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24.07.2020

Features of national outsourcing


Sometimes the outstaffing service is requested by Western companies entering the Ukrainian market.


Оutsourcing to Ukraine is in the stage of formation. Some of its types are more developed, some are still waiting for a surge in demand in order to test the nuances in practice and develop effective schemes for solving typical problems. The most advanced is the outstaffing service. The pioneer of this type of service is undoubtedly the General Directorate for servicing foreign missions (since the early 1990s, this organization has been a monopolist in this type of service, which is enshrined in the Labor Code). Somewhat later, by the end of the 1990s, recruiting agencies began to provide outstaffing services. Their first clients were also Western firms with experience of such cooperation in their countries. The choice of recruiting agencies as the most popular providers of outstaffing services is primarily due to the fact that companies have already cooperated with them in recruiting personnel, therefore, the related service was trusted by those who were seen as reliable partners.


Features of national outsourcing
 

The impetus for the intensification of demand for outstaffing, of course, was the protracted stagnation of business activity that followed the 1998 crisis. The head offices of Western companies, seeing a decrease in sales volumes, made decisions to cut staff in regional offices, often without reducing the sales plans for the next periods. A paradoxical situation developed: resources of activity were confiscated, and the volume of work even increased. Then a virtual reduction was generated, in which the staff was transferred to the staff of companies - providers of outstaffing services. Sometimes, due to the temporary need for formal redundancy, the staff was transferred to the provider's staff for a certain period, and then, at the request of the client, the same specialists returned back to the staff of the real employer. The fundamental difference between outstaffing and leasing is that the refusal of the employer from the services of a particular employee, as a rule, results in the unconditional dismissal of this employee from the provider's staff.

What happened after 2000, when companies were gradually recovering or even exceeding the volumes of work achieved before the crisis, and how did this affect the demand for outstaffing? Foreign representative offices, not having a formal permission to carry out sales, and also being limited by law in the size of the staffed staff, found a way out in the formal withdrawal of employees to the staff of all the same recruiting companies.

The next stimulus for the demand for outstaffing services lies in the restrictions imposed by the head offices. There is a so-called headcount or corporate headcount limit in a given country or for a given volume of business in a given country. If at the same time the company retains or even increases the required minimum of work, then local offices are forced to seek permission to attract an outstaffing resource in order to cope with the assigned labor obligations.

Sometimes the outstaffing service is requested by Western companies entering the Ukrainian market. For them, it is often desirable to postpone the legalization of their legal status. As a rule, in the first year, when the prospects for business development are still very uncertain, many do not dare to invest in opening a full-fledged representative office. Nevertheless, some activity, such as marketing research of market opportunities, is necessary. Then either the services of an employee with the status of a private entrepreneur are used, or the company outsource a comprehensive service for the life support of the office in the new territory. The content of the service can have a different volume of content: office rental, office equipment and communications, cars, computer network maintenance, logistics, marketing research, personnel search and selection, personnel consulting, HR administration and payroll accounting for hired employees, full tax support. Legally, services in the area of ​​personnel support act as the provision of outstaffing services.

What is usually the subject of negotiations when discussing with domestic clients the intention to buy an outstaffing service? First of all - their demand to save the payroll. HR managers are looking for effective schemes to reduce the cost of business and quite reasonably see them in bringing their employees to the staff of provider companies. This is really possible if the provider enjoys preferential taxation, for example, is a single tax payer. Then the maintenance of staff for the client becomes cheaper, however, only in cases where the provider's turnover does not exceed the limits established by law and if the provider is ready to pay the minimum wage, leaving the real employer the opportunity to pay some amounts without going through their legalization through the payroll (as long as employees are satisfied with this situation and the fiscal authorities will not pay attention to it). But if the service was originally designed.

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Категорія: Прес-реліз
Теги: outsourcing




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