What Are Employee Leasing Companies?
As the name suggests, employee leasing companies temporarily provide skilled and unskilled employees to companies in need of labor. They remove the onus of hiring and payrolling from the client while allowing them to task employees daily.
Why and When You Need an Employee Leasing Company
Although an employee leasing solution would save employers from many struggles, they are not the right solution for every business.
Here are six instances you could consider partnering with an employee leasing company.
You need staff for a one-off project
Employee leasing companies are usually approached to fulfill seasonal needs. Sometimes companies also use these solutions to hire specialists.
Thus, if you require resources for a one-off project, an employee leasing company will be the right solution.
A low budget troubles you
Hiring an employee in the USA can cost close to $4000 per employee. Employers can incur these costs in hiring, retention, payroll, benefits, etc.
In such cases, using the resources of an employee leasing solution will prove to be cost-effective.
You are experimenting with new markets and need a temporary team to test the market
Hiring a full-time employee to work in new markets you expand into is not advisable.
Usually, companies hire contractors to pilot their business in new markets. Such a move makes strategic sense because such teams can be disbanded if the expansion move bore no fruit.
Using an employee leasing firm, you could hire labor for short-term projects.
You are troubled by a talent crisis
In many developed markets, hiring talent is becoming extremely competitive. Moreover, small businesses struggle with a lack of expertise in talent acquisition.
Such businesses can use employee leasing firms to acquire quality talent without handling the hassles of HR.
You need diversity in expertise
Many companies have high standards for building diverse teams. Many studies have proved the benefits of having diversity in their teams. Diversity increases creativity, innovation, problem-solving, reputation, and employee engagement.
If you strive to be an inclusive employer, employee leasing firms can help you realize your goals.
You do not have strategies to hire and do background checks.
Besides hiring, small businesses wound up with concerns around background checks. Vetting an employee’s details and professional history is never an easy and favorite task for a business owner.
Solutions like employee leasing firms have employees who are already screened. This saves you from the risks and complications associated with background checks.
Benefits of Employee Leasing Companies
Businesses use employee leasing for the following reasons:
- Eliminate the hassles associated with hiring
- Forget about the paperwork associated with payroll
- Employee leasing solutions take care of employee benefits
- Employ short-term labor
- Attract high-quality talent
Eliminate hassles with hiring
Business owners need not go on a goose chase when hiring talent for their company. Talent acquisition is exhaustive and expensive.
With an employee leasing company, talent acquisition becomes a cakewalk. An employee leasing firm saves your time otherwise spent screening resumes interviewing them.
Moreover, employee leasing is often used to hire contingent and temporary labor. It is wise to use employee leasing firms to hire laborers for seasonal needs.
Forget about the paperwork associated with payroll
Never think twice about processing payroll. No. Never even think about processing payroll. Employee leasing solutions take the hardships of payroll onto themselves.
Employee leasing solutions take care of employee benefits
Often, small businesses incur high costs when acquiring benefits like insurance for employees. An employee leasing solution can leverage the sheer number of employees on its payroll to acquire benefits at lower prices.
This relieves you from the hassle of looking for insurance vendors for every temporary labor you employ.
The benefits of an employee leasing solution are huge when you need employees in a foreign market.
Hiring and managing employees – the payroll, compliance, benefits – is exhaustive. If you do not have the right experts onboard, you can seriously endanger your business.
Taking the help of an employee leasing company in the foreign country in question rests these problems. With expert knowledge of the local labor laws, the best benefits that meet local expectations, compliance, an employee leasing solution takes care of the employment solution.
Employ short-term labor
Hiring an employee for a short-term project is expensive. Usually, your only option is to hire independent contractors to fill in on a temporal basis. However, hiring a contractor brings you problems like employee misclassification paying taxes.
You could choose employee leasing companies to meet this demand. Since employees in these employment companies are part of payroll, the clients need not worry about legal compliance and employment risks.
Solutions Multiplier Offers as an Employee Leasing Company
Mutliplier is not an employee leasing company. We offer solutions to onboard employees, generate employment contracts offer benefits.
However, our area of work does not involve leasing employees.
Employee leasing can be highly advantageous, but they come with certain risks. If you need specialist skills but are hindered by hiring and talent acquisition, ask a staff leasing company to help.
If you need a co-employer to whom you would like to offload specific HR duties like payroll, then opt for a PEO solution like Multiplier.
Multiplier’s global employment solution offers various HR solutions to handle your global HR woes. Our co-employment solution is less risky than solutions like employee leasing.
We eliminate the feelings of isolation and stigma that come from employee leasing. We only handle HR complexities while you get to hire, manage and fire your employees at your will. You transfer the legal onus on us while retaining the total leverage of your employees.