In a bid to cut costs and possibly augment profits, outsourcing is a popular move on the part of major businesses.
Outsourcing typically involves moving business processes out, and while this has its advantages, not all firms can manage to fuel the relocation of entire business operations – especially smaller firms.
Oftentimes, these small firms along with start-up companies do not have the manpower to handle certain tasks, particularly human resources-related functions and similar operations that are peripheral to the core business. More and more companies have resorted to leasing employees for these tasks, as well as crucial projects.
Employee leasing lets you hire specific professionals either for a project or an agreed upon time frame. Companies no longer need to expend effort, time, or money in looking for hiring and training people for certain positions. Even better, they don’t need to keep these people on for long and can, instead, hire them only when necessary.
Employee Leasing Suggestions
Set your sights.
Establish what you want to accomplish through leasing services and when or how long you will need these services. What positions do you need filled?
Check the charges and services.
Study the services a professional leasing firm will be offering, and make sure to check the charges for these services. Get all possible costs up front. Depending on the type of firm you’ll be working with and the services you need, your leased employee may need to meet up with your project manager or the team they get assigned to. This could incur an outside cost. Other times, though, especially with offshore employee leasing firms, the leased professional could simply send you the work directly.
To better understand the playing field, review the proposals from various employee leasing firms. Try to get in touch with current or past clients, when possible.
Seek legal advice.
Have your lawyer review the leasing agreement you will be signing. Pay attention to liabilities, and review the implications of certain aspects of the agreement, particularly regarding services and compensation. You may be giving up some degree of control in terms of liabilities or creative license, for example.
Go over insurance coverage.
Your company’s insurance provider may also need to review anything that affects your own insurance. Oftentimes, employee leasing companies have their own insurance that handles employee bonding, liabilities, and compensation.
Hash out the details of supervision.
If your leased employee will be working on site, one of your own supervisors or heads could oversee their work. However, they may still need to be supervised by the employee leasing firm. For offsite employees, check if you can request the level of management you want – how often you want reports, and how detailed these reports are, among other things.
Decide on communication channels.
For offshore employee leasing firms and all other types of outsourcing, communication is critical. Get crystal clear on how you’ll be keeping in touch with your leased employee and if you’ll need to loop in the leasing firm’s supervisor. It’s important that both sides understand the process of sending and receiving assignments and feedback for project-based employees – although, this is just as critical for human resources-related, administrative, and accounting functions.