Key reasons you may need personnel outsourcing services

by Strategic Outsourcing Limited February 21, 2020, 3:59 pm

Key reasons you may need personnel outsourcing services

Personnel Outsourcing is the business practice where an entity hires a third party to provide personnel to perform specific duties for the benefit of the entity but the staff hired remains the employee of the third party. Whereas there is a general misconception that personnel outsourcing is a means of a cost-cutting measure, the benefits are far-reaching and more and more companies, large and small, are turning to personnel outsourcing as a way to grow.  Here are some key benefits you get when you hire a professional personnel outsourcing company.


Transfer of employment-related statutory obligations

Whereas government agencies have become more aggressive with the enforcement of statutes and regulations and this makes the business environment more challenging due to the need to comply with what can be a daunting multitude of national, state and local requirements, you do not have to worry about employment-related statutory obligations as the employer, that is, the outsourcing company is liable for all statutory requirements.   


Transfer of employment liability

Whereas you have a duty of care towards the employee provided by the outsourcing company, you are protected from any financial loss if the employee has a job-related injury or illness as the outsourcing company has an obligation to comply with the Employee Compensation Act.


Lower administrative cost

You reduce the fixed cost of managing employees. The service provider undertakes all the administrative functions relating to the employment of the outsourced staff, and this is more efficient because it saves save money and time.


Control over staff

Although the staff are employees of the outsourcing company, the principal has control over the staff and can direct and supervise the staff to deliver on the business objectives.


Quicker Hiring

Because personnel outsourcing companies are focused on recruitment and placements, they have a faster turn around time to fill vacancies. Having positions left open for a long time can hurt your bottom line. Reduced productivity can not only lead to lost opportunities, but it can also reduce your current workforce's morale and efficiency. When you outsource your staffing services, you'll get faster hiring.

SOL Managed Staff Services provides you with the opportunity to save time and energy and focus on more Strategic Business issues, eliminate exposures to employment-related statutory and regulatory risks and eliminates the challenges associated with recruiting, managing, retaining, and man-power planning.