What is Employee Leasing?
Smaller companies looking to expand their workforce may be comfortable with the technical side of the hiring process, but not the human resource side. Business owners often find themselves overwhelmed by all the payroll accounting, record keeping and benefits which accompany newly hired employees. One popular solution to this problem is the practice of employee leasing . Employee leasing is similar to the process of hiring temporary workers, but the key difference is permanency. A company wishing to pursue employee leasing will first contact a professional employment organization (PEO) to discuss its particular employment needs. The PEO or other employment leasing company might set up an interview process for recruiting new staff, or might take responsibility for existing workers. The company can still participate in the hiring process, but any hired personnel will officially work for the employee leasing company. For many employees, the switch from thei...