It is hard to imagine that in Ukraine there were still business owners who had not heard about outstaffing of staff. When almost every year in our country there is an increase in taxes on officially employed citizens. Therefore, each taxpayer at least once thought about whether it is possible to legally optimize these costs.
We decided to save you time and prepare answers to the TOP-5 questions that arise at the first and second meetings before signing a contact for staff withdrawal.
1) How it works?
The client company removes employees from the state (actually dismisses it on paper), after which they are employed by the outstaffer company. A contract is concluded between the client and the provider for the provision of personnel for the performance of work. Employees remain their physical jobs, salaries, benefits and accruals, but now they are watched by an outstaffer. Likewise, the provider falls responsibility in case of judicial issues regarding staff. The client pays for the services and conveys the wishes regarding the personnel changes.
Significant savings are obtained on the payment of salaries (and other payments), which not only covers the costs of the contractor, but also allows the company to remain in the black.
2) And who orders this service?
In Kiev (and throughout Ukraine), our clients are distinguished by similar “problems” that unite them:
often work with seasonal staff, but prefer to do it legally;
want to stay on a single tax, but the staff is growing;
“Nuleviks” who are also growing in the size of the team;
preparing for grants, for example, the EBRD;
They prefer to “test the time” of new employees before taking them to the main team;
IT companies recruiting people for a project without FOP.
3) What are the benefits of outstaffing?
makes it possible to expand staff without legal and accounting restrictions on its number;
optimizes the process of HR administration (reduction of time and costs for issuing certificates, deductions, vacations, accrual and payment of salaries, loan obligations, etc.);
makes hiring seasonal / project / temporary employees legal and quick;
minimizes the risks of labor disputes for the client;
relieves business owners of many unpleasant working moments: liability, dismissal, etc.
It makes it possible to work in different regions without opening branches.
4) What are the disadvantages of outstaffing?
unscrupulous providers non-residents of Ukraine conduct illegal activities and may create risks for the client;
possible dissatisfaction with a full-time employee who does not understand why he was employed in one company, but became an actual employee in another;
there is little “noise” around this optimization process, why it seems to be a “gray” method (although this, of course, is not so).
5) What should I look for when signing a contract?
Here, rather individually, but as a rule, the contract should indicate: validity period, price for services, the mechanics of the provision of services, force majeure circumstances and obligations of the parties are prescribed.
Key issues when concluding an outstaffing contract
Do not be afraid of the new – it helps to focus on important tasks and delegate secondary ones. Which, ultimately, has a good effect on the growth of the company, and on the level of salaries of employees. If you still have questions – you can read about the service here or ask a direct question here.