Co-employment is a relationship between a professional employer organization (PEO) and a business to split the benefits and responsibilities of being employers. It allows businesses to compliantly hire full-time employees in countries where they don’t have a presence.
IT’S A BAD BUSINESS MOVE
Contrary to popular belief, co-employment brings more benefits to employers and employees than risks and liabilities. As long as you have a concrete agreement with your co-employment partner when it comes to roles, compliances, and decision-making, you can ensure an effective operational arrangement.
IT’S NOT FOR SMALL COMPANIES
A company is never too small for a co-employment partnership. In fact, PEOs are made to work with small to medium-sized businesses. Companies with a small employee count can get less administrative burden, better compensation rates, lower health insurance premiums, cheaper benefit plans, and more PTOs.
IT’S TOO EXPENSIVE
Another myth about co-employment is that small businesses can’t afford to pay an agency to do their back-office work. In reality, co-employment allows SMBs to save more time and money in the long run, with less expensive benefits packages through their pooled purchasing power.
IT COMES WITH COMPLIANCE RISKS
Opposite to the misconception, working with a co-employment partner can actually help you with risk management and reduce employer liability. They can even assist you in handling compliance regulations, worker’s compensation claims, company policies, safety protocols, and more.
IT’S ANOTHER TERM FOR EMPLOYEE LEASING
Co-employment is different from employee leasing. Unlike employee leasing, co-employment allows business owners to call the shots when it comes to hiring or firing employees. The PEO’s job is to handle the back-office work such as HR administrative tasks, employment taxes, regulatory compliances, and labor laws.
