What is the difference between outsourcing and outstaffing. Outstaffing: what is it? Differences from outsourcing, pros and cons of using. Cons and pros

There is an opportunity to save time and money, as well as increase business efficiency through staff outstaffing, when a company takes the employees it needs “for rent” for a while, without expanding the staff and without burdening its personnel officers and accounting with unnecessary worries. In this case, employees are accepted by another company under an employment contract - a recruitment agency (according to the law "private employment agency") - and leases them to other companies.

What is outstaffing?

Outstaffing (from the English out “outside”, staff - “staff”) is the withdrawal of personnel from the staff of the company and its registration in the staff of the outstaffing company. It takes full responsibility for personnel issues, provides employees with the required qualifications and bears full responsibility for the quality of their work.

There are several reasons why it is beneficial for a company to use the labor of "leased" workers:

Reducing the burden on accounting and personnel department

The recruitment agency is engaged in the calculation of salaries, the payment of "salary" taxes, the calculation and payment of benefits and vacation pay, the preparation and submission of "salary" reports to the Federal Tax Service Inspectorate, the Social Insurance Fund and the Pension Fund of the Russian Federation. It, in case of violations, will pay penalties and fines, as well as all additional charges. The company itself will remain aloof from all these problems.

Companies do not need to involve accountants and personnel officers in this. She simply pays a fixed amount for each worker.

Replacing an employee is not a problem

When outstaffing, the agency is engaged in the selection and replacement of personnel (during the vacation or illness of the “leased” employee). You will not have to solve issues with the admission and dismissal of employees of the company.

Resolved the issue of employment of foreigners

Foreigners are hired according to special rules, in case of violation of which there can be significant fines. Under an outstaffing agreement, the agency will check the documents of foreigners and inform the Ministry of Internal Affairs about the employment of employees from abroad.

Fewer labor checks and claims

Labor checks regarding temporary employees will be carried out at the agency, since it is with it that the employment contracts of employees working on outstaffing conditions are drawn up. This means that all questions regarding the registration of labor relations will be addressed to the agency, and it will have to submit documents and explanations at the request of the Trudoviks.

Reduces the risk of being called to the tax payroll commission

Salary commissions are invited if the salary in the company is below the industry average in the region. At the same time, if a low-paid employee works outside the state, the average salary in the company will be higher, which means that an invitation to a salary commission is unlikely. Read more about who is invited to the new salary and contribution commissions in the publication.

Outstaffing of personnel is prohibited, but it can be used

Until 2016, the Labor Code did not contain such a thing as “contingent work”, therefore, at the legislative level, it was not regulated in any way, and outstaffing workers were an openly disenfranchised category of workers. For example, the receiving party could at any time refuse an employee hired in this way - without explaining the reasons and severance pay. At the same time, the employee himself, hired under an outstaffing agreement, found himself in a very suspended position: he was hired by one organization, and he works in another. In this case, the actual employer does not bear any responsibility.

In order to rectify the situation and protect the interests of "borrowed" workers, the Labor Code of the Russian Federation was supplemented by Article 56.1, which defined agency work - this is work by order of the employer in the interests and under the guidance of another company - and prohibited its use (Federal Law of 05.05.2014 No. 116-FZ). But the new article did not introduce an unequivocal ban on staff hiring.

The ability to send workers to another employer is still available. But for this it is necessary to comply with a number of conditions that are prescribed in chapter 53.1 of the Labor Code of the Russian Federation.

Temporary staff: who and in what cases?

The provision of employees to another employer can only be temporary - for a period not exceeding 9 months. Only allowed if:

Knowingly temporary work associated with the expansion of production or volume of services.
Replacing a temporarily absent staff member.
Service and assistance in housekeeping to citizens.

In addition, an employment agency can conclude an employment contract with a temporary provision for those who do not plan to work permanently. It:

full-time students;
single and large parents raising minor children;
persons released from correctional institutions.

They are allowed to be sent to the host company in cases where, according to the Labor Code, a fixed-term employment contract can be concluded.

