Temporary Agency Employee Vs. Leased Employee

Many leased employees are from temporary agencies.

A leased employee is an employee whose service is leased from a company that specializes in recruitment. A temporary agency employee, on the other hand, is an employee who is leased from a company that specializes in temporary recruitment. This means that all temporary agency employees are leased employees but the converse is not necessarily true.

Temporary Agency

A temporary agency hires employees then staffs them out to clients on an as-needed basis. The temporary agency pays payroll and administrative overhead while the client just pays a flat, invoiced fee. This means that clients do not have to go through the time-consuming interview process for short-term work.

Leased Employee

A leased employee is anyone who works at one office but is employed by a third party. This means that temporary employees are leased employees, as are longer-term specialist staff employed through recruiting agencies, which some organizations use to keep their HR overheads down.

Benefits

The reason to use leased employees is because they keep costs down in the short term. While they do cost more per hour than a full-time, non-leased hire, they also require substantially less legwork as there is no need for resume screening, interviews or the paperwork associated with hiring staff.

References

• Entrepreneur: Leased Employees
• Business Know How: Management and Human Resources: The Pros and Cons of Hiring a Temp