How does employee leasing differ from temporary staffing?
Co-employment vs. employee leasing: What's the difference?
What are the benefits of employee leasing?
What factors should businesses consider with employee leasing?
Employee leasing involves a business partnering with a leasing company to supply workers for specific roles or projects. The leasing company acts as the employer of record, managing hiring, payroll, and taxes, while the client business oversees the workers' day-to-day responsibilities.
Temporary staffing brings in new, short-term workers to fill gaps, usually for a limited time. Employee leasing provides external workers for longer periods. These workers are more integrated into the company’s operations, often filling specific roles or departments.
Co-employment through a Professional Employer Organization (PEO) differs from employee leasing. With a PEO, your employees remain your own, but the PEO becomes a co-employer, taking care of payroll, taxes, benefits, and compliance. Unlike employee leasing, no workers are "leased"; your team stays intact while gaining access to improved benefits and HR support.
Employee leasing helps companies access specialized talent without permanent hiring commitments. It reduces hiring risks, simplifies staffing adjustments, and transfers employment liability to the leasing company. Organizations can focus on core business functions while the leasing provider handles worker-related administration.
When selecting employee leasing, businesses should consider their staffing needs and evaluate the leasing company’s services, technology, and support. It’s important to understand that the leasing company becomes the legal employer for leased workers, not the business they work for.
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