| How to minimize HR-related expenses under crisis | | | | Outsourcing means transferring of existing |
| conditions | | | | business functions to an external contractor. |
| "Payroll expenses is a normal and the most | | | | According to Karina Stepanyan, the Executive |
| considerable liability of any business", says Maxim | | | | Partner of the ACCENTOR Consulting company, |
| Stepanov, the President of the AVENIR GROUP | | | | the classic formula of outsourcing is "I only do |
| of companies. These expenses, being virtually | | | | functions I can do better than others; I outsource |
| permanent, can make up to 10% (for high-tech | | | | the functions which are better done by an |
| manufacturing) and up to 90% (for consulting and | | | | external contractor". |
| service companies) of overall business | | | | The most popular outsourced business |
| expenditure. For this reason, not only under crisis | | | | administration services are: financial and tax |
| but in favorable economic conditions as well it is | | | | accounting outsourcing services, preparation of |
| of utmost importance for top managers to | | | | management and financial reports in accordance |
| optimize staff expenses. | | | | with International Financial Reporting Standards |
| Today every top manager is equipped with a | | | | (IFRS), payroll outsourcing services (calculation and |
| variety of instruments to establish the most | | | | payment), outsourcing of HR administration and |
| optimal system of the company's staffing in | | | | documentation management, outsourcing of legal |
| terms of quality, cost, control and existing risks. | | | | advice and support and a number of different |
| The most popular are recruitment, staff leasing | | | | tasks which required establishing internal agencies, |
| and transfer of certain business functions to | | | | hiring employees and investing considerable funds |
| outsourcing. The key differences between the | | | | in their professional development and |
| above methods are characterized by the list of | | | | management. |
| functions to be performed by the employer. | | | | Being a relatively new technology imported from |
| During the recruitment process, candidates are | | | | the West, the outsourcing of business processes |
| searched for, evaluated and selected by the | | | | (Business Process Outsourcing or shortly BPO) |
| employer or by a specialized recruiting agency. | | | | gained ground mostly in big cities – Moscow |
| The employer recruits the selected specialists, | | | | and St. Petersburg. At the present time, however, |
| does all the related administrative paperwork, | | | | outsourcing is growing popular in other cities and |
| ensures personnel management and controls the | | | | regions of Russia and in capitals of some CIS |
| quality of the resulting work. | | | | countries, mainly in Ukraine (Kiev) and in |
| If the employee is leased (the process can also | | | | Kazakhstan (Astana and Alma-Ata/Almaty). |
| be referred to as outstaffing) – the service | | | | The major evident advantages of the business |
| rendered by specialized agencies – the | | | | administration outsourcing are as follows: |
| specialist is searched for and selected by the | | | | 1. Contracting a specialist, you obtain the |
| leasing agency. The leasing agency hires the | | | | knowledge and experience of the certain |
| employee and provides the employee to the client | | | | specialist, while by contracting an outsourcing |
| company to complete certain tasks. In this case, | | | | company you obtain the whole company's |
| the company retains management function and | | | | knowledge and experience. |
| controls the resulting work while the leasing | | | | 2. No specialist hiring, replacement and professional |
| agency undertakes to do all the administrative | | | | development expenses. |
| work related to the specialist leasing process. | | | | 3. Elimination of operating management, control |
| Later, the company can hire the successful | | | | and administration functions. |
| employee for a certain agreed compensation to | | | | 4. Permanent personnel expenses become |
| the staff leasing agency. The amount of this | | | | variable. |
| compensation is normally equal to cost of the | | | | 5. Flexibility in staff number management. |
| specialist search and selection with the recruiting | | | | 6. Elimination of work interruption, flexibility of |
| agency. | | | | working schedule. |
| The service of providing temporary personnel is | | | | Business Process Outsourcing Services is the |
| very similar to the personnel leasing services and | | | | optimal solution for small businesses and for newly |
| is mainly of short-term character. The service is | | | | created companies. Administrative load is a major |
| most frequently used to temporarily replace a | | | | setback and a considerable financial liability at the |
| secretary, an accountant, IT specialist on sick | | | | start-up stage. Outsourcing is also effective in the |
| leave or on vacation. | | | | following areas: |
| And, at last, the outsourcing when the outsourcing | | | | 1. Company registration (incorporation), |
| services provider not only provides its employees | | | | organization of business (Start-Up) |
| to complete certain tasks but is also responsible | | | | 2. Representative office or branch opening |
| for search, headhunting, selection, evaluation and | | | | 3. Limited acceptable staff number |
| professional growth of a specialist and controls | | | | 4. Temporary projects |
| the quality of the resulting work. The outsourcing | | | | 5. Seasonable phases of the production cycle |
| company hires the employee and does all | | | | 6. Optimization of expenses |
| administrative paperwork (HR administration | | | | 7. |
| services). | | | | |