In the employee leasing process, employers share the management work of employees' related costs and services with the staffing companies. In this process, client companies share the HR functions with staffing firms for a group of employees, either all the employees or just a team. Sometimes, client firms share some common functions like payroll and training with the staffing firms. Sometimes they also share other functions such as compliance with recruitment firms.
Difference Between Employee Leasing and Temporary Staffing
Employee leasing is different from temporary staffing as in employee leasing, workers are permanent. The length of temporary workers’ stay in the organisation is not defined by the government. On the other hand, temporary workers are provided to the company to fill the vacant job roles, special occasions and more.
Why Opt for Temporary Staffing?
To Fill Vacant Positions
Sometimes companies need to hire a workforce when some employees leave an organisation due to some family leave, vacation, jury duty, or illness from which permanent workers will return.
To Fill the Professional Work Shortage
Companies need to hire different skilled professionals due to some urgent projects. That makes them hire temporary staff on a contract basis.
To Share Seasonal Workload
Due to seasonal workload, companies need to hire candidates, particularly for that season. Like, at the time of the Holi or Diwali festival, colour manufacturing or cracker manufacturing companies need a large workforce. So, they make a contract with the client to provide such a workforce during that particular season. Once the contract finishes, they leave the company. Sometimes temporary employees are converted to permanent ones with the consent of both the company and the employees.
Benefits of Employee Leasing
Companies Can Manage Employees Properly
In organisations, HR performs both operational and strategic tasks. By outsourcing the operational tasks with staffing companies, such as payroll and compliance and managing strategic tasks by itself like hiring, HR will work towards the company’s workforce environment and way of work. HRs also give their time to workforce management through which they ensure that the talent is properly utilised in the company.
Utilisation of the Staffing Company’s Expertise
A staffing company has expertise in managing payroll and other HR processes for a very long period and would be able to develop a more strategic approach to resolve many issues. The experts from the recruitment firm can fulfil client requirements as they know how to recruit new talent using their talent pool and all the latest technologies. This makes client companies feel free after outsourcing their HR services to the staffing company. Not only the operational but all other strategic aspects of the HR process could be managed by the staffing company, helping the client company save on HR costs.
Flexible Contract
The contract between the client company and the staffing firm in employee leasing is flexible. If the client company includes things they want, and if they feel that things are not going in their favour, the firm can make a change in the contract. This makes client companies relieve themselves from some responsibilities or add some responsibilities later on in the relationship with the staffing company as much as in the beginning.
Conclusion
These are some differences between employee leasing and contract staffing. If you are running a business and searching for a temporary staffing company India online, contact Kutumbh HRCare (Kaam matlab Kutumbh) - a leading staffing and HR service provider in India. Outsource your business needs now!
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