Utilizing Employee Leasing to Focus on Your Business

The majority of small to medium-sized companies don’t have a dedicated human resources or payroll department. Having a team of employees handle only those aspects of a business can be very time consuming and costly. That’s why many of these businesses are hiring employee leasing companies. These companies make a business owner’s life easier by handling certain parts of their business, such as payroll and human resource management, recruiting, training, development, and/or risk and safety management.

How Employee Leasing Works

Employee leasing is the process in which a business transfers its employees to an employee leasing company, which is specialized in human resources, payroll management, or risk administration. The leasing company then leases the employees back to the business, while handling their payroll and human resource management. The client business will still be in charge of the employees’ activities and responsibilities, while being charged by the leasing company for handling the employees’ payroll and human resources management.

Employee leasing companies offer a large variety of services, such as many health insurance benefits, improved payroll services, risk management support and training, handling unemployment claims, employee training, or employee discount programs.

How Would Employee Leasing Benefit Your Business?

Employee leasing may be a good choice for businesses that are trying to reduce costs and focus more on growth. Utilizing an employee leasing company allows businesses to focus on current staff, therefore improving many aspects of the organization. Here are a few key benefits that hiring such a company will bring to your business:

  • More time and resources for your business – Employee leasing will take over the responsibility of managing your staff, allowing you to focus on other aspects of your business, such as acquiring new clients, developing new products, or coming up with new marketing strategies and ideas. Employee leasing also gives you peace of mind when it comes to employment policy and procedure problems.
  • Save on employee benefits and taxes – When an employee leasing company handles your employees, you are only required to pay a fixed monthly salary for every staff member. You can add some performance incentives to motivate the staff, but it is the duty of the leasing company to provide the employees with health insurance, paid or sick leave, and other benefits that a business who doesn’t use the services of an employee leasing company should provide.
  • Reduced Risks – Employee leasing companies help you reduce your business’s risks and liability by assisting the employees through training, providing progress reports and work-related information regarding the staff. Most employee leasing companies are specialized in a certain domain, such as accounting or graphic design, so you are guaranteed that the people you hire are experts in their field.

In Conclusion

While the payment that you make to the employee leasing company will be larger than the salary that you would otherwise pay to the transferred employee, the difference is easily offset by the savings that you are making by not having to pay employee benefits and taxes. You also save money by using the time that you would normally spend on accounting and payroll management on other, more important, aspects of your business.

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