What is employee leasing?
Employee leasing is a great solution for personnel management. When you decided to go into business for yourself, you probably imagined being successful doing what you love, not handling payroll, benefits, HR issues and risk management. Many business owners who prefer not to handle these things are turning to employee leasing solution.
Why employee leasing is your best option?
Because employee leasing companies take these responsibilities off a business owner’s plate so the business owner can focus on being successful. In a nutshell, employee leasing solutions can help you keep your business competitive and profitable. It often allows a company to be flexible about the length of contract terms for various job positions. Proved to be beneficial this service becomes the primary choice for both, large corporations and small businesses.
It should be considered for the following reasons
Decrease administrative costs
Considering the costs of HR administration associated with onboarding your own employees and providing ongoing benefits and payroll processing, partnering with an employee leasing company is a cost effective alternative as the leasing company incurs these administrative costs.
Test a position
If you hire a worker for a temporary lease, this may be a great ‘test’ position that can be replaced by a long-term lease. If you are satisfied with an employee’s performance, you can offer him/her a long term job. If the employee’s performance is rather moderate and you are not happy with it, you may terminate the contract without worrying about firing, severance pay or unemployment benefits.
Maintain work efficiency
Business owners can use employee leasing as a short- or long-term resource to assist with the workload, to carry out timely projects, to replace their regular staff, to perform some specific tasks, etc. The effects on productivity and the accuracy of administration tasks is more than worth the investment.
Performance management support
Some leasing companies manage their employee’s performance with scheduled reviews and retention programs, the employees you lease are provided training and development support when required.
Mitigate employer liability
Leasing employees means that a leasing company is the employer of record for your staff. Leasing company helps by acting as a Safe Harbor for your company, assuming the responsibilities and liabilities that come with being an employer.
Employee leasing company goes through a careful selection and hires people with reputable backgrounds and provable skills thus it will allow you to get only reliable and experienced specialists for your desired position. In the rare event there are problems with a leased employee, a leasing company has several skilled employees so it is easy to get a suitable replacement.