How to Explain Co-Employment (And the PEO Solution) to Your Employees

image of man presenting to group of people. He is pointing to a board with a graph image on it of the employers resource model

You might find that it’s difficult to explain the co-employment relationship with a PEO company to your current employees. Sometimes the word co-employment can induce some inaccurate thoughts and ideas in one’s mind. Not to worry, this article will help you explain co-employment and the PEO solution to your employees so they can understand the value you see in it yourself.

It’s one thing if you understand the value of co-employment for your business. It’s another to ensure that your employees understand the model and the value it offers them.

Communicating the advantages it offers them is very important, so we’d like to help by giving you some basic talking points. A PEO offers your employees better benefits, timely and accurate paychecks, professional HR support, security, and access to technology and programs that are typically not available to employees of small companies. It’s important your employees are not confused about the reason for your PEO partnership.

Communicating Your PEO Partnership to Your Employees

First, help your employees understand why you’ve chosen to partner with a PEO (Professional Employer Organization). Explain that the PEO will help remove distractions that keep everyone from doing their jobs to the best of their abilities.

We do this in four main areas:

  1. Payroll & Taxes
  2. HR & Compliance
  3. Employee Benefits
  4. Workers Comp & Safety

Directly Benefiting the Lives of Your Employees

The language that will speak mountains to your employees is how this partnership will specifically improve their lives. When a small business shares co-employment with a PEO, employees gain access to Fortune 500-type benefits like:

  • 401(k) plans
  • health, dental, life, and other insurance
  • dependent care
  • and more.

For more information on the PEO solution, check out our Employer Resources page and download this guide:

Let’s get into the part that employees usually have the most difficult time understanding, the co-employment model.

What Is Co-Employment?The Co-Employment Model - Employers Resource

Employers Resource uses a co-employment model to help explain our relationship with you and your employees. You can take a look right here:

Co-employment is sometimes called joint employment or employee leasing. But it’s not what you (or your employees) are thinking. In our co-employment model, you still have total control over your employees’ daily tasks and priorities.

Your employees can rest assured that we would not take over any recruiting, hiring, management, disciplinary action, or terminating. That’s all still controlled by you, the employer.

You can tell your employees that the PEO simply handles the administrative functions and liabilities that come with having employees.

If you have a dedicated HR team, you can tell them we will take these tasks off their plates so they can focus on more strategic initiatives like recruiting, hiring, and employee engagement.

The PEO takes care of:

  • Benefits Administration
  • Workers’ Compensation
  • Human Resources Administrative Tasks
  • Payroll and Tax Administration
  • Etc.

So you and your employees have time to:

  • Manage the Core Business
  • Build Your Company Culture
  • Select Staff
  • Manage Day-to-Day Employee Performance
  • Focus on Strategic Initiatives

The PEO takes care of the boring administrative work that you and your employees don’t need or want to worry about so you can work on your business, and your people can do what they do best: their jobs. To learn more about the PEO solution and co-employment, download our free ebook here: What Is a PEO?

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *