Employee leasing is another way of employing temporary employees. It is responsible for employing personnel, identifying and skill sorting, hiring and assigning them to your company. Workers that have finished their work in your company will return to the leasing company and can be employed in another company.
Professional Employer Organizations (PEOs) or Co-employment is responsible for employment, employee benefits, payroll and workers’ salary for their work. The purpose of the PEO is co-employment of the personnel. An employer becomes responsible for payroll, record-keeping, benefits and services, and participation in hiring, evaluation and firing. All duties of employers are divided; someone is responsible for the management of human resources and employee benefits, someone provides services for payroll, personnel’s salary and other questions concerning employment.
Professional Employer Organizations have a lot of advantages: 1) the time is not spent on documents connected with employment and meetings with health insurance agent, payroll company agent and other agents involved in the business). 2) Employee benefits can be easily used. 3) Easier dealing with employment law compliance issues, personnel policies and employee handbooks. 4) Easy audit of records and their stability. 5) Services of organizing workers’ salary and personnel’s unemployment. 6) Professional help on human resource issues available on demand.
Professional Employer Organizations have also disadvantages:
1) the responsibility of employer for productivity and effective work.
2) Co-employment may be prevented with some labor union contracts or state laws.
3) The value of one full payroll in an escrow or trust account is required for co-employers together with regular payroll costs.
4) Additional federal protections of the personnel due to labor laws that can increase costs on the small business, their responsibility and duties.
Service Contracting is required for such services as:
• Security
• Janitorial
• Waste management
• Equipment/mechanical maintenance
• Merchandise delivery
• Payroll accounting
• Printing
• Data processing
• Messenger
• Grounds upkeep
• Interior decorating
• Building upkeep (remodeling, roofing, painting)
• Specialized services (installation, servicing and cleaning of appliances, carpeting, and furniture)
A contract can be made for the performing of specific services, during a definite period of time or at a definite time for a certain price. Materials or equipment should be provided due to the terms of the contract for the effective and successful performance and completion of the service. The company is responsible for the employment of the personnel, their salary and control.
One should pay attention to the following requires while contracting for services:
1) References from other companies that have previously worked with the contractor and are satisfied with his work and successful contract performance.
2) Certificates of insurance guaranteeing the liability and other coverage for the employees provided by the contractor.
3) Copies of required licenses necessary for performance of definite services.
4) Adequate warranty guaranteeing the quality of the work.
5) Clear payment schedule containing possible payments’ retaining that guarantee satisfactory completion of a project.
The contractor should present standard forms for the services’ proposals. It is recommended to look through attentively the terms of the contract before signing it to prevent any possible future misunderstanding of your obligations. During a review one may suggest amendments to the contract.
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