You may have heard of employee leasing services a few times already, but like many people, you may not really have a clear understanding of it. Worse, you may even have fallen into the trap of holding some common myths about this kind of service as truth. Here we will debunk those myths and try to explain the service to you in the simplest way possible.
Myths about Employee Leasing Services
1. Leasing employees entails more cost.
The opposite is, in fact, true. When you lease employees, you no longer have to worry about setting up these employees in your payroll system, providing them with benefits, and establishing a retirement program for them. That’s because the company you lease employees from will be responsible for handling these financial matters.
2. Leasing employees takes control out of your hands.
Again, the opposite of this is true. The only thing you’re basically doing when you lease staff is outsourcing non-core functions that are necessary for the smooth operation of your business. You’re still in control of the operations per se. You’re just letting someone else handle the mundane tasks that would otherwise distract you from focusing on the core aspects of your business.
3. Using a PEO broker entails more cost.
There are those who recommend using a broker when you decide to lease staff. Some, however, hesitate to do so, believing it will be more expensive. What you may not realize is that a PEO broker causes PEOs to compete, thus driving down their rates considerably. Brokers are also very familiar with the strengths and weaknesses of each PEO they represent, which puts them in the best position to recommend a PEO that best meets your requirements.
What Employee Leasing Services Can Do for Your Business
Just by having the above myths debunked, you already know that when you lease employees, you save on
cost while staying in control of your business. Other than that, though, this service also offers you more flexibility. With leased staff, you can expand or reduce your workforce as needed without having to go through a lot of red tape. Furthermore, the service frees up your time that will otherwise be used for administrative functions. This leaves you free to focus on doing what you do best and will potentially increase your productivity and consequently, your ROI.
Seeing how much you can benefit when you lease employees, there may really be no reason for you to disregard this business solution. You especially need to consider this option if you’re just starting out and can’t afford to hire all the employees you need for day-to-day tasks or if you’re currently going through hard times and need to cut costs. When businesses suffer financial difficulties, they’re usually forced to let go of a few of their employees. By leasing staff from a third-party company, the tasks handled by the employees you let go don’t have to be left unattended.