Does anyone have any experience with employee leasing, or professional employer organizations as they are now called? I’m interested in hearing how it worked out, and how much it really cost.
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I used it for a job three years ago and it worked faiurly well. This was to get started on demo while waiting for my regular subs to come online.
They sent three guys. One was absolutely great and I would usse him again in a minute if he were available. One was OK when he showed up. Thew other used up my patience in less than a week and i told them not to bother sending him any more.
The overage back then was about 48% on top of what you wanted to pay them. I have a new possibility coming up and called again. It is now 72% added which sounds a little higher than I think is right. Too much labor burden added. Worker comp went up 3% in the meantime is all.
The other factor is that other contractors here who've used the service feel that you get the kind of help that is less dependable is why they are willing to work through a temp service. The guys who regularly lose their jobs because of drugs, alcohol etc. This is not always true. eg. the guy that I really enjoyed working was building his own house and not ready to commit to a regular job. He was a good hand and needed flexability.
Our plumber has one employee who is a leased employee. Essentially all that it means is that the leasing company handles all the insurance, taxes, compensation and paperwork for the employee. On the job the employee is the same as if the plumber was his direct employer. I think that the markup is about 30% but that includes the worker's comp, disability, social security, and unemployment insurance. We looked into it, but our rate would have been higher because of a higher insurance rate.