Employee Leasing - Lower Your Costs

In a tough economy, businesses have to cut costs wherever they can, and this is where employee leasing can come in handy. Employee leasing refers to an arrangement where an employer gets employees through the services of a Professional Employment Organization (PEO). The PEO can provide a range of services including recruiting new employees and taking over the payroll for existing employees. These employees are then leased to the hiring company as workers. The employees are still under the daily direction and management of the company they are leased to but personnel issues are generally handled by the PEO. The process is similar to the business model found at a temporary staffing firm with the exception that the employees of a PEO are usually working with the business for the long-term.

Employee leasing is viewed as a valuable way for businesses to avoid many of the time-wasting hassles and frustrations associated with dealing with employees. Payroll management, benefits administration, risk management, human resources issues and other administrative burdens are all major responsibilities that can eat up valuable business time. Unfortunately, they are all necessary. Businesses have to pay employees for the work they do as well as comply with local, state and federal laws that are associated with doing business and hiring employees. The services of PEO can help a business pay all staff on time, handle health insurance benefits, make quarterly tax deposits and deal with unemployment claims.

As employee-leasing companies handle multiple company payrolls they can typically get better discounts on insurance, discounts that most small businesses would not be able to take advantage of on their own. Therefore, companies who take part in PEO services often find they are able to attract and retain employees with higher skill levels and greater experience.

Typically, these highly trained employees bring valuable knowledge to the table on getting new customers; improving sales and making a business run more efficiently. As these employees are satisfied with the pay they receive and the benefits available to them, employee turnover can be greatly reduced and allow the business to focus on making money not constantly hiring and training new employees.

With the use of employee leasing services, businesses save money because they do not have to rely on in-house payroll accountants and employing an entire department of employees just to handle human resources. For many small and medium sized businesses, having these services in-house can lead to extremely tight administrative costs that make it difficult to remain in business or advertise. For some such small businesses, the owner is forced to perform many of these tasks since the cost of these administrative functions is so expensive. Needless to say, a business with such a plan will have trouble devoting much time to cultivating customer relationships, seeking out new clients and working to build a profit.

To sum it up, employee leasing allows a business to focus its time and resources on making money, not managing employees. Taking advantage of a PEO can be a simple way to streamline the process of doing business. Allowing a business to keep its competitive edge in an increasingly saturated market and making it possible for the business to cost-efficiently hire, train and manage employees.