Employee Leasing Discussed
“In many cases the performance appraisal of the employees is also undertaken by the employment companies. ”
Employee Leasing, to put it simply, is the process of hiring workforce from an employment company. In this way you are saved from the botheration of placing ads, conducting interviews and preparing the results.
It does not mean that you are to hire employees from an employment organization in a haphazard manner. Rather, the concerned recruiting company takes into full account the needs of your organization and even takes full responsibility for the persons that it has provided for your business.
Usually, the employment companies don’t charge anything from the people who register themselves with them for prospective jobs. They just charge some percentage of the first salary of the person whom they have placed in a business from the concerned business itself. However, these are not very hard and fast rules and variations are common at different places and in different countries.
Unemployed people also find it convenient and profitable to join a company through the recruiting agencies because these agencies are past masters in negotiations and often are successful in achieving the best deal for the employees.
Not only this, in many cases the performance appraisal of the employees is also undertaken by these employment companies and not by the business for which the employees work. The logic behind this scheme is that business managements these days want to spend their time and energy on strategic and urgent matters, rather than the routine ones.
Moreover, businesses have to rope in the services of full-fledged HR experts if they want sincere evaluation of their workforce. The cost involved in this is considerable higher than the fees of the employment recruiting agencies. Naturally, the latter method is being preferred these days.
As no system is perfect, employee leasing also has certain demerits. The first being that such workers are not fully under your control and the disagreements that often arise in any business have to be sorted out in the presence of delegates of the recruiting firm. This is considered to be a drag on the functioning of the business under question.
Similarly, the termination of the services of the erring employees also becomes a cumbersome affair. The business management feels as if the employees will not support them but the agency that has got them placed in their business.
Nevertheless, despite these shortcomings, businesses these days often avail the services of recruiting companies for at least some departments of their business.
Author - DeeKay
Tags - Finance, Economy
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