- Outsourcing is a popular solution to hiring temporary workers, which benefits both large and smaller companies, regardless of their size and experience in the market.
- Companies that turn to employee outsourcing can reduce costs, increase efficiency and focus on key areas of the business by using external resources and professionals with the right skills.
- Employee leasing can pose a risk of poor onboarding, reduced employee engagement and leakage of sensitive information, so it is essential that the process is properly managed and data is protected.
- Outsourcing does not exempt companies from their obligation to comply with labor regulations and contracted employees.
- Process outsourcing allows companies to focus on their core business, saving time, money and resources, and improving the organization’s efficiency and flexibility.
Advantages of outsourcing employees
The concept of outsourcing is currently very popular. In principle, it can be phone number list applied to virtually all departments of a company, from production, logistics and customer service to financial management and accounting.
The name of this phenomenon comes from the English words “outside-resource-using” and, according to the literal translation, means outsourcing certain tasks to external companies or using temporary workers. However, it should not be equated with a mandate contract, since it differs in the nature of the relationship between the provider and the recipient of the service.
Outsourcing is a long- or short-term, win-win arrangement where the outsourcing company more than 30 webinars in one year and the contractor are equal partners. Today, it is increasingly chosen by large companies tired of searching for high-level management talent and researchers, as well as keeping financial records, but outsourcing certain activities to external partners can be a great option.
What are the advantages of outsourcing employees?
Companies that turn to outsourcing do so primarily for economic reasons. It significantly reduces the powder data costs associated with maintaining departments such as:
- accounting,
- law firm,
- transporte,
since it eliminates the company’s responsibility to account for the mandatory social security contributions of external employees.
In addition, all costs of the recruitment process are covered by the temporary employment agency, which also saves significant time, as intermediary companies usually have a database of employees ready to be hired with specific skills and experience.
The use of external workers also allows for a more agile organisation of work, since the maintenance of personnel and payroll records is the responsibility of the employment agency. It also helps to reduce fixed costs . For example, those related to the storage of manufactured products and their distribution, by renting space and means of transport in quantities adapted to the current needs of the company.
The greatest benefits of outsourcing employees are obtained by companies that deal with thematically diverse projects that periodically require employees with specific skills.
Disadvantages of outsourcing employees
Among the risks associated with outsourcing employees, the main ones are:
- Lack of integration between permanent and external staff, which can lead to low identification with the company.
- Lack of a sense of belonging to the company and awareness of the temporary nature of the duties performed, which often results in less dedication to work. Due to this barrier, communication between employees in different departments can also be hampered, causing many difficulties in the day-to-day running of the company.
- Greater risk of confidential information being leaked outside the company as it is accessible to a large number of people.
The leakage of sensitive data can have adverse consequences not only for the outsourcing company, but also for its counterparties. Such a situation reflects negatively on the media image, affects customer confidence and the opinion of the company, which directly affects sales results and relationships with partners.
To avoid this, confidentiality agreements (NDAs) are often drawn up , which oblige one of the parties to keep confidential any information about the company’s activities, the disclosure of which could deprive it of a competitive advantage in the market.
Subcontracting and the Labor Code
Outsourcing, as a practice of using external service providers, has some implications related to the Labor Code . First of all, outsourcing does not exempt a company from complying with labor regulations, such as minimum wage, working hours or health and safety.
Workers hired by the service provider must be covered by the same rights and protections as those hired directly by the company, which requires monitoring and control of legal compliance by both parties. At the same time, good outsourcing should include clearly defined contracts and clauses on responsibility for compliance with workers’ rights to avoid potential disputes and ambiguities.