One of the stressful issues that comes with running a business is the management of risk. Companies are at risk in areas like compliance with local and federal workplace regulations, appropriate tax reporting, handling of employee administration matters, investments, and more.
By working with a Professional Employer Organization (PEO), business owners can help lower their overall risk by allowing skilled and experienced professionals to handle these issues. At NetPEO, we work to pair clients with PEOs that fit their specific needs.
PEO Services That Lower Overall Risk
Every PEO is different, but most offer a wide array of services. Many or all of those services can work to lower the risk profile of that company. NetPEO has a nationwide network of these organizations, offering clients a huge selection from which to choose. Services and solutions that these PEOs perform include:
- Employer Liability Management: helping to bring your company into compliance with applicable regulations, such as the Affordable Care Act.
- Risk Consultancy: providing strategies for lowering workers’ compensation claims and safety issues.
- Employee Administration: developing workplace standards and handbooks, including harassment policies.
Of course, PEOs also provide general services in the areas of accounting and employee management. Though these may not be directly related to risk reduction, having dedicated professionals handle these services can help to lower instances of non-compliance and paperwork errors.
Other services that PEOs offer include recruitment strategies, handling of payroll, performance management assistance, and even the provision of high-level employee benefits packages. When you contact NetPEO, we assess the needs of your business and pair you with several different PEOs from our nationwide network. This way, you get to choose which PEO to work with from a list that matches precisely what you’re looking for.
Reducing Risk Through Co-Employment
Another way that PEOs can reduce risk is by engaging in the co-employment relationship. There are some misconceptions about co-employment, but in general it does not elevate the risk of the client business.
Co-employment is merely a business relationship between a PEO and a client company. The PEO legally becomes a fellow employer of the client company’s employees in order to administer the services that are required. For instance, the PEO is able to provide those employees with benefits packages, since the employees are now technically employed by the PEO.
This arrangement provides many benefits. For instance, since PEOs work with numerous businesses and therefore have many more employees under their limited authority, they are able to offer benefits packages that normally would be out of the price range of many smaller companies. They can spread the cost of these benefits due to their wider employee pool.
It is important to note that the client business owner does not lose agency over their business. They are still in charge of their employs and of the direction of the company. Co-employment simply allows the PEO to provide services normally reserved for employers.
How Co-Employment Works to Reduce Risk
Though the co-employment relationship usually is not considered a risk reduction method, it can have that effect on a client business. Simply put, making the PEO a co-employer helps to spread some of the risk onto the PEO. Since the PEO is an employer of the client business’ employees, it behooves the PEO to ensure that all services are in compliance with regulations and risk is reduced.
Similarly, your liability as the owner of the client business is reduced by working with a PEO in a co-employment relationship. PEOs consist of specialists in human resources, accounting, workers’ compensation claims, and more, which means that you can rest assured that your company’s needs are being managed by experts.
Lower Your Risk With NetPEO Today
The process for finding a PEO is simple with NetPEO. As a first step, we discuss the specific needs of your business to come up with a profile of your company. By using this profile as a template, we match your business with several PEOs that can provide the services you require. As the business owner, you have the final say in selecting the PEO that is right for you.
However, the involvement of NetPEO does not end there. Unlike some other PEO brokerage services, we stay with you throughout the duration of your co-employment relationship. By regularly checking in on a company owner’s satisfaction, we can ensure that any problems are quickly dealt with. This has led to our industry-leading 95% client retention rate and 100% satisfaction rate.
To start your search for the perfect PEO to reduce your company’s risk profile, fill out the form on our contact page or call us today at (678) 376-1212. One of our representatives will be in touch with you as soon as possible.