Research On The Business Application Of Employee Leasing

With the fast development of social economy, the marketcompetition is growing more intense, and the human resources have alreadybecome one of the most important resources of enterprise development.What’s more, because of the rapid changes and diversity of globalcompetitive environment, the companies begin to look for a flexibleemployment methods to optimize the allocation of human resources in orderto adapt to the changes of market environment and ultimately to achievethe effect of increasing company competition ability. Employee leasingis a type in flexible employment methods. As a kind of new employingpattern which is different from the traditional employment mode, employeeleasing receives much attention from because this is a flexible employmentmechanism and costs less. After introduced into our country in1990s,employee leasing has gained a rapid development.The focuses of this paper are on the motivations and reasons ofenterprise using employee leasing and the relationship between employeeleasing and organizational performance. Firstly, this paper introducesthe basic knowledge and the related theories of employee leasing, andthrough induction and summary of the relevant literature, this papersuggests: employee leasing arises from the growing migrating populationand the more employment pressure in China. As the micro-entity, theenterprise uses employee leasing mainly because the employee leasing canreduce the costs of human resource, increase the employment flexibility,reduce the employment risks. Then, Based on the case investigation andinterviews, this paper draws the following conclusions: the motivations of the enterprise uses of employee leasing are mainly due to the lowemployment cost, the employment flexibility, the reduction of theemployment risks and the burden of the personnel department, but at thesame time, employee leasing causes the decline of the enterprises’ staffproductivity, the deterioration of the employment relations and the lowjob satisfaction of the employees. On one hand, the case study verifiesthe motivations and reasons of above described, on the other hand, itbuilds the groundwork of the next study of the relationship betweenemployee leasing and the organizational performance. Finally, this paperstudies the relationship between employee leasing and the organizationalperformance with empirical data of176enterprises, The organizationalperformance is measured with three indicators: human resource costs,employee productivity, and profitability ability to process the data, theresults show: employee leasing can reduce enterprise human resource cost,but also bring the negative effects of employee productivity, with noeffect on the enterprise’s profitability. Some strategies andbeneficial advice are put forward for the enterprises to better useemployee leasing, which include improve the training, performanceappraisal, and salary welfare of the human resources, especially to theenterprises with different sizes and establishment years. The shortagesand limitations of the research and directions for future research areprovided.