Employee leasing is a contractual agreement between a third-party staffing company and an employer, which provides employees on either a temporary or project-specific basis. These employees typically work for the employer, but in some instances, the leasing company handles all the human resources management associated with their employment. In other instances, an employee leasing arrangement may be a more appropriate arrangement. When an employer does not need to hire and train new employees, employee leasing may be the right option. Typically, when an employee begins working for a new employer they will complete paperwork and forms that allow them to establish their identity as an employee of that employer. Once the paperwork is completed, the employee officially becomes an employee of that employer until the employment contract ends.
Many of these types of arrangements exist between staffing companies and businesses, with the employees leasing their time. The difference with a leasing agreement is that the employees are not leasing space, but instead are leasing the rights to use a specific facility. These facilities include gymnasiums, meeting rooms, ballrooms and storage facilities. In turn, the lease terms are usually for a set number of years with the employee obligated to remain within the facility’s maximum capacity at all times. There may also be additional fees associated with the use of these facilities.
As a result, employee leasing allows employers to streamline their business processes while not incurring the cost of additional employees. For many companies, having multiple positions available can be a challenge regardless of the size of the business. However, the ability to quickly, easily, and efficiently locate qualified individuals makes employee leasing an ideal alternative. One such advantage
includes the ability to maintain compliance with the Americans with Disabilities Act (ADA) as well as other employment-related regulations.
Some employers also choose to use employee leasing to gain additional benefits for their workforce. Benefits such as medical insurance may be provided as a part of the benefits of leasing. This includes long term care insurance as well as disability income benefits. In addition to these benefits, many companies may choose to provide their employees with an annual health insurance benefit package. These packages typically include extended medical coverage as well as prescription coverage. In addition to medical insurance, some companies may provide vision and dental coverage as part of their employee leasing benefits.
Typically, companies will need to acquire employees to meet the needs of their business. In this case, employee leasing programs can help fill the need for qualified workers. Employee leasing programs provide employers with a way to expedite the process of finding qualified employees. In some cases, the cost of employing additional staff may be less than the cost of employing additional full-time employees.
In addition to helping to streamlined the recruitment process, employee leasing programs may also prove helpful to small business owners. Small business owners typically face many challenges in operating a successful business. These challenges can be particularly troublesome for small business owners that
do not possess the experience or capital to run their businesses. However, by using an employee leasing program, small business owners can bring in additional staff members on a temporary or short-term basis. If the business owner were to hire their own staffing company, then the business would likely have to pay recruitment fees and wait for potential employees to become available.
One of the most common benefits of leasing employees is the ability to manage their staffing needs. Employers have the ability to hire and fire employees. They also have the ability to manage their temporary workers as well. By using a temporary employee leasing program, businesses can take on more responsibilities. For example, a doctor can hire part-time staff to perform office duties during the
hours that the doctor is not in the office. The doctor can then delegate other responsibilities to the part-time staff.
As an employee leasing client, you will enjoy many benefits. You will enjoy the flexibility that comes with utilizing an employee leasing program. The business owner does not have to worry about whether they will have enough employees in their business when a disaster strikes. The business owner only has to remember to give notice to their employees as to the various responsibilities that they are responsible for during their employment relationship. Small business owners can also benefit from the professional employer organization that a reputable leasing firm can provide to help them acquire staff members.