At NetPEO, we operate as a PEO (or Professional Employer Organization) brokerage service to connect companies in need with human resources outsourcing options through our nationwide network of partner PEOs. When working with a PEO, business owners sign a co-employment agreement with that PEO in order to allow the PEO to perform services like payroll management and the provision and administration of employee benefits packages.
Co-employment may be difficult to understand, and it may sound scary to business owners, but it is important to note that the agreement does not mean that business owners lose control of their business. It also does not mean that the owner no longer employs their employees. The arrangement is merely a legal way for the PEO to assume liability and responsibility for its employee-based services, and it can have several benefits.
Understanding the Co-Employment Arrangement
When business owners enter into a co-employment arrangement with a PEO, they are designated as the Executive, or worksite employer. Each co-employment agreement will spell out the duties and responsibilities of the PEO and the Executive, but business owners always get the final say before signing the agreement.
The Role of the Executive or Worksite Employer
Simply put, the role of the business owner and their relationship to their employees do not change. The business owner, or “Executive,” retains full control over the direction of their company, still remains the primary employer of their workers, has final say over hiring and firing decisions, and can terminate the co-employment arrangement at-will.
The Role of the PEO
Once a co-employment agreement is signed, the PEO becomes a co-employer of a company’s workers. This enables the PEO to handle sensitive employee information and provide services legally. It also means that the PEO assumes some liability for the services they render, further taking a weight off of the shoulders of business owners. The role of the PEO is to provide the services spelled out in the co-employment arrangement.
While it is often useful to outsource a company’s entire human resources and accounting department, NetPEO offers client business owners the option to choose specific services on an a la carte basis. This means that no business owner has to pay for services they will not use or do not need.
Services Provided By PEOs
Once a PEO has signed a co-employment arrangement with a willing business owner, the professionals employed by the PEO can begin to render important services. These span the gamut of HR and accounting needs and can take pressure off of the business owner by dealing with tiresome paperwork and ultimately control costs.
Payroll Management
A PEO can handle payroll management for your company. This can include issues like the withholding of alimony or child support, the provision of online employee self-service portals, detailed accounting and budgeting reports, and more.
Employee Benefits
By becoming a co-employer with every business it serves, a PEO has a total employee pool that is much larger than that of any one client business. The result of this is that it has increased negotiating power to procure high-level employee benefits packages and can spread the cost of these top-tier benefits across a larger number of employees. Thus, a co-employment relationship can lead to better employee benefits at a lower individual cost.
Other Employee-Related Services
PEOs can help employers with many HR services related to the administration, management, and recruitment of employees. Some of these services include:
- Providing a more efficient recruitment process
- Developing onboarding procedures
- Creating employee handbooks
- Creating harassment policies
- Training the administration
Risk Reduction
Handling a company’s risk profile is a top priority for a PEO. Some of NetPEO’s partner PEOs are experts at ensuring compliance with local and federal laws like the Affordable Care Act. Other services that can reduce risk include the development of safety protocols and dealing with a company’s Workers’ Compensation policies.
NetPEO: A PEO Broker You Can Trust
It is understandable that some business owners may be worried about signing a co-employment agreement. Though there is no increased risk and the owner does not lose control of their business, the name sounds a bit scary. For that reason, it is important to find a PEO that you can trust.
At NetPEO, we have a nationwide network of trustworthy PEOs with more than 200 years of combined industry experience. When you work with us, we create a profile of your company’s needs and match that profile to several PEOs in our network — essentially doing the PEO-shopping for you. We bring you the candidate PEOs from which you choose the one that best matches your vision for your company, but our involvement does not end there.
What sets NetPEO apart from others in the PEO brokerage industry is our dedication to customer care. We regularly check in with client business owners to ensure that they are satisfied with the services they receive. If there are any issues, we can use our extensive experience to solve those problems immediately. For this reason, we have a staggering, industry-leading client retention rate of 95% and 100% of our clients say that they are either satisfied or extremely satisfied with the services we provide.
Start Looking for a PEO Today
The National Association of Professional Employer Organizations released data that shows that PEOs work with 15% of businesses with between 10 and 99 employees, and the industry is growing rapidly. If you are a small or mid-sized business owner who wants to see why more than 175,000 of your peers have begun switching to a co-employment model with a PEO, get in touch with us today.
To start finding the PEO for your needs, call NetPEO at (678) 376-1212 or fill out the form on our contact page. One of our representatives will be in touch with you shortly to schedule a FREE initial consultation about your company’s requirements. Let us pair you with the perfect PEO today!
