For small business owners, sometimes the need for extra hands sneaks up unexpectedly. Whether it’s a sudden rush of customers, a seasonal demand, or a taxing project, the need for additional labor can be undeniable at times. Despite the necessity for extra help, it’s not always the right time or best financial decision to hire and onboard a new long-term employee.
As your business faces the demand for more support, it's essential to assess the situation carefully and explore alternative options such as leased employees. Hiring leased employees is a flexible and cost-effective way to address short-term staffing needs without committing to permanent hires.
What Is A Leased Employee?
A leased employee is contracted to work for a business through a staffing agency. While a leased employee performs tasks and duties for their assigned business, a staffing agency assumes responsibility for their salaries and associated HR administration. Leased employees offer flexibility and access to specialized skills without needing to go through the full hiring process. By improving efficiency and adaptability, employee leasing allows small businesses to remain competitive and keep up with industry demands.
The Advantages Of Leased Employees For Small Businesses
Leased employees offer numerous benefits for small businesses, serving as a strategic solution to address various operational challenges. When you opt for leasing employees, you have the ability to:
Adapt to staffing fluctuations
Leasing arrangements can vary from temporary to long-term based on your business's needs. Temporary leased employees can resolve immediate staffing needs, addressing heightened demands during peak seasons, special projects, or sudden increases in workload. For businesses requiring a more permanent solution while still retaining flexibility, long-term leased employees are a favorable option. They can provide the skills needed or fill ongoing positions without the administrative burden of traditional hiring.
Tap into expert skills without long-term contracts
Employee leasing allows you to tap into a diverse talent pool with a wide range of skills and knowledge, all without the need to hire a full-time employee. This flexibility allows you to find a qualified leased employee that suits your exact project or need. Whether you’re in search of a temporary sales representative or a more long-term IT analyst, the flexibility of leased employment empowers you to acquire the exact skills you need precisely when you need them.
Save on hiring costs
Leasing employees is a cost-effective alternative to hiring full-time employees. With leased employees, you can save time and money on the recruitment process since this is handled by a staffing agency. You can also avoid the additional financial obligation of providing benefits like health care, retirement plans, and paid time off (PTO) because leased employees are not full-time employees. Additionally, you don't need to worry about the associated financial burdens such as layoffs or severance packages.
Lighten your HR load
Since leased employees are managed by a staffing agency, you have fewer HR responsibilities on your plate. An agency takes care of HR tasks associated with leased employees, including processing salaries, administering benefits, and more. By entrusting experts to take care of staffing and HR duties, you can free up your own team’s time and resources. Plus, staffing agencies know the best practices and solutions for hiring, ensuring small businesses maximize the benefits of employee leasing.
Comparing Leasing Employee To Traditional Hiring
While leasing employees can offer numerous benefits for small businesses, it’s essential to consider all options. Before deciding on whether you want to lease employees, reflect on the following benefits of traditional hiring:
- Stronger company culture: A part-time or full-time employee will become fully immersed in the company’s mission and values, fostering more loyalty and commitment. This cohesion enhances morale and cultivates a sense of unity among all employees.
- Efficient integration of new hires: Traditional hiring allows for a smoother onboarding process, helping new employees quickly acclimate to company processes and dynamics. Bringing on a permanent employee can lead to better overall collaboration and teamwork.
- Reduced legal and compliance risks: With traditional hiring, businesses have greater control over employment classification and compliance with labor laws. This reduces the risk of violating employment regulations, helping your business stay legally compliant.
Deciding What Is Right For Your Business
Leasing employees can be an advantageous decision for some businesses, but it’s crucial to identify your goals and assess compatibility with your business model beforehand. To start, evaluate your staffing demands and consider how a leased employee would fit in with your current employees. Think about what tasks or projects they could tackle and how their expertise could complement your existing team’s skills.
Furthermore, determine whether employee leasing fits your budget and aligns with your long-term business goals. Compare the costs and weigh the benefits of all staffing options including contracting, part-time, full-time, as well as leasing. Contemplate how this position functions short-term and how it could evolve over time. If you’re debating between leasing an employee or hiring a full-time employee, consider the possibility of offering a leased employee a more permanent role in the future.
How To Control Risks And Maximize Benefits
When you decide leasing an employee is suitable for your business, set yourself up for success by adhering to the following:
1. Establish clear communication and expectations: Encourage open communication with your leased employee to build trust and collaboration. Ensure you’re both on the same page regarding responsibilities and expectations as well as project goals and timelines.
2. Monitor performance and provide feedback: Track and assess how your leased employee is fulfilling their role. Regularly check in and supply constructive feedback to promote improvement and growth.
3. Offer targeted training and ongoing support: Provide specialized training sessions to enhance the skills related to their role. Give continuous support as your leased employee learns and adapts to the expectations of their role.
Optimize Hiring With GMS
If you're considering expanding your team, a PEO like GMS can help you determine the best staffing option. From recruiting top talent to smooth onboarding, we make the hiring process simple and efficient. GMS can support your staffing needs and handle numerous HR responsibilities related to new employee management. Contact us today to discuss how GMS can enhance your hiring process!