Your Complete Guide to Staff Leasing

Your Complete Guide to Staff Leasing

Looking for an innovative option for hiring the right remote professionals while retaining a certain amount of control over your team? The great news is, there’s an outsourcing model that allows you to take charge of your offshore team—Staff Leasing!

Not all outsourcing models necessarily mean giving full control to your service provider. With Staff Leasing, your remote team can feel like they are just sitting right next to you and not miles away. It’s as if you just got an extension of your in-house team. 

This outsourcing model brings several positive effects to businesses that are looking for a more cost-effective route when hiring for talent. Find out in this article how you can scale your business and become successful in running a remote team through Staff Leasing:

      • What is Staff Leasing?
      • Difference Between Staff Leasing and Full Outsourcing
      • When Do You Need Staff Leasing Services?
      • Benefits of Staff Leasing for Your Business
      • Potential Risks You Should Watch Out For
      • How Does It Work?
      • Why Should You Consider Staff Leasing in the Philippines?
      • Tips in Finding the Right Staffing Partner
      • Key Takeaways


What is Staff Leasing?

Staff Leasing, also known as a “co-managed” staffing solution or “employee leasing”, is the popular option of businesses nowadays. It is when a company pays a partner organization, which is commonly called a “Professional Employer Organization” (PEO) to hire its employees. 

This service delivery model is actually pretty straightforward. In this setup, there will be a contract between two parties: the Staff Leasing Company or PEO and the Client Company. 

Through this arrangement, some responsibilities will be shared by both the client company and the leasing company. The client company, for instance, will still serve as the employees’ official employer and will maintain management and control over work that is performed for the company. The Staff Leasing company, however, will assume all responsibility for tasks such as: 

      • Talent recruitment, onboarding, and management
      • Payroll of your team and tax administration
      • Benefits and insurances of your employees
      • Regulatory compliance and employee engagement
      • Technology and other resources to manage HR and employee services


Your outsourcing partner provider will be your support arm that will take care of non-core business activities such as recruitment, HR, IT, payroll, and other administrative processes for you. As your outsourcing partner does the admin matters, oversees the on-ground operations and provides regular reports, you on the other hand will still be the one to manage your team’s tasks and performance. 

The typical work setting for this outsourcing model is usually remote. Meaning, your employees will not be working from your office, but from a different location. For instance, if you’re from the US, your offshore team may be working from one of the top outsourcing locations like the Philippines or locations that are strategic to your business. 

Some major reasons why companies outsource or contract staff leasing providers are the following: 

      • If a client company is outsourcing to another country, the employee leasing company will help with the setup and compliance in that foreign country. 
      • If a client company wants to quickly scale their team in a cost-effective way.
      • If a client company wants to free up time to focus on its core competencies and have the Staff Leasing company handle all HR and administrative functions. 
      • If a client company wants to have full control over the day-to-day tasks and performance of their offshore team minus the HR and administrative burden. 


Difference Between Staff Leasing and Fully Managed Outsourcing

Many companies seeking the ideal business process solution perfect for their requirements are opting for either Staff Leasing or Fully Managed. Here’s the deal, both outsourcing models are effective, but to maximize their benefits, choosing the right one is necessary to truly help your business scale. If you’re torn between Staff Leasing and Fully Managed, here’s what you need to know. 

Staff Leasing provides you with full control over your team. It works by simply the client handling the day-to-day operations of the team while allowing the outsourcing partner to do and provide the non-core processes such as payroll, HR, recruitment, and office facilities. Here, the offshore team will directly report to you. Some of the benefits you can get from this outsourcing model are:

      • Reduced operational costs 
      • Allows you to concentrate on your core business
      • Provided workflow systems
      • Employee engagement


We will further discuss other benefits in this article.

Fully Managed Outsourcing, on the other hand, is what you need if you want an end-to-end staffing solution that will allow you to have more time on your hands. In this outsourcing model, the service provider will handle both the outsourced process as well as non-core tasks it entails. 

Here, a Project Manager will be assigned to lead your process and will oversee the team’s daily tasks and performance to ensure service quality. Your partner will provide the KPI, SLA, and success measures to achieve your goals. Here are things to look forward to in this model:

      • Reduced operational costs
      • Gives you even more time for high-level business processes
      • More hands-off operations


Each of them caters to different end goals. Evaluate your company’s needs to determine which outsourcing model is the best fit for your business. 


When Do You Need Staff Leasing Services?

It’s difficult to decide at times whether or not to jump into this outsourcing model. But to help you figure out if you need to start Staff Leasing for your business, here are some pointers to consider. You need Staff Leasing services when you…

When do you need staff leasing


Benefits of Staff Leasing for Your Business

Staff Leasing companies bridge the talent gap while allowing you to save on costs and still letting you have control of your business. Here are some of the reasons why you should consider staff leasing for your business:

1. Gives You Flexibility, Transparency, and Control

Staff leasing provides you with more breathing space when it comes to allocating tasks and deciding on a budget for your processes. This will allow your business to grow in the right direction because you’ll get a hang of which tasks should be prioritized and which are the ones we can push back.

