Our company would like to provide detailed information on our services we provide to employers regarding outstaffing, outsourcing and staff leasing. This variety of services is related to offering temporary staff both on short and long-term basis, as well as providing services over withdrawal from the company’s staff. The mentioned services give a good opportunity to employers to use labor resources and other opportunities on more flexible basis. Company-client transmits a part of its obligations for its staff to “Tanger”. At the same time, the employee of the Employer are legally taken on the staff of “Tanger”. The Employer might like to use this service in the following cases:

1. There is a limit on the number of staff members in the representation or branch of a foreign company 2. Reduction of staff is being planned without reduction of the number of employees 3. Employer starts a business in Armenia without legal registration of the company 4. There is a necessity to enlist the services of employees on a temporary basis for implementation of a certain project 5. There is a need to make a replacement of an employee being away on holiday (for instance, long-term birth leave) 6. Company is willing to reduce administrative expenses of register, as well as over estimation and payment of salaries. In this way, our company becomes a formal Employer for the staff of the Company-client and takes full legal and financial responsibility for the relations with the temporary staff, in particular: • Signing contracts with employees in accordance to the Labor Code of the Republic of Armenia • Including the employees in the staff of the company “Tanger” • Ensuring human resources management in accordance with the Republic of Armenia legislation. • Estimation and payment of salary, as well as all the taxes and deductions in accordance with the functioning legislation (including sick-lists, traveling allowance, premiums, vacations, etc.) • Suspension of labor relations Out staffing in the theory of regular management is regarded as technology of reduction of administrative costs and investment risks of the company. The issue is that, the more the company places emphasis on motivation and development of staff, the higher are expenses for training, compensatory packages, personnel consulting, etc. Meanwhile, increase of the investments into human capital accordingly causes increase of the risk level related to such placement of funds. There are many examples, such as leave of key employees to the competitors, beginnings of various labor disputes, settled in courts. Withdrawal from the company’s staff assumes that the “out staff” employees have two employers. One is the factual company, being the direct task provider to the employees, and the second is a formal agency, which combines the functions of accounts and human resources departments. The main advantage of out staffing model for a company – real employer is the opportunity to effectively regulate (increase or reduce) the factual number of the company’s employees without changing the quantity of the regular authorized establishment. Withdrawal from the company’s staff is beneficial primarily for the following groups of consumers: 1. Representations of transnational companies It is well known that the branches of foreign companies have a limited headcount and work within firm budget frames with clearly defined structure of administrative expenses. Meanwhile, out staffing provides them a good opportunity to recruit personnel vital for the implementation of certain current tasks, formalizing the payments for the work done as marketing ones. In this way, the head offices are satisfied as their requirements have been met, the local representations continue to function as they recruited employees without causing dissatisfaction of their head offices, and finally the indicators of work efficiency of the staff did not reduce. Accordingly, the model of out staffing gives an opportunity to adjust the personnel under real volumes of the company’s activities. 2. National companies with complicated organizational structure and well established system of budgeting The reasons for applying out staffing are the same as in the first case: limited staff and expenses. The budgetary management of the company as rule sustains to the certain bureaucratization of work. Separate subdivisions of the business-system are limited in the opportunities of manipulating financial flows, which results in ensuring predictable financial results. 3. Companies being in the process of reorganization Out staffing becomes one of the main outsourcing activities, when the management decides to concentrate on the main business during implementation of organizational changes. From one side, the human resources service of the company is works off routine paper work, from another one, the company gains good opportunities for enlarging the scope of its operations without changing its organizational structure (for example, model of working in regions without establishment of detached braches). Besides, out staffing gives an opportunity to all groups of companies-consumers not to carry any responsibilities regarding labor relations with personnel. As a result, both financial and administrative load is decreased for the company, while the company maintains direct supervision over the staff members. Providers of out staffing services prove that their clients can make savings on the following: • cheaper cost for insurance, medical, sports and recreation and other services, included in the compensation package of the employee • additional opportunities for optimization of taxation and use of various tax privileges • reduction of expenses for personnel administration and absence of expenses related to dismissal. Employment Agency “Tanger” suggests its services for foreign companies. We hope, that these proposals will be also interesting for local employers.