Currently, an outsourcing company can provide part of the staff for any organization. What kind of services are these and how such companies work - let's try to understand this article.
Background
Outsourcing, as a separate line of business, has emerged from the practice of conventional recruitment agencies. Ordinary employment agencies tried to employ their applicants for a permanent job. But there were also companies for which workers were required temporarily, for example, to replace a sick employee or to perform any one-time work. The services of an outsourcing company are aimed specifically at filling this gap. The word "outsourcing" in translation from English means "external source" and gives an understanding of a third-party supplier.
On the other hand, the company has a need to hire employees to perform a specific area of work. Such a company does not need to inflate staff and pay taxes for workers whose work will be useful only for a strictly limited time. An outsourcing company will also come to the rescue. The work for which temporary employees were required will be completed, and the company itself will settle accounts with an outsourcing company, without worrying about the calculation of salaries, bonuses and taxation of temporarily hired workers.
How it works
Recruitment services for temporary staff are currently provided by an outsourcing company. What kind of services are these and how are they hired?
For example, an organization is preparing for a general tax audit. To prepare for this accounting event, temporary employees may be required to double-check the primary documents. For example, an organization contacts the outsourcing bureau with a request to allocate several employees for a certain time. The bureau provides them with temporary hired workers according to the contract. These employees are not part of the organization’s staff, they don’t get paid there - all calculations are done only through an outsourcing bureau.
Types of Outsourcing
Currently, there are various types of outsourcing, the range of services depends on the type and completeness of the functions transferred to a third-party organization. There are partial and full outsourcing. Partial - this is when part of the functions is transferred to external employees. If an employee of an outsourcing company takes on all the work in a particular department, then this type of service is called full outsourcing. What does it look like in practice?
If the problems of setting up and upgrading computers to enterprises are passed onto the shoulders of a third-party enterprise, this is a complete outsourcing. If a third-party enterprise is solely responsible for the administration of the system and updating the databases, and a staff member is responsible for iron problems, its repair and updating, this is private outsourcing. The type of services required by the company is indicated in the contract signed by the outsourcing company. What kind of document is this?
Model Outsourcing Contract
The basis for registration of relations and obligations between the customer of services and the outsourcing bureau is a contract. In the main part of the document on the provision of services for compensation, there are paragraphs on the delegation of functions that will be performed by an outsourcing company in the future. The service is conducted after the preliminary selection of candidates - the customer can insist on the independent selection, interviewing and proficiency testing of applicants for temporary work. Or maybe outsource these responsibilities.
A model contract should contain the following clauses:
- privacy - observance of the customer’s trade secrets , clause on non-disclosure of confidential information and observance of guarantees;
- detailed requirements for a candidate for a position with a list of personal characteristics: availability of appropriate education, necessary experience, work in a certain position, etc.
- terms of work - list, scope, terms, etc .;
- the measure of liability of the outsourcer for the poor provision of services - fines, penalties, refunds, etc.
Popular Outsourcing
Today, companies engaged in the temporary provision of employees specialize mainly in the following activities:
- IT outsourcing - this means work on web programming, website development, maintenance, administration, creation and maintenance of unique software.
- Production outsourcing - implies the transfer of part of the production functions to the company . For example, an advertising agency instructs a third-party organization to distribute flyers and flyers.
- Outsourcing of business processes - when it comes to attracting third-party employees to perform one-time work. For example, an additional staff of accountants and lawyers during the tax audit.
Alternative Employment Opportunities
For students or individuals without a permanent place of employment, work in outsourcing companies provides an opportunity to improve their financial situation. Reviews from temporary workers indicate that such cooperation provides a small but constant income.
Outsourcing provides an opportunity to try on other
types of activities and try to find yourself in another specialty. It is suitable for those who do not see themselves in a permanent job, wants to develop. It is also good for beginning businessmen - you can feel the process of production or sales from the inside, having worked as a temporary employee in an existing enterprise.
