Is an Outsourced Worker a Member of Staff?

Outsourcing has been an increasingly common method for businesses trying to save money while receiving high-quality labor in today's global economy. The Philippines is a popular outsourcing location because qualified individuals offer their services at much lower rates than their Western counterparts. In this blog post, we'll review how to treat outsourced workers like your team members while reaping the financial benefits.

Disclaimer: Please remember that this is not tax or legal advice. For specific advice on your case, consult a lawyer or an accountant in your country.

First, let us define the difference between outsourced workers and in-house employees. While you may work closely with your outsourced workers and pay them for their services, they are not employees in the classic sense, especially if they live in another country. As a result, you do not have to pay for national insurance, social security, or taxes, which can result in significant cost savings.

Regardless of these distinctions, it is critical to treat your outsourced employees as though they are your team members. For instance, you can extend benefits typically reserved for employees to your Filipino staff, such as a five-day workweek, flexible hours, and bank holidays. By providing these benefits and other perks, you show that you value your outsourced workers and consider them an essential part of your team.

When working with members of a remote team, communication is essential. Establish clear communication channels and set expectations for availability based on time zones to build a strong working relationship. For example, if your in-house team is in the United Kingdom or Europe. Schedule calls in the morning to meet the time difference with the Philippines. You may need to change your communication timetable for teams headquartered in the United States.

Invoicing is one crucial difference between outsourced workers and employees. Outsourced employees must invoice you for their services bi-weekly or monthly (every two weeks is typical). To speed up the process, provide your Filipino employees with materials or training on creating invoices, especially if they are unfamiliar.

When contemplating benefits for your outsourced workforce, provide the same arrangements as you would for in-house employees. Include giving holiday pay, sick pay, and, in some cases, maternity pay. Treating your outsourced workers fairly and equitably builds loyalty and dedication, which will help your organization in the long run.

Outsourcing can be an effective option for businesses trying to save money while accessing experienced labor in other nations. You may develop a positive working environment that benefits all parties involved by treating your outsourced team members as valued company members.

If you haven't already, begin investigating the outsourcing world and reaping the benefits of this increasingly popular business technique. And if you found this helpful, please share it with your friends and colleagues!