Staff leasing, often referred to as a Professional Employer Organization (PEO), is a single source provider of integrated services, which enable business owners to cost-effectively outsource areas of management. Staff leasing works when a company’s employees are hired, or outsourced to another company. This form of co-employment is similar to temporary agencies, with the key difference being permanency. Off shore staff leasing often provides administrative services such as human resources, employee benefits, payroll, and workers’ compensations. In addition to eliminating human resource costs, staff leasing often enables a corporation to minimize administrative responsibilities as a whole.

Staff leasing has become a fast growing opportunity in recent years due the recession. Staff leasing in the United States began as early as the 1940s and has since become an effective solution for improving both small and large companies by simultaneously lowering overhead costs and increasing profits. Staff leasing is an industry that operates in all fifty states and continues to grow at an average of 20% each year.

A company wishing to engage in staff leasing is first required to contact a PEO to discuss its particular employment needs. The PEO might then set up an interview process for recruiting new staff, or might take responsibility for existing workers. It is common practice for the company to still participate in the hiring process, but any hired personnel will officially work for the employee leasing company.

One of the most vital keys to any outsourcing arrangement is that the group supporting the business must understand and value the business core competencies, maintain knowledge of how the business operates, and have a vision of the desired end results.

Staff leasing has allowed business owners and corporations nationwide to focus their energy on expanding their business without worrying about the mundane aspects of their company. With the current state of the 2010 economy, staffing overseas employees abundantly helps maintain productivity and good revenue generation worldwide.