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Staff Leasing vs. Employment Agencies

Beth AyersBeth Ayers 7 Posts
in HR & Employment Law Vote Up0Vote Down
What are the differences between staff leasing and employment agencies that can provide benefits?
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  • jules2001jules2001 100 Posts
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    Beth - I am not sure what staff leasing is, however, we use a staffing agency to payroll new employees. Within our company - our largest turnover is in the 1st 90 days. We find the employees, then send them to an agency to be payrolled. (Usually this is from employee referral, so there is no cost related.) The benefits of using the agency is that we have no start up costs of paperwork, taxes, insurance, worker's comp, or unemployment. We simply pay the agency about a 10% fee for the service based on the employees pay. This is much less than we would be paying if they were on our payroll. If you let the agencies find the people for you, you will be paying a higher fee. We still have the costs of training the employee, but we start them at the postion which requires the least amount of training.
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