Last Updated on August 16, 2023 by asifa
What is co-employment? If you are the owner of a struggling small or medium business, you may have wondered this once or twice.
In short, co-employment is an agreement that is made between two companies. In this contractural relationship, a business will partner with a professional employee organization (PEO) to share specific employee responsibilities, such as payroll, hiring, and more.
In most instances, this arrangement is a great idea for small or medium businesses that don’t quite have the budget or resources to meet the needs of their employees. While there are co-employment pros and cons, for the right business, this arrangement can be a major component to growth and increased revenue.
If you are a small business owner and are struggling with keeping up with the demands of having employees, these are the benefits a PEO provides.
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Better Benefits for Your Employees
One benefit you can experience is better benefits for your employees. PEOs typically offer a variety of benefits, such as medical and dental, health care flexible spending accounts, retirement plans, educational assistance, and more. This can boost employee morale and employee retention.
Simplified Payroll
Another benefit of a PEO is simplified payroll. By working with a PEO, you are outsourcing your payroll to a team of experts. If you are wondering how to simplify your payroll process, click for more information.
Access to Resources
Are you struggling with a lack of resources in your business? Then working with a PEO might help.
After entering the agreement, you will have access to marketing services, accounting experts, branding professionals, and more. This can help you scale your business and increase your revenue.
Recruiting Assistance
One of the many benefits of a co-employment agreement is recruiting assistance. Finding talented employees to work for your business can be a struggle if you are not a well-known brand. By partnering with a PEO, you will have the tools, resources, and help you need to make recruiting a simple process.
HR Support
Is your HR department overwhelmed? Depending on the size of your business, your HR department might be an afterthought in your business.
This can lead to serious problems, such as falling out of compliance, fines, lawsuits, settlements, and more. By working with a PEO, you can have added support for your HR department.
Reduced Costs
Ultimately, partnering with a PEO can help you cut costs in your business. You can save time with certain demands and you can save money by cutting labor costs. This results in a win for your business, one that can contribute to your overall success.
These Are the Benefits of a Co-Employment Agreement
By entering a co-employment agreement, you can experience a variety of benefits for your business.
Your employees will have access to better benefits and you will have access to better resources. You can also experience a simplified payroll process, recruiting assistance, and HR support. If you want to reduce costs in your business and make sure you are fully compliant, consider working with a PEO.
These are the benefits you can expect by entering into a co-employment agreement.
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