Hiring temporary staff is strictly prohibited if:

replacement of striking workers;
performance of work in case of downtime, implementation of bankruptcy procedures, introduction of a part-time work regime in order to preserve jobs in the event of a threat of mass layoffs of employees;
replacement of employees who refuse to perform duties, including due to wage delays of more than 15 days;
performance of certain types of work at facilities of I and II hazard classes (the list of such works was approved by the Order of the Ministry of Labor of Russia No. 858n, Rostekhnadzor No. 455 dated 11/11/2015);
performance of work in the field, the working conditions of which are classified as 3rd or 4th degree of harmfulness or especially dangerous working conditions;
replacement of those employees whose presence is a condition for obtaining a license, a condition for membership in an SRO or issuing a certificate of admission to a certain type of work;
performance of work as crew members of sea vessels and ships of mixed (river - sea) navigation.

As you can see, it is possible to hire a freelancer, but subject to numerous restrictions.

At the same time, there were strict requirements for the companies themselves that provide staff.

In addition to employment agencies, some organizations can provide temporary staff. For example, the parent organization of a subsidiary or a company that is a party to a shareholder agreement - to each other.

Who is responsible for staff

Since the main reason for amending the Labor Code of the Russian Federation was to protect the interests of employees, the company accepting the leased personnel has become more responsible for it:

It is necessary to conclude a special additional agreement with the employee to his main employment contract indicating all the data of the receiving party (there was no such requirement until 2016).
“Foster” employees should receive no less than full-time employees of a similar position and qualifications. Despite the fact that the salary is paid by the agency, and not by the host, the salary directly affects the cost of the provided worker, so saving on the salary of non-staff personnel will not work.
If the personnel is involved in harmful and dangerous work, then the contributions will also be higher, which means that the agency will “embed” these contributions in the cost of the provided worker.
Occupational accidents are investigated by the actual employer, not the agency.
Responsibility for non-payment of wages to "leased" workers lies with both employers - both direct and agency. By default, their “primary” employer owes them a salary. But if for some reason he cannot pay the employees, they can demand payment from the company in which they directly worked.

Obviously, after the adoption of amendments to the Labor Code, it has become much more difficult to conclude outstaffing contracts. And some companies were forced to abandon them altogether.

Differences between outstaffing and outsourcing

In some cases, it is advisable to draw up an outsourcing agreement instead of an outstaffing agreement. Although outstaffing is often confused with outsourcing, they are completely different concepts. And outsourcing in our country has not yet been subjected to such severe persecution.

Outsourcing is the process of transferring a part of production or business processes by a company to another company whose specialists are experts in a particular field.

Outstaffing is the rental of employees, and outsourcing is the provision of specific services.

Let's take a simple example to better understand the difference. The company does not have a full-time accountant. And the agency provided the employee for this position. In this case, we are talking about outstaffing. However, such an accountant will be able to work for a maximum of 9 months.

Outsourcing is another matter - that is, if the company transfers bookkeeping as a whole or its individual sections, for example, payroll, to a third-party professional organization. At the same time, a regular contract for the provision of services is concluded, where the norms of civil law, and not labor law, apply.

So what is the difference between HR outsourcing and outstaffing? For a better understanding of the similarities and differences, we present a small table.

Terms	Outsourcing	Outstaffing
Subject of cooperation	Transfer of functions to a specialized company	Transfer of an employee for rent with registration of him in the staff of the contractor
Contract time	No restrictions	No more than 9 months
Terms of payment for work	By agreement of the parties	No worse than full-time employees in a similar position
Documenting	Contract for the provision of services	Additional agreement to the employment contract, an entry in the work book of the employee
Accidents with non-staff personnel	The executing company is investigating	The client company is investigating
Responsibility for non-payment of wages	Carried by the performing company	Subsidiary Liability

The comparison table of outsourcing from outstaffing shows that today accounting outsourcing is the most suitable option for a company that, for some reason, is not ready to expand its staff, but needs additional employees.

In addition, companies most often outsource:

We can take over each of these areas and make your work easier. Our experts will advise you on all your questions.

Contact an expert

What is outstaffing in simple words? How is outstaffing different from outsourcing? Which agencies provide staffing services and what is their cost?

Hello dear readers! Dmitry Shaposhnikov, one of the authors of the HiterBober.ru business magazine, is with you.

One of the ways to solve the problems associated with hiring personnel, optimizing the number of the enterprise is outstaffing - a service for the provision of personnel.

For 7 years I headed a large division in Stavropol of one of the leading telecommunications companies in Russia. Our company actively used outstaffing, especially in recent years.

Outstaffing can help you properly distribute the load on employees, relieve you of a lot of problems, save money and nerves.

By correctly implementing this tool in your business practice, you will revive your business, increase income, and partially get away from the problem of hiring staff. You will free up resources for development, you will have more time for planning.

