6 Ways Businesses Can Benefit By Leasing Employees


Whether a business needs a workforce with the skills required for a particular project or a company is looking to expand its reach and begin operations overseas, the most safest and cost-effective solution is outsourced employees.

There are several different ways a company can use employees without actually hiring them. The two most popular options are either via a Professional Employer Organization (PEO) or an Employee Leasing agreement.

Regardless of which option you choose, there are countless benefits for both employees and employers. Below listed are a few major ones.

Alleviate Employer Liability

Since the workers you get are third-party employees, the leasing and PEO assume the responsibilities and liabilities that come with being an employer, meaning there will be significantly lower risk management involved when hiring new workers.

That way, when hiring, the PEO takes care of employee health, risks, etc. So an employer can continue usual operations with a free mind, not having to worry about the risks involved.

Gain More Variety in Roles

A great benefit of leasing employees is the wide variety of roles and scope of workers that leasing companies can provide. Compared to outsourcing a single project or function, employee leasing allows you to hire workers for a wider array of activities.

With employee leasing, businesses can delegate roles and services like marketing, accounting, graphic designing, web development, etc. This allows them to set up a solid team structure with the right employees.

Reduce Administrative Costs

Regarding the costs of administration associated with hiring your own employees, providing ongoing employee benefits, and processing their payroll, signing up with a leasing agency to get employees is a significantly more cost-effective solution.

Once partnered up, the leasing agency will incur these administrative costs at an all-inclusive rate. That way, companies can save money on overall administrative costs.

Scale Your Business Globally

With an employee leasing agreement, businesses can get access to qualified employees at any time and anywhere. They can hire workers for a specific project or job without having to deal with the problems associated with hiring typical employees, which usually takes a lot of time and effort.

Additionally, when a company wants to expand its operations to another country, the leasing agency can find and provide you with the resources and talent you need to succeed globally.

Provide Performance Management

It’s crucial to partner up with an agency that actively manages their employees’ performance via regularly scheduled reviews and retention programs. This ensures that the employees you are leased are given ongoing support by the leasing agency.

Although this performance management isn’t required by every company that leases employees, it is preferred as it ensures both the employees and the company are given objective feedback they can use to improve.

Give Better Healthcare to Employees

Since leasing firms combine employees from a wide scale of different industries and companies into a single group, they are able to provide better healthcare coverage rates than most other organizations. This lightens the burden and saves money for both the employer and employees.

But cost savings on healthcare isn’t the only benefit for companies. In fact, they also don’t have to hire any employees themselves. The leasing agency manages the entire process, including vacancy advertising, interviewing candidates, etc.