In fact, these three concepts “speak” of the same thing in different words: they help to optimize internal business processes by attracting external resources. If outstaffing is the withdrawal of its own staff from the staff and transfer to a second person, as a rule, a recruiting company, which assumes the calculation, payment of salaries and the performance of all the functions of an ordinary employer, including labor protection, then outsourcing is the same conclusion, but no longer personnel , but a whole or part of the production process (for example, an HR function or part of a trade marketing process). When outsourcing a business process, the provider of this service is obliged to fulfill the KPI’s for the function that the customer has transferred to him.

Leasing of personnel is literally “leasing” it (for top vacancies it is Interim Executive, for positions of the middle level and below – Temporary Staffing). The lease term is from one day of the year, while the executing company independently “hires” the necessary personnel for its own staff and “hands over” it to the customer for rent.

Outstaffing as a tool for optimizing business processes in each specific case is effective in its own way. For top management, its goal is to maintain confidential information about salaries and bonuses, plus significant savings on a single social contribution. For office staff, outstaffing helps to optimize the staffing table, “prepares” the staff for the next stage – outsourcing of the entire business function. For mass positions (“field” personnel, personnel in production, in retail outlets, warehouses) – allows the use of temporary employees, and also “pleases” the transfer of risks related to labor protection to a second person.

There is one peculiarity in the outstaffing agreement with the provider – the provider declares the prices for its services as a percentage of the salary fund and monthly personnel expenses or as a fixed remuneration per person per month.

Tips for using personnel outstaffing:

No. 1. Make sure the service provider has sufficient financial resources to pay the payroll for at least 1 month. Let your accountant look at your provider’s latest balance sheet;

No. 2. Demand from the provider a complete decryption of the monthly invoice (salary, taxes, service cost, additional expenses);

No. 3. Make sure your employees are solely under employment contracts, not civil contracts.

No. 4. Do not create an “army of private entrepreneurs” out of your staff – the Tax Service will unambiguously “remove” these costs from your gross costs and impose income tax;

No. 5. Don’t outsource your key people: they will certainly be more useful in the rear than in the periphery.

When leasing personnel, the provider is responsible not only for the calculation, payment of salaries and personnel work, but also for the selection of personnel, therefore, the “use” of personnel for less money and / or an accurate comparison of the man-hours purchased on the side with production needs and reduction of downtime is essential. saves the customer’s money.

Important! As a rule, hourly rates provided by providers are of a closed nature, that is, without disclosing the cost structure.

As for the Interim Executive, or the interim manager, he is often “ordered” in the companies for the selection of executives. The rates of Ukrainian agencies for this service are on average from 500 to 5000 UAH / hour. The lease rate for auxiliary personnel, for example, a secretary, or an assistant accountant is much less – from 50 to 100 UAH / hour. Leasing prices for “field”, production or retail personnel are even lower – from 20 to 50 UAH / hour.

Tips for using staff leasing:

No. 1. Use leasing in areas with high turnover;

No. 2. In areas with high turnover, start with outstaffing and then switch to personnel leasing;

No. 3. It is better to conclude contracts for personnel leasing with those providers who are well aware of the market for these professions. They will be able to find the best-priced resources, which will ultimately help them reduce hourly rates and, as a result, will give you savings;

No. 4. In order to save on leasing, the key is to properly plan your business’s needs for outsourced man-hours. Therefore, it is important to train line managers to accurately anticipate peak days of temporary demand.

Business process outsourcing (business functions)

With outsourcing, you don’t buy people, but the expertise of a service provider. The provider is responsible for the fulfillment of the KPI ‘by function. For example, when outsourcing a trade marketing function, the agency’s KPI will include the quality of product display on the shelves.

The agency’s remuneration can be either a percentage of the annual budget for a business process, or a fixed monthly remuneration. For business processes that create special value for the company, the percentage will be higher: for example, companies are ready to pay up to 40% of the top manager’s annual salary for Executive Search services. These are relatively small expenses, given the

that a strong top can increase the value of a business several times!

A quick tip: when outsourcing a business process, the provider company’s cost structure will always be closed, so do not ask the provider for an itemized report of their costs for your project.

When outsourcing a business process, you win on the time that you can save on performing this process by third-party specialists, and on quality: as a rule, the level of “hired” specialists is much higher than your employees. For example, a recruiting company that is constantly working with your market of candidates will do the work you need in less time with more efficiency.

Outsourcing tips

No. 1. Before asking for outside help, assess the importance of this issue to the company. For example, it is definitely better to give a lawsuit worth several million to outside lawyers. And the preparation of legal documentation on routine problems can be done on your own;

No. 2. Sometimes it is more profitable to outsource the routine business process, in the vacant office space it will be possible to put a person who brings a lot of profit;

No. 3. For small companies (up to 50 people), outsourcing of routine business processes will always be more profitable than keeping a permanent employee.