Starting a company or running it may be exciting for entrepreneurs who love the rush of developing a product or coming up with marketing strategies and promotional campaigns.
But there are other aspects to a business, areas such as recruitment, payroll accounting, keeping track of benefits and taxes, that may bog them down or overwhelm them.
During periods of transition, one of the most reliable and effective support systems available is employee leasing.
Employee Leasing is a lot like hiring from a temp agency, with the big difference being the fact that the staff being hired are not on-call or project-based, but are acquired for long-term work. Business owners or managers should approach an employee leasing services firm, otherwise known as a Professional Employment Organization (PEO) to discuss their specific staffing needs.
This has become a preferred option for a number of employers because certain costs or concerns, such as personal injuries and worker’s compensation claims, are no longer theirs but are of the employee leasing services firm.
The PEO may have a pool of staff ready to hire, or can initiate recruitment and set up interviews.
The company may participate in the hiring stage, as well as in training, but any hired staff will actually be employees of the PEO.
In arrangements such as this, the need to hire human resource managers and accountants is also eliminated, and instead, PEOs usually charge a fee for the service, on top of the wages of the hired staff.
Today, companies seek out PEOs to help in acquiring leased staff offshore, specifically staff based in Asia, which allows them to save up to 70% in labour costs. This approach works best for small and medium companies, with lower costs providing a financial cushion during difficult times that protects their limited resources.
But aside from lowering costs going offshore also deepens a company’s talent pool, and they are no longer limited by the choices in their own area. There are a number of PEOs that can facilitate the hiring of individuals, not just teams, so if a company finds that the best person for a specific job, be it in in design, programming or accounting, is someone based in another country, then they may do so.
Because of the internet, for as long as the person has a stable connection and an efficient computer, they can work from anywhere in the world.