by Regina Del Rosario
As the boss of a startup you’ve decided to wear many hats. You meet with clients, design monthly plans and projects and help employees become more productive.
So far, you’ve proven that tasks can be accomplished even with your small pool of resources. However, you’ve also begun thinking of expanding your business. You want to do this by finding cost-effective measures to improve productivity and drive growth, so you’re looking into possible methods with which you can better manage the projects you have. One way to accomplish this is through staff leasing.
What is Staff Leasing?
Staff leasing is a business model that allows companies to hire a third-party group that will perform tasks which are traditionally done by in-house employees. It’s basically an agreement between a client and a provider, where the provider takes care of recruiting staff for the client’s needs.
Any company can outsource the workforce through a Professional Employer Organization (PEO), which assists with different processes that range from administrative to employee tasks. The PEO handles human resources, payroll and tax administration, employee benefits, risk management, and workers’ compensation.
Before considering staff leasing, it’s crucial to understand every nook and cranny of your business. The Socratic Method is always effective:
- What kind of work must be done in your project?
- What are the deliverables?
- Who should be part of the project team?
- How can you monitor and control every phase of the project?
As project management cycles come and go, the PEO can help you better manage your workforce with the right techniques. This will involve planning, organizing, coordinating, and controlling daily tasks that will boost productivity. The PEO can help make sure that the right personnel, tools, and processes are working correctly and efficiently in your workspace.
By contrast, without good management tips from professionals, systems and procedures won’t be followed, office processes won’t be clear to your employees and they won’t know how to do their jobs properly. This could turn your workspace into a jungle with inefficient and unproductive staff.
Staff Leasing vs. Outsourcing
Staff leasing appears similar to outsourcing, which is another business model that also involves hiring a team that performs administrative services and duties.
However, there’s a big difference between these two terms.
Outsourced associates are still managed by an internal management team that contracted them while in a staff leasing scenario, the client holds the responsibility for managing the offshore team by placing a team leader who works alongside the associates.
Both models aim to focus on the core aspects of the business by delegating less critical operations to outside parties. For example a small company may choose to outsource bookkeeping duties to an external accounting firm because doing so could reduce labor costs compared to hiring an in-house accountant. This can also happen to other departmental functions such as payroll and health insurance, as well as human resource management.
How Does Staff Leasing Work?
Organizations with a flexible workforce size can benefit from staff leasing because it allows them to adjust processes according to their changing needs, as well as the number of resources they have. Clients can be involved in the screening process for hiring outsourced associates, or they can leave it up to the providers. The client can provide a potential list of requirements for the offshore staff, and the provider will determine whether an applicant is the best fit for the organization by conducting skills tests and interviews.
What are The Benefits of Staff Leasing
#1: Provides flexibility and growth: Your company can prioritize its urgent needs first and take on the right direction to grow and expand.
#2: Reduces labor costs and boosts budget: Finding a team of offshore associates can help boost your company’s budget and cut unnecessary labor costs.
#3: Provides a solid HR framework: Because the staff leasing provider has experience in talent acquisition, there is no doubt that they will find the right people to join your team.
#4: Ensures work efficiency: Experience in office management will ensure that the right processes and systems are followed within your workspace.
#5: Retains talented and experienced staff: With an established HR staff, your startup can attract top talent. The PEO will make sure that the client keeps these recruits by offering solid and stable compensation rates.
When done correctly, staff leasing can help give you the right opportunity to expand your business. All you need to do is to trust your leasing provider and coordinate with them to find the right people for your team.