Looking for the right people to fit in your team ASAP and managing them can be difficult. According to the 2019 Global Talent Trends, the top human capital risk companies face is the excessive time in filling open positions. Some companies eliminate this risk by leasing employees rather than in-house recruiting. While in-house hiring is the more popular option when filling in job positions, employee leasing was actually practiced hundreds of years ago. The U.S. Business Administration stated that the concept of employee leasing was built ever since landlords in England leased their own servants to fellow landlords. The lessor would pay for the wages of the servants while they will be reimbursed in some other forms by the lessee. The staff leasing company will be responsible for compensating the workers, managing their payroll, benefits and records, and they will be involved in hiring, performance evaluation and firing. Because of increasing employee-employer government relations, employee leasing has become more prevalent. Companies lease staff to avoid the time-consuming hassles of complying with the requirements of countless laws regarding employment and employee benefits. Another significant feature of staff leasing is it enables companies to provide employee benefits which have equal value as those in large corporations.
Employee leasing firm could indeed help you a lot with your business, but you also have to remember, not all leasing firms fit perfectly with your company. There could be a hundred employee leasing firms in the country but how do you know which one is best for your company? Here are some factors you should look into before selecting a staff leasing company:
Aside from these factors, the U.S. Small Business Administration gave questions companies should ask employee leasing firms to help them further evaluate the firm:
- How long has the leasing firm been in business?
- Is the leasing firm a member of an association?
- Do representatives of the firm appear competent and knowledgeable, able to answer questions promptly and intelligently?
- Are the personnel administration instruments in place?
- Who administers the employee benefits, and how?
- How does the firm train and update its professional staff?
- Are the firm’s insurance carriers rated?
- Who are the firm’s attorney, banker and accountant?
- Is the payroll accurate and punctual?
- Can the firm provide printed verification of payroll data?
- Does the firm have a backup for recovery of payroll?
- Is invoicing and billing understandable?
- Are records and insurance payments reviewed?
- What is the firm’s capacity for improving services to the subscribers?
One of the main perks of staff leasing is its cost efficiency. Lower operational costs especially in the Philippines also attract foreign countries to outsource from the country. For sure, all business owners interested in employee leasing would want to get the most out of this feature. However, it is inevitable that there are leasing firms that might not satisfy your staffing needs given your budget. We all want to get the most out of what we pay for, so it is important to assess if the leasing firm’s rates and services align with your company’s budget. The monetary value for services isn’t the only thing you should look at, you should also take note of the timeline of the services they offer. There could be instances where a certain activity might be taking too much or too less time for the amount they are charging you. Therefore, try to get as much detail on an employee leasing firm’s rates.
Your Staff Leasing Network
In browsing through staff leasing companies, it’s not enough to just look at the services they offer, their prices and credentials; it is also important that you know its network. One of the things you must find out is to which companies are they connected to. It is better to choose those who are experts in your industry. For example, if you are trying to fill in IT positions, you would rather choose a staff leasing company which has experience and connections in the IT industry. Aside from finding out how much experience and connections they have in your industry, it is also important to find out whether these firms use updated technology or uses a comprehensive database.
The internet has made information more accessible. There have been more online platforms which can help you search for various staff leasing companies both in the Philippines and in other countries. Just type in a keyword then the internet will give you at least thousands of results. There are also reviews made available online but you can also ask your peers for referrals.
Your Company’s Values, Goals and Priorities
If you’re going to take in employees from an employee leasing firm, working with them will be easier if the leasing firm’s goals align with yours. One of the disadvantages of staff leasing is you have less control over the leased employees. Thus, it would be easier if you’re on the same page with the leasing firm. You have to select an employee leasing firm who can understand your priorities and your rationale behind why you are leasing staff. But before this, you should be clear with your goals and how you wish to accomplish them with your leased staff. If the employee leasing firm seems to disagree with your goals, they might not be the best for your company.
Looking for good staff leasing services? Springboard Philippines offers staff leasing and staff augmentation services. Check out www.springboard.com.ph to know more!