| MAJOR ADVANTAGES
OF MANPOWER CONTRACTING Deployment
of contractual manpower by Independent
Contractors provide with a practical
solution to the inevitable cycle
of employee hiring and firing. Manpower
contracting offers:
FLEXIBILITY
Outsourcing allows manufacturers
to appropriately forecast and pre-plot
manpower requirements for extreme
cycles of production without the
social concerns and legal consequences
related to maintaining and subsequently
downsizing a huge regular employed
workforce. Permissible contracting
permits the Principal-Client to
scale down workers deployed by the
Contractor at anytime within the
specifications of the Service Contract.
COST SAVING DEVICE
Manpower contracting significantly
reduces cost:
* Certain company initiated benefits
for regular employees such as seniority
pay, incentives & bonuses, or
mandated remuneration like separation
pay are non-compulsory for contract
labor;
* Direct expenses in hiring are
borne by the contractor;
* Losses attributed to training
costs, enormous non-conformance
products or rejects & labor
disputes or litigation, which are
consequential to end-of-contract
(below 6 mos.) hiring are eliminated;
* And, predictability of cost for
manpower services prevail.
CONSISTENCY OF MANPOWER
SUPPLY
Manpower contracting is a stable
and reliable source of workers,
if ever required. When deployed,
tenure of contractual employees
is co-terminus with the Service
Agreement sans a direct employer
- employee relationship.
FEATURES OF CONTRACTUAL EMPLYMENT
COST EFFICIENCY
* In the immediate term, Contractual
Employment (CE) compensation is
at par to Entry Level Regular Employee
(RE) of CLIENT-COMPANY. In the long
term, however, CE is cost efficient
since it is not subject to mandatory
increases or benefits accruing to
RE such as seniority, performance,
&/or adjustments, and bonuses.
FLEXIBILITY
* CLIENT-COMPANY may at its option
demand, at any time, the immediate
replacement of any or all CE's or
outright cessation of manpower supply.
Causes may range from non-compliance
of standard requirements, completion
of specific projects, to slow-down
in business activity. This feature
is not readily possible for RE's
since labor laws necessitate strict
compliance of the tedious due process
for termination or downsizing of
workforce.
LIABILITY PROTECTION
* Since CE's are basically Agency
employees, Client-Company is secured
from monetary claims, union activity
or strikes, & labor suits. Furthermore,
CE's are bonded. And in the unlikely
event of fraud or damage ascertained
to be caused by CE, CLIENT-COMPANY
may call on the surety for immediate
indemnification.
CONTINUITY
* The NFSI provides for a Reliever
System to ensure non-interruption
or work. Downtime caused by absences
or leaves is prevented.
GUARANTEED SUPPLY OF QUALITY MANPOWER
* The NFSI pre-screens & trains
CE's in compliance with CLIENT-COMPANY
qualification requirements. Client-Company
saves time & money in processing
& training of personnel. Excellent
performance is guaranteed of CE's.
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