What is Employee Leasing? An Employee Leasing Company, or PEO (professional employer organization) s a company that offers a service under through which an employer can contract out employee administrative tasks, like all payroll, worker’s compensation, workers’ health and safety management, risk/danger management and temporary staffing solutions. A PEO packages these services as a group, usually under one contract with the client. The clients then divide the task among the employees, pay the company a monthly fee for the service and use the service for their company. This helps cut costs for the company by avoiding having to buy payroll services from multiple companies and employees.
Today’s economy has many employers looking for cost effective ways to get more workers. One way they find this cost effective source is through administrative burdens leasing employees. By leasing employees, employers save on recruitment costs, training costs, and on providing benefits and insurance for their employees. Many companies are also able to get workers through administrative burdens leasing employees who may have a previous criminal history or who lack good English skills.
Employee leasing has become a popular option for many recruitment agencies. The main reason is that it gives the agency access to a large pool of potential workers. When workers come into the staffing agency through an outsourcing facility, the agency now has access to a large pool of applicants and candidates and can do a more efficient recruiting search and match them to available jobs. On the other hand, a company may need a larger number of workers and so they will be able to find more permanent positions through a permanent staffing company.
Employee leasing solutions also allow companies to reduce their payroll costs. Some companies are forced to reduce their payroll due to a cut in the number of employees or workers who wish to retire. Other companies reduce their payroll because they can not afford to pay expensive benefits and workers’ compensation. In either case, reducing payroll costs makes the company more money. In turn, this makes the company operate more efficiently and in accordance with its profit goals.
Since workers are leasing an asset, they expect the leasing agency to perform all the necessary administrative tasks. This means that the leasing agency performs everything from submitting paperwork, managing records, handling claims, collecting funds, handling payroll taxes, collecting penalties and interest, as well as handling benefits and paying workers’ compensation. A great benefit of this arrangement is that employees are free to use the resources and benefits of the company that they are leasing to perform their job duties. They do not have to worry about performing administrative tasks because the HR department is taking care of them.
What is Employee Leasing? These are just some of the many questions that you need to know about when you start thinking about becoming an employee of an outsourcing company providing this kind of service. You must understand that there are advantages as well as disadvantages to this kind of arrangement. However, if you are sure that you will be using this service for quite a long time, it would be best to hire a long-term agency. It will only be a matter of time before you find one that can serve your company best.
Aloha International Employment
430 Kele St #301,
Kahului, HI 96732, United States