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Will A PEO Handle Hiring And Firing For The Company?

Will A PEO Handle Hiring And Firing For The Company?


Many companies, especially smaller businesses, can struggle to provide HR services on par with larger corporations. One solution for this issue is to sign a co-employment agreement with a PEO, or professional employer organization. There are many services that a PEO can provide for a client company — including HR administration services like recruitment, assistance with the hiring process, handling of termination or firing notices, and more.

At Einstein HR, we have more than five decades of combined experience in the HR outsourcing and PEO industry. We can provide your business with PEO solutions for all of your HR needs.

Using a PEO to Tackle Your HR Needs

PEOs do more than just hire and fire employees. There are many services that they can provide client companies, including:

  • Payroll management
  • Employee benefits administration
  • Handling of Workers’ Compensation claims
  • Drug screening
  • Criminal background checks

This is just the tip of the proverbial iceberg as far as PEO services are concerned. The HR experts at a PEO are also able to help business owners ensure that all of their business practices are in compliance with federal and state regulations, like the Affordable Care Act.

During the hiring process, PEOs like Einstein HR can help with many aspects of recruitment and onboarding. Among our numerous human resources administration services are:

  • Development of employee handbooks and manuals
  • Handling of W-4 and I-9 tax forms
  • Administration of pre-employment physicals
  • Provision of employee references

All of these services help the hiring process go much more smoothly and efficiently, resulting in fewer headaches for business owners and happier, well-oriented employees. We also administer warning notices to employees, if appropriate, before handling firing or termination matters. The goal is to provide quality services in a timely manner, thus making both the hiring and firing processes easier on everyone involved.

PEOs and the Co-Employment Relationship

Unlike simply using an HR outsourcing company, employing the services of a PEO involves a special business arrangement known as the co-employment relationship. When you sign a co-employment agreement, the PEO becomes an employer of record to your employees.

This may worry some business owners who are uneasy about potentially losing control over their business and/or employees, but this fear is ungrounded. Being a co-employer simply means that the PEO has the authority to provide in-depth services to your employees and can include them in their own employee pool. In turn, this gives the PEO more bargaining power for securing important services like employee benefit packages, and makes them able to offer top-tier benefits at affordable prices.

The Executive

As the Executive in the co-employment relationship, the business owner retains control over their company and employees. They are also able to have the final say in all matters concerning their business and can dictate the services they wish for the PEO to provide.


In a co-employment relationship, the PEO answers to the Executive. Being a co-employer means that it can provide services to the Executive’s employees, such as handling payroll information or providing and managing benefits. Importantly, the primary employer is the Executive, and employees are still employees of the business owner during the co-employment relationship and after it ends.

The Benefits of Using a PEO

Different companies require different services, which means that every company hires a PEO for different reasons. However, there are some common benefits that make using a PEO worthwhile.

Monetary Savings

The cost of using a PEO can vary depending on several factors, but it is usually cheaper to hire a PEO than it is to employ your own full-time, in-house HR and accounting staff. PEOs are typically paid either as a percentage of the company’s overall payroll or on a per-employee, per-year basis, depending on which model works for the client company.

Increased Freedom

When you team up with a PEO like Einstein HR, you no longer have to dedicate as much time to matters like recruitment, termination procedures, payroll management, securing and providing employee benefits packages, and other HR matters. Instead, you have the freedom to focus on the things that help your business grow and flourish.

Employee Retention

According to data from the National Association of Professional Employer Organizations, a PEO’s increased efficiency, more in-depth HR services, and better employee benefits packages lead to lower employee turnover rates. Having happier employees who stay with your company longer can save you significant money on constant new hire services.

Use Einstein HR for All of Your PEO Needs

At Einstein HR, we have more than fifty years of combined industry experience. We have worked with companies with as few as five employees and larger businesses with more than 500 employees. We have worked with companies in many different industries, such as:

  • Retail
  • Legal
  • Aerospace
  • Manufacturing
  • Finance

No matter what your business looks like, Einstein HR can be your PEO. Fill out the form to the right of this page or contact us to start the process today. We offer a FREE quote on our services.

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