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Pros and Cons of employee "leasing?"
Recruiting & Staffing
Pros and Cons of employee "leasing?"
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I'm new to this board, and have a question regarding employee leasing. Our company is thinking of making all the employees (including me) employees of a staffing company. I guess they feel that they w
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Forums » Topic Forums » Recruiting & Staffing » Pros and Cons of employee "leasing?"
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Pros and Cons of employee "leasing?"
posted at 1/24/2008 5:53 AM EST
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Posts: 1
First: 1/24/2008 Last: 1/24/2008 |
This sounds similar to what "FedEx" was doing with their "contracted employees" I think the courts are saying "if it looks like a duck then it must be a duck." It would be really interesting to know what the interest is behind wanting the "lease" a full time employee. |
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Pros and Cons of employee "leasing?"
posted at 1/24/2008 7:06 AM EST
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Posts: 1
First: 1/24/2008 Last: 1/24/2008 |
I researched this extensively when our CFO was approached by a PEO vendor. In our case, since we self-insure health, the motivation was to save on our health insurance. Without that consideration, the move to a PEO would not have saved us any money.
Part of the sell was that it would reduce our liability for employment issues. That is not true. In fact when I reviewed the proposed contract, we would specifically have to absolve them of any liability for a host of things. So, I would caution that if liability is a driver, to proceed with caution. There were also significant issues concerning the 401k. Moving to their 401k plan would have introduced additional fees which from a fiduciary aspect, I could not support. I think there are some legitimate reasons some companies might have success using a PEO, especially small companies that might not otherwise be able to afford benefits. However, it is definitely not something to be rushed into and needs to be researched carefully. In the end, we did not turn to employee leasing. However, I leave this job in a couple of weeks and other opinions may then be more important. |
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Pros and Cons of employee "leasing?"
posted at 1/25/2008 11:02 AM EST
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Posts: 3
First: 1/25/2008 Last: 1/16/2009 |
One of the true benefits of PEOs is the ability to pool like workers for the purposes of insurance, in particular Workers Comp and some benefits plans. Bigger bases of employees increase their buying power, and can help to reduce costs on a per employee basis.
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Forums » Topic Forums » Recruiting & Staffing » Pros and Cons of employee "leasing?"
