Team leasing can be a great way to solve your production problems quickly. However, this approach is not always the best management decision. Perhaps, body leasing or outsourcing is more appropriate for your situation. Let’s look at each of these options in detail.
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What is the unique feature of team leasing compared to other forms of hiring personnel?
Although purely terminologically, team leasing means renting a team of temporary employees from a leasing agency, in practice, it is most often used to carry out work in high-tech areas. In particular, for developing specific software when the customer wants to control the process at all stages personally.
An alternative to such a management solution is outsourcing. In this case, you simply transfer an order for development to a company with experience in such work and receive the product you need within the agreed time.
Considering that, unlike body leasing, leasing a team of highly qualified experts can be quite expensive, the manager making such a decision must clearly understand why he is going to such expenses. In particular, such an approach may be justified if the company where the team of hired professionals is invited has its own experience in such work. On the one hand, this company may not currently have the necessary number of specialists with the required qualifications. On the other hand, either the director himself or his trusted employees have sufficient experience and knowledge to control the progress and quality of work.
If the costs seem appropriate to you, it makes sense to talk about the benefits you get from team leasing.
1. As a rule, forming a team, each member of which has the necessary skills and a high level of qualification equal to the rest, takes a long time. In addition to making sure you find all the people you need at the same time, you will have a long series of interviews with each of them, discussing the terms of payment, formalizing through the personnel department and accounting, and providing a benefits package to these new employees. Experience shows that finding the right specialist takes up to ten weeks. This period includes sending, completing, and evaluating test items, interviews, and paperwork.
Contacting a leasing agency removes all these problems at the same time. A contract for the provision of services is concluded between the customer and the contractor. The document must specify the subject of the agreement, the condition of the functional responsibilities of the staff and the skill level of each team member, the total number of hired specialists, and, if necessary, the distribution of roles between them. The leasing agency is engaged in resolving disputes between the customer and employees under the contract.
2. Even if you find all the necessary specialists separately, you will need time for what is called “combat coordination” in the army. That is, from individual specialists, you need to create a solid team. According to psychologists and personnel managers, the average time it takes to turn a company of individual experts into a single working mechanism is from three weeks to one and a half months.
By shifting all these emotional and time costs onto the shoulders of the recruiters of the leasing agency, you immediately get a ready-made team aimed at effective collaboration from the first day.
3. If you are busy building your own team, you need to consider employees’ constant motivation. In particular, each of them must understand their prospects. Your company must provide space for your employees’ career growth and have accessible funds to pay bonuses, raise salaries, and organize team-building parties.
Needless to say, that in the case of leasing a team of professionals, the term of cooperation with which is limited by the time required for the successful completion of the project, we are not talking about such expenditures by definition.
4. As a decision-maker, you must consider your company’s reputation and brand integrity. Reductions in staff and frequent layoffs, even if they are caused by necessity – industrial, economic or organizational – do not add popularity to a leader who is forced to make such tough decisions. Moreover, it can adversely affect the image of the company. These considerations can prevent you from making economically sound but socially unpopular decisions.
Obviously, when working with a leased team whose tenure at your firm is due to the project’s completion date, such considerations may not even arise.
Are there adequate alternatives to team leasing?
Yes, of course, there are!
As mentioned at the beginning of the article, team leasing, as a rule, involves the hiring of highly qualified specialists whose services are highly valued everywhere. In addition, you need to budget for commissions for the leasing agency. With a high level of experts’ salaries, commissions will also amount significantly.
All this means that you need to have serious capital at the start. Of course, if you are absolutely sure of your project’s financial success and its implementation timing is of critical importance to you, it is even possible to take a risk and take a loan. A good business plan and minimum viable product can help convince a loan officer and attract venture capitalists.
However, if none of the above apply to you at the moment, it makes sense to consider outsourcing your project. That is the conclusion of a contract with a developer company, which will provide you with a ready-to-use product within the period specified in the contract.
Or, if you already have a team of like-minded people, and you lack only one or two specialists with a specific qualification, then body leasing can solve your problems.
Summing up
Team leasing is a highly effective and financially feasible way to get a ready-made team of specialists to complete your project with guaranteed quality in the shortest possible time. However, consider alternative options if the factors listed in this article do not allow you to resort to this form of hiring immediately. One or a combination of several may be precisely the solution you have been looking for.
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