Do you also want to use this tool in your business, so that neither the labor nor the tax authorities consider the law to be violated?

Then close the extra tabs of your browser and read this article carefully!

1. What is outstaffing in simple words?

Let's start with a definition.

Outstaffing- a form of hiring temporary employees to perform different categories of work.

For example, you have just opened your store and you need to:

train your consultants in sales techniques,
hire a person for general weekly cleaning;
periodically, 2-3 times a month, unload-load heavy goods.

And during the pre-Christmas sale, you will need additional sales assistants, who will then need to be fired. In addition, your full-time employees periodically get sick, go on vacation. It would be desirable to have a person who could come to replace if necessary.

If you enter into employment contracts with all these people, you will encounter the following difficulties:

Difficulty of selection. No one wants to go to work for a few New Year's Eve days, once a week or several times a month. It is almost impossible to make money with such a schedule.
The difficulty of getting fired. Even if there are those who wish, you must conclude an employment contract. Usually it is concluded for an indefinite (long) period, and you need - for 2 weeks. If the employee does not agree, problems may begin.
Paper work. A lot of documents are drawn up for each employee, and soon you will be faced with the need to hire another HR inspector, and this is an additional cost.

You, as the director of a store or any other enterprise, will be saved by outstaffing.

In simple words

Outstaffing- this is the provision of personnel for rent by a third-party company. At the same time, this staff is registered with the outstaffing company.

To implement such an idea, three parties are needed: the employee himself, the company that needs him, and the recruitment agency. The latter draws up an agreement with the candidate in accordance with the Labor Code, pays insurance premiums for it, but the workplace is located in the interested company.

You set the requirements and profile of the position for the agency that provides outstaffing services, and it takes care of loading the work schedule of employees, paying fees, and being ready to come to you on demand.

Do not resort to outstaffing if you are hiring core staff. With consultants and cashiers in a store, with engineers and key workers in production, with doctors and nurses in a hospital, if you plan to employ them full-time for a long time, you can and should conclude indefinite employment contracts, provide them with all guarantees and social benefits.

2. How is outstaffing different from outsourcing?

Until now, in many contracts and even in the definitions of courts, outsourcing refers to the selection and provision of personnel at the disposal of the customer, and this is outstaffing.

These two concepts have nothing in common. The table below shows these differences clearly. We have previously written about .

Comparison table of outstaffing and outsourcing:

Thus, outsourcing and outstaffing are different forms of contractual relations and forms of fulfilling the company's tasks. Confusion in concepts can lead to incorrect interpretation of the terms of the contract by different parties, and, therefore, to conflict, severance of relations, fines and other unpleasant consequences.

3. New in the legislation: is outstaffing prohibited since 2016?

Let me just say no, no, and no! The ban on outstaffing is a myth invented to create a stir around the topic. What actually changed? The legislator introduced a new concept - Agency work, which has been "vetoed" since 2016.

agency labor- this is an uncontrolled rental of any personnel for any purpose and any work. In Russia he prohibited since 2016.

Outstaffing has not been prohibited since 2016, subject to legal restrictions.

The benefits of outstaffing, if used correctly, are obvious.

Companies can save on temporary, seasonal employees, on the performance of work in secondary (non-core) activities, in places that do not require serious training or special education.

And that's not it. Resourceful employers have come up with a simple but effective system, like with the help of outstaffing:

Pay less for accident insurance. A company that is engaged in high-rise, underwater, underground and other hazardous / hazardous work, then such a contribution for each employee will be high. But if you hire a specialist whose employer is a recruitment agency, the insurance premium will not exceed a hundred rubles, because the main activity of the outstaffing agency is not high-altitude / underwater / underground and other dangerous and harmful work, but recruitment. Only workers with injuries and occupational diseases received at the workplace suffer from such a scheme - they cannot count on full-fledged insurance.
Save on insurance premiums for employees. Contribute smaller amounts to the Pension Fund for employees who are entitled to early retirement due to their working conditions. A miner whose employer is a recruitment agency will not receive an early pension, although he actually works in conditions that suggest such a pension.
Save on vacation. Do not pay for additional leave due to some categories of employees, because they are employed in an outstaffing company, and not in hazardous production.
Replace employees quickly. For example, "undesirable" and "obstinate" workers who went on strike can be quickly replaced by others. To avoid downtime, the company hires suitable specialists and continues to work.

