Employee Leasing

Whereas temporary employees come into an organization for a specific short-term project, leased employees typically remain with an organization for longer periods of time. Under a leasing arrangement, individuals work for the leasing firm. When an organization has a need for specific employee skills, it contracts with the leasing firm to provide a certain number of trained employees. One reason for leasing’s popularity is cost. The acquiring organizations pays a flat fee from the employees. The company is not responsible for benefits or other costs it would incur for a full-time employee. This is because leased employees are, in fact, employees of the leasing firm. Furthermore, when the project is over, employees are returned to the leasing company, thus eliminating any cost associated with layoffs or discharge.


Leased employees are also well-trained individuals. They are screened by the leasing firm, trained appropriately, and often go to organizations with an unconditional guarantee. Thus, if one of these individuals doesn’t work out, the company can get a new employee, or make arrangements to have its fee returned. There are also benefits from the employee’s point of view. Some of the workers of today prefer more flexibility in their lives. Working with a leasing company and being sent out at various times allow these workers to work when they want, for the length of time they desire.


My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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