What is Body Leasing and How Does it Work?

Discover the advantages and differences of body leasing (staffing) for hiring temporary employees

IT OutsourcingUPDATED ON February 27, 2023

John Adam K&C head of marketing


Cover image for blog explaining body leasing as a service and sub category of outsourcing

Body leasing, also known as staff leasing or staffing, is a category of outsourcing that allows companies to hire temporary employees for specific projects or roles. In a body leasing arrangement, the third-party service provider establishes the contractual relationship with the employee, who is then assigned to work for the client company for a fee. This fee typically includes the employee’s salary and any associated expenses, as well as a margin for the service provider.

The body leasing agency is responsible for the recruitment process. However, especially in the case of more specialist roles such as software developers and other IT specialists, the end client often has the final say. They may also be involved in the final interview stages.

The body leasing provider takes care of all aspects of the employee’s contract, including payroll, taxes, and other administrative duties. This makes it an attractive option for companies that need temporary staff but don’t want to deal with the hassle of hiring and paying them directly.

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Body leasing vs staffing: what’s the difference?

Body leasing and staffing are two terms that are often used interchangeably. They both refer to the same type of outsourcing service. If there is a difference between the two services it is that body leasing tends to refer specifically to hiring temporary employees for a fixed period, while staffing can also refer to any type of recruitment service that involves finding qualified candidates for open positions.

In a body leasing or staffing arrangement, the service provider contracts with the employee and assigns them to work for the client company. The provider is also responsible for finding and vetting candidates, but the client company is responsible for managing them directly.

This is the main difference between body leasing and a full outsourcing service. In a traditional outsourcing arrangement, the outsourcer is also typically responsible for the management of processes and the quality of the final service or product. They often also provide office space and other infrastructure or manufacturing facilities and tooling.

The advantages of body leasing

Body leasing offers a number of strategic advantages for end clients of the service. First and foremost, it provides flexibility in hiring and staffing, allowing companies to bring on temporary employees for specific projects or roles without committing to permanent hires. This can be especially valuable for companies that experience seasonal fluctuations in demand, or that need to staff up quickly for a specific project.

Body leasing can also be a cost-effective option, since the service provider is responsible for all aspects of the employee’s contract, including payroll, taxes, and benefits. This can be especially valuable for small or mid-sized companies that don’t have the resources to manage a large staff on their own.

For remote roles, an additional advantage of body leasing is that it can offer access to skilled employees based in international locations. The body leasing provider handles the administration, which can require specialist knowledge and experience in employment law, payroll and tax rules across international markets.

When is body leasing not the best option?

While body leasing can be a great option for many organisations, it’s not always the best choice. For companies that need to hire employees for strategic, long-term roles that are core to their business, direct hires may be a better option. Similarly, for roles that require a high level of security or confidentiality, in-house hires may be more appropriate.

Body leasing may also not be the best option for companies that want to maintain complete control over their staff. In these cases, direct hires may be a better choice.

Choosing the right body leasing agency for your business

If you’re considering body leasing for your business, it’s important to choose the right agency to work with. Look for a provider that has experience in your industry and that can provide references from satisfied clients. You’ll also want to make sure that the agency has a strong track record in terms of reliability, responsiveness, and quality of service.

When evaluating body leasing agencies, it’s important to consider factors like pricing, service level agreements, and the agency’s level of involvement in managing your staff. A good agency will be able to provide a range of options to meet your specific needs and preferences.

In summary, body leasing can be an excellent option for companies that need temporary staff or that want to outsource certain roles or projects. By choosing the right agency to work with, you can ensure that you get high-quality service and the support you need to meet your business goals.

K&C is a nearshore IT outsourcing provider that also offers a stripped-back body leasing cooperation model as well as full service delivery management and everything in between. Some of Germany and Europe’s biggest brands have trusted us with their IT outsourcing needs for up to 22 years. Now that’s a reference!

If you would like to speak to any of our long term partners about working with us or to discuss your IT outsourcing or body leasing/staffing needs for feedback and a quote, please do get in touch!

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