Differences of Staff Leasing and Full Outsourcing4 min read

In the Philippines, one of the fastest growing sectors is the Business Process Outsourcing (BPO) industry. Ranking seventh in world’s top outsourcing destination due to low cost of living, low labor rate but topnotch quality, high English proficiency skills and availability, foreign companies are gradually offshoring to the Philippines. According to the Information-Business Processing Association of the Philippines, Filipino workers deliver high quality work. In addition, known as the 3rd largest English-speaking countries in the world, there is an effective communication. With this, BPO service is becoming more and more nowadays in the Philippines.

A lot of companies avail outsource work since there are potential benefits, namely:

1. It saves cost.
2. It increases efficiency.
3. Globalization. It improves world-class knowledge to the company.
4. There is a greater competitive advantage since it would refocus on core operations.

In the BPO industry in the Philippines, there are numerous types of business processes that are commonly being outsourced. However, we will mainly focus on the Human Resource (HR) services mainly HR solutions. HR outsourcing covers a wide range of services, such as recruitment, training and development, employment engagement and payroll administration.

Before you start availing HR service, get to know more about staff leasing and full outsourcing.

What is Staff Leasing and Full Outsourcing?

In the past, full outsourcing is the only business process management providers option for companies. However, as time passed, there is a transformation in the service and is now called staff leasing. Staff leasing and full outsourcing are both business delivery model between a client and a provider. Both providers takes care what clients want. However, as a leasing company, they help clients look for potential employers to work for them and as an outsourcing company, they help clients handle certain business functions or activities.

Both service providers’ function may sound the same but there is actually a difference between the two. To have a quick glance, the comparative table below shows the differences of both.

 Time Frame

As aforementioned, leasing company can start recruiting once understanding the wants of the client. Specifically, providers meet the clients then discuss their requirements. After, the provider creates a proposal and agreements as what they have discussed in the meeting. Then leasing company starts the recruitment process. On the other hand, outsourcing company takes a longer time to prepare since the preparation needs to consult from the adviser. After, there will also be a meeting for proposal, reviewing of documents and calibration.

Employee Recruitment and Selection Process

As aforementioned, leasing company search for candidates fit for the job description then provider will schedule an interview with the client then it will decide. On the other hand, outsourcing company uses Recruit Process Outsourcing (RPO) solution. Compared to the recruitment process of staff leasing, RPO solution is more complicated as there is forecasting then in the end the provider will be utilizing expertise, technology and key performance indicators. Through RPO solution, there is a clearer and more defined process in order to measure productivity and quality.

Costs

As aforementioned, leasing company helps clients look for potential employers to work for them. With this, it helps clients save up to 70% payroll since in the Philippines we have low labor rate. On the other hand, outsourcing will be more costly as they hire experts and consultants to review the process.

Both services would be a helping hand to the company. If you want to know more, you can check out Springboard. Springboard provides HR solutions for the company to help improve the efficiency and effectiveness of your company.

For more information, kindly visit www.springboard.com.ph.