Staff Leasing Advantages, Disadvantages and Solutions

Staff Leasing Provides General and Skill-Specific Staffing Needs

The positions that are filled in by staffing companies lean towards clerical work, data entry and organization, marketing, graphic design and software support. These are general tasks that can be performed by a third-party employee. They don’t need intensive training or constant supervision.

There are also times when companies will need the expertise of professionals like graphic designers, website developers, CPA’s and legal transcriptionists. Since setting up offices or stations exclusively for their use can be expensive, not to mention the addition of shares in insurance and tax payments to the overhead cost, hiring their services through a staff leasing company is the more practical option. Outsourcing is generally cheaper than in-house hiring, thus enabling businesses to cut back on the expense.

Temporary Staffing Arrangement

Sometimes the needs of a company can be fulfilled within a short period of time. Staff leasing is an advantage for cases like this because fulfilling short-term contracts are not new to these companies. It certainly beats spending for overhead costs for employees that will only be with the company for six months or so.

This set-up becomes a disadvantage for a company that’s seeking a more permanent staff. Although it is up to the client to pursue a long-term contract with the staffing company (and the latter will definitely be happy with that), it is the nature of the staffing services to be temporary. Even their employees tend to think of their stints as a short-term. They usually look for other jobs after more or less two years.

Solution: Business owners are advised to anticipate short-term arrangements when hiring a staffing company. There’s no harm in simply renewing the contracts of everyone involved. Besides, the flow of operations will essentially be the same. There’s no reason for work to slow down if there is a clear intention to extend/renew the contracts.

Offshore Hiring

Many staffing/outsourcing companies from Asia are excellent at their specializations. They have people who have had years of studying and experience to hone their skills. As professional service providers, they make it a point to become assets not only to their companies but also to their clients. Any company that outsources to a credible service provider will certainly benefit from the knowledge, skills and diligence of the staff leasing company’s employees.

Although Internet makes geographical distances almost negligible, the physical absence of the client can make less-reliable employees become lax with their duties. A reshuffling of duties may even occur without the knowledge of the client.

Solution:

The solution for this problem is vigilant and stern supervision. As long as there is a trusted supervisor who can monitor the performances of the employees, output quality and volume should still be on par with the client’s standards and expectations.

Finding solutions to problems like this is the logical thing to do. Choosing another course of action may backfire if the second option doesn’t match the advantages that staff leasing could bring to your company. Facing and conquering problems is normal in running a business.

Staff leasing seems is the answer to the staffing needs of so many companies, and not just those in the IT and BPO industries. Just like any business strategy though, it has its perks and disadvantages.

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