Abstract Recognizing that not all employees possess knowledge and skills that are of equal strategic importance, we draw on the resource-based view of the firm, human capital theory, and transaction cost economics to develop a human resource architecture of four different employment modes: internal development, acquisition, contracting, and alliance. We use this architecture to derive research questions for studying the relationships among employment modes, employment relationships, human resource configurations, and criteria for competitive advantage. Show
Journal Information The Academy of Management Review, now in its 26th year, is the most cited of management references. AMR ranks as one of the most influential business journals, publishing academically rigorous, conceptual papers that advance the science and practice of management. AMR is a theory development journal for management and organization scholars around the world. AMR publishes novel, insightful and carefully crafted conceptual articles that challenge conventional wisdom concerning all aspects of organizations and their role in society. The journal is open to a variety of perspectives, including those that seek to improve the effectiveness of, as well as those critical of, management and organizations. Each manuscript published in AMR must provide new theoretical insights that can advance our understanding of management and organizations. Most articles include a review of relevant literature as well. AMR is published four times a year with a circulation of 15,000. Publisher Information The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy's central mission is to enhance the profession of management by advancing the scholarship of management and enriching the professional development of its members. The Academy is also committed to shaping the future of management research and education. Founded in 1936, the Academy of Management is the oldest and largest scholarly management association in the world. Today, the Academy is the professional home for more than 18290 members from 103 nations. Membership in the Academy is open to all individuals who find value in belonging. Rights & Usage This item is part of a JSTOR Collection. Want more exclusive business insights like this delivered to your inbox?Subscribe now Employee leasing is an arrangement between a business and a staffing firm, who supplies workers on a project-specific or temporary basis. These employees work for the client business, but the leasing agency pays their salaries and handles all of the HR administration associated with their employment. Employee leasing, although once used to describe professional employer organizations (PEOs), should not be confused with co-employment relationships.  Benefits of leased employeesLeasing employees can sometimes be advantageous if you run a business with seasonal demands, lack the resources to recruit employees on your own or need temporary assistance with special projects. In these situations, a staffing agency may be able to help you:
Leasing employees vs PEO co-employment: What’s the difference?The key difference between employee leasing and co-employment is staffing. An employee leasing agency will provide you with temporary workers, but a PEO doesn’t. In a co-employment arrangement, you supply and manage your own workforce, while the PEO helps you handle HR administration. How employee leasing and co-employment workLeased employees may perform work for you for a specified time, after which they return to their staffing agency for another assignment. Co-employment is different because you maintain the ability to hire and terminate employees and should your PEO partnership end, your workers remain in your employment. Is employee leasing or co-employment the right solution for your business?Ask yourself the following questions if you’re considering working with a staffing agency or a PEO: What PEO services will I need?Consider a complete PEO solution that includes payroll and tax compliance, workers’ compensation, time tracking, recruiting and onboarding, and access to top-rated health and retirement benefits. Learn more about the services you can get from the ADP PEO, TotalSource®. How do I pay for PEO services?Some PEOs bill per employee, while others charge a service percentage. What responsibilities do employers have with a PEO?Although a PEO provides guidance and handles many employment-related duties, you still share liability in certain areas and remain primarily responsible in other areas, including business operations and personnel decisions. What should I look for in a PEO or an employee leasing company?Look for providers with flexible options, years of experience and clients in your specific industry. If you decide that co-employment is right for you, choose a certified PEO, or CPEO, that meets the highest standards and requirements from the IRS. How to find an employee leasing company or a PEO
Leased Employee FAQsSee what other employers are asking about employee leasing: Are temps leased employees?Yes, temps, or temporary workers, are sometimes considered leased employees. Businesses can purchase their services from employee leasing or staffing agencies when they need work done on a contract basis. Who is the employer of a leased employee?Although they perform work for a client business, leased employees are usually employed by a staffing agency, who pays them, administers their benefits and handles other HR tasks related to their employment. How do I report leased employees on a tax return?When you lease employees, you’re typically not responsible for deducting taxes from their wages or paying unemployment tax. The employee leasing agency withholds the necessary payroll taxes and files them with government agencies. When should employee leasing be used?You might consider leasing employees if you need to grow your workforce, but don’t have the time to handle administrative tasks, like payroll and benefits administration. Are leased employees eligible for benefits?Leased employees may be eligible for benefits through the leasing agency that employs them. When you enter into a co-employment arrangement with a PEO, your employees will often have access to modern benefits that are usually only available at larger companies. Health insurance, commuter benefits, perks and discounts, and retirement savings plans are common with some PEOs. How does a PEO impact my role as an employer?When you partner with a PEO, you maintain control of the day-to-day management of your workforce and your business and gain assistance with some of your responsibilities as an employer. These may include:
What are the responsibilities of HRM to ensure that an organization is successful?The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees.
What are the reasons that all employees need to know about and understand HRM?A human resource department is also in charge of keeping employees safe, healthy, and satisfied. With proper HR management, workplace policies keep up with necessary protective measures and implementation and provide solutions to issues between team members, avoiding risk for the company and its employees.
Which of the following is a form of compensation?Compensation refers to any payment given by an employer to an employee during their period of employment. In return, the employee will provide their time, labor, and skills. This compensation can be in the form of a salary, wage, benefits, bonuses, paid leave, pension funds, and stock options, and more.
What is the HR department's function?In simplest terms, the HR (Human Resources) department is a group who is responsible for managing the employee life cycle (i.e., recruiting, hiring, onboarding, training, and firing employees) and administering employee benefits.
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