The Pros And Cons Of Outsourcing

Section: Marketing Essays

Besides hiring workers through their company, businesses often choose to lease or rent them from outside leasing companies. The term outsourcing is referred to as using leased employees or hiring outside staff. These employees can be noted as temporaries, temps, contract employees, or casual workers. Throughout the past decade, this practice has become a more accepted method for hiring firms to attain the services of outside workers. This fairly new business practice can be benefiting to the business although in some ways it may be inadequate. Employee leasing can give you many benefits that can be obtained by hiring independent workers. The leasing company hires highly trained and experienced workers who are brought in only when needed and then are disposed at the end. This becomes an opportunity for the business to use sufficient workers without the trauma and expense of laying off their own employees. This is by far easier for the employee and the employer due to the intermediary which is the leasing company. This intermediary takes away the unnecessary steps which often occur in business situations. Another contributing factor in having leased employees benefiting the company is the fact that you do not have to pay and withhold federal and state payroll taxes for these people. The leased employee does not require benefits or workers' compensation. This cuts out the costs a great deal for the company. In most cases, leased employees have a certain expertise, which eliminates the need to train former employees to do jobs involved with the area in which a skill is needed to learn. In the case where a company has employees with a lack of internet skills, the leased employee can definitely be used in a positive manner. Words: 288

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