What is personnel outsourcing

Many people wonder what personnel outsourcing is, since there are many companies, especially large multinationals, that outsource some functions and departments in order to reduce administrative burdens. This happens in the case of the human resources department.

Personnel outsourcing consists of hiring a consulting company and HR expert. It performs personnel management functions, such as hiring on its own payroll and all aspects of work, including registration and deregistration with social security or monthly payroll payments.

It is used by companies that do not want to create a subsidiary in the country, but want to have staff with an employment contract and guarantee compliance with local regulations at the labour level. In addition, they will receive knowledge about the labor legislation of a country that they do not know.

Why use personnel outsourcing?

People who wonder what personnel outsourcing is, also want to know why to use personnel outsourcing.

Personnel outsourcing is a key element to improve the productivity and competence of companies. By entrusting a third party with administrative or support tasks that do not generate direct added value, they focus their efforts on the core of their businesses. However, what Spanish companies demand is the option of being able to hire talent from Latin American countries such as Peru, Colombia, Mexico or Chile, where there is a large number of qualified personnel. Above all, in jobs such as: Information Systems Personnel, Web Developers, Java, Shopify, app and e-commerce developers.

On the other hand, the option of having a sales force at the destination, after-sales services and customer service using the same time zone as customers in Latin America is also demanded.

Other advantages of personnel outsourcing are:

• Cost reduction

  Costs and time in hiring personnel are reduced. Since they know and have experience in carrying out all the selection and recruitment processes. As this process is of higher quality, they also achieve lower staff turnover costs and attract the best talent thanks to experts in personnel selection.

• Easy contracting

  It facilitates the hiring of foreign personnel by knowing the legal framework of each country so that no complications arise, since many times consequences arise if a foreign worker is not hired in the correct way. Thanks to this, incorrect withholdings or contributions are avoided, or the payment of extraordinary payments or various incorrect payments. Knowledge is provided about particular restrictions, such as when it comes to overtime or the tools that the country offers us to sanction the worker in specific cases.

  Each country has its own peculiarity and you must know the local legislation in detail and know how to apply it as well.

• Time reduction 

  The standardized processes of specialized personnel companies will be able to find profiles related to the required position in less time. Having an active portfolio of candidates allows them to be more predisposed to listen to new proposals when the time comes. It would include the following points:

  • IT ALLOWS CONTRACTING IN A COUNTRY WITHOUT HAVING A LEGAL ENTITY IN IT. It can be interesting for companies that want a first contact with the country or to provide service to a client in a project that is supposed to take a long time. 

    This speeds up the hiring process, since from the moment the company decides to start working in a certain country in a period of approximately 48 hours, it can have the employee registered. Although for many it can be difficult to manage personnel without having a presence in the country, knowing that the outsourcing company can carry out personnel interviews, assist in dismissals, manage the necessary equipment or material…

  • Economic and administrative savings. Hiring staff in a company involves fine-tuning the company in terms of employment: internal regulations, mutual societies, etc. and other obligations that will vary depending on the country. By outsourcing the company you will be able to avoid several of these procedures. 

    In addition, the creation of a subsidiary involves control, administration, etc. which under this scheme would be avoided by receiving a single monthly invoice for the cost of the personnel hired in the country. As for the payment of expenses (if any), contracting telephone lines, medical insurance… The company offering the insurance will process all these extras, passing on the cost later to the customer, so that the company does not have to be negotiating or in contact with suppliers in countries it does not know

Personnel outsourcing services

At UR Global we offer a personnel outsourcing service in which our experts will cover 100% of the processes:

• Preparation of contracts and safeguarding of labor files.
• Payroll generation according to tax laws and reforms.
• Calculation of the company’s tax obligations.
• Bank dispersion of direct payroll to workers.
• Delivery of files of stamped payroll receipts in PDF and XML formats.
• Compliance with labor contract obligations according to the country.
• Administration and global advice on payroll management.

The field of hiring personnel is always controversial because there are cases in which companies are not properly regulated. This means that, in the end, both employees and the company’s activity are affected.It is therefore very important to make sure that the personnel company that is hired acts under the legal framework.At UR Global we know what personnel outsourcing is and we offer you a legal, serious and professional service in accordance with the legal framework of each country in which the activities of each company are carried out. For us, safety and trust come first.Contact us to start working together!