What is Employee Leasing and How Can It Help Your Business?

If your organization needs to increase capacity quickly and flexibly, employee leasing may be the perfect staffing solution.

Employee leasing is an arrangement in which an organization contracts with a leasing or staffing firm to temporarily acquire the services of workers. The organization becomes the lessee and the leasing company acts as the lessor.

For many businesses, especially small and medium-sized companies, employee leasing provides excellent value and convenience.

How Employee Leasing Can Help Your Business Thrive

Employee leasing allows fast, flexible staff-size adjustments. Leasing helps business owners keep up with shifting workforce needs while keeping an optimal full-time staff size.

Here are five enticing benefits of working with an employee leasing organization.

On-Site Help

In most cases, leased employees are assigned to work on-site, rather than remotely.
While remote work is a good fit for some situations, it’s often desirable to have new workers show up in person.

If you need an immediate productivity boost, a faceless conglomerate of remote workers might be less than ideal. For many industries, like hospitality and transportation, working from home simply isn’t an option for most workers.

The physical presence of new team members helps speed up the acclimation process. When leased employees provide on-site help, you can more effectively provide training, build personal connections, and monitor performance.

Fewer Traditional Employee Overhead Costs

Leasing an employee is similar to hiring a contractor, but with one key difference: the employee is contracted to the leasing company, rather than the company paying for their services.

This arrangement allows your business to temporarily add a team member without some of the responsibilities that come with traditional employment relationships.

By using the leasing company as an intermediary, your organization isn’t responsible for costs such as payroll taxes, benefits administration, severance pay, or paid time off.

A Team of Experts at Your Service

Working with a leasing company enables your team to connect with highly-trained individuals. You can bring in workers who possess specific skills that you require urgently. This is especially useful when you need a certain profile for a short-term stint, but not necessarily as a permanent addition.

Bringing in short-term help allows you to benefit from an employee’s expertise while saving time on onboarding. Your team maintains continuity by bypassing many of the tasks that occur during hiring and training periods.

Flexible Staff Size Adjustments

Compared to traditional hiring, employee leasing is a faster way to bring in new team members.
Along with speed, leasing offers flexibility. If you only want to boost your workforce during a specific time period or for a certain project, leased employees can fill your staffing gaps.

You can lease full-time or part-time help for whatever amount of time fits your needs.

The leasing arrangement is especially useful for temporarily replacing employees on leaves of absence, such as maternity or paternity leaves. Leasing is also a solution for companies that have fluctuating capacity needs based on the time of year.

Hands-Off Human Resources Administration

Management of leased employees occurs directly through the leasing organization that hires the individuals and staffs them at your business.

While the HR aspect of management is minimized, the assignment of job tasks is business as usual. Per the terms of your contract, you can direct your leased employees similarly to the manner in which you work with your full-time staff.

If a conflict occurs with a leased employee, you can address the issue with the leasing company. They will take the lead in handling corrective action or, if necessary, replacing the leased employee.

On the other hand, a leased employee might prove to be a great fit for your team. In that case, it may be possible to offer them a permanent position when the leasing contract concludes.

Lease a Team of HR Professionals for Your NY Capital Region Business

Is your team losing more and more time to hiring, benefits administration, and other HR tasks? TBM Payroll can help.

Lease professional HR experts so that you can get back to focusing on the areas where your business needs you most.

Our services include assistance in the following areas:

TBM can help your business run more efficiently and in a manner that delivers the best value for your budget.

We’re located in Glen Falls, Warren County, and serve businesses throughout the NY Capital Region.

To learn more, contact us today.