Some managers and owners of small businesses and firms have to deal with mountains of paperwork instead of focusing on the company's core competencies. A good part of their day is spent doing administrative work, handling payroll and taxes, and reviewing health policies and employee benefits. They get trapped in this routine. This can be frustrating as this keeps them from doing what they can do best. Good thing is, they can always turn to staff leasing to be able to do more substantial work in their time. Here are 5 things you need to know about this option:
1. Staff leasing providers can give you the upper hand in hiring qualified and specialized staff.
With their HR expertise, PEOs (professional employee organizations) can provide the company with well-experienced and qualified staff through their own in-house experts. They can offer you the best talent pool for HR management, payroll services, and other needed expertise. They can help the company recruit the right people. You can take advantage of their experience, knowledge, and vast network for HR management and staff recruitment.
2. You can take advantage of reduced staffing and set-up costs.
PEOs can offer substantial cost savings, especially for offshore staff leasing services. They can provide up to 70% savings compared to the traditional method of hiring locals since labor costs in the host country is typically lower than what is offered onshore. By leasing employees, you won't have to shoulder higher staff on-costs and setup fees.
Since you won't be hiring direct employees, some of the costs will be handled by the third party staff leasing company, which include IT infrastructure and office accommodations. With a large pool of workers under its stead, the PEO can shop around for better insurance and get significant discounts from the deal. As a result, the company can offer better worker benefits minus the higher cost. The savings can be used to increase the company's bottom line or for other investments.
3. Staff leasing companies can offer legal assistance and other expertise.
Leasing companies can do more than just take care of your payroll and taxes and other admin tasks. They can also provide clients with legal expertise and assistance. They can help evaluate health policies and worker benefits and insurance. It also shares the risks and responsibility with the company. More than just a service provider, they can also be a trusted partner or ally.
4. Although employee leasing providers manage some admin functions, you can still stay in control.
When you get the service of an employee leasing provider, you're letting them handle some vital aspects and functions of the company. However, this doesn't mean that you have to relinquish control of the business. You still make the business decisions and set the directions. To avoid the risks and disadvantages of employee leasing, you have to choose your PEO wisely. Screen them carefully through their offered services, references, contractual details, fee structure, and financial strength. Find a provider that best suit your company's needs, preferences, and goals.
5. Employee leasing providers can give the company the much-needed flexibility to bolster growth.
With employee leasing options, you can minimize or counter some risks, especially if you own a small business or the company is still in the experimental stage of growth. This will allow you to work around a limited budget while still getting the expert services your company needs. Aside from saving on operational costs, this option can help the company increase its capacity and productivity. The PEO can handle other aspects of the company for you, while your managers and other staff focus on growth, investments, and other strategies for both the short and long term. The service offers you greater flexibility in how you'll manage your funds, the company resources, and the direction the company is heading to.