Reasons why companies like to use staffing

2023-02-15 17:31:51

Simply put, enterprise applicationsHuman resource dispatchEmployment can simplify the hiring procedures for enterprises, reduce labor disputes, lower costs, and enable enterprises to employ workers flexibly and independently. Therefore, labor dispatch has always been favored by enterprises. The reasons why companies like to use human resource dispatch can be specifically explained from the following aspects.

1. Flexible Labor Methods:The Labor Contract Law stipulates that in various situations, the employer should sign an open-ended labor contract with the employer. For example, two consecutive fixed-term contracts should be converted into an open-ended contract, and dispatching will effectively resolve this issue. Some manufacturing and information companies face seasonal employment issues. By using the human resource dispatch model, you can set up short-term temporary employment, part-time workers, or take on special tasks based on your actual situation.

2. Lower recruitment costs:Employers using the dispatch method do not need to draft recruitment plans or programs, nor post recruitment advertisements. They only need to sign an agreement with the dispatching organization based on the number of employees, job types, technical skills, and basic requirements they need to accept. All recruitment matters are handled by the agency, so there is no need to pay labor or advertising costs.

3. Reduce personnel reserves:In the past, companies often adopted personnel reserve measures to cope with the rapidly changing product market, resulting in a surplus of personnel within the company. After cooperating with staffing agencies, companies increasingly meet temporary labor demands caused by unforeseen production fluctuations through the form of human resource dispatch. This can greatly reduce labor costs.

4. Saving labor costs:Due to the inertia of the original employment guidelines, a payroll mechanism has formed a pattern of raising rather than lowering compensation. The salary and benefits of dispatched personnel can be adjusted according to market demand. Employers can negotiate labor workers' salaries based on market wage counseling levels. When labor market supply is insufficient, companies can use high-skilled labor skills through dispatching organizations to pay high wages, avoiding internal employee competition effects. Conversely, when the labor market supply is sufficient, employers can reduce their compensation costs by employing human resource dispatch workers with lower wages. Therefore, using dispatched employees can save on labor costs related to compensation.

5. Reduced processing costs:The most complex issue in an organization is personnel management, which involves employee records, negotiating and signing labor contracts, handling labor contracts, setting staffing and staffing, technical training, technical appraisal, social insurance, birth, aging, sickness, death, and so on. Adopting the dispatch employment method can reduce many troubles. Human resource dispatch companies will hire a large number of labor security and HR specialists with extensive practical experience, and can develop targeted and reasonable personnel management systems for employers, improving their output and reducing production costs.

6. Conduct employee selection:By using the dispatch method to hire probationary workers and select backup personnel, it can avoid recruiting unqualified personnel and reduce the cost of resignation. Human resources dispatch companies have standardized handling mechanisms, with professional personnel filing and analysis of each company's personnel needs and reasons for dismissal, ensuring that the next hiring need is more targeted. When the required demand is reached, the labor service company will offer targeted courses at relevant employment organizations and co-run campuses to ensure the quality of employment and improve social employment rates.

7. Lower social security costs:The social insurance contribution base and share for dispatched personnel are generally lower than those of formal contract employees, and the resettlement of laid-off and unemployed workers can also benefit from corresponding subsidies and other preferential policies.

8. Reducing the risk of disputes:When an employing unit uses human resources to dispatch employees, since the two parties are not in a labor relationship, any disputes between the parties do not constitute labor disputes. If a worker files a labor ruling appeal, the dispatching company should be considered the respondent, and the actual employing unit may only participate in the ruling activities as a third party when necessary. Thus, the risk of disputes over labor is reduced.

That's all for the reasons why companies like to use human resource dispatch. If you're still unclear about human resource dispatch, it's recommended to take a look at what it means to gain a clearer understanding of it.