Why Hire a Staff Leasing Company

For small businesses, it may not be very practical to hire in-house employees for every single process necessary for running the business. For example, a business with only a handful of employees may not really need an entire HR department to handle such things as payroll, income tax, and workers’ compensation claims. In this case, it may be a lot more practical to hire the services of a professional employer organization (PEO), also known as a staff leasing company.

What is a Staff Leasing Company?

A PEO or a company that leases staff to client businesses is basically an umbrella company that handles practically any business process you may choose to assign. Some of these companies specialize in human resource process like payroll, benefits, income taxes, and claims. There are also those that specialize in accounting processes as well as those that specialize in marketing and promotions. When you hire a PEO, they essentially become a co-employer of the team that works directly for your business. You pay them to get a team together and ensure the delivery of your expected results on the agreed schedule.

Benefits of Hiring a Staff Leasing Company

Savings is one of the benefits business owners appreciate most in employee leasing. You are saved from providing office space, equipment, and materials and you only need to pay a fixed amount according to the agreed payment schedule. You also get the assurance that the team handling your business processes is composed of professionals who know exactly what they’re doing. This makes the solution not only affordable, but cost-effective as well. Since an external team is now handling the non-core processes for you, you have more time to focus on the core of your business, thus increasing the likelihood of achieving success.

Another possible benefit you can get from hiring a PEO has to do with insurance and workers’ compensation. For a small business, having one employee falling ill can be a huge problem, particularly since you probably only have limited funds to cover health insurance costs. A PEO can pool your insurance with those of their other clients, thus keeping the premiums to a minimum across the board. There are also PEOs that provide workers’ compensation as well as safety training, thus removing another burden from your shoulders. The training can reduce the number of work-related injuries, thus saving you from having to pay out expensive claims.

There are a lot of regulations you need to comply with when you go into business; it can be very time-consuming and perhaps even a bit frustrating trying to keep up with these regulations. What’s worse is that a failure to comply with just one or two of these regulations can possibly lead to fines or lawsuits, which can be even more frustrating. With the help of a PEO, you can make sure these regulations are duly complied with and that you won’t run into any legal problems at any time.

There are plenty of reasons for you to consider hiring a staff leasing company to handle the non-core processes of your business.