The Co-Employment Business Model

PEO, Professional Employer Organization, Employee Leasing, Co-Employment, Human Resources Outsourcing …. As a business owner or human resources professional, you’ve likely stumbled upon these terms. But, what exactly is a PEO? What does the co-employment relationship entail?

A PEO (Professional Employer Organization) is an organization that offers a cost-effective and comprehensive approach to helping you manage your company’s human resources. Unlike a standalone payroll company, or benefits company, that assists with one single component of HR, a PEO offers a full suite of HR-related services including but not limited to employment administration, recruiting, hiring and firing, workers’ compensation, employee benefits, payroll, compliance, best practices, employee training, and performance management.

PEOs permit business owners to focus on their core competencies, while leaving HR and employee management to the experts! Co-employment refers to the separation of human resources, employee management and liabilities that occur when you work with a PEO.

In the co-employment business model, your employees work for both you and the PEO. Business and day to day activities go about as usual, but the PEO assumes all administrative functions, and more importantly, shares many of the liabilities associated with your business and employees.

PEOs save businesses time and money! To learn more about PEOs and the co-employment business model, contact us today.