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What exactly is Employee Leasing and How Does it Work

What exactly is Employee Leasing and How Does it Work?

Looking for the right temporary hire or your next work contract can be a bit much. But guess what? Employee leasing might just be the solution you are after!

Employee leasing is a win-win for both candidates and the companies they work with, especially when it comes to temporary staffing. It is like a step up from the usual employment deals.

Let us break it down and get you all the info you need to make your next move.
Image Source: boothandpartners.com

What exactly does employee leasing involve?

What employee is leasing, you ask. Well, it is like when a recruitment agency provides workers for a business. These workers are usually there for a short time or for a specific project. Some places call it temporary staffing.

In this setup, the person works for you, but they’re technically employed by the recruiting company hence the term ‘leasing.’ Once their leasing contract is up, they go back to their recruitment agency and stop working for you.

The Difference: Employee leasing vs Co-Employment

Let us break it down:

Employee Leasing:

This is when a recruitment agency gives your business short-term staff and takes care of all the HR stuff.

Co-Employment:

These agencies (also called Professional Employment Organizations or PEOs) work together more. For instance, they might handle HR tasks, and your company deals with recruitment. The split of duties can vary based on the agreement.

To add a twist, co-employment rather grew from employee leasing, so people often use the terms interchangeably.

How exactly does employee leasing operate?

Figuring out employee leasing: how it works from finding talent to finishing a project:

  • Finding the Right Talent: The recruitment agency looks for the best candidates in the job market. When they find them, these candidates become employees of the agency and are sent to work on projects for the client.
  • Day-to-Day Work: The candidates stay employees of the recruitment agency and are paid by them for their work hours. However, they follow the client’s instructions for the tasks. There are special rules for this, and only agencies with the right license can do it.
  • End of the Work Period: Once the client finishes their project and does not need the leased employees anymore, the candidate goes back to the recruitment agency.
Image Source: serviapgroup.com

Why is employee leasing a good thing?

For both job seekers and employers, jumping into an employee leasing deal can be a smart move. Let us check out some examples.

Benefits of leasing for Employers:

  1. No Employer Hassles: When you lease employees through a recruiting agency, you dodge the complexities of a regular employer-employee relationship. The agency takes care of payroll and employment taxes, so those are not your concerns.
  2. Short-Term Work Solution: Businesses often face short-term labor needs, especially during busy seasons. Hiring permanent staff might not be practical for a brief surge in work. Employee leasing is a quick and usually cost-effective fix for this challenge.
  3. Lighter HR Load: With employee leasing, you skip the recruitment and hiring tasks. The agency handles everything—from advertising and sorting through applications to conducting interviews. This frees up your time and money for more strategic activities, cutting down on usual hiring costs.
  4. Access to Qualified Candidates: Whatever qualifications you need for a role, a recruitment agency has a vast worker database. They can find someone with the right skills and industry expertise faster than you can.
  5. Boosting Permanent Employee Conditions: Bringing in leased employees temporarily can improve the job satisfaction of your permanent staff. They will likely appreciate having extra hands on deck instead of shouldering a heavier workload themselves.

Questions for Candidates Considering a Leased Position:

Thinking about a leased job? Ask these questions to make sure everyone’s on the same page.

  1. Contract Duration: How long is the contract?
  2. Post-Contract Plans: What happens when the contract is over?
  3. Company Culture and Position: What is the company culture like, and what does the position involve?
  4. Work Hours: What are the typical hours?
  5. Contract Pay Rate: How much is the contract pay rate?
  6. Benefits Availability: Are there any benefits available?
  7. Professional Development Impact: How will this position contribute to my professional growth?

How Recruitment Agencies Make Employee Leasing Easy

A recruitment agency is a helpful friend for both job seekers and employers, taking care of all the details in an employee leasing deal.

For Employers:

Qatari Recruitment agencies for leasing employees use their big databases and industry connections to find the best candidates and work out the terms. This takes a load off the recruitment team and speeds up the search for the right people. Plus, they handle HR, tax, and payroll stuff, making life easier for the employer.

For Job Seekers:

If you’re looking for a job, agency recruiters make the move to a leased position smoother. They act as your employer, giving you job security that regular contract work might not offer. And, many times, they throw in better pay and benefits.

In both cases, it's crucial to choose a recruitment agency with a strong talent pool and experienced recruiters who really get your industry.

Looking into employee leasing? Check out Delta International Recruitment Agency!

If you need a recruitment agency, think about choosing Delta International Recruitment Agency for your employee leasing.

We match the perfect candidate with the right job in various sectors, bringing a high level of expertise to every interaction with our clients and candidates. Delta International Recruitment Agency has the necessary licenses to do employee leasing agreements in all the regions we provide this service.

In a nutshell, a recruitment agency like us can assist you in reaching your short-term and project-specific goals, whatever your staffing needs may be.

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