How Staff Leasing Works for Your Business [+Infographic]

A visual guide about what Staff Leasing is and how business owners effectively incorporate it into their businesses

In this extremely competitive global economy, companies—from start-ups to big firms—are continuously looking for ways to manage operational costs in a way that would bring the most value to their businesses.

One of the most viable solutions that many organizations lean into these days is staff leasing, which gives organizations some flexibility in adapting to the ever-changing nature of their particular needs, depending on their available resources.

Staff leasing is an arrangement that enables businesses to outsource employees via a Professional Employer Organization (PEO) that helps with administrative tasks from human resources (HR) functions, to specialized needs that require technical knowledge like software development, content creation, and many more.

Staff-leasing companies are usually in countries with a lower cost of living compared to where their clients are located. This is why workers provided by staff-leasing companies are willing to work for rates that could significantly cut operational costs for clients abroad.

Outsourcing is often confused with staff leasing—the key to differentiating the two lies in the organization’s management reporting system and project management cycles. Outsourcing is a business delivery model that is set-up in a way that the company’s internal team manages the outsourced employees.

5 Essential Phases of the Project Management Cycle You Should Know
5 Essential Phases of the Project Management Cycle You Should Know

In staff leasing, the clients themselves manage the offshore team members through a team leader, and they still have control over their key performance indexes (KPIs), as well as employee policies.

Staff Leasing: A Step-by-Step Guide

If you are thinking of staff leasing as a cost-efficient business solution for your company, here is a breakdown of the essential staff leasing process to help demystify this growing business trend.

1️⃣ Get an initial consultation

Set a meeting with the PEO so you could relay the specific requirements of the job openings in your company.  A good PEO will help you construct the best possible job descriptions to help attract the right candidates.

2️⃣ Make a thorough review of the proposal

Do not just skim the agreement. Be mindful of the key points that would give you a good grasp of your objectives, which should be tied in with your expected bottom-line. Questions are encouraged to make sure that the information and terms included will meet your needs.

3️⃣ Contract signing

Only after reviewing the contract and having all your queries answered can you sign the contract.

4️⃣ Employee recruitment

Make sure that your potential employees are appropriately screened. Ask not just about their professional experience, but also of their personal backgrounds, to see if they fit the bill.

5️⃣ Select the qualified employees

Your employee selection process should include extensive interviews before being presented with a list of candidates to consider.

6️⃣ Begin implementation

The new hire(s) will be subjected to your own onboarding process, where you will give them the basics: their start date, a work agreement or contract to be signed by both parties containing the necessary employment terms, and a basic orientation that may include a specific training plan for them.

7️⃣ Follow-through with an Evaluation

Recruited talents must be evaluated after a prescribed period. The PEO will assist you in systemizing the evaluation metrics, so you could have a fair assessment of your employee’s key competencies and make adjustments as needed.

How Staff Leasing Works for Your Business [Infographic]
How Staff Leasing Works for Your Business [Infographic]
Staff leasing has a range of impactful benefits that could help you cultivate office management tips unique to your own organizational structure.

If implemented well and on schedule, staff leasing allows for flexibility in terms of budget allocation, as it can shrink costs on payroll, engagement, office facilities, and employee benefits, as well as help foster an efficient business framework that could push profitability and organizational growth to new heights.


HR management software app system CakeHR human resources
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HR management software app system CakeHR human resources
HR management software app system CakeHR human resources

CakeHR is an award-winning HR software company that provides attendance, performance and recruitment management for customers worldwide. More information at

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