What is Staff Leasing and How Does It Work?
Hiring an employee isn’t a one-time activity but rather a long-term commitment. As the employer, you have the responsibility to provide the needs of your staff in exchange for their contributions to your business. The recruitment process is only the beginning. After onboarding, requirements in payroll, compensation, and admin trickles in.
But if there’s a way to get rid of the admin side and just focus on choosing and managing an employee, will you grab it? If yes, then staff leasing is the solution you’re looking for.
What is Staff Leasing?
Staff leasing is just like having an in-house employee. But unlike the traditional employer-employee setup, your focus will solely be on the management of the duties and performance of your team. Other admin matters like talent acquisition, payroll, labor relations, facilities, and IT equipment & support are taken care of by your chosen service provider. Of course, the final hiring decision is still on you to assure you that your staff will meet your standards.
The typical setting for this business delivery model is remote. This means that your employees will be working from different locations. For example, if you’re from the US, your remote employee may be coming from the Philippines or in any outsourcing destinations you prefer.
However, if you’re wondering if this is like hiring a freelancer, the answer is no. Freelancers work on their own terms and usually take on different projects from several clients, plus you’ll still need to process their payments. For staff leasing, you will have a dedicated, full-time employee.
In addition, Staff Leasing gives you the flexibility to choose regular or temporary staffing support, whichever you see fit. Whether you need extra support during peak seasons or extended periods, there’s always a staffing solution that will meet your needs and requirements.
If you’re one of the business owners who were compelled to allow remote working because of the COVID-19 outbreak, then you probably understand by now that this working arrangement is feasible. No matter what your work setup is, success always lies in good management.
How Does It Work?
Getting started with staff leasing is pretty straightforward. Once you’ve found a good staff leasing company, you can now begin with the following steps:
- Provide your chosen company with the necessary details — job requirements, length of service, IT requirements, and other information needed for a smooth transition.
- After this, the company will source and assess qualified candidates for you to interview and choose.
- Your selected candidate will then be onboarded and provided with tools & equipment.
- Start working with your team!
Aside from the admin and HR responsibilities, you can also check with your staff leasing company if they have the resources to train your remote staff. The higher the training level for your staff, the better the results will be for your company.
Staff Leasing Vs. Full-Scope Outsourcing
The major difference between staff leasing and full-scope outsourcing is the amount of control you can get.
Staff leasing provides you with full control over your team — from assigning tasks to reviewing their outputs. This is a good option for intricate roles like 3D modeling, architectural design, software development, legal research, and the like.
Full-scope outsourcing, meanwhile, gives you limited control over your staff. To guarantee the service quality you’ll get, a project manager or a team leader oversees their performance. All you have to do is to provide the metrics and assess the results. This is perfect for non-core tasks such as customer service and data entry.
Now that you know their differences, you will now need to determine which service is best for you. Both of them cater to different end goals, which is why it’s important for you to determine your needs before making a decision.
What are the Benefits of Staff Leasing in the Philippines?
“What’s in it for me?”
If you’re still having second thoughts about staff leasing, try to look into the benefits it can bring into your business:
1. Staff leasing helps you save more
According to the report published by the US Bureau of Labor Statistics, the median salary of weekly earnings for full-time American workers is $984 — an amount that is decent enough to cover the monthly salary* of an average Filipino employee. Just imagine your cost savings in wages alone. On top of this, you can also save on operational expenses like office space and equipment. With all these savings, you can invest the amount you would’ve spent on other essential business activities.
*As of this writing, $984 is equivalent to Php47,672. The latest data shows that the average monthly salary in the Philippines is Php45,000 or $929.
2. You can work with experienced staff
Staff leasing companies have established hiring processes to find job candidates who can meet your expectations and aid your growth. With its remote nature, this staffing solution also enables you to choose from a wider talent pool, giving you the chance to select the best of the best.
3. Lets you achieve better flexibility, transparency, and control
With a staff leasing solution, you can achieve flexibility in terms of pricing, workforce, and control, plus you can customize the staff leasing services you want to avail. Moreover, since you have complete authority on your outsourced team, you can oversee their work performance as well as their deliverables.
4. It helps you extend your market reach
You can use staff leasing as an initial step to establish a presence in another geographical location. Hiring local employees with extensive knowledge of the culture, laws, and other nuances from the place you’re trying to reach can help you deliver better services to your target market.
5. You can leverage your provider’s resources
This staffing solution helps you fill in the gaps in your business. Do you lack technology? No problem. Staff leasing companies keep themselves updated with the latest technology to cater to a huge clientele. Office space is not a problem either, most of the requirements needed for the role are already provided for you.
Staff leasing is the ideal solution in resolving your manpower issues without adding to the weight of your admin and HR. Whether it’s a regular, project-based, or seasonal need, there’s a customized package available for your business. Save more and do more by trying out staff leasing. Get in touch with us if you want to explore more about Staff Leasing.
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