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What are Employee Management Services?

What are Employee Management Services?


Employee management services are HR outsourcing companies that offer a higher level of protection, service and strategic help than most HR firms.

When you contract with these organizations, they focus on taking all aspects of HR and administrative work off your plate, allowing you to focus on growing your business. This allows a business owner or leadership team to put more of their own time and resources into their vision for the company, and rest easy that the company is in compliance with all HR laws.

In many cases, it also allows the business to save substantial money, both on direct HR costs like health insurance and indirect costs by reducing risk.

Unlike other human resources outsourcing firms, employee management services will focus on improving employee performance and employee/employer relations. This can both boost productivity and reduce turnover, improving your bottom line.

How do employee management services work?

Most employee management services will operate as a PEO, or professional employer organization. As a PEO, they will enter into a legal relationship with you where they technically “co-employ” your workers as their own employees. In fact, on paper the PEO will become your workers’ employer of record. This comes with major benefits:

  • The PEO can now handle all legal responsibilities relating to your employees for you, such as employment taxes
  • The PEO has the authority to represent you in disputes and claims, such as unemployment cases
  • Most importantly, since the PEO also “employs” workers from dozens of other companies, your business now counts as a much larger entity for the purposes of insurance prices.

This last benefit is perhaps the most important for many small to medium sized businesses. Now, when seeking prices for employee health insurance (or other types of insurance), you could count as a company 10 times your size or bigger—giving you access to massive discounts.

The co-employment relationship does not affect your control over your employees. You remain the executive in all matters.

How does an employee management service improve performance?

It depends on the arrangement you choose with your PEO. Some PEOs can offer much more than HR functions—they can assist your company’s managers and supervisors in helping employees deliver results. This can mean:

  • Implementing new performance evaluation systems that help employees achieve goals, work as a team and grow.
  • Training supervisors and coaching managers to deliver better feedback and improve employee performance.
  • Providing training services for employees themselves.

These measures can create more organizational knowledge, better align company culture to your goals, and improve performance across the entire organization. In many cases, they will also result in tangible improvements in morale and culture, and a quantifiable reduction in employee turnover.

Do you want to focus on your vision for your company—without worrying about administrative details? Let Einstein give you a free consultation to discuss your HR needs. Fill out the form to your right or contact us and get your free consultation today.

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