Employee Leasing Services - The Ultimate Guide

The business world is much more complicated now that we have the technology we need to learn faster, be better, and develop fully. Completing projects often takes the effort of several professionals working as a team. To get this type of collaboration, you must have the best employees. Depending on the work's complexity, your regular employees may not be able to carry out the completion of certain projects.

When this happens, getting new people on board can be time-consuming, and it may not even be cost-efficient, especially if you have a one-time or temporary project in mind.

To save time and money and get the job done, you may want to turn to employee leasing or outsourcing. This guide looks at whether employee leasing is the right option and explains how it works.

What is Employee Leasing?

Employee leasing is the lending of workers for a certain time frame. These workers are actually on loan from another business that takes care of all HR issues regarding their employment. i.e., taxes, payroll, insurance, etc.

They are on loan to you for a certain period and a certain fee. These employees are trained for the type of work you have and can reliably complete a particular type of project or work, and their contract is over when the work is complete.

What are the Advantages to Using Employee Leasing?

The biggest advantage of employee leasing is that you have low HR management costs. YOu can avoid all HR work with leased employees because the leaser is the company in charge of things like employees hourly wage, taxes, insurance, and everything else you need when onboarding a new employee. You only need to worry about the project.

Because workers are a part of another company, they are looked after by that company, so there is little risk management to you and allows you to focus on controlling the actual work.

This type of work agreement also saves on hiring costs. There is no need to advertise for vacancies, shortlist candidates or do background checks.

The Disadvantages

Sure there is a downside as well. Third-party employees are not commited to your company, at least not in the long-term range. They lack loyalty and motivation for your work because they are part-time workers in most cases. So you need to simply focus on the project at hand and then move on.

When to Use Third-Party Leasing?

It depends on the job and the situation. However, you might want to consider third-party leasing when you have one of these scenarios.

A one-time project that only requires employees for a short time frame.

When Your Budget Is Low

If your human resources department is lacking or has trouble pulling in new hires. You have a specific industry where you need more help at certain times.

How Does Employee Leasing Work?

Most companies entering into this type of agreement seek a professional employer organization known as PEOS. These companies hire, fire, and decide on wages and benefits for employees. It is a booming industry that serves all types of businesses.

Why Use a Leasing Agency

PEOs can allow you to lower employee benefit costs for small businesses, and because the work is pooled, employees often get good rates and benefits from the PEOs that hire them.

Your Responsibility

You're probably thinking now, "What responsibility do I have to the temporary employees?" The answer depends on what the PEO offers and the employee risk of the task you have.

You manage the daily tasks and worker output, just as you do with regular employees. However, in this case, you don't have to worry about legal or administrative work regarding these employees.

You are responsible for operational performance and need to ensure they meet your regulations and expectations during the time they represent your company.

How to Choose The Right PEO for Your Needs

As with other services, a PEO and its services will vary. Some offer full functionality, while others only offer certain features. This point is where you need to analyze the differences and see how the different PEOs vary from each other.

The point is that a PEO should be there to help your business grow, and it should treat its employees with respect and offer the compensation they deserve.

The PEO needs to know about your project and your goals to understand why you need employee leasing services.

Protect Both Your In-house and Leased Workers

Regardless of whether your employees work directly for you or are leased by a POE, you need to protect them while in your business. For this reason, workers' compensation is extremely important. This insurance ensures all employees are safe while working at the company or in case of injury.

What Is The Next Step?

Before you go to a POE you need to create an outline of the position. Determine the role of the worker and what responsibilities they have. Be sure to include the duration of the employment and the training requirements.

Write out the skills that you need the workers to have and the characteristics of the candidates.

Because you need these workers immediately search for skills they already have from previous jobs.

Choose The Leasing Agency to do the Rest

Once you have a description of the job you can contact the employee leasing agency and explain what you want. They will work at interviewing candidates and bringing them onboard. That’s really all you have to do, except expect them with the job at hand on the day they are supposed to work.

Bottom Line

When you choose an employee leasing agency, you forego much of the work involved in on=boarding employees. You don't need to do the interviews, get the paperwork or handle the payouts. The employee leasing agency does all of that for you. You just need to define the type of employee you want, the skill set he needs to have, and the length of the contract. By negotiating with an employee leasing agency you can save a lot of time and focus on the actual work at hand.