Outsourcing has been the rising trend since the early 2000s. In 2011, over two million jobs were outsourced and that number continues to surge today. As many know, the main thrust for outsourcing jobs and projects revolve around slashing down costs.
One other option for cost reduction involves leasing employees to handle certain functions and projects, instead of moving out entire operations. More and more companies have turned to employee leasing for specific office operations, usually the administrative roles, human-resource related functions, or project-based tasks.
The Advantages of Employee Leasing
Employee leasing essentially is renting employees from a third-party company. These leased employees usually have a specialized skill set such as web development or accounting, and may be hired on a project-basis or for a certain period of time. This contractual type of employment agreement is one of the appeals of employee leasing. Employers get to hire professionals on an as-needed basis, making the most of their employees’ man hours and eliminating the stress of the compensation paperwork.
As more companies go the leasing route, more firms are offering employee leasing services both domestically and abroad. Not only do businesses opt for outsourcing these operations but they have the advantage of choosing offshore outsourcing firms. Offshore firms offer businesses higher savings when compared to the rates local to their location.
Smaller businesses and start-up companies gain much from opting for leased employees, particularly for human resource-related tasks including hiring, training, disciplining, benefits, payroll, and taxes. This course of action frees up internal resources such as equipment and office space.
Businesses can take the advantage of refocusing their efforts into more revenue-generating fields such as expansion. Pooling resources into further business could help create more local jobs. Through employee leasing, firms can streamline their operations.
Tips for Interested Companies
Study the proposals from different staffing firms, and conduct a background check. Talk to current and past clients for a better idea on the leasing company’s performance, as well as the qualifications of their employees.
Decide what your business organization wants to achieve through leased employees. What specializations do you require? What is your project time line?
Study insurance coverage.
Employee leasing firms typically have insurance that covers compensation, employee bonding, and liability. Your company’s insurance provider should study this section of your agreement.
Check services and charges.
Compare the services and the charges per service to better outline your costs. Get all possible costs up front to avoid any surprises. You’ll have to discuss with the company about the actual working arrangement. Sometimes they send out the employee to meet up with you or consult. In cases where you’ve employed the help of an offshore employee leasing firm, you have nothing to worry about regarding fees for equipment or transportation.
Clarify liaison or supervision.
Find out if you can specify the degree of supervision you want. Some firms station their own supervisors to check on your leased employee’s work. You may also have your leased web developer, for instance report to your own project manager directly with the leasing firms’ supervisor still providing on-site check-ups.
Ensure direct communication lines.
Direct communication is crucial, especially if you’re working with an offshore leasing firm. For smoother proceedings, be clear on the process of feedback and project assignment.
Seek legal help.
You will need to sign a leasing agreement, and it is best to have legal counsel to review the entire document. They can find out the implications and limitations, as well as the benefits of your agreement.
At Staffing and Leasing
, we specialize in helping out small and medium-sized companies streamline their operations by offering them offshore employee leasing options. Our clients get world class work at far more competitive rates. Visit our site (www.staffingandleasing.com) to learn more!