Importance of Staff Leasing for Your Business
It’s a challenging job to hire new employees for your firm, especially if you don’t have a dedicated HR department. You need to go through hundreds of CVs, shortlist candidates, interview them, discuss the job role, talk about the salary you can afford to pay, and finally hire the candidates you like. It takes a significant amount of time and energy to complete this process. Instead of doing it alone, you can hire a professional employer organization to do the job on your behalf. This process is known as staff leasing.
Staff leasing to save personal finances
Staff leasing also goes by the name employee leasing. The intermediary organization that you work with would not only hire employees but also manage their payrolls. For example, the new employees will be under the payroll of the intermediary organization for a few months before you consider making their jobs permanent. Once they become permanent employees, you can provide them with your company’s payroll.
The concept of staff leasing is actually cost-effective for your company’s finances. Suppose you don’t have enough budget to go through an entire recruiting process. You can take out a loan to pay the staff leasing company. Once they hire a set of employees, you can allot them their job roles and improve your company’s productivity, thus boosting its revenue. This can easily be done by purchasing Personal Tradelines. As a result, you will be able to repay the loan on time, build a positive credit history, and recover the cost involved in hiring the employees. It would also allow you to take out loans easily in the future since you have a good personal credit.
Leasing instead of hiring
There are many reasons why staff leasing is now a better option for many companies than direct hiring.
- It reduces the headache of the administrative aspect of calculating taxes for the new employees, managing their payrolls, and reporting requirements. It becomes the responsibility of the intermediary organization to handle essential jobs like filing the employees’ taxes to the IRS, managing the payrolls of the new employees, calculating and paying their income taxes, and dealing with W-2 forms.
- You significantly reduce recruiting costs. Even if you have an HR team, it can focus on various core issues of your company and help you with organizational strategy.
- You will also not have to maintain unemployment insurance. This would also reduce the expenses of your company. There is no need to pay for workers’ compensation to the staff leasing company.
- Your employees may receive more benefits if they are under the payroll of the staff leasing organization. These organizations have better power when it comes to negotiating with insurance companies. As a result, your employees may enjoy higher insurance coverage than what they would otherwise receive under your company’s direct payroll.
Is it risky to work with a staff leasing company?
It depends on your terms and conditions with the respective organization. Most staff leasing companies are open to discussing their contracts with their clients to make the deals transparent. Don’t hesitate to question the company if you are unable to understand something in the contract. Check whether the company is taking responsibility for recruiting and managing the payrolls of the employees or not. You can also discuss further requirements if you have any before working with the company.
Outsource the task of hiring a new group of employees for your company to a staff leasing organization, while you focus on making your business more efficient among your customers.