Co-employment is a contractual agreement in which a business and a professional employer organization (PEO) share certain employment responsibilities.
- The keyword in the above statement is “share.” Despite some misconceptions, co-employment does not mean you cede ownership or lose control of your company. You not only continue to manage your employees and day-to-day operations, but you also actually gain valuable time to focus on strategic planning, growth initiatives, and top-level customer service. In other words, you’re still in charge – but freed up from cumbersome yet critical HR tasks.
Putting the “Co” in Co-Employment
As your business grows, your HR demands can pile up quickly. Your PEO augments your current HR and management team with specialized experts to help you fine-tune and economize talent management. The specific details of your PEO partnership are outlined in a contract typically called a client service agreement (CSA). Both parties maintain real working relationships with employees.
A Closer Look at the Benefits of a PEO Partnership
A PEO provides integrated services to effectively manage critical HR responsibilities and employer risks for your company. While each of you is an employer, neither party is the employer for all purposes. For an increasing number of small to mid-sized businesses, this amounts to the perfect win-win solution.
If you have an in-house HR team, your PEO will work hand in hand with them, not only helping you and your employees but lightening their loads as well. Consider these benefits:
- Your PEO provides your employees with Fortune 500 level benefits. As a co-employer, your PEO does this through its own sponsored benefits plan. This means you can afford to offer medical, dental, and vision coverage, flexible spending accounts, 401(k) and retirement plans, educational assistance, and more to candidates and employees. This is key to staying competitive in today’s talent marketplace.
- Working with a PEO reduces your payroll and related accounting costs. This can include automating payroll, as well as handling withholdings, garnishments, W-2s, and other related tasks.
- PEO experts ensure that you stay 100 percent compliant. Employment laws are complicated and constantly changing. Keeping up with them can be a full-time job in itself – and if you drop the ball, the costs to your company can be devastating. Your PEO provides the needed guidance and expertise so you avoid any compliance shortfalls.
- You gain added bandwidth for successful recruiting. Sourcing and recruiting talent moves at lightning speed. As quickly as a position opens up, you need to quickly find the right candidate and fill it. Bringing the wrong person on board can be a costly error, but giving each hire the due diligence it needs can be overwhelming. Your PEO provides experienced recruiters who know, understand, and can meet your company’s unique staffing needs.
Ready to Unlock Success For Your Business? Key HR Can Help!
Orlando-based Key HR is aligned with top PEOs and other preferred provider companies to offer your business new and innovative payroll, benefits, insurance, and other talent management solutions. Our core team includes specialists in every aspect of HR, as we serve companies from start-ups to fully mature businesses. Read our related posts or contact us today to learn more.
- Posted by Blog21
- On July 7, 2021
- 0 Comment