Outsourcing production staff: why it is useful
In this article, we will tell you more about the outsourcing of production personnel, so you will be able to learn about:
- The concept of outsourcing and its importance in business.
- The types of outsourcing services.
- Peculiarities of cooperation with contractors.
- The tasks that can be solved with the help of outsourced personnel.
The work of the enterprise is based on the main and auxiliary production processes. If the company pays as much attention to secondary tasks as to primary tasks, it will have to greatly expand the staff and train people to work. It will be related to the target activity of the firm.
Such a problem is solved by outsourcing workers for production. The service helps the organization to focus on important tasks and delegate secondary tasks to third-party employees.
Why is personnel outsourcing necessary?
Outsourcing of personnel helps to entrust the management of non-core processes to a reliable contractor. That is, some tasks of the company will be solved by third-party employees. For example, when ordering the outsourcing of courier services, the company owner will not have to search for couriers, be distracted by operational and personnel issues. Solving problems will be handled by an outsourcing agency that will entrust production processes to freelancers. The customer will receive the finished product and will be sure of its quality.
As for industrial enterprises, a reliable contractor is entrusted with individual stages of production. Workers will not participate in the entire production cycle.
Outsourcing personnel in production are engaged in:
- processing of raw materials;
- production of equipment parts;
- assembly of finished goods.
But they can be entrusted with other processes. For example, warehouse or cargo tasks. It happens that the customer does not resort to outsourcing of personnel, but to outstaffing of employees, if he considers it useful for the company.
What outsourcing can be like?
When considering the production outsourcing of personnel, the following types of this service are distinguished:
- the creation of raw materials;
- work on blanks and components;
- performance of operations included in the production cycle;
- transfer of technological processes to an outsourcer;
- involvement of personnel from outside.
To put it simply, the outsourcing of employees provides companies with not only narrow specialists. And also cleaners, couriers, watchmen, handymen, security guards, window cleaners and other personnel. All work must be done in full. For example, if a company orders cleaning services, the staff can come with their own tools, cleaning products and consumables.
Business owners work with contractors to hire warehouse workers. Then the recruitment agency provides reliable employees, prepared to solve tasks. Using this service, the company manager does not search for personnel through the personnel department. He receives the finished product, and the agency deals with other processes: labor protection, conducts medical examinations, trains employees and fulfills other obligations.
An important type of outsourcing is providing companies with construction workers. After all, it is impractical to hire such specialists for rare jobs in a minimal number. Builders may be needed at the enterprise in isolated cases, so it is easiest to hire them. The solution to this problem lies in the outsourcing of construction personnel.
In trade, it is also possible to hire employees, since it is easier for stores to assign work to experienced employees than to look for candidates for staff and training. In large commercial organizations, staff are under a lot of stress, which often results in people leaving. Companies have to hire temporary candidates for positions, which leads to less efficient operation of the enterprise. Therefore, it is easier to order the outsourcing of personnel for production, to work in full.
For the same reason, organizations turn to outsourcing agencies to hire accountants. Human resources centers provide them with people who are able to deal with financial documentation and accounting and have a permit for such activities. Outsourcing costs less than hiring a person. In the same way, specialists in IT technologies, human resources, doctors, call center operators and other employees are attracted to the organization. A useful service during the selection of temporary candidates. For example, when hiring a person during a colleague’s vacation (sick leave or holiday).
The advantages and disadvantages of personnel outsourcing
Using personnel outsourcing services is very profitable for companies. After all, the company:
- Uses assets optimally. The help of an outsourcer allows you to simplify calculations and avoid solving many distracting tasks. Use staff outsourcing to outsource the selection, procurement and delivery of raw materials. The service will be provided strictly according to the contract. The complexity of the outsourced processes and their volume will affect the price of outsourcing at the manufacture.
- Saves resources. The organization receives a finished product without investing resources in it. They are spent by the outsourcer. The customer only needs to pay for the service, but only after receiving it. If the result meets the terms of the contract, the outsourcing company receives a reward, and the customer receives the goods necessary for further production activities.
- Reduces the cost of goods produced. Two organizations can produce identical products with unequal production costs. This happens for various reasons. But for the sake of saving, the contractor is chosen during the tender. The company has the right to choose such a partner who will provide the most favorable conditions for cooperation. It will reduce the cost of manufactured goods.
- Increases the volume of finished products. By transferring some processes to a reliable contractor, the organization makes the production cycle more efficient. If more than one contractor is engaged in providing personnel, the volume of finished goods increases several times. This is very important if you are creating a new business or receiving requests for urgent orders.
- Devotes all attention to its main activity. With the help of outsourcing, the company can free up additional resources and use them on the central production line. This will help increase work productivity and boost income.
By resorting to personnel outsourcing, the customer also solves additional tasks focused on keeping documents, training employees, purchasing tools and work clothes. The personnel center takes care of these issues.
Unfortunately, there are also some drawbacks. It is the risk of obtaining a low-quality result. You enter into a contract that specifies all points of cooperation. But this does not mean that the contractor will strictly follow them. Therefore, when choosing a partner, you should pay attention not solely to the pricing for personnel outsourcing. Remember that a reliable contractor will not offer you unreasonably low prices. The cost will correspond to the type of activity of the company and the complexity of production tasks. This also applies to outstaffing.
It is also necessary to take into account the risk of information leakage and business copying (creating a new business based on your technologies and schemes). Proven companies will not do this. Attracting employees to your production is their aim. Otherwise, the cost of cooperation will not be repaid by expenses in the course of further activities.
The relevance of the outsourcing service
Outsourcing is optimal for companies in the case of:
- The availability of non-core tasks. If the organization is engaged in the production of dairy products, it should pay maximum attention to the solution of the main task – the creation of goods. It is better to entrust other stages to third-party employees. For example, ordering the outsourcing of loaders to the warehouse.
- Partial participation in production activities. Some companies are only engaged in assembling goods from parts. The details themselves are made by the contractor.
- Lack of capacity. If the company does not have enough capacity for a full production cycle, it entrusts individual stages to partners.
- Big orders. In case of an increase in the load, the company can cope with the assigned tasks. It can entrust the production of goods to contractors, and it will just monitor the quality of the result.
Hiring personnel on a temporary or permanent basis has a beneficial effect on the company’s activities. Choose a partner that combines the optimal cost with the experience of employees.