Such manipulations and games with the law could not go unnoticed by the legislator for a long time, therefore, since 2016, outstaffing has undergone changes and restrictions.

For some categories of workers, in order to protect their rights, only a direct employment contract is provided with all the benefits required by law: additional payments for harmful or dangerous working conditions, early retirement, additional paid leave, accident insurance.

4. Outstaffing and agency work: the main differences

Until 2016, when no form of leasing personnel was regulated by law, these two concepts could be considered synonymous.

Let me remind you that agency work involves the replacement of any workers, for any period, for any purpose, without restrictions. This form of outstaffing of personnel is now prohibited in our country. Moreover, since 2016, a third party has appeared - the employee himself. With agency work, his opinions could not be taken into account - an order from the employer was enough. And during outstaffing-2016, he acts as a full partner, consciously entering into an agreement and giving voluntary consent to work in the company.

In order not to “slide” into illegal hired labor, very specific requirements must be met when concluding an outstaffing agreement between a recruitment agency and a company.

Companies are prohibited from using leased personnel:

during strikes of key workers, during downtime associated with non-payment of salaries to regular staff;
at hazardous facilities, at workplaces with harmful working conditions;
when the qualifications and education of employees are necessary to obtain licenses, accreditations and permits (doctors in medical institutions, teachers in educational institutions, chief engineers and mechanics in production - all these workers must be on staff and cannot be rented.

5. Sample contract for outstaffing for download

In addition to legal restrictions, when concluding a contract for the lease of personnel through outstaffing, it is necessary to provide for many details that, if neglected, will cause additional costs. For example:

Are services for the selection, selection of applicants included in the price or are they paid separately?
can the contractor (recruitment agency) change employees without the consent of the customer company?
actions of the parties in case the presented candidate does not meet the requirements?
many other minor little things that they pay attention to only if there are problems with them.

To immediately foresee all possible situations and insure yourself against potential problems, you need a qualified lawyer. And if his services are too expensive? The Internet will come to the rescue! In drawing up a contract, for example, a service such as QuickDoc with a sample outstaffing contract can help you. By changing positions, you can get different terms of the agreement.

6. What agencies provide staffing services and commissions for outstaffing companies?

Since 2016, personnel provision services can be provided by:

accredited recruitment agencies;
legal entities or entrepreneurs - under agreements with affiliated companies and with the consent of the employee.

In St. Petersburg and Moscow, outstaffing is carried out by the following agencies:

Zest Staff(zest-personal.ru)
Interprime(interprime.rf)
Contact Service(okcall.ru) - call center
Credence(credence.ru)
HR Advisor(outstaffing-sovetnik.ru)

The following requirements are imposed on outstaffing companies: they must apply only the basic taxation system, work without debts on payments to the budget, have at least a million rubles of authorized capital, and the head of such an agency must have a higher education and professional experience.

The customer pays the agency a single invoice, which includes:

employee's salary;
personal income tax;
contributions to the Pension Fund, MHIF, FSS;
vacation pay, calculation upon dismissal;
agency commission. It provides compensation for personnel records management, accounting and tax support for personnel, reporting for each employee. The increased commission may include recruitment services.
other services: provision of overalls, uniforms, training, medical examinations, etc.

The average agency remuneration is on average 1-5 thousand rubles for each employee. Most contractors offer a discount for the number of employees.

The cost of outstaffing is low, otherwise it would not make sense.

To better understand what outstaffing is and in what cases companies resort to it, watch the video from Stolitsa FM radio:

7. Conclusion

Now you have learned more about such a way of working with personnel as outstaffing, as well as about new legislative requirements in this area. We hope this article was helpful to you. Today, this service can be used by any company that wants to legally reduce labor costs.

All that is required is to comply with the basic provisions:

The temporary nature of the work of the leased personnel;
Consent of the employee to his own lease;
Workplaces without harmful or dangerous factors;
Working with an accredited outstaffing agency.

Compliance with these points will allow you to work calmly, saving money and not violating the current legislation. I wish you success!

In the current economic realities, it is becoming increasingly popular, which many confuse with outsourcing. Of course, these concepts are similar in many ways, but there are some differences. So what are main differences between outstaffing and outsourcing and what is it anyway?

