outstaffing organization that is ready to provide such employees. And there are people who want to work under similar conditions.
Speaking in rough and simplified terms, an outstaffing organization offers its employees for rent – temporary use by another company (client).
All this distinguishes outstaffing from outsourcing. The client company can freely assign tasks to specialists who have arrived under the contract, redirect them to other projects, redistribute the workload between them, change and refine the TOR in the process of work. The outsourcing company may require an additional fee for any of the listed actions, the outstaffer will not do this, this is included in the contract.
Thanks to this outstaffing agreement, it is more profitable and easier to find and involve rare or highly qualified specialists in the project for a short period of time:
- backend and frontend developers;
- UI and UX designers;
- programmers for applications on Android and iOS;
- marketing analysts;
- SMM and SEO specialists.
Outstaffing of employees is beneficial to use if the company:
- looking for ways to reduce staff costs;
- tries to focus on the core business (and outsource side projects);
- looking for a rare specialist for a short term or one project.
The main advantage of such a choice is the optimization of jobs and processes within the client company.
- Regular and incoming employee ability checks. There is no need for test tasks and checking the knowledge of a specialist, the outstaffer has already checked him and sent him to different tasks. From the very beginning, you can immerse him in a complex project, he has the necessary qualifications.
- Significant reduction in financial and time costs. Accounting costs are reduced – they do not need to pay salaries, accrue sick leave, bonuses and other payments. The HR department does not have to rework either – there is no need to search for employees, interview, monitor, train and help during the first months of work.
- Flexible personnel management. The company takes as many employees as it needs to perform current tasks. People are not just sitting (if there is not enough work) and not overloaded (if there is too much of it). No need to constantly hire or fire people from the state. If someone does not fit, they quickly and free of charge select a replacement. In the event of a huge amount of work, you can quickly strengthen the team.
- Stable and guaranteed execution of tasks. The client company is insured against cases when a person quits abruptly or goes on sick leave. In any force majeure, the outstaffing organization will quickly find another worthy candidate to take its place. This also applies to rare personnel, that is, the company does not have downtime in search of an employee.
- Regular reduction of insurance and other risks. The client company does not have to resolve labor and insurance disputes with employees.
- Decreased interest of the labor inspectorate. The outstaffing organization bears all responsibility for the personnel provided. All possible fines, sanctions, etc. fall on the outstaffer.
What is outstaffing
All outstaffing contracts are bound by validity periods. They can be:
- It is necessary first of all to reduce the number of people in the state. Legally, people get a job in another company, in fact, they remain to work in the same place. Or a company is looking for a rare specialist for a permanent job, but finds him only through outstaffing of employees and concludes an agreement.
- Seasonal. Needed in companies with strong seasonal load changes, changing market conditions. The contract is temporary, usually for 1-3 months.
- Design. Needed to complete one specific project or task. After the project is closed, the specialists return to the outstaffing organization and they are assigned other tasks in the companies. The contract specifies the conditions for completion (documented final product, or the moment of its launch)
How staff outstaffing works in a company
Let’s see how outstaffing works in practice. It usually looks like this:
- The client company sends the outstaffing organization an application for the required number of specialists for their vacancies. For example, to find outstaffers, a company can place an order on the Workspace website. Then collect feedback and choose a trusted agency that will offer the right specialists.
- The client company signs a contract with the outstaffer that it accepts specialists. The manager begins the selection of suitable candidates for the conditions.
- At the same time, the parties determine suitable reporting options, time tracking, employee work format (in the office or online), interaction with new employees (in person or through an outstaffer), task setting formats and deadlines. The reasons and amounts for the payment of penalties are determined (many outstaffers have such contracts prepared in advance, it remains only to agree on and sign them).
- When the outstaffing organization selects the required number of employees, they are provided to the customer.
- Project specialists from the client company (for example, a department head or a senior in a group) communicate with new employees, ask them questions, test their skills, and choose those who are interested in them. Those who suit the company remain, cooperation begins.
- Project work. Specialists from the outstaffing organization work in accordance with the agreed rules and conditions, perform the tasks assigned to them, report as they progress through the stages.
- On the dates appointed under the contract, the client company receives an invoice for payment of hours worked by employees.
- If for some reason one of the employees is not suitable for the client company – he does not cope with the task, does not work well with colleagues, for other reasons, the outstaffing organization can replace him with another specialist of the same profile. This usually happens for free.
- Completion of the project. When all work is successfully completed, the client company informs the outstaffer about it, the contract expires, the specialists return to the outstaffer, who selects a new project for them.