Staff Leasing, in simple terms, is a type of business process outsourcing (or BPO) that provides the hiring company greater transparency and control over its staff than traditional outsourcing. Outsourcing is an excellent way to attain specialized talents in various fields and cut down costs of wages and benefits of many regular employees who may be subject to structural mismatch of the skills demanded work. The following are some of the primary procedures through which staff leasing is done.
1. Identify the nature of work
If a firm has made the decision of being more efficient with its cost then it should know the type of work involved regarding its upcoming projects. Information includes the type of skills required by workers, the number of workers, how much the firm is willing to pay as wages, compensations, payroll taxes etc. and whether the cost of employment is negotiable or not. A collective data sheet containing this information plus any other deemed necessary by the firm can be sent to the Personal Employer Organization (PEO) so that the leased staff is as productive as possible.
2. Estimate costs
Startup costs for projects are usually very high and the cost of leasing is added to this overall expense the firm has to bear. A firm must have a flexible price range because finding workers with the exact skillset required by the firm is quite a difficult job so there is always a price for the convenience that is being offered. For example, if a firm wants to do staff leasing in the Philippines, it should be aware of all the laws and regulations regarding the rights of workers and their standing in the employment structure of the country, and should estimate its overall costs based on the headings under which the firm will have to pay each leased employee.
3. Form an affiliation
Being affiliated with a PEO makes the task of hunting down an employer each time a firm wants workforce much easier. Affiliation ensures transparency and reliability of work and in some cases can result in the cost of employment being reduced under the heading of customer loyalty. If the PEO does not, however, deal with the workers with the required skills, they can connect the demanding firm to other employers in the market.
4. Aware of trends
There is a chance that an employer will use your lack of knowledge on the subject as a base for charging a higher price if it is your first time leasing workers, so do your research before you set out to hire staff members. This research involves knowing the general cost of employment already present in the market, working conditions suitable for the leased staff etc.
5. Firms with a track record
It is obviously a smarter decision to opt for an employer with a track record to get you the workers you need instead of relying on tempting offers by less known employers. This is important to ensure that your expenditure does not become sunk costs by the provision of ill fit workers.