To begin with, I would like to say that both of these processes associated with the involvement of employees from outside. But the scheme of their interaction with the employer is different, so in today's article we will consider all the main points regarding these two phenomena.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to know how to solve exactly your problem - contact through the online consultant on the right or call by phone free consultation:

Definition of concepts

Both of these processes are to the issue of hiring staff from outside, but this is a fairly general characteristic. In order for us to distinguish between these two concepts, it is necessary to clearly understand their specifics, functions and definition. That is why, you need to start with terminology, i.e. with a precise definition of the concept itself.

Outsourcing is a special form of labor relations between a company and a provider organization that specializes in providing a certain type of service. The specificity lies in the fact that the company resorts to the help of third-party workforce directly at the moment when it is really needed.

For example, a company is engaged in the production of a product, after which it prepares it for sale. Naturally, in order for the product to be promoted, we need advertising services to make the product known everywhere.

It is not always expedient and profitable to maintain an advertising department from the moment the product is manufactured, so the company resorts to to outside help- advertising agency.

The same practice occurs when involving a system administrator or programmer. The company may not need it on a permanent basis, because the need to install programs or software does not arise so often.

The most preferable option, in this case, is to attract a programmer from outside, paying for his services. on the basis of work performed.

As for outstaffing, here the interaction scheme is slightly different. The company has its own staff of employees, but draws up a certain part of it in other provider organizations.

When outstaffing employees continue to work at their jobs, i.e. in the company itself, although officially they are listed in another organization.

The company in which such employees will be listed is called an outstaffer. There is another scheme of cooperation. Outstaffing company has staff at its disposal whose services may be in demand by other companies. It can be loaders, welders, bank employees and other specialties.

An outstaffing agreement is drawn up, on the basis of which the company transfers its staff to another organization to perform core tasks.

Functions

One of the main differences between these two processes is the specifics of the functions performed by the involved employees. If outsourcing performs a number of fairly specific tasks that are not the main ones for the organization, then outstaffing is a slightly different situation.

Engaged employees perform profile functions and tasks, i.e. carry out activities that are the core of the company.

In particular, outsourcing performs the following functions:

Outstaffing has a wider range, because it is characterized by the removal of employees from the state, although they continue to fulfill their professional duties.

Such cooperation schemes are typical for banking organizations, although they can also be found in other industries.

Legislative regulation

The legal regulation of these concepts appeared relatively recently, despite the rather long practice of such actions. In particular, the outstaffing process became regulated only in 2014 when the corresponding chapter appeared in the Labor Code - 53.1.

This chapter talks about the possibility of attracting employees from another company to carry out a certain type of activity, but subject to full respect for their rights and freedoms. It also talks about the nuances of entering into agreements between the two companies so that the rights of both parties are not violated.

As for outsourcing, this process is regulated by other regulatory legal acts. In this case, the Civil Code, or rather, the article, is taken into account. It clearly spells out all the processes for the provision of services on a contractual basis.

Main differences

In order to be able to understand these phenomena, it is necessary clearly understand the difference between outsourcing and outstaff. Consider all these nuances in the table below.

№	Main criteria	Outstaffing	Outsourcing
1	Workplace	The entire work team carries out its professional activities in the territory of the main employer, i.e. customer company. Accordingly, workers must obey the rules that are established by this organization.	Employees carry out their activities in an outsourcing company. A company that has placed an order for a certain type of work is provided with a finished project or a service.
2	Relationships	Customer company concludes an appropriate agreement with the implementing organization. With regard to the issue of labor relations, ie. payment, sick leave, tax contributions and other types of relationships, then the customer has nothing to do with this matter.	Outsourcing company fully responsible for their employees. It is she who pays tax deductions and other benefits and compensations.
3	What is payable?	The entire process of work takes place on the territory of the customer, so he can control its progress, execution, as well as make claims and demands. Accordingly, it is paid the entire workflow.	Outsourcing paid for concrete result, i.e. he is not interested in the ways in which he was reached. That is why, he is of little interest in the working hours of employees, the main thing is that the service provided be of high quality.
4	Scheme of cooperation between the employer and subordinates	The customer company pays for the human resource, i.e. those employees who are registered in another organization, but work for it on a permanent basis. Accordingly, the customer can manage according to one's own will but considering all their rights and freedoms.	With outsourcing, it is the service rendered that is paid for, so the authority of the customer does not apply to recruited employees.
5	Specifics of contractual relations	The agreement clearly states that the customer is provided with a certain number of employees. The executor of the contract can be a different organization, including a recruitment agency.	In this case, it is made service agreement. As for the contractor, it can be a very different organization - a construction company, an accounting and advertising agency, a company of IT specialists, etc.

