Staffing is known and used for decades due to the mass demand of retail, F&B, hospitality, and manufacturing industries. Outsourcing professional service is quite new as they are required specific skillset related to single position. However, under the new chapter of the economy, the demand of productivity and cost optimizing, enterprises have the demand of using outsourcing professionals those who bring the standard quality delivery with optimized cost. Let’s have a look about the Pros and Cons of this service
- Reduce labor costs – One of the best reasons to use an outsoucing professional service is to cut labor costs. We all know that hiring an expert is not easy task for the recruitment team and the company also. And sometimes it costs an arm and a leg for advertising and hunting service to have them on time. When you use a professional service, you can eliminate many of these costs, and with no idle cost pay.
- Eliminate recruiting work– A lot of time and effort goes into recruiting even for a single employee. When you decide to use a qualified service provider, you essentially shift these duties onto another capable team of recruiters and career professionals.
- Reduce benefit requirements– The requirement to provide benefits is on the minds of all employers, especially those that have a large number of full time eligible employees on staff. In order to offset the costs of bringing more full time employees on, consider the use of service labor to get the same amount of work done without benefits (which can be supplied by the service company at no cost to you).
- Eliminate hiring mistakes– Every manager has made a poor hiring decision, that may have cost the company thousands in wages, benefits and lost productivity. Instead of worrying that your next hire may be a dud, consider how beneficial a temp worker may be. Temps are pre-screened and their skills are tested beforehand. An Outsourcing professional service also allows you to replace one with a 24 hour notice too, in case the service producer doesn’t meet your standards.
- Eliminate paperwork related to labor management– due to the actual demand of the hiring position, or whatever reason leads to the termination, you can notice the service provider because you are not legally responsible.
However, in the consideration of hiring temporary professionals, certain intervention must be taken into account:
- Additional service fee– When you use service provider, your’re expected to pay more than running it internally . This is because you are not only paying the employee, but the service provider includes their fees. While this may seem high, remember that the outsourcing professional is used for critical demand for example of maternity leaves or urgent projects
- Contract buyout fees– If you decide you have found a perfect fit with a oursourcing professional and you want to keep him or her on staff permanently, you are generally entering what’s called a “contract buyout” phase. During this time, you can either wait out the time period of the contract or snag the employee now buy paying the difference in their salary for the remaining contract time period,
- Inability to build teams– Unfortunately, many times permanent employees view temps as just that – a barrage of warm bodies who have no real value to the overall team. Temps may not be treated with much respect by others, and they may even be perceived as a potential threat by long term workers who have grown to be less motivated.
- Possible lack of commitment– An issue with few temps is that they may not seem as committed to the business objectives as permanent employees. A temporary labor might not commit to the contract and quit if they found other sexier opportunities. However it can be limited by using a service provider those can offer on-time replacement.
- Reliance on agency screening– Another concern of HR when using temps is the over-reliance on agency screening to weed out problem employees. However, the company may request a copy of the background check results and the Non Disclosured Agreement contains terms to reduce risks for the company using these service.
Written by Jas, L. – MD, Consultancy & Development of J.A. Experts
J.A. Coverings by J.A. Experts
Ho Chi Minh City, Vietnam