If there is one major worry that business owners have about the co-employment relationship, it is that the agreement will somehow strip them of certain rights and privileges they have as owners of their company. For example, some owners worry that the nature of their company’s payroll checks will change. Far from the fear of losing status as the primary employer responsible for paying employees, owners can sleep easy knowing that the most common change to their company’s payroll is that they pay less overall by hiring a PEO (professional employer organization) than by having an in-house accounting and HR staff.
NetPEO works with client business owners to match you with PEOs in our nationwide network. We offer an initial consultation to develop a profile of your company, which helps us to find in-network solutions to your specific business problems. Once you have chosen a PEO to work with, we stay with you and help to ensure your satisfaction for as long as you choose to be in a co-employment relationship with one of our partner PEOs.
Reasons to Enter Into a Co-Employment Relationship
Every business owner will have different reasons for deciding to bring a PEO in to help them with their business. However, four primary reasons often come up in the discussion.
The most straightforward, obvious reason to sign a co-employment agreement with a PEO is that it just makes good business sense. A PEO often costs less than the total payroll costs of having your own in-house, full-time accounting and human resources staff. Plus, PEOs are flexible in regards to payment type, with two systems being the norm:
- Payment as a percentage of overall payroll
- Payment on a per-employee, per-month basis
Depending on an employer’s business structure and budgetary concerns, either method of payment can be preferable.
Providing Better Benefits
One of the key factors in attracting top-tier candidates to your business is to provide a good package of employee benefits. However, this can prove quite costly to employers, and especially to small or new business owners on a restricted budget. By entering into a co-employment arrangement, the PEO becomes a co-employer of your employees and can add them to their total employee pool (along with the employees of all the other businesses with which they have entered into a co-employment arrangement).
This much larger employee pool gives the PEO the ability to provide higher quality employee benefits at a lower overall cost, since the total cost is spread across the entire pool of employees.
According to information collected by the National Association of Professional Employer Organizations, companies who align with PEOs have up to 14% lower employee turnover than those who do not. This suggests that working with a PEO produces happier employees and can reduce the high cost associated with replacing workers who leave the company.
Getting Help from Experts
NetPEO’s nationwide network of professional employer organizations has more than two centuries of combined experience in the human resources and accounting industries. This highlights another important reason that many companies choose to enter into a co-employment relationship with a PEO.
By hiring a PEO, you can ensure that you are working with industry veterans dedicated to producing quality services. HR and accounting industries are areas in which it is vitally important to have access to professionals and experienced experts. Why? Because your livelihood can be affected by violating important labor laws like the Fair Labor Standards Act. PEOs have experience in keeping businesses compliant with local and federal statutes so that employers can avoid costly lawsuits and astronomical fines.
Saving Time and Energy
No small business owner can be expected to manage their employees, provide services to customers, make important business connections, handle payroll, draft corporate policy, develop a company culture, and keep all compliance issues in mind at all times. For some unlucky business owners, trying to juggle all of those factors can result in losing sight of the overall growth of the business.
Instead, allowing NetPEO to find the perfect PEO for your needs can mean that you have time to focus on what truly matters for your company.
Start the Co-Employment Process Today
Signing a co-employment agreement with a PEO has incredible benefits for business of all sizes, but it is especially important for smaller companies with between five and 100 employees. Even better, there is no risk in signing a co-employment agreement. Regardless of the size of your business, NetPEO can help you connect with a PEO that will meet your exact needs.
The process begins with a consultation to discuss your company’s needs and build a profile. Then, we find a few PEOs in our network that can help and you are able to select the one that you would like to work with.
After the co-employment arrangement is signed, many PEO brokerage services would consider the job done—but not NetPEO. We stay connected with you throughout the duration of your co-employment relationship, checking up to gauge your satisfaction, prevent problems, and fix any issues as soon as they arise. This dedication to our clients has produced industry-leading 100% client satisfaction and 95% client retention rates.