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Title: Outstaffing

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Subject: Business
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Date: April 3, 1996
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Length: 2 / 350
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Essay text:

Also Ukrainian legislation doesn’t have proper documents for outstaffing regulation so in some cases a company can even be fined for such practice.

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The need for this service is where a company: • have restrictions on the number of personnel and intends to reduce the numbers, without any loss of skilled personnel; • plans to hire staff in the regions, while not opening branches or representative offices; • interested in reducing the administrative costs of maintenance personnel records and payroll; • interested in entering the world's stock exchanges and wishes to have a high rating in productivity (the ratio of output and the number of full-time staff) Outstaffing benefits: • Reducing staff quantity; • Preserving direct operational management of the employees; • Reducing costs for personnel; • Absence of the labor disputes risk, such risks are borne by a service-provider; • Possibility to build multilevel motivation mechanisms, including nonfinancial incentive for the employees to be transferred into the company's staff; • Possibility of any term employment; • Reducing HR and accounting functions; • Reallocation of the balance sheet items by means of transfer costs for remuneration of payment into costs for external agencies; There are 3 sides concluding an outstaffing bargain – a company-client, its employee and a leasing agency, which instead of searching the employee for the employer just takes necessary employee on its own staff...

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