The Basics of Employee Staffing

Businesses are fueled by man power, and it isn’t unexpected that great companies are staffed by good people who are complete and utter professionals. As more and more companies emerge and develop, staffing options have also evolved along the way.

Employee staffing firms, for instance offer companies, especially small and medium sized ones the chance to focus on their core competencies without having to worry about the workings of payroll calculation, training, and similar human resources functions. Most small firms including start-up companies often do not have the resources to put such employer responsibilities in the limelight – not when there are more crucial aspects that contribute to business establishment and growth.

These types of firms, however can take refuge in employee staffing options also called employee leasing companies or professional employer organizations. The main premise of employee staffing is that companies can hire specific employees of the staffing firm for a certain time frame or project, effectively “renting” their services. Businesses pay the employee staffing firm a regular fee, and the firm handles the compensation of the leased employee, together with his or her benefits, leave package, and other details, effectively eliminating the need for the business to handle related paperwork.

Brief History of Employee Staffing

Employee staffing in practice, however, started out as a way to play around pension plans. Leasing out employees began in how differently categorized employees had different pension treatment. A group of employees, usually the officers would receive a more generous pension plan. Companies could set up a leasing firm, move their employees to this firm, and have them work for the company all the same, thus accomplishing tax-sheltered retirement plans for some employees. This was notable of the 1960s landscape of some businesses, particularly for physicians. However various reforms and legislation since then have helped to assuage this scheme.

Despite its murky history, employee staffing and leasing as an industry has continued to grow strong. Industry growth can be tied to the increased costs in employee benefits. Fringe benefits have become an important part of compensation, and as benefits have become more expensive (social insurance and other non-labor compensation), employers see the financial incentive of having a staffing firm handle compensation and payroll details, along with other employer headaches. As of December 2012, benefits accounted for about 30 % of compensation, averaging $8.57.

Today’s Employee Staffing Climate

Different firms may employ varying models as to how they let companies lease employees. Some employee staffing firms help you hire an employee, whereas others already have professionals in their labor pool and let you make use of their services for a fee. Regardless of how these firms work, more and more firms have sprung up.

Leasing VS Outsourcing

Although business process outsourcing has been the buzz word for some time, not all companies can benefit from outsourcing operations. Employee staffing and leasing is ideal for small to medium sized companies, and can turn out to be a better cost-saving strategy.

Outsourcing translates to moving entire operations to another company, sometimes to another country altogether. In the long run, costs can be greatly reduced. However the finances necessary to make the move possible may prove to be too much for smaller companies.

Through employee staffing and leasing, these smaller firms are able to move out specific functions and have the staffing firm shoulder the equipment, training, and other logistics needed.

The Offshore Employee Staffing Option

Choosing an offshore employee staffing firm can also prove to be an even better approach to cost reduction. Rates are far more competitive, and the global nature of most industries such as web development, web design, and mobile applications development lends to a fairly universal standard that professionals can understand and adhere to, regardless of any difference in location and time zone.

In fact, the difference in time zones contributes to the advantages of an offshore employee. While you work during your regular shift, leased employees could work during their own time, possibly during your off-peak hours. This creates a continuous work flow for your company – projects no longer need to wait for the next business day, payroll can be handled during your off hours, and so on.

Depending on the firm you partner with, your leased employees either report to you on site or can simply send over work with regular consultations and meetings with you.

Regardless of how you proceed with your entire operations or with specific functions, it’s best to explore the possibilities offered by such options as employee staffing for you to be able to make the most of your available resources.

Staffing and Leasing strives to provide the best possible employee solutions for different clients, ranging from small to large enterprises, and individual professionals to corporation. We help you save up to 70% in total costs. Visit our site (www.staffingandleasing.com) to learn more!