With a staff leasing solution, you can achieve more flexibility in terms of workforce, control, and pricing. You can also tailor the services you want to avail of depending on your business requirements and budget so you can maximize outsourcing by getting only what you need. Moreover, there is transparency as you have full authority over your offshore team. You can oversee their work performance as well as their daily deliverables.

2. Helps You Save Up to 70% on Your Operational Costs

This is one of the main reasons why businesses outsource. The first thing to note when you do staff leasing, it doesn’t give you ROI or reduced cost right off the bat. But when you do it right, you’ll surely get even the maximum cost savings possible in the long run. 

How does staff leasing reduce costs? It’s simply because when you outsource from an area with lower labor costs like the Philippines, it will significantly reduce your expenses as labor costs (salary, training, benefits, and perks) take up a lot of your operational costs. 

Apart from that, you also save your business from other expenses such as office space and equipment, utility bills (electric, water, and internet connection), and many more. With all these savings, you can invest the amount you would’ve spent on other essential business activities.

3. Work with an Experienced Team

Staff Leasing companies like Booth & Partners can be your way to get access to a larger talent pool. They have a database of candidates and created a thorough and purposeful hiring process to find the talent that’s right for your business requirements. Here, you have the opportunity to select the candidate you think is best for the job position. You can even select based on their experience and level of expertise.

4. Expand Your Market Reach

This outsourcing model can potentially help you establish a presence in other locations for a bigger market reach. The differences in time zones, culture, laws and geographical location are commonly a challenge. However, hiring local offshore employees from a specific area with extensive knowledge from the place you’re trying to reach can open up new market opportunities or help you deliver better services to your target market.

Staff Leasing allows you to cater to a wider range of global clients, suppliers, and vendors 24/7 with your team working on a rotating or shifting schedule.

5. Leverage the Resources of Your Outsourcing Partner

With Staff Leasing, you don’t have to worry about the technology and other resources you need to make your business continuously process up and running. It’s already a part of what you’re paying for with your service provider. It helps you fill in the gaps in your business. 

Staff leasing service providers like Booth & Partners always ensure to have the up-to-date software, tools, equipment, and other materials needed for various business functions. 

6. Increase Your Work Efficiency

Focus on your core business processes and the staff leasing service provider will take care of the nitty-gritty for you. It includes time-consuming tasks such as payroll, accounting, HR, and other functions you need. 

With the help of an outsource staff leasing company, you get support in all aspects of business operations and team management while retaining direct control and management on your offshore team. This lets you focus more on other important aspects of your business like working on growth initiatives.


Potential Risks You Should Watch Out For

Like any other business decision, Staff Leasing also has its fair share of cons, but there are ways to prevent them from creating damage to your business. Here are some of the risks you should watch out for and how to deal with them when you finally decide to go with Staff Leasing:

1. Issues on the Employee Wages 

One of the important things to clear with your service provider as well as with your team is that you have no control over the employee wages. Your Staff Leasing partner is the one taking care of the business administration side of things. Therefore, if any issues arise concerning the wages, they should be handled by your outsourcing partner. Your team must know it to avoid misunderstandings.

One way to avoid this is to ensure that you get the right Staff Leasing partner. When looking for a service provider, add to your list of questions the company’s payroll accuracy. The higher the rate, the better.

2. Extension of Benefits

In some cases, you have no control over the benefits being offered to your outsourced team. There are instances where the client wants to extend the benefits as a way to thank the team for a job well done, however, it’s not a part of the contract. 

One thing to note: A good service provider should also be a good employer. If it’s something that could cheer up the employees, they should be willing to extend according to the client’s request.

3. Hiring Offshore Employees May Not Work Well With You

When you do Staff Leasing, it commonly means you’re getting an offshore team. However, employees from other countries may not work well with every business. While it’s economical, it may not be practical for the type of function you need. 

To make sure you’re leasing the staff that can truly help with your business, evaluate what you need and ensure that you are clear with your outsourcing partner on your requirements. They can help pool talent fit for the role.


How Does the Staff Leasing Model Work?

There’s no roundabout when starting your Staff Leasing journey. It’s pretty easy when you find the right outsourcing partner. If you haven’t yet, here’s a step-by-step guide to Staff Leasing for you:

Step 1: Request a Consultation

Hunt for the most ideal Staff Leasing service provider for you and get in touch with them to know more about their processes and see if it’s the right fit for you. Review the proposal well and sign the contract if you’re a hundred percent decided to get on the green light with them.

Step 2: Provide Details to Your Outsourcing Partner

To make it easier for both parties, fill in the necessary information: job description and qualifications, service requirements, and other information relevant for a smooth process transition.

Step 3: Recruit and Select Qualified Candidates

Based on the qualifications you provided, your service provider will select talent that fits your team. From here, you will have the opportunity to interview candidates and decide on who to hire. 

Step 4: Start the Implementation

Your selected candidate will then be onboarded and provided with the tools and equipment needed to get the process running smoothly. Start working with your team!

