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UNDERSTANDING EMPLOYEE LEASING
First, to insure that everyone is of the
same understanding, let's discuss the term "Employee Leasing". In the
Generic sense "Employee Leasing" refers to any business arrangement
whereby a company (YOUR COMPANY) obtains a labor supply by contracting for the
services of employees on the payroll of another company.
A common example would be the temporary help services industry of today. Though
ALLEGIANT does have this capability through its "Allstaff" subsidiary
, this is not the type of "Employee Leasing" we are referring to.
In a more specific sense, "Employee Leasing" is the
act of one company (ALLEGIANT) "hiring"
the "permanent" employees of an existing company (YOUR COMPANY) for the
purpose of providing employee administrative services (administration of
employment and employee benefit services). This is usually accomplished
under a long-term contractual relationship that while expanding management
control, also provides financial benefits to your company.
As Steven Covey has said, "who wouldn't want to be
part of a Win-Win strategy" such as this. (YOUR COMPANY) gets to
turn over most of its management and fiduciary responsibility for payroll, EEO,
Medical and Workers Compensation programs (WIN). (YOUR COMPANY) gets to
offer expanded employee benefits at potentially reduced costs (WIN). You
get to spend more time ensuring product quality, increasing your customer base and
developing new products (WIN). Wait, that’s a Win-Win-Win!
Right about now, I am sure you're saying things such as,
"This is too good to be true." "I'm sure my costs will go up."
"If it's such a good deal, why isn't everyone doing it?"
"I will lose
control of my employees." "Will my employees still be loyal to the company?"
The real truth of the matter is most employees are more satisfied after
their company has entered into an employee leasing arrangement. Let's take a
quick look at measuring success and then explore the issue of employee
satisfaction.
MEASURING SUCCESS
Success can often be measured in a variety of ways. Some CEOs
like to think that their success is based upon putting their employees first.
"If my employees are happy and content, then they
are productive. If they are productive, there is increased productivity; which
generally means higher profits; success is achieved."
Some company owners like to think in terms of putting the
customer first.
"If the customer is satisfied with the quality of
the product, then everything must be running ok. The employees must be happy,
otherwise why would product and quality be good enough to keep the customers
happy? Success is achieved."
Many just look at the bottom line.
"If profits are steady or continue to show an
increase, then all the things that gained that result must be ok. The
employees must be happy and management must be doing their job because the
sales and marketing people are meeting or exceeding quotas. Success is
achieved."
Regardless of how YOU measure success, there is one common
thread that runs through each of these scenarios, satisfied employees. To
be successful, you must have satisfied employees. This raises the obvious
question, "What constitutes a satisfied employee?"
EXAMINING EMPLOYEE SUCCESS
In today’s business world, almost everyone realizes that
job-satisfaction and personal accomplishments are primary employee
motivator's. However, money and
benefits usually come in a strong third or fourth. Ask most long-term employees
why they like their jobs and they will usually reply, "Well, I like what I
do." "I feel like part of the company." "I am
well paid and have
good benefits."
Therefore, using any one of the previous outlooks on success,
why would you need employee leasing? To answer this question, you must
first understand what a management company can to for your employees that you
might not be able to do yourself. As an added bonus, wouldn't it be
wonderful if you could increase employee satisfaction, reduce company costs and
provide yourself more time to improve your business? This is exactly
what employee leasing has the potential to do for you. It can often reduce
labor costs, broaden management’s choices and provide greater flexibility to
employees. Here's a list of things employee leasing offers that have the
potential to improve employee satisfaction.
 | Pre-tax Health Insurance programs
| Increased benefit packages at no extra
cost
| Benefit packages tailored to fit the needs
of the individual employee
| Receipt of major banking services such as
direct deposit checking/savings accounts, and more
| Pre-tax 401k retirement programs
| More "take
home" pay as a result of pre-taxed benefits
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These are just a few of the many benefits available to
employees involved in employee leasing programs. What employee wouldn't want to
be part of a program that allowed them to continue receiving the job
satisfaction that they have always enjoyed, coupled with an improved benefit
package tailored to their personal needs and the possibility of increasing their
spending power by putting more money in their pocket.
COMPANY BENEFITS OF EMPLOYEE LEASING
"Oh, alright", your saying, "So much
for the employees. So what if you can improve employee satisfaction by offering
them a few benefits that they haven't had in the past. How does this help
my company and me”, or “I have already been thinking about securing
and offering some of these same benefits myself, but just hadn't got to it yet."
Well, that pretty much is the answer isn't it? You just
haven't had the time to get to it. As Peter F. Drucker said, companies need
"to focus on the tasks which management needs to perform and to relieve
itself of those tasks which management need not perform, does poorly, and spends
far too much time on if loaded down with them". It takes a lot of
time, effort and resources to set up these and other types of programs, to
review and stay current with the mountains of regulations created by local,
state and federal governments. By converting to employee leasing YOU can
free yourself from some of these responsibilities and gain certain economic advantages. Remember, whatever time you spend performing
this type of administration is time not being spent on improving your product,
YOUR COMPANY or the bottom line.
Just maybe, YOUR COMPANY isn't even large enough for you to
establish or obtain some of these benefits. ALLEGIANT's
large employee base allows it to negotiate some of the best deals in the
industry - and you can have all of them for your company. But wait, there's much more. Though the ability to offer better
employee benefits often increases employee satisfaction and productivity, all of
which may lead to increased profits, it is only a small part of the entire
picture. What about the mountains of rules and regulations created by both
federal and state governments that you must keep up with?
An employee leasing company shoulders much of this
responsibility; from routine personnel work and payroll administration to workman's compensation, EEO, Civil Rights Act
(Title VII), and ERISA compliance issues. If you are like most
company owners, you don't have the time, training or resources to properly keep
up to date on these matters.
Through ALLEGIANT you gain a personnel department that will
assist in the administration of these items, and that is yours to call upon whenever you need it. There are also
the advantages of a tax sheltered employee retirement program. Employee
Leasing is a way of doing business whose “time has come”. It has
achieved the backing of the US government and the IRS. Many previously vague
rules and regulations have been either reissued or clarified. To the advantage
of companies large or small, all this seems to have come at a time when employer
liability has gotten worse. There is an increased awareness of worker rights.
Lawsuits and awards to employees are increasing. There have been enormous increases
in legislation and court decisions that affect employers.
These are but a few of the numerous factors that may make
employee leasing desirable for YOUR COMPANY. ALLEGIANT
is confident that we can offer you greater services, benefits and protection
than anyone else; that our one-stop shopping convenience for payroll, benefits,
insurance, retirement plans and other employee related services are the best you
will find anywhere. However, as is always the case, existing particulars, such
as company size, number of employees, types and amounts of current benefits,
self-administration versus administrative staff, enforcement or non-enforcement
of current rules and regulations, existing claims or lawsuits, are all items
which need to be evaluated to determine what advantages exist for YOUR COMPANY.
Click below to make an appointment today with one of our
experienced staff to discuss how we can help YOUR COMPANY grow.
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