The 6 myths about Employee Leasing

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It is but human nature that people normally avoid the things they do not understand. The lack of understanding and education often hinders us from achieving our goals no matter what aspect of life.

However, when it comes to business one cannot afford not to grab every possible opportunity that can possibly push you into further heights in the industry you are in. Thus, every employer and company owner should never pass up chances that can help him take his business and company to greater heights.

One of the things that can be of great help to any business is employee leasing or hiring the help of a Professional Employer Organization most commonly called PEO.

PEOs can be especially helpful for companies who aim to break into foreign markets but do not have the resources and knowledge on how to outsource skilled workers that match their business needs. Despite the benefits that employee leasing can offer to companies, many businesses are still doubtful about what it can truly do for them. There are many misconceptions about employee leasing services. Below are some of these myths and the truth behind them.


Myth #1: It’s Expensive

This is the first thought that most people have when the topic of employee leasing comes up. Since you are taking on the help of an external entity most assume that the cost for PEO services will be expensive. Although this is something that is understandable it is but a matter of research to find out if your assumption is true.

Truth: Hiring a PEO is actually less expensive than having your own human resource department in your company. You can save more through PEOs because it eliminates fines that many businesses pay for errors in reporting as well as possible costs if there are lawsuits that come up. If you’d think about it, an employer has a lot of things on his plate to take care of and instead of filing papers and documents all day you’d rather spend your time mobilizing strategies on how to improve your business. This is what PEO can do for you; make your life easy and your time more productive.

Myth #2: Company Size

The second concern that most businesses have that makes them think twice about hiring PEOs is they think their company is too small or too big for a PEO. But this is another misconception about employee leasing.

Truth: Most PEOs cater to clients with as little as 20 to 50 employees or as big as 100 to 200 employees. There are even some who can cater up to 500 employees adding capacity for company departments such as an HR department which in return allows the company to focus their resources and energy on bigger matters.

Myth #3: It Can Cause Confusion to Employees

More than a myth. this is more of a fear for most employers. Employers may be afraid that instead of bringing order and extra power to the business, employee leasing will only result in confusion among employees and some might even resist the change. No one would want disorder in their company and with an established PEO, there won’t be a disorder.

Truth: Just like any new regulations or rules that will apply in any organization there needs to be an adjustment period for the members before they can fully adapt to any new rules. When your employees understand that it will benefit them more when PEOs are hired they will not have a hard time adapting to it. It is also a matter of importance that you hire the right PEO that matches your company and employees’ need. This will help heighten employee morale and reduce turnover.

Myth #4: PEO’s Services Are Limited

Many business owners have the idea that employee leasing can only offer services that are only simple or limited. It’s true that most PEOs offer services related to HR tasks but this is not their only service.

Truth: There are many employee leasing services out there that provide professional services more than just HR management. For example, many employee leasing companies offer accounting, graphic design, internet marketing, and SEO services in addition to employee solutions. It is a matter of doing research and finding the right PEO that can cater to your company’s needs.

Myth #5: Losing Control over Operations

Just like the third myth on our list, this is more of a fear of the employers due to the lack of understanding of what employee leasing is. When you have the right knowledge and understanding about employee leasing there is no need to fear that you might lose control over some parts of your operations that are delegated to the PEO.

Truth: Once you employ a PEO service, the PEO will only do the tasks once it is assigned to them. Before doing other tasks, general instructions must come from the employer or company the POE is working for first. Like your involvement within your own company, you can be as involved in the work that the leased employees do as much as you like. There are ways that you can easily and quickly communicate with them or you can schedule a regular day and time to be updated for the progress on whatever tasks you assigned to your leased employees.

Myth #6: I Don’t Need the Extra Hand

When introduced to the idea of employee leasing most employers and businesses would say, “Oh no thanks, my current staff can do everything a PEO can”. They would think that they don’t need the extra hand because their employees are on top of things so they don’t have to spend extra on jobs and tasks that their current employees can do. Yes, it might be that your employees are able to do the tasks that need to be done but are they being productive?

Truth: HR departments of most companies spend their time on employee recruitment and management. If this is where your employees’ energy is focused then they may not have the time or energy to focus on important tasks that can help the growth of your company. Hiring leased employees will not only help lessen the time spent by your HR team on simple tasks but will also help them focus on employee relation improvements of your company.

Why Choose NNRoad?

If you are a business that hopes to expand your company globally and be at par with other global companies in terms of productivity and employee relations then NNRoad is the PEO for you. NNRoad, unlike most employee leasing companies, is a PEO company that focuses on employment solutions and not company benefits. We provide services that range from keeping employment records of employees worldwide to helping your company with permits and visa-related concerns. Below is the list of services that we can provide your business:

  1. Keeper of employee records for leased employees worldwide.
  2. Drafting and providing final bilingual employment contracts.
  3. NNRoad provides a dedicated account manager to serve as the point of contact.
  4. Able to handle accounting tasks such as payroll processing, calculating salaries, and disbursements.
  5. Tax Calculation Assistance.
  6. Registration with local authorities plus statutory benefits.
  7. In charge of local employee monthly salary payslips, reports/proof of taxes paid to the client, and consolidates monthly invoicing.
  8. Guaranteed high-level security for keeping data with stable and reliable date processes.
  9. Can provide legal advice in any case of a dispute.
  10. Can provide your company with timely advice in any case that there are changes in local statutory laws for countries.
  11. Can provide payments in different currencies.
  12. Provides assistance with work permits and visa assistance for employees.

NNRoad is a one-stop shop for any company seeking employment solutions around the world. We value our client’s time, money, and effort and our work principle revolves around what would be best and suitable for the needs of you, our client.

We provide fast and cost-efficient employment solutions and always ensure that our clients understand the ins and outs of our services. Contact us today to discuss how we can support your business in global expansion.

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