Personnel outsourcing is the transfer of a part of a company’s work, services or business functions to an external provider who has enough human resources to carry it out. In pursuit of profit and market leadership, modern companies are striving to find new ways and methods to optimize business processes . Organizations conclude an outsourcing agreement among themselves, according to which the provided employees will perform a certain amount of work for the customer. At the same time, the outsourcer gives guarantees that the actions will be entrusted to qualified specialists who can perform them in the best possible way.
By the beginning of the XXI century in Europe there were almost two million borrowed workers, and by 2008 already 70% of European companies used this tool. The number of Russian organizations attracting temporary employees to solve various tasks is also steadily growing - their share in recent years has increased to 17% [1] .
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The history of staff outsourcing
The rivalry between the automotive giants Ford and General Motors and their leaders, Henry Ford and Alfred Sloan [2], contributed to the emergence of outsourcing relations in the modern sense. Their opposition clearly demonstrated that in the face of fierce competition, no organization can remain self-sufficient and rely only on internal sources of resources. A number of supporting processes that require specific knowledge and experience, companies rationally transfer to specialized providers.
Since the 70s . XX century., Outsourcing becomes an integral part of the organization of the production process of Western companies. Later, in the eighties, he gained worldwide distribution. At the same time, a new direction was born - information technology outsourcing . And at the beginning of the 21st century, knowledge outsourcing, that is, management of processes that require in-depth study or serious analytical data processing, was formed.
Today staff outsourcing is applicable to any field and any company. These are retail chains, catering establishments, construction, manufacturing and trading companies. The number of applications for the rental of personnel is growing rapidly, changing priorities and demand. Initially, the outsourcing scheme was used mainly to attract highly qualified personnel, but at present more workers are in demand.
Outsourcing staff in Russia
In Russia, Peter the Great became the forefather of outsourcing. It was by his decree that the best foreign specialists from all over the world came to work in the Russian Empire .
This sovereign (Peter - E. T.) reveals his aspirations with concerns about preparation for military affairs and the discipline of his troops, about training and enlightening his people, about attracting foreign officers and all sorts of capable people.
- Tarle E.V., Russian fleet and foreign policy of Peter I [1]
In the early 90s . XX century. the number of companies that needed qualified assistance in personnel administration, IT services, accounting, and staff provision has increased dramatically. The private security companies that offered their services to companies in the 1990s became pioneers of personnel outsourcing in modern Russia . Cooperation with them turned out to be much more profitable for enterprises to maintain several full-time employees.
On May 5, 2014 , the President of Russia signed Law No. 116-FZ, which prohibits borrowed labor (articles 18.1 are introduced into the Law of April 19, 1991 N 1032-1 “On Employment in the Russian Federation” and 56.1 in the Labor Code of the Russian Federation ), with the exception of two cases:
- The organization sends temporary workers to a person who is affiliated with the sending organization, or if a shareholder agreement has been concluded between the parties;
- The organization is accredited and acts as a private employment agency.
From mid-2016 to early 2017, outsourcers concluded 50% more contracts than a year earlier. In the competition with international giants Adecco, KellyServices, Manpower, etc., operating in Russia, national personnel holding companies actively joined. Often, Russian agencies act even more quickly and at least qualitatively. At the forefront are domestic brands: STS Group, Expert, Empire, which are beginning to take a significant part in the listing of leading foreign rating agencies.
Reasons for companies applying to outsourcing services
- Cost reduction;
- The need to change location or branch opening;
- Risk reduction;
- Ensuring business transparency;
- Improving financial and economic indicators;
- Improving the image of the company;
- Increase competitiveness;
- Strategic reasons related to the need to focus on any one type of activity.
Benefits of outsourcing staff
Benefits of outsourcing staff for companies
- Saving of time and expenses for search and selection of personnel;
- Reducing the cost of personnel management and personnel office work;
- Attraction of additional labor;
- Savings on the use of staff "when necessary";
- Releasing internal resources for core projects by attracting temporary employees;
- Reducing the cost per unit of processed products;
- Improving the competitiveness of the company. Rapid response to market changes, as a company that does not contain “extra” employees is more mobile.
Employee benefits
- The possibility of additional income;
- Gaining experience in large companies;
- Acquisition of skills in a new specialty;
- Flexible work schedule.
The disadvantages of staff outsourcing
Disadvantages of outsourcing staff for companies
- The need to adapt the structure of the company to work with an outsourcer;
- The likelihood of a decrease in corporate spirit;
- The risk of attracting workers without experience.
Disadvantages for the employee
- Possible deterioration of working conditions;
- Low degree of security;
- Unsustainable job security, especially if the customer refuses to renew the contract with an outsourcing company.
See also
- Outstaffing
Notes
Literature
- Anikin B. A., Rudaya I. L. Outsourcing and outstaffing. High technology management / Textbook. allowance. 2nd ed., Pererab. and add. // M .: Infra-M. - 320 s. - 2009. ISBN 978-5-16-003161-3 .
- Safarova E. Yu. How to optimize personnel costs: austaffing, outsourcing, staff leasing // M .: Eksmo . - 208 s. - 2009. ISBN 978-5-699-38462-4 .
Links
- Outsourcing (Outsourcing)
- Outsourcing in personnel management: fashion trends or problem solving?
- Outsourcing in personnel management: features, advantages and disadvantages
- 3 reasons to use outsourcing
- Staff outsourcing
- Staff outsourcing: what functions to delegate
- Outsourcing services for businesses: who benefits and how much
- Optimization course: how outsourcing will save a business in a crisis
- Technology outsourcing as a modern tool for the formation of business models
- Three criteria for successful selection of an outsourcing service provider
- Frequently used personnel strategies in periods of financial instability
- Russia is outsourced
- What is staff outsourcing
- The temporary staffing market is showing strong growth.
- Automation of personnel company, our experience
- The history of outsourcing in Russia
- Moving to outsourcing: how to avoid mistakes when making a contract
- Human resource outsourcing: how to optimize staff costs
- Why is it profitable to outsource recruitment?
- The share of Russian companies using outsourcing is growing
- Market of recruitment and provision of personnel from the AChAZ