Cooperate. Collaborate. Co-employ?
The first two terms are often associated with good business and being an employer of choice. You’re probably all too familiar with them. But, what exactly is co-employment? And how does it work? More importantly, is it a good strategy for your company?
The Basics of Co-Employment
When you enter into a co-employment agreement, it means you partner with a professional employer organization, or PEO. This is a multiservice provider that lets you outsource HR functions, such as payroll, tax administration, benefits, workers’ comp insurance and risk management – while still keeping day-to-day control over your business operations.
- A co-employment relationship involves a contractual sharing of employer responsibilities between your company and your PEO. It enables you to continue growing your business while being freed up from many of the time-consuming and worrisome tasks associated with HR administration. For many small to midsized organizations, it can be the perfect solution as you continue to achieve your desired results.
Co-employment means both you and your PEO employ your workforce. You continue to direct their day-to-day activities including hiring and firing, training and providing overall management guidance and vision. Your PEO relieves you of such cumbersome back-office duties as processing payroll, administering taxes, managing benefits, handling workers’ comp and unemployment, and maintaining compliance.
They may be cumbersome, but make no mistake about it: Every one of them is vital to keeping your doors open.
Why Co-Employment Could Work for You
In a co-employment relationship, your PEO shoulders the HR paperwork and administrative burden so you don’t have to. And because this is all they do, they stay up to date on evolving laws, regulations and requirements. If you’ve dipped your toes into this murky pool, you know it can be full-time job in and of itself. Large corporations may have that luxury, but if you don’t, then co-employment may be the way to go.
- With ever-changing state and federal parameters, it’s huge job to keep up with compliance. Co-employment gives you the same resources much larger companies have. Their compliance teams pass their expertise and economies of scale on to their partner employers.
- Entering into a co-employment relationship opens up a whole new world of benefit options for your team members. PEOs have pools of thousands of employees, which they can leverage for better benefits for your workforce. These benefits include not only better health insurance, but also vision, dental and 401(k) plans, commuter perks and more.
In a nutshell, co-employment offers the independence you need to focus on your core business, as well as worry-free compliance, economies of scale, and ready access to peace of mind around your payroll, HR and related issues.
Partner with a PEO Company in Atlanta, GA!
If you’d like to learn more about co-employment and working with a PEO, contact Lyons HR today. Our company has been accredited by the Employer Services Assurance Corporation (ESAC) and certified for Best Practice by the Certification Institute, an independent authority for risk management oversight. We’d love to help you explore your options and determine if a PEO partnership is right for your growing company.