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Most big corporations and organizations of catering and network trade utilize an outstaffing company because the lower costs of outstaffing services contributes to a considerable improvement in earnings.
Outstaffing is the process of enrolling in a company's already-hired, proven employees.
Workers keep working in their old employment and perform their old duties, but the company's obligations and rights are legally transferred to the agency. It is thought to have been invented by Japanese management.
The company hires only about 1/3 of all the workers. This is the core structure that establishes a smart outstaffing company's image, shapes its image, and is accountable for its proper operation and development. The salaries of all other workers are removed from the staff's pay, while they get their regular pay.
Outstaffing companies take complete responsibility for their employees and other activities, such as bookkeeping and keeping employee information, paying taxes and salaries, bonuses, scheduling vacations, etc. Retired workers keep working at the same location and execute their prior tasks, but the outstaffing agency fulfills the employer's obligations to them.