Outstaffing is the removal of staff for the company’s staff. In outstaffing, personnel conclude labour contracts not with the company that is the actual employer, but with an intermediary organization, or outstaffer, in our case it is BAI.
Outstaffer assumes the functions of registering labour relations, calculating and paying salaries, preparing tax reports and paying taxes, maintaining personnel records, enforcing labour laws (hiring, firing, etc.). At the same time, the staff performs the work directly for the company that is the actual customer.
Contractual relations between the outstaffer and the company – the actual employer are drawn up through a staffing agreement (outstaffing agreement).
The main goal of outstaffing services is to resolve issues related to optimizing staff and managing the company’s budget, as well as reducing risks associated with resolving labour disputes.
For foreign companies wishing to enter the local market, outstaffing services are the best option. When the prospects for business development are not yet clear, when at the initial stage the activity is subject to significant risks, and the opening of a local representative office and its maintenance is accompanied by high financial costs – outstaffing will significantly reduce risks and save money and time.
- Reduce administrative costs
- Prompt access to regional markets
- Optimization of the business processes of the HR department and the organization as a whole.
- Reducing the burden on the personnel service of the company.
- Reducing the burden on enterprise accounting.
- Reducing the risks of insurance and other unforeseen incidents with staff.
- Decrease in the number of employees on the staff list.
- Withdrawal from the company of obligations for labour disputes with an employee.
- Ensuring maximum flexibility in personnel management and matching the amount of labour to the real volume of work.
So the client company not only relieves part of the tasks of personnel management but also reduces costs, taking the staff out of its staff. Savings due to this service can reach 30% of annual personnel costs and their management.