Staff Leasing - Meaning & Definition

Published by MBA Skool Team, Last Updated: May 17, 2012

What is Staff Leasing?

Staff Leasing is usually done when a company wants to avoid the hassles of payroll, benefits, Risk management and Human Resource issues. Therefore, the company, often called as the ‘client’ company approaches a ‘leasing’ company which has an expertise in those areas.

In the process of Staff Leasing or Employee Leasing, a ‘Leasing’ company, based on an agreement and payment, places the employees of the ‘client’ company on its own payroll. Further, it leases these set of employees back to the original employer which is the client company. Even if new employees are hired, the client company can participate in the selection process, but the employees will officially belong to the leasing company.

It allows the client company to concentrate on their core business activities and significantly reduces its overhead costs.

Leasing companies generally handle employees from multiple organizations and are able to negotiate benefits and future health insurance in bulk. This basically gives the employee a much better deal financially as compared to belonging to the original employer, the client company.  Further, under this arrangement, performance reviews and the wages come under the purview of the leasing company.

An example is that of Novartis Healthcare Pvt. Ltd, Hyderabad which uses the services of a leasing company called TeamLease.

Hence, this concludes the definition of Staff Leasing along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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