The development of the business in the conditions of economic stagnation requires a strict economic policy within the company. One of the best ways to do this is to optimize staff costs. There are several ways to reduce costs for employees, even fewer are solutions that help make the business mobile.
Outsourcing and outstaffing are not just a fad among recruiters, they are an effective and safe way to hire staff. By combining the two, you can drastically reduce staff costs. Do it safely and legally.
What is the purpose of reducing staff costs?
Saving costs in business multiplies the value of the company no worse than an effective investment. However, cost optimization must have a strategic goal.
Staff costs are reduced in the following cases:
- it is necessary to increase the value of the company in the market in order to attract a good investor;
- in order to increase business mobility;
- in case of reorganization of structural units, reduction or expansion of certain segments of activity; expansion of the company;
- in the absence of qualified employees;
- when changing activities and the need for specialists in the specific field.
When providing social guarantees, the employer does not incur as many direct losses as long-term losses due to business delays. A dismissal in the event of dismissal requires prior notification to the employee. If this worker is on maternity leave or is ill, then the situation drags on indefinitely.
You can suffer material losses for a specialist who is important to your business, because you hope that when he starts working, he will recoup the costs with interest. But if you avoid the period of finding, training of qualified personnel, you will significantly reduce the associated costs and the risk of people you train leaving or becoming inappropriate.
Outstaffing and outsourcing allow you to avoid delays associated with employee rotation. There is a fundamental difference between these forms of cooperation, but they save time and money.
Outsourcing and external staff – how to properly optimize staff costs
Outsourcing and outsourcing – Nowadays, outsourcing and outstaffing are legal, efficient and widely used methods for optimizing staff costs.
Outsourcing is the transfer / transfer of insignificant business processes under the direction of a third party company under a service contract.
Outstaffing is the contractual transfer of staff to a third company to perform work related to its activities.
When is outsourcing more profitable?
Outsourcing – a contract for services. At the same time, the client has no relationship with the workers, does not set tasks for them, does not control the work process. Only the result of the work done at the appointed time is important. In outsourcing, the management structures of the companies interact while the client pays for the service after receiving it. The outsourcing company itself decides when, how and how many people will work on the campaign.
It is advantageous to outsource the areas of activity serving the main business. Examples of staff outsourcing are hotel services, logistics, cleaning. The company enters into a contract and is no longer interested in, for example, cleanliness, consumables, consumables, sick leave, etc.
Customer benefits:
- Transferring certain business segments allows you to reduce staff, save salaries and social costs.
- The client reduces the costs of maintaining middle management staff, accountants, lawyers.
- A big plus is the provision of quality customer service. When the processes are performed by specialists, the speed and quality of service increases.
When is outstaffing more profitable?
Consider the benefits of replacing staff, taking the construction business as an example:
- the client keeps employees with the necessary specialties, but has no employment contracts with them;
- the host country controls the workers, sets tasks for them, accepts the result of the work – people work according to their usual schedule, under the guidance of the former boss;
- the staffing schedule is reduced to the required volume, while maintaining the pace of construction and quality of work;
- the employee management payment is disproportionately less than the salaries, taxes and social benefits for permanent employees.
When using outsourcing or outstaffing, the employer not only optimizes the costs of the workforce – but also provides high quality service to its customers.
