Staff leasing: A smart staffing strategy for your business

What is staff leasing?

Staff leasing is an outsourcing model where a third-party provider hires and manages employees for you, while you keep daily control of their work.

• The provider handles hiring, payroll, benefits, and compliance.
• You direct the team and their day-to-day tasks.
• It helps you grow fast and save on operating costs.

As more companies embrace remote work, staff leasing has become a popular business solution. This is true for firms that want to grow their workforce but lack the resources. So what is staff leasing, really? How is it different from other forms of outsourcing? And where can you find services that fit your needs? Let’s find out.

How does staff leasing work?

Staff leasing is also known as employee leasing or co-managed staffing. It is an outsourcing model where you hire a third party. That partner then handles the following for your leased staff:

• Recruitment, hiring, and onboarding.
• Payroll and tax administration
• Insurance and benefits
• Employee engagement
• Regulatory compliance

You can get staff leasing from a professional employer organization (PEO) like Booth. You may also find leased staff through staffing agencies or other BPO companies. In fact, it helps to compare staff leasing, seat leasing, and BPO before you choose.

What makes staff leasing so useful is flexibility. You get more say in how you select and manage your leased staff. Meanwhile, the PEO supplies the tools and resources they need to do their jobs. As a result, you can adjust your workforce as your needs change. This also covers contract length and the specific roles you require.

Staff leasing vs fully managed outsourcing

Staff leasing is a form of outsourcing. Still, it differs from the fully managed model. Both outsourcing models help businesses in every sector. However, it is best to pick the one that fits your needs. With staff leasing, you keep full control of your leased staff. So they report directly to your management. Your provider, on the other hand, builds the team and handles payroll, HR, and office space. Meanwhile, fully managed outsourcing gives you end-to-end service. In that model, the provider runs every part of the work and the team.

It also pays to weigh other staffing options. For example, some firms compare EOR and BPO models before they commit. Others look at staff augmentation, which fills short-term skill gaps. Many also study the wider gains of offshore staffing for their teams.

3 reasons why you need staff leasing services

Staff leasing lets you tap into several key gains.

1. Get access to seasoned experts

PEOs keep a wide pool of qualified candidates for your roles. Even better, providers like Booth let you join the hiring process. So you help pick the people who join your team. It also helps to know the difference between staffing and recruiting as you build out roles.

2. Take full advantage of your provider’s resources

Staff leasing works well when you need extra hands fast. It also helps when you lack office space, equipment, or tools. Beyond resources, employee leasing companies use the latest technology for their services. As a result, your team gets modern tools from day one.

3. Save on your overall operating costs

Outsourcing helps businesses cut costs. With staff leasing, you can save up to 70% on operating costs. That is because you spend less on labor. This includes training, fixed salaries and benefits, workspace, and other resources. So you free up budget for growth.

Who uses staff leasing?

Staff leasing suits firms of every size. For example, start-ups use it to grow without a big upfront spend. Established firms use it to enter new markets fast. It also fits busy fields like IT, finance, customer support, and healthcare. In each case, the provider handles the heavy admin work. So your leaders can focus on strategy and growth. As a result, you get skilled staff and lower risk at the same time.

Staff leasing: build your offshore team with Booth

Get the extra manpower you need through Booth. You will not have to give up control. In fact, your leased staff work as an extension of your in-house team.

Get an exclusive quote and start your staff leasing journey with Booth today!

Frequently asked questions

What is the difference between staff leasing and a staffing agency?

A staffing agency mostly finds and places workers for you. Staff leasing goes further. The provider also handles payroll, benefits, and compliance for your team.

Who employs the leased staff?

The provider is the legal employer on paper. However, you manage the daily work. So you keep control while the provider handles admin duties.

How much can you save with staff leasing?

Many firms save up to 70% on operating costs. That is because labor and setup costs are lower. As a result, you can reinvest the savings in growth.

Is staff leasing right for small businesses?

Yes. Small firms often gain the most from it. It gives them expert staff without the cost of a large in-house team.

Can you scale a leased team up or down?

Yes, you can. Staff leasing is flexible by design. So you adjust team size and contract length as your needs change.

Key takeaways

• Staff leasing lets a provider hire and manage your team while you direct the work.
• The provider handles recruitment, payroll, benefits, and compliance.
• It can save you up to 70% on operating costs and helps you scale fast.
• A PEO like Booth gives you expert staff, tools, and office space without heavy setup.