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What is Co-Employment?

How does it Work?

When you decided to go into business for yourself, you most likely imagined being successful doing what you love. What you probably didn't imagine is having to handle payroll, benefits, HR issues, and risk management. Many business owners who prefer not to handle these things are turning to co-employment or PEO companies for relief. Why? Because PEO companies take these responsibilities off a business owner’s plate so the business owner can focus on organizational success. Essentially, co-employment solutions will help you keep your business competitive, profitable, and in business.

Today’s Co-Employment Arrangements Offer more than ever

Many business owners believe that co-employment is simply outsourcing your HR department or payroll department. Many also believe that this relationship limits their ability to retain control or make important business decisions quickly. Neither scenario is actually the case. In all actuality, businesses retain complete control over their employees, and their companies, while improving their ability to execute quickly as they grow and expand into other markets.

Furthermore, most small or medium-sized businesses probably don’t have the luxury of “departments” to handle important human resource functions. Again, one of the primary reasons why so many of these companies turn to co-employment. Today’s PEO companies are different from employee leasing companies of the past because they offer a wider variety of services to clients, and the services offered are far more advanced. They are typically only able to do this because of the co-employment relationship that exists. Through this unique partnership, PEO organizations can better support small and medium-sized organizations to provide affordable benefits, attract and retain the most talented employees, and have access to state of the art technology platforms they could not get from employee leasing companies in the past, including:

  • A broad range of employer-sponsored health and other insurance benefits

  • Dynamic payroll solutions including online employee self-service

  • Complete risk management support, training, and resources

  • Unemployment claims management

  • Employee training and development

  • Employee discount programs

  • And much, much more

Is PEO Right for My Company?

The PEO model is an extremely popular choice for owners of small and medium-sized businesses who want to focus more time on their key business initiatives and less on administrative and compliance-related tasks.  If you think a PEO partnership might be right for your business, you can review: 


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