The difference between temporary staffing services and a PEO is the way in which they support their clients. A temporary staffing service provides support with staffing needs on a limited basis, while a PEO provides support on the administrative end of running your HR requirements.
If you’re a small business owner looking for help with your HR functions, NetPEO is here for you. Our PEO brokers can talk with you about your HR outsourcing needs and help connect you with the services that are right for your business. Call us today at (678) 376-1212 to schedule your free initial needs analysis.
What a Temporary Staffing Service Does
Imagine you received a big contract that you needed to complete over the course of six months. With your current staff, it might be practically impossible to meet the client’s order on time.
In this scenario, you may want to contact a temporary staffing service for assistance. You may reach an agreement to have workers come to your worksite to help complete a given project. Whether it’s a week or a year, you have some definite endpoint for your increased level of staffing.
The workers at your worksite are employed by the staffing service, even if their day-to-day tasks are handed out by you. You pay the staffing service a fee for their employees, which they use to pay the workers’ salary. No matter how long they work with your company, they will remain employees of the staffing service. Any issues with performance must be referred to the staffing agency.
What a PEO Does
A professional employer organization (PEO) is a type of business that specializes in providing HR outsourcing solutions to small- and medium-sized businesses. If you run a small business, you may turn to a PEO for help with HR functions that are overwhelming the operation of your company.
A PEO can provide supplementary assistance to your existing HR structure or it may act as a complete, out-of-house HR department for you. Services provided by a PEO included:
- Payroll administration (e.g., wage calculations, paying taxes, issuing checks)
- Benefits (both the paperwork aspect and providing benefits directly to your employees)
- Risk consultancy
- Workers’ compensation claims
- Regulatory compliance
- Employee self-service
A PEO can provide these services after you sign a co-employment agreement. Under this agreement, your employees are functionally employees for both your company and the PEO. Your day-to-day arrangements with your employees are unchanged by the agreement, as your employees are still under your supervision, go to you for wage increases, and are subject to your performance reviews. The PEO becomes the “employer of record” as a legal mechanism to manage your employees’ information for HR purposes.
How a PEO Can Help with Staffing Issues
While a temporary staffing service can help you with short-term workforce needs, a PEO can assist you with all types of staffing needs. As part of their services to you, a PEO can provide you with assistance in recruiting and onboarding new employees.
If you’re in need of a new worker, whether permanently or temporarily, your PEO partner can manage the initial part of the recruitment process. They can put up notices on job boards for the opening and can even conduct screenings for candidates. While the PEO facilitates much of the process on your behalf, you still make the final decision about who works for you.
Working with a PEO Broker to Find the Right PEO
While there are many PEOs, not all of these organizations provide the same services. Some may provide only a limited number of services, and others may offer only full-service options. While your employees may be eligible to receive improved benefits under a co-employment arrangement, you may not be able to customize the benefits they receive with certain PEOs.
If your business could benefit from additional assistance with HR functions but the headache of finding the right PEO seems overwhelming, turn to the PEO brokers at NetPEO. As a PEO brokerage, it’s our job to connect business owners like you with the HR and accounting outsourcing solutions they need. We work with you to understand your business requirements. Our brokers then use this information to compile a list of organizations that can provide you with the services you need at a price point that works for your budget.
Call us today at (678) 376-1212 or fill out the form on the right to get started with the process of finding the right PEO for your business. No matter when you reach out, our brokers will be in touch within 48 hours to begin your free initial needs analysis.