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Body leasing is a great way to attract a highly qualified specialist to work and, at the same time, save a lot. However, like any practice or scheme, along with undeniable advantages, body and team leasing also have some lacks.
How body leasing can be helpful for your company, and when it is just necessary
The practice of hiring workers under body leasing contracts is widely known and popular in different countries. The volume of the world market of these services annually increases by at least one and a half times. Therefore, perhaps, it is not worth going into the details of this scheme. Let us just remind you that body leasing and team leasing allows you to meet the needs of a workforce of any qualification quickly. At the same time, the manager does not need to formalize labor relations with them, but it is enough to sign a contract with a leasing agency for the provision of services. The service is leasing individual specialists or a ready-made team of experts. All these people are officially registered to work in a leasing agency, so the hassle associated with compliance with labor laws, obtaining work visas, if we are talking about foreign workers, calculating salaries, and paying social contributions are the agency’s responsibility.
From the above description, you can already see the benefits of body leasing in terms of reducing the burden on your company’s HR and accounting departments. In addition, the remuneration of the attracted employees under the item of services of a leasing company can be very attractive from a tax point of view.
These benefits of body leasing lie on the surface and are noticeable at first sight.
However, let’s take a closer look at what organizational and economic benefits this way of hiring employees can bring to your company.
- The opportunity to test employees and evaluate their professional qualities in practice without adhering to the time allotted in the laws for a probationary period. Suppose in the process of working under a body leasing contract, you come to the conclusion that the qualifications of such an employee are pretty high, and his skills and abilities can be widely applied in your company, not only during the performance of a specific task. In that case, you can offer him a transfer to you to the state for a permanent job.
- Flexibility in workforce planning. You can adapt to any conditions. There will be no labor shortage, even if legislation limits its numbers. Almost every high-level manager at least once faced a situation when either the legislation of the country or the top management of his company imposed restrictions on hiring new employees. Such rules often have a detrimental effect on the implementation of various projects. Body leasing allows you to painlessly and elegantly solve this problem.
- Reduce costs by hiring specialists for short assignments. Body leasing allows hiring the necessary employees for the period required to perform a specific job. The employer is thus not bound by the obligation not to lay off new employees for a certain period of time, as required by the labor laws of many countries.
- No need to perform work related to accounting and personnel management or hire an experienced HR manager.
- Utilization of the labor of highly qualified employees due to the preliminary selection of the recruitment agency. The manager or employees authorized by him do not need to conduct interviews and select specialists themselves. The leasing agency receives an application with clearly specified qualifications of the leased specialists, and the customer gets turnkey employees.
- Reusable selection of employees if necessary. You can change them as often as you like without fear of prosecution by the law. If the employee provided by the leasing agency does not suit the customer for any reason, the agency is obliged to replace him. At the same time, legislation providing for the inviolability of a new employee during the probationary period does not apply to body leasing.
- Elimination of downtime due to temporary disability of the workforce. As mentioned above, if the hired employee cannot perform his functions, the agency is obliged to replace him free of charge with a specialist with similar qualifications.
- There is no need to pay for social guarantees associated with dismissal when there is no need for personnel.
- The recruiter solves all problems associated with dissatisfied employees hired under a contract with a leasing agency.
What are the disadvantages of body leasing?
Along with undeniable advantages, body leasing has some disadvantages. They are not critical, but knowing about them can help you eliminate or minimize their influence ultimately.
In this case, the list will be much shorter than the previous one.
- In addition to paying for the services of a rented employee, you will have to pay commissions to the leasing agency. Usually, they make up from five to twenty percent of his remuneration. More often than not, this aggregated amount is less than the taxes and deductions that you would have to pay in the form of a salary. Still, a preliminary economic analysis, in any case, will be instrumental.
- Suppose you are interested in creating a specific corporate culture for your company; then, you do not have to count on the same loyalty of temporary workers as permanent employees. What’s more, the practice of hiring leased experts can cause dissatisfaction among your core team members. It is vital for you, as a leader, to keep such social moods in mind.
- If you have not specified the qualification requirements of the rented specialist in sufficient detail, you may receive an employee who does not meet your expectations. To avoid this situation, you should specify the smallest details in the contract with the leasing agency.
As the saying goes, “forewarned is forearmed.” The numerous benefits of body and team leasing make this hiring scheme attractive from various perspectives. At the same time, knowing in advance about some of the negative aspects you may have to face, you can take the necessary measures to reduce their impact to zero.