Whether big or small, businesses can benefit a lot from staff leasing. This is primarily thanks to the many advantages that companies can enjoy by leasing out their employees. What makes this even better is that the advantages work in both ways; not only does the company get to enjoy the benefits, the employees do as well.
Staff or employee leasing is described as something that takes place between a subscribing firm that leases out employees and a leasing firm that leases in employees, to enjoy mutual benefits. The subscribing firms are also known as Professional Employer Organizations (PEOs) and these companies take in their own employees from the employee leasing company after a stipulated period of time. Here, the employees are absorbed into the PEOs as the employees of the leasing firm.
There are many reasons why businesses should consider getting the services of a staff leasing company. When you really take a close inspection, you will see that this method provides a way where entrepreneurs can gain a lot and possibly lose a little. In fact, even while the US and Europe was in a state of mayhem brought about by the havoc created by the world economic crisis, offshore outsourcing rode it all out.
The advantages of leasing staff instead of hiring new ones for a limited period of time is gaining more and more recognition. Some of the best benefits companies can get from employee leasing are the following:
1. Economical Cost
Staff leasing goes a long way in cutting costs. Companies can save from employee benefits as they only have to pay a fixed fee monthly per leased staff member to the employee leasing company.
2. Work that’s on par
The staffs leased are professionals. They have already been pre-screened according to the needs of the company and the work that the staff are expected to accomplish.
3. Works best for medium-sized companies
This is not to say that small and large companies do not have any need for staff leasing services. What is merely emphasized is that medium-sized companies are the ones that are able to fully maximize the services. Through staff leasing, medium-sized companies are able to run like big companies without the glitches and at a lower cost.
4. You call the shots
In offshore outsourcing, the “leased” staff is not necessarily located within the area wherein the business is located. More often than not, the staff is based on another continent. However, despite the distance, your voice as the boss is still the loudest. Since each work is tailor-made for the needs of your company, you are at liberty to make changes anytime.
5. Somebody to do your non-core functions
When business lease out employees from a leasing company, the former can relax and focus their attention on more important matters like attracting new clientele, marketing products for the progress of the business and the like.