The warehouse of a large hypermarket employs mainly migrants from Asian countries. However, the company does not want to take risks, given the possible fines of several hundred thousand for illegal employment of foreign workers.
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To avoid these risks, it is necessary to have specialists email database lists australia in accounting and migration records, which is disadvantageous for a hypermarket.
Therefore, the company outsources the registration of migrant workers from Asian countries. As a result, foreign workers are formally located outside the state, which reduces the burden on the HR department, accounting, and overall personnel costs.
Outstaffing in the hotel business
The family owns two recreation centers on the Black Sea coast, which operate only during the tourist season, from April 15 to October 15. During this period, the two most popular months stand out.
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Off-season in spring, autumn and early summer, family members manage the recreation centers themselves, without hired employees. However, for these peak eight weeks, entrepreneurs enter into an agreement with a recruiting agency to provide outstaffing personnel in order to quickly fill vacancies (maids, security guards, administrators).
The agency not only helps find suitable candidates, but also checks them before hiring them.
Examples of using an outstaffing agreement with settlements
Objective: to reduce administrative costs
Initial data: Company B employs 300 people. They include 8 accountants responsible for payroll and taxes, and 6 HR employees primarily involved in personnel documentation. Total expenses, including administrative staff salaries (with taxes), office space and equipment rent, are estimated at A = $17,416 per month.
Examples of using an outstaffing agreement with settlements
Source: shutterstock.com
Solution: Company B transferred 286 other employees to the agency. The group of accountants responsible for payroll and tax payments was disbanded, and only 1 employee from the HR department (out of 6 people) was retained to train the employees.
Effect: The cost of outsourcing services was O = R × V = $14,300 per month, where R = $50 is the cost of hiring one employee under an outsourcing agreement per month, V = 286 is the number of transferred employees. Company "B" reduced administrative expenses on its staff by $3,116 per month, which is 17.9% of the total amount.