The Philippines has been called a “hotspot for startups” in the 2017 Philippine Startup Survey. In fact, the startup ecosystem in the Philippines expanded greatly in 2016-2017 which implies that more Filipinos are interested in becoming entrepreneurs. According to this year’s Global Startup Ecosystem Report, the country is still in the activation phase in the startup ecosystem which means that startups still have limited experience and the lack of resources make it challenging for the business to grow.

Two of the consequences of these limitations are: (1) not being able to find the right people for the job and (2) financial constraints. Fortunately, there is a way to deal with these challenges: through staff leasing.

What is staff leasing?

When you lease staff, it means that a leasing company hires workers for you and at the same time, they are responsible for the HR functionalities like payroll, record keeping, taxes, benefits and other HR administrative processes. Training employees will also be taken care of by the leasing company. They also guide clients through the legal processes of handling employees.

One of the main reasons why companies prefer employee leasing over in-house hiring is to be free from the time consuming and complicated processes of employee handling. Why should you consider staff leasing for your startup? Here’s why:

1. Leasing companies can help you find the best workers for your company.
Employees are the heart of an organization, so hiring the most suitable for the position is crucial for the business. However, this may be more difficult given the lack of HR management expertise of some startup owners.

Delays in getting the right personnel cost the business a lot. For small businesses, recruitment, interviews, assessing job applications and hiring consume precious time that could be spent on other business activities. On the other hand, not having the right employees can stall the progress of the organization, which will cost significant amounts of resources.

Instead of going through the long process of recruitment and hiring, a leasing company can do those for you. Leasing companies have a lot of experience in evaluating applicants and can help you find the right people for the job once you give them your criteria for the workers you need.

2. Staff leasing reduces costs
Based on the 2017 Philippines Startup Survey, 88% of startup owners said that capital requirement is the number one challenge they had to face in establishing their startup. Startups work under a very restricted budget, yet they must be able to provide products and services at the highest level of quality for them to stay competitive in the market. Just like other businesses, startups have to pay for their needs, such as suppliers, rent, materials, licenses, employees, etc.

Having leased employees reduces the costs involved in employee handling. Leasing companies can give you a predictable and more definite breakdown of expenses. The cost of contracts under leasing companies are also fixed for a year so you do not have to fret about the fluctuating prices of contracts. You will also be able to save on direct and indirect staff costs such as payroll, benefits and training costs.

Various studies have suggested that small businesses with up to 25 employees can save until 40 percent on costs, while businesses with up to a hundred employees can save 25 to 35 percent. Employees hired from staff leasing companies have a significantly lower cost or salary package. You also do not have to pay leased workers other financial benefits since leasing companies already offer benefit packages that are less costly.

3. Leased employees mean less HR administrative work
It can be overwhelming for startup owners to deal with issues from different areas of the company at once, especially if it is on its launch and growth phase. Dealing with each aspect of the business requires a lot of time and energy. For startups, HR administrative tasks such as managing payroll, taxes, and other paperwork can be time-consuming and complicated.

Here’s where employee leasing companies can help you save time. Instead of your organization members doing all the paperwork for worker’s compensation, taxes and benefits, employee lease service providers are there to take care of those staff handling tasks.

Even those companies who are capable of hiring employees on their own still prefer working with employee lease service companies to avoid the tedious processes of staff handling. With all the time you have saved from not doing administrative work, you now have more time to focus on running the business and formulating strategies.

4. You still have control over how you want the business to be run
Even if your employees come from a leasing company, you still have control over how you want the business to be run. Leasing companies are only in charge of the payroll, benefits and other administrative

HR functionalities but other than that, the client still has the power over other business decisions. Leased employees still report to their boss in the client company, who remains in charge of setting the responsibilities of the employees. With staff leasing, you get to focus more on achieving the output you expect from employees and less on managing payroll, taxes, etc.

5. Leasing companies can help you in enhancing employee performance.
One of the benefits of having your employees leased is that the leasing company also helps clients in training their employees. Staff leased by the client are offered support by their employee lease service providers through morale boost or other benefits such as rewards programs and avenues for employee feedback.

The support given by the service providers helps employees perform better. Outsourcing staff would mean that the company does not have to invest as much of its efforts in employee handling, yet they can still receive excellent performance from their employees.

When you find any fault or shortcoming in an employee, the staff lease service provider can help you in resolving this by training them properly to enhance their performance. Aside from the support given by the leasing company, the compensation packages they offer to employees are designed in such a way both clients and the employees both benefit from it.

Startups are very difficult to manage, especially with the lack of expertise and resources. With the right people, you can easily overcome the challenges of owning a startup. To boost the performance of your startup, you should consider staff leasing. Not only does it save time but it also saves time and energy. Want to build a team with the right people fast and at a more affordable rate? Check out Springboard Philippines.

If you’re interested in outsourcing your staff, Springboard has highly specialized professionals who can help you find the right people without going through the hassles of employee handling. Springboard Philippines is a group of companies based mainly in Metro Manila that offers HR services and solutions to local and international clients. Aside from offering staff leasing and staff augmentation services, Springboard also offers executive search, HR outsourcing solutions, enterprise resource planning solutions and general manpower solutions.

For more information, visit or you may also contact us at +63917 656 5198 or +63998 967 0219.