11 Benefits of Employee Leasing for Your Company

by | Sep 25, 2017 | Business Feature

If you are manager, business owner or person in charge of hiring, you know the tedious process involved in hiring staff. Not only do you have to review hundreds of resumes and filter out the unqualified applicants, but then you have to arrange interviews with potential candidates. Time consuming and even stressful at times, hiring permanent staff can be a real headache. This is why you should consider using an employee leasing company to ease that burden. Why you ask? These 11 benefits will show you exactly why choosing an employee leasing company is a great idea.

1.Screening is Done for You

Once you post a position available, you generally receive many resumes to review. This can be very time consuming since you will want to look over the experience and education of each applicant. You already have a job to do within your company and time spent reading resumes or conducting interviews, means less time completing your daily operations.

Employee leasing companies gather in resumes on an on-going basis and are constantly screening potential workers. They look over applicants skills, qualifications and experience so that you don’t have to. They will even interview potential employees so they are “pre-approved” for work.

2. Get Help Fast

If you have ever had an employee quit their job on the spot, leaving you in a staffing nightmare, you will appreciate how quickly an employee leasing company can provide you with ready to work staff. You can usually expect a next day turn around so that your time in a clinch is minimal and business operations are affected very little. The quicker you can implement new workers into your operations, the quicker you will be happily serving customers or continuing on with operations as usual.

3. No Obligation or Commitment

As an employer you can appreciate that workers want security, however, sometimes you find yourself locked into having an employee who is sub-par at their job based upon a contract you have with them. This will never be a concern when dealing through an employee leasing company. Your contract or agreement is with the leasing company, not with individual workers. This means you can call in and request certain workers not be sent back or request for specific workers to be assigned the job.

4. Great for Seasonal or Short Term

It can be difficult to hire seasonal staff and even more difficult to hire new staff on a short term basis only, since most people are looking for permanency. With an employee leasing company, all candidates are aware of their status and that they may move from company to company on an as-needed basis. This kind of contract with the leasing company will help you fill in the staffing gaps when busier seasons arise or if you have a large project on the go requiring extra hands.

5. Test Drive Before You Buy

Using an employee leasing company allows you to have workers on-site, completing whatever tasks you see necessary and following your daily direction. This gives you a great opportunity to work with people and get a feel for their work habits, ability to follow directions, their initiative and understanding of the job at hand. It is kind of like test driving a car before you decide to purchase it.

If you find the staff who has been assigned to your company to assist with the work load are great candidates, then you may wish to seek them out as a full time or part time employees on your payroll. This can be discussed with the employee leasing company and the potential new staff member.

6. No Company Paid Benefits

Does your company offer group benefits? Pensions or retirement top-ups? What about maternity or paternity benefits? These can be costly over the long run for a business, especially if they are being used for staff who don’t produce or whom don’t plan on staying with the company very long. Company benefits can cost a business an extra 25 to 40% above actual wages. (Michelle Edwards, 2017)

When bringing in staff through an employee leasing company, you will not be obligated to offer any of these workers company benefits, pensions or top ups that your payroll employees currently enjoy.

7. You Can Be Particular About Specific Skills

When dealing with an employee leasing company, you will likely be partnered with a specific staff member who will oversee the assignment of all leased staff to your business. This means you can build a relationship with that one person and give them very specific details of what you require and expect from incoming workers. You may be looking for only candidates with forklift licensing, or workers who have experience working with specific computer programs. These exact needs can be met through an employee leasing company since they tend to have a large pool of potential candidates on file to select from.

Because candidates are prescreened, they are categorized after screening based on certain skills, education and background knowledge. The leasing company will have files on each candidate to filter quickly on the particular skill set you are looking for. This saves time and worry, and gets you working with people who may need very little training upon entering your company dynamic.

8. No Payroll Headaches

Whether you have an accounts payable department or just one designated person to handle payroll (maybe even yourself!) then having less employees to process a payroll for means a great time savings. You won’t have to worry about taxes, vacation pay, overtime or other deductions. Along with that, if there are any disputes regarding time worked between the worker and payor, it is not an issue you will have to handle–the leasing company is responsible. This also means at year end, they will issue tax forms to workers and, unemployment claims as  needed.

9. Hire in Large Quantities

Imagine you acquire a new client, who has ordered large quantities of your product and expects a fast turn around on the order. This sounds great to any business owner of course. However, it can quickly turn into a stressful nightmare if your company is currently understaffed for such a contract. How do you expand your business without hiring new permanent staff? You can request as many employees as needed from a leasing company to get the job done. This can save you from turn away key clients who could help grow your business and make it possible to hire permanent staff in the future.

10. Assistance with Direct Hiring

Employee leasing agencies not only have a bank of potential workers at their fingertips, they also can assist with the screening process if you do wish to hire permanent staff on. They have professionals on staff who are very skilled and experienced in the interview process and will follow guidelines as set out by yourself. Even if you would like to have the final say, an employee leasing agency can offer to narrow down the number of candidates based on a specific criteria you have pre-arranged.

11. Administrative Stress is Relieved and/or Unnecessary

There is so much more involved in hiring and keeping on employees within a company. You will need someone to oversee payroll, handle grievances, deal with vacation time and requests for other time off as well as vacation pay. If you have employee benefits at your company, you will need someone responsible for administering those benefits and acting as a liaison between your company and the benefits provider.

If you have a small company, having these added administrative tasks might mean someone who already has a job will be assigned these extra duties. They can be time consuming and stressful and take away from their regular job. If you have hired a dedicated staff to handle payroll, you could save yourself some money on wages by simply allowing an employee leasing company to handle your staffing solutions.

Go Ahead and Check it Out

It can’t hurt to just make a call and see how an employee leasing agency might be able to help you. Some agencies specialize in specific types of work, which is great if you are looking for a very specific skill set. There is no obligation to get information and at the very least, you will have that information in your back pocket should you find yourself in a staffing jam.


Michelle Edwards, CPA. (2017, January). CPA in Erie, CO. Retrieved from How Much Does Your Employee Actually Cost?: http://cpainerie.com/how-much-does-your-employee-actually-cost/

Share This