When warehouses are located very far away and cargo is delivered to them infrequently, there is no point in the company maintaining a whole staff of workers (loaders, general workers) for each warehouse. A more profitable and reasonable option is the services of an outstaffing company that will provide the required number of loaders at the specified time.
Another typical example of using outstaffing labor resources is seasonal and periodic projects. For example, a new product needs to be launched on the market and several sales representatives are needed to promote this product among end customers. Hiring a whole staff and then firing them all at once is impractical. Outstaffing of personnel comes to the rescue: the contractor company will provide sales representatives with the appropriate experience and knowledge for the duration of the project.
Companies that benefit singapore email list from outsourcing personnel
Outsourcing of working personnel is beneficial for many companies: it can reduce both direct and indirect costs, avoid inspections, and reduce the risks associated with hiring migrant workers. The contractor company is responsible for control, payments, and processing of all documents.
The more workers are outsourced, the more money the company saves. Outstaffed workers are not included in the staffing schedule and are not included in the total number of employees of the enterprise, which allows it to switch to the simplified tax system - for small businesses this is very profitable.
Outstaffing is in demand in various manufacturing companies and service firms. Any employees can be transferred to a partner, except for top management, executives and the crew of sea vessels.
For some commercial firms, hiring people under the outstaffing scheme is especially profitable: the cost of outstaffing personnel is much lower than the total costs of their selection, hiring and support. The whole point is that their work is strictly seasonal:
agricultural enterprises, including farms;
hotels and inns;
food suppliers;
construction companies.
Outstaffing benefits companies that employ foreign citizens. The contractor is responsible for reporting and compliance with labor laws, and it also assumes all associated risks. The head of the company ordering personnel rental services does not have to worry about the legality of hiring workers, the correctness of salary calculations, and the timeliness of reports to the migration service.