Starting and running a business is no easy task. You’ll need enough capital investment, a conducive workplace, and manpower to grow. After covering the first two, you’ll need to focus on your workforce, since the people who will be working for your company are going to be instrumental in making progress.
However, assembling the right team can be tough. You’ll have to set screening appointments and look for qualified applicants who can fill the positions, which can take a lot of time and resources. With this kind of need, it’s not surprising that some enterprising organizations have come up with the idea of leasing employees.
Employee leasing is a contractual agreement wherein a leasing company, a.k.a. a professional employer organization (PEO), is tagged as the official employer. Typically, employee responsibilities are shared between the leasing company and you, the business owner.
In this case, you retain the essential management control over the work performed by the leased employees. Meanwhile, the leasing company assumes responsibility for work involving employment taxes and reporting wages. Your primary responsibility is to cover the costs of payroll, taxes, benefits, and administrative fees. For the rest, the PEO will handle them.
Benefits of Employee Leasing
Employee leasing allows you to add workers without going through any administrative complications. Staff leasing firms are tasked to manage the different forms of compliance with state and federal regulations, payroll, insurance, and other paperwork. Some even offer assistance that involves pension and other employee benefits.
By utilizing employees from several companies and combining them into one big pool, staff leasing firms can also offer business owners better rates on health care and broader coverage on workers’ compensation. The overall effect can give you considerable savings in both time and money since the staff leasing firm will take care of the compensation and benefits for you and you can get better rates.
How to Know If Staff Leasing Is Right for You
If you’re thinking of looking into staff leasing, here are a few things you need to consider, so you know if working with a PEO is right for you:
- If the services are fit for your HR needs
- If the company is flexible enough to work with you
- Ask for references
- Make sure they are licensed and registered
- Investigate the company’s administrative capabilities and consider their experience
There are many advantages you can get from hiring a staff leasing firm to cover your workforce needs. But before jumping head-first into this, you’ll need to go over the needs of your business and carefully choose the right firm to help you in this endeavor.
Remember, your workers are going to play a vital role in the success of your business, so make sure you know how to utilize this option to your advantage. For more in-depth information regarding staff leasing, check out this infographic to help you make that decision.