"Personnel outsourcing" is gradually becoming a new trend in domestic and international businesses to help support human resource management effectively and save budget.
For the BPO (Business Process Outsourcing) industry, personnel outsourcing is even more significant as this industry requires a large and high-quality workforce to ensure work efficiency. Today, BPO personnel outsourcing solutions are spreading from corporations, companies, and foreign investors to groups of businesses in the labor market.
1. What is personnel outsourcing?
HR outsourcing is a service where a company hires an experienced human resources firm to handle practical tasks such as: processing employment contracts, calculating monthly payroll, registering for social insurance, health insurance, and unemployment insurance, calculating and processing personal income tax refunds, paying personal income tax, etc., and then sending detailed information back to the business owner.
2. HR outsourcing services in Vietnam currently exist in three forms:
1. Employment service: The company is responsible for recruiting candidates according to job requirements and uses a service company to sign employment contracts and manage all aspects of human resources for this workforce.
2. Staffing service: Often used for two groups:
i) office staff on maternity leave or when the company has short-term projects.
ii) factory workers.
3. Service leasing (service providing): Includes leasing, training, managing employees, and being responsible for the business results and work performance of this workforce.
3. To keep this trend up with global service standards, the following activities should be focused on:
- Researching the strengths and weaknesses of outsourcing models in other countries in the region to incorporate into regulations. Lawmakers need to ensure both the rights of workers and the competitiveness and flexibility of the workforce, which is a key factor in attracting foreign investment to Vietnam at the national level.
- Measures should be taken to monitor labor outsourcing companies, preventing widespread violations of the law that affect workers' rights.
- The community needs to understand the true meaning of outsourced labor and have a positive response to it, which is considered a global trend today.
- A professionally operating Outsourcing Association is needed to connect with the International Outsourcing Association to learn more about service models, processes, and common rules… to improve the quality of this service in the Vietnamese market.
- Service providers need to invest in technology software, reduce service costs, and have a plan to systematically train a professional service staff.
4. What issues need to be considered for the development of human resource outsourcing services?
- First: Research the strengths and weaknesses of this model. Lawmakers need to improve legal regulations to protect workers' rights while ensuring the competitiveness of the service, contributing to attracting foreign investment to Vietnam.
- Second: Implement appropriate monitoring measures.
- Third: Enhance public understanding of this service.
- Fourth: Establish a specialized Outsourcing Association, linking with international outsourcing associations to gain more experience.
- Fifth: Service providers need to invest in technology software, reduce service costs, and have a plan for systematically training a professional service workforce.
5. Temporary Staffing
- Whether you need to hire one or hundreds of employees, from general laborers to technical specialists, we can provide staffing solutions to meet your short-term or long-term staffing needs, including replacing staff on leave, sick leave, special assignments, or project-based temporary staff. This type of service will save you time and recruitment costs, turning fixed labor costs into variable costs and fitting your production plan at any time.
- Outsourcing staff quickly meets the operational needs of your business.
6. Benefits of Using Temporary Staffing Services
Cost Reduction
- Temporary staff will be provided when businesses need them. For example, temporary employees and technical specialists will be added to support new projects or to fulfill an unexpected order at a specific time of year.
- Because temporary employees work for a staffing management company, the business will not have to pay for benefits or handle unemployment claims. For example, the percentage of salary paid to outsourced staff already includes legal fees such as social security contributions, medical benefits, holidays, and paid leave.
Reduced costs
