Leasing and Outstaffing

In the world during the last fifty years there is the tendency  to find new companies which provide original services and increase the success of the business. It also concerns HR-business. In the 60-es of the 20th century, after the appearance of human capital, the role of HR-management in business has absolutely changed.
As the consequence of the development of this theory we can say about the appearance of new concepts, such as: Leasing, Amortization of human resources, Human capital investment.
Leasing - the company is provided with temporary personnel with required experience and skills.
Outsourcing - involving the business function to an external provider, which has the essential resources to fulfill it.
The company`s necessity in temporary personnel arises in the period of short or long projects. Nowadays, it often happens that the employer is in need of highly qualified specialists, whose it is next to impossible to find in the labor market (for example, interpreter from Russian into Hindi). In the sphere of HR-management it is known 2 types of Leasing: Temporary staffing and Staff leasing.
Staff leasing - the recruitment agency provides the Client with the required number of personnel for work for the project duration. It is quite profitable for the company not to change the number of the in-house staff and temporarily hire employees of the agency.
Temporary staffing is used during short-term projects lasting from 1 to 3 months. Usually it is administrative or service personnel, hired for organizing different exhibitions, conferences, marketing researches, promotion due to staff illness or vacation.
Outsourcing gives the opportunity to reduce costs, to save money and concentrate on business.
Advantages of this service:
-The Client can save time and expenses
-direct the investments to the realization of other business goals
-increase the effectiveness of the business
-concentration of the company on the main business
-decrease of risks
There is one more service, which is becoming more and more popular. It is Outstaffing.
Outstaffing - is the way to take the employee out of in-house staff when the agency becomes the legal employer of outstaffed worker without changing the place of work.
This service is used when there is no need in this or that worker and the Client wants to reduce the number of in-house personnel without loss of highly qualified specialist. The Company discharges the worker and then takes him back in the moment of urgent need.
It helps the company to save permanent number of in-house staff, save time and concentrate on business. Outstaffing is the technology when the recruitment agency takes the responsibilities of the employer in relation to the outstaffed personnel: salary accounting, negotiations with tax and social departments.
Advantages of the service:
-there is no use to increase the responsibilities of HR Department inside the Company
-the company saves expenses
-it can increase the number of personnel without declining the simplified system of taxation.
Leasing and Outstaffing are quite new in Russian market, since 90-es. In Europe these services were investigated 50 years ago. Notwithstanding this fact, the popularity of Leasing and Outstaffing is growing at a fast paste, depending on the region. As usual, it is popular among large foreign companies, but the number of Russian companies is also gradually growing. These services are also popular among absolutely different industries: sales, medicine, finance, law. The growth of the popularity of these services is connected with the business development, especially industry.
The company is leaning to use these services when it is necessary:
1. To employ personnel without taking them on the staff, when there is no enough budget;
2. To take temporary specialists in the period of vacancies;
3. To simplify the relations between the employer and employee;
4. To establish new branches of the company;

It is also quite important to mention that two more types of leasing are distinguished: leasing of highly qualified specialists and staff formation, when the leased personnel legalizes as the in-house personnel of the organization.

Speaking about Europe, Leasing and Outstaffing are popular among different areas of business. As for Russia, it only concerns office personnel, sales department, technical personnel and workers.
The algorithm of the Leasing and Outstaffing technique:
1. Search of the required specialists and interview with the candidates;
2. Selection of the candidates, who are employed by the recruitment agency, which is responsible for the candidate`s acquaintance with the code of ethics of the leased specialist;
3. The required specialists are leased to the Client for a limited period of time.
This is the following scheme of the collaboration of recruitment agency and Client:
- Level 1. Formulation of the key problem, required specialists and the time of work;
- Level 2. Agreement of terms and conditions of the contract: the salary of the specialist and the agency`s fee, the number of specialists, their job responsibilities, work content, time of work and evaluation criteria of this work;
- Level 3. The search of the specialists if there is no such people in the database of the company;
- Level 4. Agency, Client and personnel document their business relations .
- Этап 5. The monitoring of the leased personnel work by the agency.