Employees are your greatest asset, but managing human resources and other employment-related tasks internally can be frustrating, and cost your company too much time and money. Employee leasing solutions enable clients to responsibly and cost-effectively offload HR-related tasks including employee administration, workplace safety, compliance, unemployment and workers compensation claims, risk management, benefits, payroll, payroll tax compliance and more.
How Does an Employee Leasing Arrangement Work?
Employee leasing services is a term often used to describe PEO services, but PEO (Professional Employer Organization) services more accurately describe this unique co-employment relationship. Through this co-employment arrangement, the client and the employee leasing service or PEO contractually share employer responsibilities and liabilities. PEO clients are enabled to focus on their core competencies to maintain and grow their bottom line, while the PEO concentrates on what they do best: Adminstration of Human Resouces, Payroll Services, Workers’ Compensation Insurance and Employee Benefits!
Once engaged in an employee leasing or co-employment contract, the PEO co-employs the client’s worksite employees. Moving forward, both the PEO and the client have an employment relationship with all employees. Although employer responsibilities are shared between the two organizations, the PEO assumes much of the liability and management surrounding employment. Employee leasing solutions often provide employees with complete human resource and benefits packages.
What Types of Companies Take Advantage of Employee Leasing?
Businesses within every industry can find value in an employee leasing or PEO relationship. Although the average PEO client has about 19 employees (according to NAPEO.org), larger businesses also find value in outsourcing HR management and employment-related tasks.
Even companies with existing HR departments have become engaged in an employee leasing or PEO service because of the HR technologies and additional resources offered through the co-employment relationship.
Whether a company consists of 15 employees, or 500, each has their own specific list of HR and employment needs that an employee leasing service or PEO can assist with. With over 800 PEOs operating within the United States, locating the perfect fit can be difficult; but the perfect fit with an entirely customized solution specific to your needs is attainable through the help of a PEO broker.
What are the Advantages of Employee Leasing?
- PEO and Employee Leasing Clients Save Money
- Improved Productivity and Profitability
- Better Communication
- Better Benefits Packages for your Employees
- Expert Help with Risk Management and Compliance
- Reduced Liability
- Access to Specialized Technology
- Streamlined Payroll and Claims Processing
- Attract and Retain Top Employees
- Improved Job Satisfaction for Your Employees
- More Time to Focus on Growth with Employee Leasing
- Relief from the Burden of HR, and much, much, more!