Also, the difference between these two processes is the specificity of the work performed. Outsourcing, as a rule, is aimed at performing intellectual work, while outstaffing involves the performance of absolutely any work.

look difference video between these two concepts:

Order of conduct

We examined the main differences between these two processes regarding the specifics of labor relations between the employer, i.e. company, the customer, and the contractor. But there is also a difference in the order of outsourcing and outstaffing so we will look into this issue as well.

Implementation of outsourcing is carried out approximately according to the same principle, regardless of the branch of activity of the customer company. The standard process for conducting is as follows:

As for outstaffing, it is carried out a little differently:

An executing company that provides hired employees carefully studies the specifics of the client company's activities. The tasks that can be solved with the help of the attracted labor force are taken into account.
Between two sides an appropriate agreement is drawn up. It should include the cost of the service itself.
After the contract is signed, employees begin to carry out their professional activities.

It should be noted that the outstaffing contract does not imply the final result, which distinguishes it from the contract for the provision of services, which is drawn up during outsourcing.

Advantages and disadvantages

Both of these processes are aimed at cost reduction for the client company, so the practice of using outsourcing and outstaffing is quite wide. But it is impossible not to note the fact that each of these processes has its pros and cons, so let's try to compare them in terms of the positive and negative aspects of such types of cooperation.

If we talk about the advantages of outsourcing, then for the customer the unconditional advantage is the optional provision of a workplace.

In addition, payment is made only after the fact, i.e. for the end result. As for the shortcomings, it is quite difficult for the employer to control the progress of the work itself.

Outstaffing involves the constant presence of employees on the territory of the customer company, so it can fully control their actions.

Accordingly, in case of violation of labor discipline, or incompetence of individual employees, the employer may apply various penalties.

As for the shortcomings, the employer must pay in full employee, not for the service itself.

In general, I would like to note that these schemes of labor relations are aimed at organization cost optimization Therefore, they are quite popular in various fields and industries.

Personnel outsourcing and outstaffing are business technologies that allow you to increase the profitability of an enterprise or company by optimizing the personnel device. In both cases, the registration of labor relations with the actual staff differs from the traditional one, which is provided for by labor legislation. However, the use of these personnel technologies is in the zone of the legal framework and is accompanied by the preparation of relevant agreements.

What is the difference between outsourcing and outstaffing? Consider the essence of personnel technologies.

Outsourcing is a formalized delegation of certain segments of the activities of a third-party company. This company independently selects personnel, finds the best options for solving the task, the report and payment for services are carried out upon the fact of the work performed.

Outstaffing is the official transfer (or employment through dismissal) of a part of the staff to a third-party company, when, in fact, the employees continue to perform their usual duties. The contract is drawn up for the use by the customer of the contractor's personnel on its territory, without concluding any individual contracts with them.

The fundamental differences between outstaffing and outsourcing lie in the essence of the powers that are delegated to a third-party company. When outsourcing, the company uses the services of a third-party company that finds staff on its own and takes control of its activities. However, this is not just a “employee rental service”. Outsourcing is the transfer of part of the work under the management of a professional company.

Outstaffing does not imply any changes in the work of the company "de facto". The company stays with its staff, who are "de jure" transferred to work in another company. At the same time, employees continue to work at their workplace, according to the approved schedule and schedule.

Thus, the fundamental difference between outstaffing and personnel outsourcing is that:

in the first case, the employer is a subcontractor who hires staff for the duration of a specific labor task;
in the second, it uses the labor of employees on an ongoing basis, interacting with them through the outstaffing company.

It is important for a modern manager to understand the similarities and differences between the two technologies for providing an enterprise with personnel. Their use increases the profitability, investment attractiveness of the business and avoids unproductive costs.

Comparison of outstaffing and personnel outsourcing

Difference between outsourcing and outstaffing in legal form and declared purposes

Criteria	Outstaffing	Outsourcing
existence of an agreement
pay principle	regularly	upon completion of work
fixed workplace
compliance with the internal regulations of the employer		necessarily
recruitment principle	contract for certain works	use of the labor of employees of an outside company
legal framework	drawing up a contract of work of the Civil Code, Ch. #39	drawing up a contract for the provision of services of the Civil Code, Ch. No. 37 (with reimbursement)
declared goals	transfer of authority to perform certain work	use of personnel

Comparison of the two HR technologies allows us to note not only their differences, but also their similarities. In both cases, the company that changes the employment relationship with the staff loses actual control over the process of their work.

