Industry leaders like Google and Microsoft also lease employees for many of their projects, which are set to end at certain periods. It’s not about saving cost only, it’s about not allowing your focus to cater to tasks which don’t need high attention, can be outsourced yet delivering what the time exactly needs.
The concept is simple, your company realizes the need for some external factors/talent on an urgent basis, but it’s for a temporary basis, HR admin will simply outsource the requirements and get them fulfilled and then release the employees as per the contract, without any long contracts to look after, saving you expenses.
I have below explained this theory in detail, providing you the idea on how it works and what are the benefits.
What Is Employee Leasing?
Employee leasing, which is commonly popular as temporary staffing or staff leasing, is when an organisation to address a requirement, outsources with a staffing company to lease employees for specific needs, mostly for pre decided short term projects. The leasing company’s employees will be assigned to work for the business, and will be paid by the leasing or staffing company and not directly from the business as they don’t directly employ them.
Also Read: How to Use a Cost to Hire Employee Calculator Effectively
Once the contract period ends, the services of the employees lease will get terminated. This set-up provides flexibility to businesses.
How Does Employee Leasing Work?
Employee leasing enables the business to focus on their core functions while the leasing company takes care of several HR and administrative tasks related to the leased employees. Know the process steps below;
- The leasing company would supply employees to businesses but will itself handle payroll and HR administration.
- Employee leasing company responsibilities include critical functions like processing payroll, managing employee benefits, ensuring strict compliance with employment laws, and maintaining employee records.
- Business pays the leasing company a service fee as per the agreed terms. The client company determines the budget and includes and forms the contract accordingly.
When Does a Business Need Employee Leasing Services?
The primary scenario is when a sudden need arises and your team understands that it’s for a certain time period. To help you better understand, I have below mentioned some top criteria to understand when a business needs to lease start staff Leasing;
- In case of a one-off project, it’s ideal and saves cost too.
- For startups which are often on a low budget, but require to try different markets.
- A sub-par HR department, but you have some references for your requirements and need to give them a chance.
- Industry types like construction and manufacturing say employee leasing is beneficial.
- Companies with inadequate setup or infrastructure which are mainly seen in site offices or temporary offices, can use employee leasing to benefit from.
Benefits of Employee Leasing
Employee leasing is in high demand these days. When earlier companies were on their own searching for temporary staff, there are now established organisations in Singapore helping many employers get the the employees temporarily, below are some of the top benefits of employee leasing;
1. Risk Mitigation
Associating with a cross border staff comes with different challenges like legal disputes to cultural misunderstandings, but employee leasing agreements are highly beneficial for both parties.
2. Operational Ease
When you are planning to hire another team for navigating the complexities of international employment laws, local taxation and benefits, many of the top Singapore companies are relying on the employee leasing company to handle these tasks.
3. Flexibility
Lease employee agreements enable businesses to expand easily and scale their teams freely and even cut down as per the project demands. Clear contract terms, companies in industries like tech & IT can adjust workforces easily.
5. No Legal Liabilities
No direct & clear agreement with employees will definitely take off much of your load. You can ask the employee leasing company with a comprehensive agreement, tailored to highly comply with local laws, protecting companies from any possibilities of potential legal non-compliances.
Also Read: The Future of Work: Remote Employers of Record
Recruitment Central As Your Employee Leasing Partner
Recruitment Central excels in all three essential pillars of successful employee leasing services which have earned them prestigious awards in all three categories i,e, Best EOR Firm, Best Recruitment Firm, Best Workforce Management Platform. The Hassle-free onboarding and compliance management and streamlined hiring to find the right talent along with the end-to-end payroll and workforce solutions has helped thousands of businesses in Singapore to bypass staffing challenges and expand their teams globally.
Conclusion
To get and sustain a friendly and comprehensive operations team is a blessing. Many of the times, it has been reported that companies hire people but after a few months only they realise they don’t need them and are only paying them. To the contrary many companies realise in an ongoing employee leasing agreement, that how much they need someone for this particular task and then onboards them on their own terms. This is what your efficient operations team does for you, they understand needs and how to get them fulfilled with pitching you ideas and how to get a task done, an efficient employee comes with ideas not with questions.
