- March 31, 2020
- Latest News, Staff Leasing (EOR)
Benefits of Staff leasing during a pandemic
Staff leasing – an affective solution on a narrow marker
This article focuses on exploring the opportunities available to businesses today in their efforts to optimize business operations and take advantage of savings in terms of staff costs. These costs usually represent the largest part of any operating budget.
That is why it is time for businesses to pay more attention on the service of staff leasing.
What is staff leasing?
Temporary staffing or staff leasing formally is a business service where one legal entity – temporary job agency/consultant hires and provides to another legal entity – user company/client, personnel under its management and control. This service is provided for a certain job completion or for replacement of an employee, who is absent from work.
What makes staff leasing an effective solution for companies and why is it attractive in today’s economic crisis?
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Reduce workload on HR/administration department
The greatest advantage for employers that choose to use a staff leasing company is the fact that thay can reduse the workload of their accounting and HR/payroll departments.
Once you enter into a co-employment agreement with a staff leasing agency (Professional Employment Organization ) for one or more employees, the firm takes over full responsibility of payroll administration, including preparation and timely delivery of payroll checks, taxes, employee benefits and accounting functions. This means that fewer resources are needed on behalf of your company in the areas of HR and payroll/ administration.
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Save time finding the right employees
This is another great benefit for you as an employer. Your staff leasing partner will conduct countless interviews with potential candidates which is a big hustle. Good staff leasing companies have professional consultants who conduct interviews to find the perfect fir for the employer (their client) – both in terms of hard skills (skills, experience, knowledge) and in terms of soft skills (matching the corporate culture).
Staff laesing service allows employers to concentrate on their core business. It frees up the business owner, HR or accounting department to work more on strategic tasks that could ultimately affect your bottom line.
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Save money
Staff leasing service also saves companies money in times of crisis, when the survival and adaptation of the business is crutual.
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Reduce expenses for personnel maintenance and layoffs
Remunerations, health and social payments, taxes and other payments are handled by the staff leasing firm. Further, when using this service your company is almost completely secured from expenses that appear in case of termination of employment relationships with leased personnel and other risks ensuing. The cost of working with Professional Employment Organizationс is usually cheaper than hiring accounting and HR professionals.
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Flexibility
You as a Client also benefit from the flexibility provided by staff leasing service. You company is able to choose to hire people for a long term or for a short period of time without increasing the number of employees. For example, a company may hire additional staff during a seasonal peak period or simply cover vacation / maternity leave without worrying about the legal aspects of the relationship.
This specific service is especially important today when companies are looking for staff for specific projects or tasks.
A company that wants to start a promotional campaign using proven professionals or is looking to hire a marketing specialist or IT specialist can achieve its goals with the support of a staff leasing partner.
Benefits for temporary employees
First, the staff leasing provider can find a job for the employee faster than traditional job search methods, especially in today’s labor market, where jobs are becoming scarce. The employee also has to prepare CV, fill in one application and often has to attend on an online interview. This is in contrast to the traditional job search, which requires countless interviews, applications and CVs and other long processes.
Employees will also be able to improve their CVs by gaining a different experience. It is also possible to provide them with job opportunities in companies or positions that may not have been available to them before on a permanent employment contract.
On the other hand, potential candidates for temporary jobs also need to understand that they have to offer something to the staff leasing agency – something that can be sold to their clients. Of course, candidates must be able to complete their tasks in time with minimun errors.
Our main message here is that with every crisis comes an opportunity – both for employers and employees.
Exploring these possibilities may open doors that were closed earlier. We believe that this is the key to our survival and recovery from today’s unprecedented situation.
Think about whether your business will not win if trust the selection of experts to fill the positions created by the COVID-19 pandemic.
If you are wondering how to choose who to trust for staff leasing partner, trust Horizons Bulgaria. More about the conditions and other information about the staff leasing service offered by us here.
Horizons Bulgaria is a licensed company in staff leasing services according to the recent changes in Labor Code.
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