Reading 9 min. Views 67 Published on 06/10/2018

Every person who is looking for a job faces outsourcing agencies. Such services help large enterprises acting as customers to find the necessary personnel. Employees themselves are not required to make financial payments to outsourcing services for the provided workplace. In business terminology, you can also hear about such a thing as outstaffing. These terms have a similar meaning, but are not synonymous. Below we propose to consider how outsourcing differs from outstaffing, as well as talk about the advantages and disadvantages of these types of activities.

Outsourcing and outstaffing are two foreign terms that have become firmly established in the everyday life of recruiters

The meaning of the term "outsourcing"

The first prototype of outsourcing appeared several centuries ago. This type of activity involves the restructuring of a large company in order to transfer certain functions to companies acting as contractors. This approach to the issue of division of labor activity allows to achieve high results. Today, not only large enterprises, but also small firms can resort to outsourcing services.

According to researchers, the productivity of an employee who performs several production tasks is significantly lower than the performance of narrow-profile employees. This means that the distribution of labor responsibilities allows you to increase the speed of the production process and increase the productivity of staff. According to statistics, about eighty percent of large foreign companies work closely with outsourcing services. Such cooperation allows to increase the quality of products or services provided.

The use of "external" workers allows you to reduce production costs and reduce the amount of time required for the production of marketable products. This step allows you to improve the quality of the product without increasing its cost. The types of services provided by outsourcing services may differ depending on their field of activity. In most cases, such firms provide services in only one direction. Outsourcing is highly popular in the field of construction, legal and financial issues, as well as the IT industry.

Representatives of the above areas have the highest demand. Not every employer can afford to keep a highly qualified specialist in his staff. The development of outsourcing has a positive impact on the country's economy, as each entrepreneur has the opportunity to optimize his business in order to achieve better results.

The meaning of the term "outstaffing"

What is the difference between outsourcing and outstaffing? In order to answer this question, it is necessary to carefully study the meaning of the last term. Outstaffing appeared due to the development of management and is one of the most effective ways to reduce production costs. Outstaffing is a kind of rental of employees by a third-party company for a certain period of time. In English, the term in question is used to refer to freelance workers.

It is important to pay attention to the fact that in the case of outstaffing, the customer concludes an agreement not with the agency itself, but with its employees. On the basis of this agreement, agency employees are temporarily subordinated to the customer. The contract concluded between the parties indicates the amount of work to be performed by the contractor. In simple terms, such employees are on the staff of one company, performing their labor duties in a third-party organization.

Outsourcing and outstaffing acts as a special type of relationship between an organization and an employee

Outstaffing is temporary. The need to attract freelancers may arise in the temporary absence of the main employee. Also, such a need may be associated with the launch of a new short-term project.

The ability to distinguish between the concepts under consideration helps the employer to optimize their own business. When concluding an agreement with outstaffing companies, the customer disclaims the obligation to draw up personnel documentation and tax payments. As a rule, these obligations are assigned to the company providing temporary workers. In addition, the employer has the right to terminate the contract at any time without paying mandatory payments to the employee. It is this feature of the direction in question that caused the correction of the fifty-third article of the Labor Code. According to the new law, the term of the contract for the "lease" of staff should be more than nine months.

Functionality

In order to understand the difference between the concepts under consideration, you should familiarize yourself with the functionality of these services. It is important to pay attention to the fact that these companies specialize in various areas of the service sector. Outstaffing and outsourcing services provide the following types of services:

Formation of accounting documentation, tax statements and calculation of the salary fund.
Creation of computer programs and applications for smartphones.
Construction and repair work.
Cleaning of business centers, private real estate objects and adjacent territories.
Solving legal and personnel issues.
Development of a marketing policy, carrying out promotional activities, promotion of goods on the market.
Vehicle maintenance.

In addition to the above positions, there are less common areas of activity. It is necessary to emphasize that outsourcing and outstaffing companies can offer the same services to the customer. The only difference is the order in which personnel are provided.

Outsourcing (from English outsourcing) - literally translated as "using other people's resources"

Differences between outstaffing and outsourcing

Outsourcing and outstaffing - the differences between these values are closely related to the legal component. According to the current legislation, the minimum term of the agreement concluded between the customer and the outstaffing service must be nine months. It is important to note that the employees transferred to the customer are on the staff of the contractor. The basis for conducting this type of labor activity is an agreement concluded by the parties. At the end of the term of the agreement, the customer undertakes to pay the contractor the amount specified in the contract.

