Rent-An-Employee

DEFINITION of 'Rent-An-Employee'

A business strategy where a company will hire fake employees to make a business look busy. Rented employees are sometimes used when a big client is coming into the office and the company does not want to give the impression that the business is doing poorly. They wish to instill confidence in the client and the impression that many other clients have also chosen them for their services.

BREAKING DOWN 'Rent-An-Employee'

The rent-an-employee tactic can typically be used after major layoffs that have left the office looking deserted. Similarly, retailing companies also use the rent-a-crowd tactic to create a buzz or interest in their store.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Rent-A-Crowd

    A group of people rented to make a business appear busy. Rent-a-crowds ...
  3. Financial Risk

    The possibility that shareholders will lose money when they invest ...
  4. Operational Risk

    A form of risk that summarizes the risks a company or firm undertakes ...
  5. Business Risk

    The possibility that a company will have lower than anticipated ...
  6. Capital Allocation

    A process of how businesses divide their financial resources ...
Related Articles
  1. Active Trading

    Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  2. Retirement

    Consumer Confidence: A Killer Statistic

    The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.
  3. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  4. Options & Futures

    Business Owners: Avoid Enron-esque Retirement Plans

    If your business administers a retirement plan, you should recognize what's at stake.
  5. Savings

    Employee Wellness Perk: For Your Financial Health

    A growing number of employers offer free financial wellness programs that supply tools to help employees handle money issues and build a strong future.
  6. Your Practice

    How Boomer Advisors Can Groom Successors

    Boomer business owners need to start thinking about an exit strategy if they haven't yet done so. Here are some tips on grooming successors.
  7. 4 Best Podcasts for Business Leaders

    With less time on our hands than ever, it's important we learn from the tried and true and take advantage of these informative and motivational podcasts.
  8. Economics

    What Sources Of Funding Are Available To Companies?

    Despite all the differences that exist between companies, there are only a few sources of funds that are available to all firms.
  9. Economics

    Understanding Sticky Wage Theory

    The sticky wage theory states that workers’ earnings respond slowly to changes in the performance of the company or the economy.
  10. Economics

    How Can Companies Increase Market Share?

    Companies that increase their market share enjoy a competitive advantage. They receive better prices from suppliers, and they’re able to produce goods faster.
RELATED FAQS
  1. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
  2. Do flexible spending accounts (FSA) funds roll over?

    Learn more about how flexible spending accounts (FSAs) are established, policies on rolling over funds, and what costs can ... Read Answer >>
  3. Is a financial advisor allowed to pay a referral fee?

    Understand how financial advisors can legally pay a referral fee to someone for soliciting business, and learn the regulations ... Read Answer >>
  4. How has Google's operations strayed from its original mission statement?

    Learn about Google's current mission statement and decide if Google is practicing what it preaches. Read Answer >>
  5. How does a long tail become profitable?

    Understand what the long tail concept is and who pioneered it. Learn how a company using a long tail strategy becomes profitable. Read Answer >>
  6. What protections are in place for a whistleblower?

    Read about the possible protections offered to American whistleblowers who report on the illegal activities of their employers ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center