Step 5: Manage Your Team 

Take charge of your own offshore team. Manage their day-to-day tasks and provide feedback on their performance. Your evaluation is important in the process to help your outsourcing partner adjust accordingly to provide you with better service. Your Staff Leasing service provider will take care of the administrative tasks for you.

It’s easy, right? With Staff Leasing, you get your own team without having to face all the extracurricular processes needed in building a team.


Why Should You Consider Staff Leasing in the Philippines?

Ever wonder why many businesses choose Staff Leasing in the Philippines instead of other top outsourcing destinations? Here are the top 6 reasons why: 

1. Filipinos Have Exceptional Work Ethics

Who wouldn’t want to have hardworking and flexible individuals for their team? If it’s what you’re looking for, then Staff Leasing in the Philippines would be ideal for your business. 

Filipinos exude the spirit of positivity, which is a quality that can help create a good team culture. They are goal-getters that inspire them to work hard and achieve their dreams in life. 

In terms of statistics, the country’s literacy rate is 98.18% and they are highly proficient and fluent in English, which made them land to 27th place in global English proficiency. These are just some of the qualities that make Filipinos the perfect partner in achieving success. 

2. High-Quality and Cost-Efficient Services

Labor cost in the Philippines is relatively low compared to other countries. Since this takes up the biggest portion of the operational cost, your expenses will reduce significantly while still getting the quality service you need. 

The average monthly salary of a full-time employee in the US is about $984, which is equivalent to Php47,672. The latest data shows that the average monthly salary in the Philippines is Php45,000 or $929. That’s already a lot of savings, which you can use in other areas of your business. 

3. Timezone Flexibility

The Philippines is in the time zone of GMT+8, EST+12. Many outsourcing service providers in the country operate 24/7/365 because of the demand. They have clients from various time zones all over the world. But the great thing here is most Filipino workers are willing to work on rotating shifts. They are flexible, which is one of the reasons why the country is such a lucrative outsourcing hotspot.

4. Cultural Affinity

One of the most important things when outsourcing is that there should be clear communications. Because of the history of the Philippines being colonized by foreign forces including the US, Japan, and Spain, the country’s culture, values, and traditions were influenced. It became an advantage to Filipinos today as it makes it easier for them to communicate, connect, and work with people from other countries.

5. Government Incentives

As one of the economic pillars and revenue generators in the Philippines, the Philippines has strong support for the BPO industry. For instance, they are allowed to operate 24/7 without interference even during the pandemic’s community quarantine. 

The government also implemented some programs to help the outsourcing industry gain more clients such as:

      • Tax and non-tax incentives to support foreign investments in the country
      • Partnerships with different sectors, especially with universities to create programs preparing the industry’s future workforce; and many more.

6. Well-established BPO Industry

Since the outsourcing industry in the Philippines is already well-established, the process is easier when you start your Staff Leasing journey. Companies and all their talent are aware of how it works, which will make it easier and convenient for you too. Plus, you don’t have to worry about how the industry is doing as it is the top contributor to the country’s GDP.


Tips in Finding the Right Staffing Partner

There are many staff leasing service providers all over the world, but how will you know which company would be the perfect fit for your business needs? Here are some tips to help you land on the right staffing partner for your business:

1. Assess Your Business Needs

The initial step when finding the right staff leasing service provider is to check the needs of your business. Meet with all the members of your management team and list all the concerns and determine how staff leasing can help you with that specific area of your business. For instance, you need a project to be done quickly but short on team members, you can lease staff for quicker actions instead of facing all the hassle of hiring in-house staff.

2. Find a Company that Serves Your Needs

Once you have determined your business needs, look for a service provider that specializes in your requirements. Note that not all outsourcing companies cater the same services. Some agencies offer financial services, some focus on customer services, and many more, so better check well to ensure you get the experts in the field you need. You can schedule a call with an organization to see if their services fit your business requirements. 

3. Check Important Information About the Company

Not all companies that cater to your needs will automatically fit your business. Some company information is vital to choosing the right service provider for you. Here’s a list of important things to ask the agency before you land on your final decision:

How to find the staff leasing partner


Add to list all the questions and concerns that will pop to your mind and make sure you ask and get the necessary information about all these. 

4. Value Your Business and Relationship

To be successful in Staff Leasing, one of the most important factors is your relationship with your service provider. Have an eye for the one that shows commitment rather than quick solutions.

Getting the best service provider isn’t easy, but these tips can help you land the right Staff Leasing partner. Take a better look at the options you got and see which one seems to fit your company’s culture, provides good communication, specializes in your business needs, and has an outstanding reputation in the industry. 


Key Takeaways

Staff leasing is a smart staffing solution for businesses of all sizes looking for an outsourcing option to hire additional manpower that will allow you to take charge of your team. With this model, get an extension of your in-house team without all the hassle of administrative tasks while remaining on top of your team’s performance and productivity. 

Ready to get started with Staff Leasing? Get in touch with us today! We will help you deal with your staffing requirements through our tailored Staff Leasing service that caters to your specific needs. Our team of experts will you guide to Staff Leasing throughout the process to make sure you get a smooth customer experience. 

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