An employee outsourcing profitability in the municipal service

The paper presents circumstances of applying more and more often different forms of flexible employment. One of such forms is a staff self-employment. The essence and aims of the staff selfemployment have been defined, pointing out its advantages and disadvantages. Nowadays a reduction of the activity has become a common practice in Polish companies. It consists in charging company’s employees with activities as an independent businessmen. There are no methods and procedures available in the literature on carrying out precise research concerning the production, technical and economical effects of organizing activity in the form of self-employment. The main part of the paper deals with examination of the profitability of outsourcing by a municipal company of two kinds of services: waste reception and cleaning the city and surroundings. A four step methodology has been proposed in the research: a) characteristics of the work and employment, b) calculation of a unit cost of the service paid by a previous company, c) simulation of a cost of the service performed by the self-employed, d) estimation of the profitability. The research have shown that the outsourcing is not profitable and not much advantageous for the self-employed.