Outsourcing Base
Personnel is the main advantage that a good outsourcing company has. The feedback on the work of temporary employees makes up the capital of the company, with the help of which the company will constantly expand the customer base of customer organizations. Thanks to distraction from secondary tasks, full-time employees can concentrate on achieving the main goals that the company’s management sets itself.
Outsourcing Benefits
The undoubted advantage of such cooperation is cost savings. When concluding an agreement on the involvement of third-party workers, we can safely predict a cost reduction of about 20%. Such savings arise due to the reduction of investments in intangible resources - such as training, internship of a new employee, the maintenance of their own staff, the reduction of the staff of administrators and accountants for tableting or payroll. The company’s costs are reduced due to the temporary loss of the employee’s ability to work - in case of illness, the outsourcing bureau simply sends a new, no less qualified employee. And if the staff is coming down, you can try to substitute the outsourcing employee for a new amount of work and analyze the efficiency of his work, in terms of energy consumption.
Additional advantages
Outsourcing is also a good option for foreign enterprises or for companies opening up new types of activities. Foreign specialists may not thoroughly know the intricacies of legal and accounting support adopted in our country. Outsourced employees are invited to competently conduct business and tax accounting, who will perform their duties until the appearance of full-time employees.
When mastering new types of activities, hiring temporary workers will help company management evaluate the live profitability of a new venture, calculate the necessary costs and see the effectiveness of a new activity “at idle”.
Disadvantages of working with outsourcing
Of course, such cooperation also has its pitfalls. First of all, it is a constant dependence on another company. If the temporary employment office loses its staff, then all this will immediately affect the reputation of the company that has concluded an agreement with it. There may be some violation of confidentiality - temporary employees can go to work with a competitor and unwittingly disclose the company's commercial intentions, where the outsourcing company sent them last time. What kind of information this is and how it will be announced depends only on the personal data of the employees sent by the outsourcing company.
The feedback of employees working in the state of the customer company can also affect the outsourcing performance. There is a risk and rejection of temporary employees by the staff of the company. Perhaps temporary workers will be perceived as competitors, and not as assistants. Such an imbalance in relations can adversely affect cooperation.
How a hiring company works
A good example of professional work in hiring and offering temporary employees is United Outsourcing Company.
UAC positions itself as a multidisciplinary holding of a new type, offering personnel assistance to enterprises involved in various economic sectors. Personnel reserves of the company are data on the set of basic and highly skilled workers who can be involved in various fields of economic activity.
Basic types of UAC services
Currently, the united outsourcing company offers its services to replenish human resources in:
- accounting and legal support - allow you to save on employment and training of staff, get effective work without spending money on continuing education of permanent employees;
- information and technical support - allows you to provide software support for all existing computer networks;
- call-center services are comprehensive information support and an effective communication channel for the development of the company. An experienced call center operator can create a favorable reputation for a company or brand, increase the loyalty of company partners and customers;
- provision of own business premises for holding business meetings, conferences, meetings and presentations;
- domestic and administrative services - means the centralized provision of any business entity with low-skilled personnel - cleaners, movers, waiters, dishwashers, assistant cooks, maids, couriers;
- safety and security of premises - are ensured by carefully selected personnel, who engage which can significantly reduce the risks of theft and damage to property.
Such versatility allows UAC to comprehensively support the customer, offering him maximum services. It is not surprising that the company annually concludes over 500 new contracts, of which about 90% are renewed for the next period. The efficiency of the services provided allowed the company to enter foreign markets - various outsourcing organizations operating in Kazakhstan, Armenia and Belarus operate under the brand name “United Outsourcing Company”.
Employee Reviews
Numerous reviews in the networks about the UAC indicate that the organization does not often come across jobs, and getting a long-term position there is quite problematic. Nevertheless, UAC permanent employees argue that the flexibility of the schedule and the constant surfing of other companies allow us to learn the details of our profession from the most varied sides.
As you can see the diversity of services provided by temporary employees, allows you to stay afloat and the customer company and the outsourcing company. And do not scornfully speak about temporary work not in the specialty that outsourcing can provide you at this time. Indeed, new experience will surely help to quickly find a permanent job or open your own business.