Leasing employees allows companies to outsource their human resources processing while retaining control over hiring and firing decisions. The company can also exclude leased employees from its retirement plan as long as the leasing firm contributes at least 7.5 percent of the employees' compensation to its own retirement plan.
Leasing firms are entitled to volume discounts on insurance packages such as group health, workers' compensation and disability coverage. Most larger firms also have extensive human resources departments to assist the company when disputes arise between employees or supervisors. Pre-printed training and recruiting materials are often available for clients to use.