Employee Leasing For Small Business


by Alexander Gordon - Date: 2006-11-30 - Word Count: 480 Share This!

While running a small business, often the entrepreneur is confronted with the issue of managing limited resources to generate the desired outcome, in terms of both quantity and quality. The dire need to expand, while at the same time cope with expenses, eventually becomes a difficult task for even the most talented. Increasing initial expenses and diverse market requisitions impose a sustainability issue on the small-scale thriving businesses. The need of the hour is to look out for ways to cut costs and plan the expense structure, to keep the fixed cost at the minimal levels. The market requirements are unpredictable and in such situations, it makes no sense to deploy dedicated resources for the output.

Employee Leasing: Therefore, to cater to immediate demand and at the same time save on the long-term obligation, employers are looking forward to employee leasing as a solution. Employee leasing refers to hiring out employees for the specific purpose sought. As implied the leasing contract outlays the exact job description and the duration of employment along with payment terms. Employee leasing serves as a valuable option, especially if specialized resources are required for a small duration.

Employee leasing has been gaining a lot of positive review over a recent period. This working culture not only renders the regular employer benefits but also saves time in employee training; associated administrative hassles and the ease to expand with limited resources in the short run.

However, the other side to this interesting proposition is the corresponding risk factor. Many employers feel that these temporary employees could affect the overall culture and might impose risk by being a potential threat to the important insider information. The solution is to specify the access permitted to the contractual employees while working with the firm which would not only segregate the important information and but would also maintain focus on the key task allotted. Moreover, various professional firms providing such temporary work force are willing to enter into legally enforceable contracts regarding the organization's information confidentiality, thus curbing the scope of information mismanagement.

Leasing and Outsourcing: A common misperception among various recruiters and employers is their perceived similarity between leasing and outsourcing. Many tend to think that they are implicitly the same concepts. However, it must be noted that there is a thin line of difference between the two notions. Outsourcing implies to getting the job done from a third party at their workstation or on your premises, while leasing refers to hiring employees or professionals for a defined time duration. For this defined duration, these workers act as the company's employee and fulfill the outlined job requirements as directed. The then appointed contractual employees have direct employee rights and share the company's success and failures as other regular employees.

Leasing employees is a viable solution, is in perfect consonance with the assorted needs, and therefore must be accepted with ease to survive the stiff competition.


Related Tags: small business, business, employee leasing

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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