by: David Wing

Paying workmen’s compensation, Social Security tax, and other matching funds and taxes can really add up. For a lot of small-business owners, today’s changing economy means longer hours and less help.

Cost is a major factor when it comes to staffing. Small businesses everywhere have the same complaint about how much money each staff member costs; but related problems are the time involved in replenishing staff due to turnover and associated payroll activities.

For most smaller businesses, time and turnover are the top priorities when it comes to staffing. In part, the added time comes from increased turnover, and increased turnover comes from a lack in benefits. Benefits in a small company, however, can cost as much as twice that of a larger corporation, and you can't always afford to offer everything you want.

There is a way around some of this: employee leasing! This concept has been around for a long time and is starting to be used more and more. It's like leasing a car or a copy machine -- technically it's not yours, but you are in control of it. Think of this as hiring permanent temporaries (also called outsourcing or contracting).

The best part is that you don't do the paperwork and spend the long hours reviewing and sending in forms. The company you use will take care of all that and will likely offer your staff better benefits. You just write a check, and they take care of the rest.

When looking for an agency, make sure you check them out thoroughly. Ask if they will take on your present employees, thus cutting your costs but keeping them in your organization. Find out their policies pertaining to insurance, vacations, sick days, and any other benefits. This would be a good opportunity for you to ask your staff what they want.

By using this type of payrolling, you are still in charge of your staff, hire and fire them, train them, and perform every other aspect of employment management -- you just don't do the paperwork. There are other benefits, too -- employee-leasing companies can have as many as 1,500 employees. This means that their workmen's compensation, health and medical insurance, and other benefits can cost a lot less. That translates into lower fees for you.

Using this method of hiring your staff does not mean that you get out of paying. Most agencies charge about 20 to 35 percent over the employees' pay.

This may sound like a lot; however, when you start adding up all your expenses, the time and the effort it takes to do it yourself (not to mention your workmen's-compensation insurance liability), you'll find it comes to a lot more.

But you're not the only one benefiting from this program -- your employees are, also. This might not be something you ever considered, and it is not for every employer, but think of the possibilities. It could add up to a win-win situation for both you and your employees.

Check out your phone book, business association, and even banker for payrolling and employee-leasing companies.