Business Strategy: How Staff Leasing Can Help Your Business
“To win in the marketplace, you must first win in the workplace.” This statement from internationally-renowned business leader Douglas Conant speaks volumes about how important it is to hire the right people, as competent employees can make any enterprise thrive.
Indeed, any business owner must recruit impeccably-skilled and career-driven professionals. However, finding talent can be quite strenuous and time-consuming, thus taking a toll on a company’s financial and labor resources.
For this reason, looking into more time-efficient and cost-effective recruitment processes will be more beneficial in the long run. An example of this is the staff leasing model. Staff leasing typically revolves around a client and a service provider or supplier, wherein the latter takes over the recruitment process of employees for the client based on their distinct business needs.
In addition, the service provider is also responsible for the provision of necessary work equipment, as well as the supervision of operations for the client. This will ensure that their leased employees or staff will be well-equipped to deliver the standards of performance quality that is required and expected of them by the client.
In this article, we will tackle the multiple benefits of staff leasing; but before that, let’s discuss an overview of staff leasing, including what makes it different from the traditional outsourcing management model.
Staff Leasing VS Traditional Outsourcing | The Difference
Given that you’re already familiar with traditional outsourcing management, you may find yourself asking why staff leasing is better than the former. The two mentioned recruitment systems are widely used in today’s modern business practices.
As for their most obvious difference, traditional outsourcing is usually overseen or administered internally by a team of experts from an outsourcing company. Meanwhile, in staff leasing, the client ensures that the outsourced team will perform the work following their rubrics and criteria, with a selected team lead managing the associates.
The Step-by-Step Guide to Staff Leasing
- Consult an Expert
Before plunging into any new, unfamiliar idea or task/s, it is best to seek an expert’s advice. This enables you to know whether or not your desired change for your business will have a substantially high likelihood to lead to success. Furthermore, an expert’s insights allow you to determine if the move is practical in terms of costs and other factors you’ll be required to invest in.
Schedule a meeting with a Professional Employer Organization (PEO) and open up about your concerns and questions regarding your plan of venturing into staff leasing. In addition, with the help of a PEO, you can learn more deeply about its advantages and benefits to your company.
- Carefully Review the Proposal
Do a diligent run-through of the document that the PEO has provided you. Be sure that it includes and highlights all the essential details that you need. Remember, you should be given an extensive proposal for you to understand the scope and objectives with ease. If you are satisfied, you may proceed with the signing.
- Recruitment and Turnover of Employees
Recruiting employees in staff leasing entail a meticulous selection process. That being said, candidates are carefully assessed through their credentials and employment background to determine if they fit the job description and to ensure that they will perform excellently when assigned particular responsibilities.
After the completion of a written exam/s and an extensive interview process, the qualified applicants will be introduced to you. With that, you will be given a chance to conduct another interview to know the candidates further.
- Implementation Commences
Once you have selected the employees that best fit the position, you will now receive documents detailing the onboarding process of your newly hired employees, which consists of basic information such as the starting date and mapped-out training plan.
- Hold Periodical Assessments
In every structured recruitment model, it is a norm for every company to verify that all hired employees are continuously performing well and, thus, still a good match for the job. This is done through monthly or annual employee performance evaluations.
For staff leasing, the evaluation of employees is very crucial since the main purpose of the system is to ensure consistency of the employees’ performance. In this manner, the PEO should address your concerns, and if the situation calls it necessary, underperforming employees will be replaced.
Key Advantages of Staff Leasing
- Significantly Lowers Liabilities
Staff leasing can considerably reduce the liabilities associated with hiring as an independent. Having to consider compensation details like payroll, benefits, and income tax makes the latter extremely time-consuming and complicated.
- Brings Forth a Well-Organized Framework for Your Business
For many small- to medium-sized enterprises, designing an HR Framework is somehow a difficult task since ample funds are needed to establish one. By availing of staff leasing services, creating a business framework will not be your problem since they will provide a systematic model that you can apply and use. Hence, you can save money, time, and the workforce.
- Advance Management of Employee Performance
Staff leasing companies are the ones that manage the performance of the employees and their work environment. Moreover, they come up with plans and courses of action on how to further improve the performance of the employees in the company, which is crucial for successful retention.
- More Extensive Support with No Extra Expenses
Working with a staff leasing company is not the same as merely outsourcing an HR consultant. Instead, the provider takes charge of indispensable HR functions in lieu of the client, which is equivalent to having an in-house HR department but without the additional costs. Furthermore, staff leasing agencies offer a variety of HR and staffing solutions that can be tailored to suit your staff management needs.
Staff leasing offers many impactful benefits that could help your company, from filling positions with talented professionals to fostering an organizational structure that works best for you.
More importantly, the proper and timely implementation allows budget allocation to be more flexible, as staff leasing can decrease costs on employment factors like engagement, workplace facilities, and employee’s salary. Lastly, staff leasing aids businesses in cultivating a coherent and labor-saving business framework that can boost corporate growth and profitability.