Permanent staffing, also known as outsourcing and offshoring, has become a go-to business option for businesses seeking to save money or find a way to cut their workforce. However, many in the industry are cautioning companies about the potential risks involved in permanent staffing. Here are the top things that you should consider before you jump into the market.
If a worker is classified as an employee, he or she will have more legal rights than if they are consider a subcontractor. For example, permanent staff have the right to form unions, while subcontractors do not. In addition, you may be held accountable for the actions of your permanent employees that result in a lawsuit or criminal charges against them.
You will lose control over your workers’ hours and duties. You sell your fixed assets to the contractor when you hire a subcontractor. For example, if your permanent staff works a twelve-hour day and then works overtime, that is the contractor’s problem. This can make it hard to monitor your workforce or identify problems.
You may lose control over the work itself. Certain aspects of your job that may be essential to the efficient operation of your business may not be in your hands if you hire a permanent staff member. For example, your permanent staff may be unable to carry out essential duties because they lack the necessary skill level.
Your permanent staff will not be motivate to go the extra mile. Because they are being paid the same whether they excel. Unlike a subcontractor who needs to please you. A permanent employee will do less work than is expect and will still paid as much as he/she had put in the effort.
You may lose the opportunity to use your permanent staff to its full potential. For example, a permanent employee who is twice as skill as another permanent employee will often be paid the same salary despite his or her superior skills. You are also likely to see a difference in how much time they spend on duty versus non-duty hours.
Using permanent staffing could lead to increased costs of hiring subcontractors. While outsourcing may save you money on labour, it can be more expensive to hire subcontractors. This is because you must pay both the contractor and the permanent staff.
The quality of your work may suffer if you hire a permanent employee rather than a subcontractor. When you hire a permanent employee, you are hiring him or her for the long-term. Meaning that he/she will treat your company as a permanent job rather than as something temporary for his or her career path.
You may lose control over how your permanent staff member is use. For example, if you hire someone as a senior web developer, he or she can be ask to perform clerical work or other tasks that require less skill.
You may have trouble renegotiating a contract with your permanent staff member. Because he or she has more legal rights than a contractor does. For example, you may want to hire another worker for the same position. But this new employee may have a different set of skills than the permanent staff member currently holding that position. This could be problematic if your permanent staff member wants to stay. As long as possible because he or she will not want to be replace.
While using them as a cost-saving measure can be a wise investment. Do not overlook the potential risks involved and how they could hurt your company’s bottom line. Take the time to research your options carefully and make sure you understand the consequences of permanent recruitment.