Leasing and outstaffing: which to choose? And how does our company work?

Flexibility in decision-making is a distinctive feature of modern business, which is looking for new forms and methods of organising work. This is especially relevant for small and medium-sized businesses with up to 100 employees. 

To optimise costs, we recommend considering hiring employees on a hire-only or freelance basis. This is ideal for new companies, those with seasonal work or unstable orders.

The most common forms of personnel leasing are leasing and outstaffing.

Let’s understand what is more favourable: leasing or outstaffing?

Leasing (renting) is the selection of personnel from the staff of a recruitment agency on the client’s order. In this form of co-operation, the staff is temporarily transferred to work for the customer, and after the end of the contract, people return back to work in the agency. 

Outstaffing means taking staff out of the labour force) is the involvement of freelancers to work in the company. In this case, the employees are not freelancers, they continue to be employed by their company, which pays their salaries and is responsible for them.

In fact, both forms are very similar to each other, but there is a subtle difference that defines the essence: in leasing, employees are temporarily transferred to work for the customer, respectively, he pays their wages, as well as taxes and insurance. And if it is a short-term co-operation (e.g. seasonal work), it may turn out that the employer does not save money on hiring staff, but on the contrary – its costs increase by about 20%.

In the case of outstaffing, employees continue to be employed by their own company, with which the client pays.

Consequently, the advantages of outstaffing are obvious:

  • saving resources on personnel search, the employer does not waste time on closing vacancies and registration of employees;
  • the possibility to engage real professionals rather than random people, even if it is a short-term contract;
  • simplification of personnel management: there is no need to keep a staff of people for payroll, taxes, control over holidays, sick leave, etc;
  • financial benefit – the fewer officially hired employees, the less taxes and fewer inspections. 

Our company VAV Synergy provides outstaffing services – we delegate our employees under A1 certificate. This is a business trip under the terms of a co-operation agreement. 

All our employees are officially registered in companies registered in Poland, we pay wages, insurance, taxes. Also our company deals with transfer and accommodation of people at the place of arrival. This makes life much easier for many companies in Europe (we already have more than 300 partners in Germany, Denmark, Belgium, France and other countries).If you are also interested in such co-operation and you want to save money but preserve quality – leave a request, we will contact you!