Employee Leasing: What to Keep in Mind

Online, July 10, 2013 (Newswire.com) - Across the country, more and more businesses have opted to outsource jobs and projects. Most people confuse outsourcing with offshoring. While the latter refers to moving these operations to companies out of the country, the former pertains to moving jobs or functions to third-party companies, regardless if they are within the same borders or not. The main difference is in the location of either with offshoring specific to beyond the domestic.

This mass transfer of jobs proves to be a double-edged sword for the local economy, both a boon for the companies and a bane for local common law employees who may find themselves losing their jobs. However, there are other options businesses can look to when searching for ways to cut down on costs. An increasing number of companies have turned to leasing employees for specific office operations, typically the administrative roles, human-resource related functions, or project-based tasks.

The Boons of Employee Leasing

In a nutshell, employee leasing means "renting" workers - usually with a specialization and hired on an as needed basis. The advantages of employee leasing arrangements include the lower cost when keeping specific employees on your payroll, and the savings when they no longer require that specific service.

Aside from cost control, another aspect that appeals to many companies, especially smaller businesses or start-up companies is that someone else manages typical employer responsibilities and troubles such as hiring, training, disciplining, benefits, payroll, and taxes, among other things.

Leasing employees also works to free up internal resources not just associated with cost. Equipment and office space count as resources that could be put to other uses.

This realignment of resources allows companies to improve their business focus. Domestic business growth is crucial, and growth hinges on a number of things including efficiency. Many entrepreneurs see outsourcing - on home turf or beyond - as a means of banking on efficiency and capitalizing on streamlined operations. For some, the rearrangement of resources allows the company to hone in on more revenue-generating efforts, create more jobs and hire local employees.

Employee Leasing Tips
Set your goals. Determine what your organization wants to get done and how to accomplish these goals through leased employees. What specializations do you need? What is your time frame?

Get legal counsel. You will be signing a leasing agreement and it's best to have a pair of trained eyes to review the documents. Getting legal help is important to find out the implications of your agreement. For instance, you may be giving up a degree of control when it comes to liabilities.

Review insurance coverage. Employee leasing companies usually have insurance that include employee bonding, compensation, and general liability. It is crucial that your company's insurance provider study this part of your agreement.

Check qualifications. Compare proposals from different employee leasing companies. It's also helpful to do a background check on each company by talking to past and present clients.

Study charges and services. Check companies' proposals and outline the services they will be providing against the charges. Note the time line or the allotted period for these tasks or projects, as well as the method of payment and its details. Try to get all possible costs up front. Sometimes employee leasing firms will need a representative to get familiar with your operations, and his or her time may incur another cost. Other times the leased employee may work offsite, staying at the leasing firm's offices and sending out work to you.

Discuss liaison or supervision. You'll need to ask about management, and find out if you can request the level of supervision you want. Depending on the position of the employee you'll be hiring and on the company you'll be partnering with, some firms have one of their own supervisors check on your leased employee and his work. In other cases, a supervisor can visit your site.

Verify communication lines. Aside from direct communication with your leased employee, you may have to loop in the manager at the leasing firm. Make sure to make your arrangement crystal clear as to who you'll be contacting for new assignments or requests, as well as how they'll be sending work to you.

Staffing and Leasing strives to provide the best possible employee solutions for different clients, ranging from small to large enterprises, and individual professionals to corporation. We help you save up to seventy percent in total costs. Visit our site (www.staffingandleasing.com) to learn more!