Companies in all industries find themselves facing consistent changes in the market. There are some days when a big workforce is needed to complete a project. There are also some points in the year when less than half of your employees can finish all tasks needed to be done.
Considering the ever-changing demands, what can your company do to stay efficient and successful in its field? How can you make sure your organization stays afloat with the shifts in the global market? The answer is made up of two words: Staff Leasing.
The Service You Need
Imagine your company decided to create a brand-new project that would revolutionize web-based applications for years to come. To finish this project, you’ll need a team of experts as soon as possible. How would you find the people you need without wasting time or breaking the bank?
Or maybe your company specializes in marketing. It’s the beginning of the year and productivity is booming but your clients have seasonal businesses. They informed you they only need your service in the first and the last quarter of the year. Does this mean you should fire your employees during the second and third quarters? Should you simply rehire them before the last months come around?
In both scenarios, the situation would be best solved by availing Staff Leasing.
Staff Leasing FAQs: Everything You Should Know
For companies interested in improving their business, staff leasing is a service that can come in handy. This is especially true in scenarios involving the need to scale your workforce based on the current demands of the market.
But what exactly is staff leasing? Below are answers to some of the FAQs of the said service.
What is Staff Leasing?
Staff Leasing, also known as employee leasing, is when you hire a staffing company to take over administrative tasks such as recruiting, team building, and human resource (HR) management.
It’s one of the latest improvements in staffing. It allows you to maintain control of your employees while passing on tedious tasks to staffing experts.
How Does Staff Leasing Work?
In employee leasing, an agreement is made between your company and your chosen staff leasing provider. Once a contract is drafted and signed, the leasing company will start handling the agreed-upon tasks. Whether it’s payroll processing or HR responsibilities, you can delegate the task to the staffing company while you focus on more important organizational matters.
Read More: Comprehensive Guide to Staff Leasing
When Should I Avail Myself of Staff Leasing?
If you find yourself in a tight situation with regard to hiring, staff leasing may be the best option for you. This is best for scenarios where the demand for employees is high, but the supply is at an all-time low.
Leasing employees gives you the ability to scale your workforce based on your needs without worrying about the recruitment process. Additionally, instead of handing all control to a staffing agency, you still remain in charge of the duties and responsibilities of your hired employees.
What are the Different Types of Staff Leasing Arrangements?
Another great thing about employee leasing is that it has different types you can choose from. Depending on the best fit for your company, you can pick one of the three distinct types that best fits your needs.
You can choose full-time leasing where the professional employer organization (PEO) will handle all HR functions. Or you can choose part-time leasing where the PEO provides part-time employees based on your needs at the moment. If neither seems fit, project-based leasing is also an option for companies that need additional employees for one-time projects only.
What Benefits Can You Get from Staff Leasing?
One of the most frequently asked questions is about the benefits of having leased employees. Generally, availing staff leasing services can produce many advantages.
Some examples of these advantages are reduced administrative burden, cost-efficiency, improved access to skilled professionals, and reduced liability.
Read More: The Best Parts of Staff Leasing
How Does Staff Leasing Differ from Other Staffing Solutions?
Outsourcing and contract hire are staffing solutions where the staffing agency maintains control of the employees. They get to decide the titles and job descriptions based on the identified needs of their clients.
Meanwhile, in staff leasing, you oversee the people hired while the staffing company handles the HR management. This setup can lead to longer partnerships with the PEO assuming greater obligation in both law and administration.
In Which Industries Can Staff Leasing be Particularly Helpful?
Employee leasing can be useful for both product-based and service-based industries. Almost any company, regardless of their field, can avail themselves of staff leasing services for their benefit.
For example, staff leasing offered by Raso360 focuses on the many jobs under the following industries:
- Accounting and Finance (Bookkeeping, Payroll Functions, Tax Compliance)
- Call Center (Customer Service, Tech Support, Integrated Call Center)
- Digital Marketing (Email Solutions, Affiliate Marketing, Social Media Services)
- Technology (Service desk, Support, Enterprise Applications)
How are Employees Selected for Staff Leasing?
Employee leasing companies establish connections with experts who have undergone comprehensive screening and recruitment processes. This ensures you receive help only from qualified and skilled employees.
Typically, the leasing company would source the candidates one by one and then screen their skills and knowledge to see if they are up to par.
What Factors Should be Considered When Choosing a Staff Leasing Provider?
An effective staff leasing provider should be a company that shows both expertise and experience in providing full-cycling recruiting services. They should also have a wide reach and have connections in different industries.
It’s also important to check their track record in detail. Focus on their efficiency in both employee performance and costs.
Read More: Why Raso360 for Your Staff Leasing Service?
Are There Any Risks Associated with Staff Leasing?
All staffing solutions come with potential risks and staff leasing is not an exception.¹ Some possible drawbacks of leasing workers are the lack of management control over employees, misclassification of needs leading to inefficient service, and non-compliance with labor laws and regulations within your state.
Fortunately, these issues can be dodged entirely by a leasing agency with a strong sense of responsibility for their clients and great attention to detail, especially for technical matters.
Read More: The Staff Leasing Solutions for Growing Businesses – What You Need To Know.
Can a Client Company Terminate a Staff Leasing Agreement?
In the event you would like to terminate your agreed-upon contract, you can freely do so if it meets the stipulations mentioned.
Similar to other contracts, a staff leasing agreement between your company and a staffing agency includes specific conditions and procedures needed for its termination. Remember to always review your contract before signing so you’re aware of the conditions and possible consequences.
How Does Staff Leasing Comply with Labor Laws and Regulations in Different States?
The employee leasing company must educate itself about the labor laws and regulations of its client’s state. Afterward, they’re expected to conduct all actions in compliance with the law. These laws include employee-related topics like taxes, workers’ compensation, statutory requirements, and minimum wage among others.
Read More: Staff Leasing – Compliance and Legal Considerations
EXPLORE STAFF LEASING WITH RASO360
Discover the power of leasing with Raso360. Boosted by our mission to accelerate the business of our clients, we’re dedicated to meeting your staffing needs. We ensure efficiency by forming the best connections between you and the right candidates in the field.
Our top-performing recruiters can help you build a team of qualified and reliable employees through staff leasing. Contact us today to begin!
Reference
1 Keng, Cameron. Danger Of Using A Professional Employer Organization, Forbes, 12 Sept. 2016, www.forbes.com/sites/cameronkeng/2016/09/12/danger-of-using-a-professional-employer-organization/?sh=2a244ea54a21. Accessed 19 July 2023.
