Typical mistakes in outstaffing

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Be careful!

It is important to notice that outstaffing is quite an adaptive tool of human resources management. Correct using of it gives a lot of opportunities to a manager and allows having different options in human recourses management. However, using outstaffing model in management can be dangerous for the effectiveness of a company. Actually, these risks are not very frequent, still there are some cases when you should use outstaffing carefully.

High-qualified personnel outstaffing

Outstaffing of low-level workers is a common practice all over the world. But there is a problem concerning high-qualified personnel. The reason of it is that high-qualified specialists try to work in companies where they will have full social protection and guarantees. It is quite essential that people aren’t happy when a manager transfers them to integrator company personnel. Staff members usually start thinking that a manager wants to get rid of them or wants to reduce social guarantees or protection. It can happen that a company will lose a lot of high-qualified and experienced workers because of the decision to cross over to outstaffing. Or if a company will save the personnel there is another problem. Effectiveness of staff members can lower. Very often after the transfer of staff to an integrator company time tracker reports show deplorable results.

Outstaffing of small number of workers

Human resources managers always know how to use outstaffing for cost-saving. Sometimes a manager transfers a small number of workers to outstaffing in order to keep simplified taxation system and stops on it. It is not quite correct and there are two reasons of it:

  • First, a manager who doesn’t leave a backup for recruitment of new staff members will have to conclude an outstaffing contract everytime he recruits a new staff member. It can distract human resource department from more important objectives and tasks. Time tracker analysis of support business-processes show that very often effectiveness of a company can lower because of low productivity of departments which implement support functions in business. Financial effectiveness of outstaffing itself is also lowers.
  • Second, most companies providing outstaffing have various tax expenditures. That is why outstaffing allows a company lower tax expenses. The more staff members are on outstaffing the more efficiently it is.

That is why using outstaffing for more staff members of a company you have not only the chance to optimize human resource management and save the right to use simplified taxation system, but also to lower expenses of a company.

However, very often managers of companies using outstaffing system meet another problem: how to control the work of personnel? Here is a decision: using of a time tracker can minimize risks of outstaffing.

Legal aspect of outstaffing

The last risk we will mention is legal problems which can occur with outstaffing. Tax inspection can regard outstaffing as tax avoidance. That is why all documentation should be arranged in a way everything was clear with outstaffing. Time tracker analytics and the integration of a time tracker with accounting programs can also help to arrange documentation correctly.