Co-employment is a business relationship used by PEOs (professional employer organizations) like Einstein HR. Essentially, the relationship means that the PEO is listed as another employer of the client companyâ€™s employees, allowing that PEO to handle sensitive information like payroll and employee benefits. By using the co-employment model, PEOs can help save client companies money by cutting back on unnecessary expenses, providing better human resources and accounting services, lowering a companyâ€™s risk profile, and increasing a companyâ€™s profit margin.
Given all of that information, it should come as no surprise that PEOs work with approximately 15% of all companies with between five and 99 employees and that the HR outsourcing industry is growing at a faster rate than the overall US economy, according to data from the National Association of Professional Employer Organizations (NAPEO). By working with a PEO and signing a co-employment agreement, you can learn just why so many business owners around the country have taken up this business model.
PEOs Can Help Lower Expenses
When you think of saving money, the first thought that comes to mind is lowering unnecessary costs. In this primary money-saving method, PEOs excel. The cost of hiring a PEO like Einstein HR is often much lower than providing salaries for a permanent human resources and accounting staff. That is money saved automatically! Beyond that, a PEO can lower costs in several other key ways.
Employee Benefits Packages
High-quality employee benefits packages are important for attracting the top talent in your worker pool, but they often come at prices far too expensive for new and small business owners. By partnering with a PEO through co-employment, this problem is solved. A PEO can count as its employees all of the employees in its partner businesses, giving organizations like Einstein HR better bargaining power for top-tier benefits packages and allowing them to spread the cost of those benefits across a larger pool of employees. The result is that your employees can receive better benefits at a fraction of the cost.
Cutting Back on Employee Turnover
One of the most common, and often the most crippling, expenditures is the cost of employee turnovers. Not only is all of that training time wasted, but you and your company have spend more money recruiting and training new members of your team. Fortunately, PEOs can have a positive effect in this area as well. The NAPEO has found that companies that use PEOs have between 10% and 14% lower rates of employee turnover than companies that do not.
PEOs Can Lower Risk
PEOs also can help companies by preventing future unnecessary expenses. By drafting anti-harassment policies, building a positive company culture of mutual respect and safety, and preventing workersâ€™ compensation claims, PEOs can help companies avoid costly lawsuits or safety mishaps. Also, PEOs like Einstein HR often have experts in the field of compliance and are able to help companies stay informed and compliant with all local and federal labor regulations to avoid future fines.
Lowering a companyâ€™s risk profile is vitally important. Businesses that are seen as too risky are often avoided by other companies, preventing the possibility of mutually profitable relationships. It is also common for risky companies to turn off consumers and leak employees with high turnover rates. With a PEO at your side, you can work toward the lowest possible risk in your industry.
Place Your Trust In Einstein HR
Einstein HR has worked with companies of all sizes, from companies with as few as five employees all the way up to companies with 500 workers. We have decades of combined experience handling all human resources and accounting services, and we were founded by industry veterans at the top of their game. In fact, Einstein HR was recently recognized with a spot on the Inc. 5000 list of fastest growing companies in the United States! When you work with us, you work with a company that is dedicated to providing high-quality HR and accounting services and to exceeding customer expectations.
Your company can save money by working with Einstein HR regardless of the industry in which you work. For example, Einstein HR has helped companies in wide-ranging industries such as:
- Real Estate
- Health Care
Start Your Co-Employment Process Today
Does the idea of saving money sound good to you as a business owner? Start thinking about signing a co-employment agreement with Einstein HR. To start the process, simply call us today at 770-962-1700 or fill out the form on our contact page. We will respond to you within 48 hours, and you can start counting the ways youâ€™ll save.