5 Things to Consider When Partnering With an Outstaffing Agency
Outstaffing has become a popular solution for businesses looking to scale their teams and operations at a reasonable cost. By partnering with an outstaffing agency, companies can access a pool of skilled professionals without the need to handle recruiting, hiring and retaining talent. Instead, they task their outstaffing provider with all those stages of a team life cycle.
What businesses win from partnering with an outstaffing service provider? Well, when you are assured that the HR ops are running smoothly, you can focus on core operations more productively. But the most solid win bets come if an outstaffing provider includes Employer of Record (EOR) services to their hiring services menu (sometimes, without additional charges). You can hire internationally through such an outstaffing firm.
Global hiring unlocks a bunch of solutions to topical business demands in specialists, especially in the IT sector. For example, what to do when your competitors have already hired the local software developer of your dreams or that specialist claims compensation beyond your budget? Having an arrangement with some global talent providers, you are able to fill the burning team role with a dev from Armenia, Poland, Brazil, etc. — geographical limitations might exist only in your mind.
Yet, let us share with you 5 concerns to take into account before you make a decision whether a certain outstaffing company is your cup of tea or not. We will help you identify if partnering with an outstaffing company will pay off.
#1. Check the Level of Flexibility
It’s essential to have a room for maneuver. We love outstaffing for its flexible conditions, so it would be quite disappointing if you see some constraints like “We sign contracts only with clients who request 10 developers at a time”. “You want to hire one dev now — you got it”, should be their credo. The same story is about the project length. Normally, outstaffing starts from a 3-months project.
We’d also opt for partnering with an outstaffing company that allows different levels of your participation in the HR routine. Today, you want to stay away from the milestone talks, and tomorrow you can change your mind.
#2. Assess the Agency’s Expertise and Experience
You’d prefer partnering with an outstaffing agency that can deliver predictable results, right? Consider outstaffing teams who understand your industry and the nuances of your business. Here’s how you can assess their expertise.
- Ask them to share some case studies about their previous clients to see if they have experience with projects similar to yours.
- Reach out to past clients to learn about their experiences.
- Be curious about how the agency does talent market research for your position (we hope, they do).
- It would be great if your outstaffing partners shared their approach to selecting candidates with you (and fabulous if they approved the interview stages with you).
Additionally, consider the agency’s experience in remote work, as it is hard to imagine how they are going to broaden your team’s horizons without a clear strategy to rally teams dispersed worldwide.
#3. Understand the Cost Structure
Outstaffing can be a cost-effective solution, but it’s crucial to understand the agency’s pricing structure and how it aligns with your budget. Here’s what you should do.
- Ask the agency for a transparent breakdown of their pricing, including any additional fees or charges. An optimal option would be some flat price, aka a monthly subscription. Unlike a project-based fee, it doesn’t change when the hiring strategy needs a bit more daily effort.
- While a lower upfront cost might be appealing, think about the long-term relationships and outstaffing company’s reputation.
In the end, compare the pricing of multiple companies and strike a balance between cost and quality to ensure you get the results you desire.
#4. Assess Communication and Transparency
You should communicate with the agency’s team seamlessly. Here are some factors to consider in advance:
- Ensure that your outstaffing provider hires in the necessary time zones.
- Clarify with them all the required languages. For instance, ask your talent provider if the potential hires have a B2-C1 English level to work in the international environment.
- Find out which modern communication tools the agency uses.
- Look for an outstaffing company that is transparent in its processes (from recruiting to exit interviews), provides regular updates, and welcomes your feedback.
When partnering with an outstaffing agency, establish clear communication expectations from the beginning to avoid misunderstandings and ensure a productive partnership.
#5. Evaluate Data Security and Legal Aspects
When engaging outstaffed teams, you are sharing sensitive business information. Here’s what you should do towards data security and legal considerations.
- Explore the agency’s data security policies, compliance with privacy and security regulations like GDPR. They should stick to proven practices like data encryption and access controls.
- Sign a robust contract that outlines data security provisions, intellectual property rights, confidentiality agreements, and dispute resolution mechanisms.
- Investigate the legal jurisdiction under which the contract will be governed and consider how this may impact your business.
By addressing data security and legal aspects proactively. Thus, you can safeguard your business interests and maintain the confidentiality of your information when partnering with an outstaffing services provider.
Bonus – How to Stay Confident Partnering with an Outstaffing Agency?
Partnering with an outstaffing services provider can be a strategic move for your business if you make an informed decision. By considering the five success factors above, you will be able to answer the question “Can I rely on this HR partner?”. A confident start is a great base for success.
We are people, and we need to double-check everything, you might say. So after the launch of your team on your project through the outstaffing model, offer constructive feedback about your new hires. Your outstaffing partner should be eager to help you arrange your collaboration with the hired team aligning with your expectations.
To stay on the same page with your outstaffed team, be available to answer questions and share the necessary resources, tools, and information to complete the task. All the respectable outstaffing companies aim to bring to their clients not only task performers, but also visionaries, who don’t require extra guidance. Their questions will be, most likely, to the point and important for the project’s success.
David is a dynamic, analytical, solutions-focused bilingual Financial Professional, highly regarded for devising and implementing actionable plans resulting in measurable improvements to customer acquisition and retention, revenue generation, forecasting, and new business development.