What is employee leasing?

• Wages or salary for the leased employee

• Employee benefits

• Tax fees associated with the leased employee

• Administration fees associated with the leased employee

Many companies in industries where time is a crucial factor use employee leasing. They do this because they view any amount of time spent on administrative functions as a waste of time and money. As this professional service provides administrative functions, it alleviates employers from having to deal with it themselves wholly in certain ways.

Here are some industries and professions that utilize employee leasing:

• Lawyers and legal services

• Healthcare and medical fields

• Consultants in various industries

• Retail

• Financial sector

• Real estate

• Commercial airline companies and aviation in general

There are a number of benefits certain types of companies and employers experience when they use employee leasing, these often include:

• Avoiding most administrative functions

  Companies that don't have a large HR department or don't have one at all, can really benefit from employee leasing. Since they don't have the means to properly do administrative duties in a time-efficient and cost-effective manner, this is a viable option. Because the leasing firm handles all things to do with payroll and taxes, it frees up companies' time and resources.

• To obtain better employee benefits for employees

  Leasing companies have the ability to pool together leased employees from several different companies into one large group. This often results in them being able to offer better employee benefits, such as cheaper health care insurance rates. This saves both employers and leased employees money in the long run.

• Get expert HR practices

  Leasing companies tend to employ hundreds, sometimes thousands of their own employees for administrative purposes. Because of this they normally have a wealth of knowledge concerning all matters having to do with HR. This means that companies that hire leasing companies often gain access to their expertise in this area.

• Simplifies cost estimates

  Employee leasing companies normally offer their services at a flat rate. This makes it easier for organizations using these services to determine their annual expenses and costs. Showing yet another way employee leasing helps to alleviate companies of a lot of administrative complexities.

  While there are many benefits to using employee leasing, there can also be some cons, these include:

  • Companies experience less control over their systems, functions, and employee benefits

  • If the company has an HR department, it can make its existence less relevant, or at worst unnecessary

  • Companies can lose a degree of influence over their own company culture