Can someone explain this employment/work situation to me.

job seeker

So I recently got a new job with a company. Let's say this company is called "Company A". This company employs staff in a wide range of industries. These staff are given jobs in different companies (B - Z), depending on the industry.

So I'm working for and employed by Company A. However, I'll be working in/at a separate company. Let's call it Company F.. Company F specialise in Pharmaceuticals. But why do they not recruit catering staff directly, instead of paying Company A to get staff?

Also, what is the term for this? I thought it was contracting work. But it's not..

godtabh

job seeker wrote: »

So I recently got a new job with a company. Let's say this company is called "Company A". This company employs staff in a wide range of industries. These staff are given jobs in different companies (B - Z), depending on the industry.

So I'm working for and employed by Company A. However, I'll be working in/at a separate company. Let's call it Company F.. Company F specialise in Pharmaceuticals. But why do they not recruit catering staff directly, instead of paying Company A to get staff?

Also, what is the term for this? I thought it was contracting work. But it's not..

Cheaper to outsource. Company F can size up/down without having to work about access to staff/letting people go.

Much cheaper and easier to manage

tea and coffee

Outsourcing? Lots of companies do this; they might have a branch of a catering, recruitment or facilities management company based inside their own offices e.g. Hayes Recruitment at Citi bank or Cbre at Google.

PhoenixParker

In addition to cheaper it's about management time, effort and risk.

The guys running company F know about pharmaceuticals and how to run a pharmaceutical company and manage the type of people and training of people who work in pharmaceutical.

They don't know how to run a restaurant or the risks, costs, people or training involved. If they directly hire a manager they're out of their depth at the first hint of trouble. The separate catering company reduces their risk and management time. Everyone gets to focus on what they're good at.

job seeker

Outsourcing it is. Thanks.

I'm also wondering if this is a good position to be in? In terms of job security? Or is it better to be working directly for company F In one of their own roles?

draiochtanois

This post has been deleted.

jimmycrackcorm

job seeker wrote:

I'm also wondering if this is a good position to be in? In terms of job security? Or is it better to be working directly for company F In one of their own roles?

It's a positive in that if the company you are allocated to closes, you will be moved to another company.

Glass fused light

job seeker wrote: »

Outsourcing it is. Thanks.

I'm also wondering if this is a good position to be in? In terms of job security? Or is it better to be working directly for company F In one of their own roles?

If you don't want to move up the ranks, job security would be about the same, Except that you may be offered and alternative position with company A. While you would have to seek a new role if in F.

If You are looking for progression co A is the best

job seeker

Glass fused light wrote: »

If you don't want to move up the ranks, job security would be about the same, Except that you may be offered and alternative position with company A. While you would have to seek a new role if in F.

If You are looking for progression co A is the best

I see, this outsourcing company is big into their staff wanting to upskill and become promoted. Which is fair enough, as I would be ambitious myself.

job seeker

jimmycrackcorm wrote: »

It's a positive in that if the company you are allocated to closes, you will be moved to another company.

Ah, I see. That's pretty handy. I really didn't know what to expect. As I've always been employed directly by the company.

myshirt

Keep the revenue in one company. Keep the cost in the other. If it goes tits up, employee claim is against the company with loads of cost, no assets, and no cash; so basically they are pissing against the wind.