This document compares employee leasing and staffing services. Employee leasing companies take on administrative tasks like payroll and benefits, allowing employers to focus on their business. They are most cost-effective for businesses with 5 or more full-time employees. Staffing companies provide temporary or short-term employees to quickly address needs, but have higher overall costs including fees. While employee leasing and staffing services differ, they both provide valuable resources to businesses.

1. Employee Leasing Vs Staffing
Services - What's The Difference?

2. Over the years I've dealt with many business owners
who confuse Employee Leasing (a.k.a. PEO services)
with staffing or temporary labor companies. In many
cases those same business owners have had
experience with one or the other services, but really
aren't familiar with the differences. So what are they,
and how do each benefit employers?

3. To begin with, an Employee Leasing company's main
benefit to an employer is to relieve the non-profit
producing tasks of dealing with employee
administrative hassles- such as payroll, employee
benefits, human resources and workers'
compensation. By outsourcing these to an Employee
Leasing company, the employer can focus on what
they do best and grow their bottom line.

4. Throughout the years, business owners have faced
increasingly escalated government rules regarding
employment. Employee Leasing companies assume
many of these responsibilities and provide expertise
in human resource management.

5. An Employee Leasing company is typically the most
cost-effective option for an employer when the
business owner has five or more full-time employees.
Costs related to workers' compensation,
unemployment tax and payroll administration are
much less in comparison to a staffing or short-term
employment arrangement. As you can imagine the
more employees as a business has, the more time has
to be devoted to employee issues- therefore the value
of outsourcing this work becomes a more profitable
decision.

6. A business can benefit by using a staffing or temporary
help service in variety of ways, as well. The obvious
advantage is the ability to access short-term help
immediately. Whether it is a construction project
with a timeline that requires temporary labor, or a
secretary who takes a leave of absence for an
extended period of time; accessing pre-qualified help
at a moment's notice is when these services can be
an employer's best friend.

7. The administrative costs such as payroll,
unemployment taxes and workers' compensation are
handled by the staffing company. The employer also
relieves themselves of any benefit requirements like
health care, vacation, sick or holiday pay. But, there
is a premium to pay for these short-term employment
services. The overall employee-related costs will be
much higher including fees that are added for using
staffing companies. The added risks and
administrative costs for the services they're
providing is exactly why staffing companies are to be
used as a temporary solution.

8. Just as convenience and grocery stores fill a specific need, the
services that Employee Leasing and staffing companies
provide (although different) are an invaluable resource for
businesses.
Resources:
http://napervillestaffingagency.com/
http://ezinearticles.com/?Employee-Leasing-Vs-Staffing-
Services---Whats-The-Difference?&id=959430

9. Thank you for reading!

10. Thank you for reading!