The main purpose of outsourcing is the transfer of certain functions to a third-party organization. This step allows you to reduce production costs by eliminating one or more positions from the staffing table. It is important to pay attention to the presence of additional specific differences. Outstaff employees receive not only labor obligations, but also job descriptions. The difference between such an employee and the rest of the staff is the temporary performance of official duties. As a rule, the working day of such workers does not correspond to the standard schedule. The main task of the outstaffer is to solve the problem.

It should be mentioned separately that due to the lack of strict regulations governing the activities of outsourcing services, the customer may encounter fraudsters represented by performers.

Many newcomers to the business think that outstaffing and outsourcing are synonymous. This opinion is supported by the high similarity of the directions under consideration. Considering the similarities and differences of these areas, special attention should be paid to financial issues. By attracting freelance workers, the entrepreneur gets the opportunity to optimize the procedure for paying taxes and reduce production costs. This step has a positive effect on production speed and leads to an increase in the quality of manufactured goods. Based on the foregoing, we can conclude that the work of freelance specialists increases the efficiency of the entire enterprise.

Turning to such agencies allows you to reduce the risk of a force majeure situation due to the high workload on key personnel. The factor that unites both considered values is the focus on reducing financial costs by reorganizing the internal structure of the company.

Outstaffing (from the English "outstaffing"; out - out, out; staff - staff) - literal translation - "freelance"

Cons and pros

The advantages and disadvantages of each direction deserve special attention. Outsourcing has gained well-deserved popularity over the past few years. The demand for such services is explained by a decrease in time and financial costs. In many large enterprises, there is often a need to address specific production issues. As a rule, the solution of such tasks is assigned to ordinary employees of the company. Lack of experience and necessary knowledge can lead to a decrease in the effectiveness of the production process. The only way out of this situation is to temporarily hire a specialist of the required qualification.

The conclusion of an agreement with contractors on the provision of temporary workers gives the customer freedom of action. Such employees do not receive vacations, severance pay or other social benefits. If the “leased” employee falls ill, the executing company will put another employee in his place. Interaction with such agencies allows the employer to prevent the emergence of various controversial issues and conflict situations with personnel.

In addition, the performers undertake to solve all production tasks within the period specified in the contract. Since these agencies have a direct interest in providing quality services, the employer receives a guarantee of a timely and effective solution to his issue.

Outstaffing and outsourcing have a number of similar disadvantages . As a rule, all the shortcomings of the directions under consideration are associated with the specifics of the service package. An incorrectly set production goal can have a negative impact on the result of the labor activity of freelancers. Many employers consider this situation as a negligent attitude to their own obligations on the part of the contractor. In order to prevent the occurrence of such a situation, the employer should approach the issue of drawing up the terms of reference with increased attention.

It should also be separately mentioned that the bankruptcy of the contractor may cause non-performance of contractual obligations. Separately, it is necessary to highlight the risk associated with the disclosure of confidential information by freelancers. In order to exclude the development of this situation, a non-disclosure clause should be included in the contract.

In the case of outstaffing, the customer has at his disposal staff employed by the service provider

The procedure for concluding an agreement

Outsourcing and outstaffing The difference between these areas lies in the order of drawing up the contract. When concluding an agreement with an outsourcing agency, the agreement must specify a clear scope of future work. A separate paragraph indicates the number of employees required to solve the production problem and the expected results. You should also discuss the payment procedure in advance.

In the contract with the outstaffing company, you need to specify the required number of freelancers. In a separate section, all points related to the payment of their labor activity are recorded. In addition, the contract between the parties specifies various legal nuances related to the interaction between the employer and freelancers.

It should be noted that with outsourcing agencies, the customer concludes a full contract. When interacting with outstaffing companies, an agreement is concluded on hiring temporary workers. The order of interaction between customers and contractors is described in the fifty-sixth article of the Labor Code.

Conclusion

The directions under consideration have common features, due to the focus on reducing production costs and increasing the effectiveness of the production process. Each of these areas has its own specific subtleties and nuances. The customer of such services needs to carefully study all the features of the service of interest in order to be protected from the occurrence of force majeure situations. The main difference between outsourcing and outstaffing is the form of hiring temporary workers and the procedure for concluding an agreement.

In contact with

It might be useful to read: