When Staff Leasing May Work for You

When Staff Leasing May Work for You

An outsourcing technique used by many, Staff Leasing is one of the more crowd-picked practices companies tend to exercise. A fair amount of businesses and organizations opt to discover reliable sources providing low-cost labor in order to balance a friendly budget when it comes to employee cost-maintenances.

Staff leasing is a business practice that allows the outsourcing of manpower to provide a cost-effective and cost-friendly effect that would help businesses manage the level of productivity found in its environment. Simply, it is the recruitment of third-party non-employees to manage the workflow found in each necessary department of the enterprise.


When is Staff Leasing is applicable to your Business

If you are looking for short-term low-cost help, then Staff Leasing may work for you! 

This common practice often serves as an effective testing ground for businesses new and willing to try outsourcing – significantly, to companies who prefer to have a tight-budget towards labor-costs. As one of the hassle-free solutions to hiring employees, now with the continuous upsurge of the Business Process Outsourcing (BPO) industry, a lot of companies apply this low-cost solution to save expenses that were once allotted to their labor force.


Benefits of Staff Leasing

         As one of the outsourcing techniques favorable to many, Staff Leasing offers a variety of good opportunities to both company and employees. One of the many advantages of Staff Leasing include:


  • Cost-Friendly Benefits – With Staff Leasing, employers may greatly save on the expenses that were once allocated towards the companies labor force – since, by not having the greater responsibility to maintain and manage in-house employees, employee-costs are kept within a budget and reduced. The costs and necessary maintenance attached to leased staff are manageable and controllable, thus making the employer’s expenses budget-friendly.


  • Reducing Impending Risks – With Staff Leasing, the legal risk and legal liabilities that were once found between the employer and their in-house employees are now reduced; since, the leasing agency responsible for their employees already keeps tabs on the status of each leased staff acquired by a third-party company.


  • Increase in Core-Focused Tasks – With Staff Leasing, staff produced and out for lease by a leasing agency already offers a variety of skill and expertise third-party companies find necessary for their manpower needs – hence, the costs for training and other expenses attached towards the growth of newly hired in-house employees are lessened; and the third-party company can now focus on other tasks to increase its productivity level.


  • Speed in Productivity – With Staff Leasing, leased staff are already pre-trained and pre-picked among the “cream of the crop” to offer an abundance of expertise to companies in need. Instead of allotting the time to train new in-house employees from scratch, leased staff are ready to go.


Advantages and Disadvantages of Staff Leasing

         With decisions comes the attachment of consequences – as a business strategy acquired by many, this is naturally accompanied by its risks. To further understand the nature of Staff Leasing, below are the possible advantages and disadvantages if ever you decide to move forward with this practice:




  • To Employers – a reduction in administrative costs; an increase in low-cost quality employee benefits.
  • To Employees – an increase in improved employee benefits.




  • To Employers – 
    • possible liability due to leasing companies’ administrative failure (i.e. failure to file taxes, etc.); a loss in full-control with regards to leased staff (since the leasing agency has more right than the company who availed their services)
    • The cost can be prohibitive since staff leasing companies usually charge a margin of 20 – 25% on top of staff cost. 
  • To Employees – can be on a contractual basis; possible red tape.


         One must always remember, when running a business comes an array of responsibilities; as a business-owner or employer, the ball of strategizing the growth of your company falls with you and your employers, thus, it is important to choose the hiring solutions and agencies qualified, applicable and effective to achieve a healthy, succeeding environment.


Do you need help in forming your business?

If you are ready to form your business without partnering with a staff leasing company, don’t hesitate to reach out to us through the following:

Landline: (02) 8478-5826

Mobile: 0917 892 2337

Email: [email protected]