Respected All,
I am working as Manager-HR in a Moduler Furniture Mfg. industry at west bengal. We have a total of 240 around manpower out of which around 160 are treated as permanent having proper break of their salary and PF/ESI benefits (if applicable). Other 80 personnel are working as casual labour and we don't have a proper salary structure for them as they have been paid a consolidated amount on monthly/hourly basis. I would like to cover them under PF and ESI with proper salary break up. So I have decided to outsourced them through a third party who will take up the entire responsibilty of this 80 no. of personnel (including their salary structuring as per min. wages and disbursement) and i am suppose to submit a proposal to the management. I would like to have your suggetion on this issue that whether it will be a good idea to outsource them. What could be the merits and demerits? Please suggest.

From India, Calcutta
Hello DG,
Outsourcing your current staff has both merits & Demerits. Some of the basic Merits are:
They are covered by basic statutories- in case of any unforseen circumstances this cover would definitely help the employees
You need not take care of the statutory formalities for these employees.. this could inturn may be reduce your manpower (Hr required to carry out these tasks)
Increases the cost- you need to pay the consultant/ avendor certain percentage every month as service charge.
This might also result in some attrition- the employees may feel that this is a passive move taken by the organization to slowly remove them form the system
If your vendor is not a reputed one- you might face probems if he doesnt register your outsourced employees for PF or ESI as it is always the primary employer who will face the music if something goes wrong.
Hope this helps..

From India, Bangalore
Dear DG,

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From India, Chandigarh

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