Outstaffing, Outsourcing, and Staff Leasing
Because of some economic reasons the big companies find it profitable to take out some of its employees from the staff list, shifting the HR work to recruitment agencies like us. Since 2005 up to now "Tanger" renders services on Outstaffing to foreign and international companies in Armenia. In the theory of regular management Outstaffing is said to be a technology of decreasing administrative expenses and the investment risk. The thing is that the more the company pays attention to the motivation and the development of the staff, the higher are the expenses on employees capacity building, compensation packages, staff consulting etc. Increasing the investment in a human capital increases the risk of the investment. For example, resignation of key employees to a competitor company or labor arguments solved by the court. While practicing Outstaffing, the employer has the possibility to regulate the quantity of employees of the firm without changing the quantity of the staff members. In addition to that Outstaffing gives a possibility to avoid the labor relations with the employees. Consequently not only the financial but also the administrative load of the company and the direct management tools of the employees are maintained. This mechanism is first of all practiced by the representatives of international agencies, national companies with a complicated organizational structure and a good finance system and companies that are in the stage of reorganization.
So, the need for this service arises when a company:
- Has headcount restrictions,
- Wants to reduce in-house staff without losing high-calibre employees,
- Plans regional recruitment without opening an office in the area (the opportunity for the outreach towards regional markets),
- Intends to employ personnel for a specific project without taking them on the staff,
- Is interested in reducing the administrative burden for HR bookkeeping and accounting,
- Intends to commission the qualified personnel to deal with labor and tax inspections,
- Wants to set probation with the new staff without employment ties,
- Maintain the small enterprise status,
- Wants to diminish the HR bookkeeping and paper work,
- Wants to shift partial legal obligations for the personnel.
Obligations of Tanger:
Tanger becomes the legal employer of outstaffed personnel and performs the following functions:
- Enroll workers onto its staff and formalise labour relations with them,
- Handle all day-to-day HR back-office tasks,
- Manage payroll and compensation packages,
- Calculate income and other taxes and transfer them to the appropriate tax funds,
- Proceed bookkeeping and payments for sick-leave and holidays,
- Provide references upon employee’s request,
- Settle all staff related issues with tax administration, social funds and other related government authorities.
Tanger’s fee is based on:
- Number of outstaffed employees,
- Average remuneration per employee,
- Network engagement,
- Number of additional services.
- Providing with medical insurance,
- Providing with other insurances such as life insurance,
- Administrating business trips,
- Organising catering service or paying meal allowance,
- Paying cell phone, transportation, car allowance,
- Organising staff training,
- Supplying personnel with uniforms.
