Skimming Over the Business of Leasing out Employees

About Employee and Staff Leasing

Employee leasing is far from a fresh concept. Having been around for decades, Staffing and Leasing employee leasing as a staffing alternative has come a long way from its initial premise.

The industry has evolved into different forms and has garnered its fair share of good and bad press.

Employee Leasing as an Industry Across The World

The more popular idea behind employee or staff leasing involves doing away with the human resource hassles of payroll, benefits, and discipline – wherein a company transfers employee management to another company, the leasing firm.

This means Company A’s existing employees are “released” and “employed” by Company B, and both companies become “joint employers” with employees producing work for Company A.

This setup allows Company A to shake off employer responsibilities such as processing benefits and compensation, as well as storing and handling documents. This leasing setup is also followed in countries outside of the U.S. such as Australia.

Regarding this type of leasing, lawmakers should hold Australia’s employee leasing as the ideal staff leasing industry, advised Valery Martsinovich, head of management consulting company Hay
Group’s branch in Eastern Europe. Popular in Australia’s mining industry, the staffing alternative contributes to their low unemployment rate of five percent, according to the Moscow Times.

“They shouldn’t just use people. They should operate human capital effectively,” Martsinovich said through the Moscow Times, further adding that Russia’s major issue was the quality of employee leasing companies and not the industry itself.

Offshore Staff Leasing: Business Model

As “outsourcing” and “offshoring” continue to be buzzwords in the business world, companies have tweaked the business model of staff leasing by applying these buzz concepts. Offshore staff leasing then becomes no giant leap of imagination. Outsourcing firms have set up shop on the shores of the Philippines, India, Ireland, and Poland – the top destinations for BPO. Regardless of the distance between client companies and leasing companies, the offshore employee leasing industry has thrived. Outsourced services are no longer limited to call center work and have expanded to IT services and back-office operations.

Other staff leasing firms are more direct and provide services similar to temporary staffing companies who retain and send out employees for short and long-term employment. In this leasing setup, companies “rent” out their employees or help out clients by handling the nitty-gritty of searching for the right employees – from advertising openings, funneling applications, and interviewing candidates to training, disciplining, and paying employees.

They do all the behind-the-scenes work of staff management, while you get the output of your leased employees’ day-to-day.

Offshore staff leasing firms let start-up, small and medium companies hire an entire floor of staff or just key employees who would otherwise be too expensive for them to afford in their respective locales.

Most offshore leasing companies are based in the same leading BPO destinations where salary ranges are lower than those in the U.S. or the U.K. Operations are also cheaper in these areas, and employability is far from an issue.

At Staffing and Leasing, we understand how important it is for companies, both small and medium-sized companies, to streamline their operations. Our headquarters in Cebu, Philippines allow us to offer interested companies better options at optimizing their resources. Contact us to learn more!