How Co-Employment Transfers Risks Away From Small Business Owners

Co-employment is a highly-debated topic in the human resources field. Many believe that companies who use contingent staffing offered by professional employer organizations, or PEOs, are taking too much risk by participating in cooperative employment relationships. But, this is oversimplifying things. There are many advantages to co-employment that too few small business owners understand the value of. If you own your own small business, find out how co-employment may benefit your organization below.

Better Benefits

Small business owners can offer employees the same benefits as large corporations are able to when they use PEO services. Co-employment agencies take care of the healthcare and additional benefits programs, like wellness benefits, for you. Because they are often larger, more established staffing agencies, they are able to offer better benefits than you would be able to provide employees on your own. This is hugely beneficial if you are trying to fill open positions with top talent.

Transferred Risk

PEO companies take on a lot of the risk associated with being an employer. This means less risk for you, the small business owner. Obviously, this can be hugely beneficial. This is particularly true for small businesses who are just starting to get off the ground and do not have the structure in place to navigate employer compliance. If you want to take away some of the risk of having employees, you may want to consider co-employment for business.

Access To Training

Many of the top PEO services provide access to employee training programs. That means one less thing that you, the employer, have to take care of or outsource to top training companies. Training programs will benefit your employees and entice top talent to work for you. They will also benefit your business with more skilled, efficient and productive employees. For many small business owners, offering employees training is something that is way outside of their budget. Thankfully, the benefits of co-employment free you from those concerns.


PEOs regularly review procedures to ensure that your business is compliant with employment law on all levels of government. This benefits small business owners in particular, who often have very busy schedules. Maintaining compliance is difficult. Employment laws are always changing. It can be a lot to manage on top of managing employees and other business operations. If you are worried about maintaining compliance with local, state and federal compliance, let a professional employer organization handle that for you.

Less Administrative Work

Co employment services take care of the administrative work for you, the business owner. Employees require a lot of paperwork. This adds up to a bunch more work hours dedicated to employee management for you. That is, unless you decide to take advantage of co employment opportunities at your organization. These companies take care of onboarding, employee handbooks and paperwork, payroll and employee benefits. This makes it much more attainable for your small business to start hiring employees. If you were worried about having too much administrative work by becoming an employer, consider the advantages co-employment can offer you.

If you are a small business owner, using the services of  PEO can greatly benefit your company. There are many co employment advantages that too few business owners consider. If you want to start employing people without all the risk and administrative work associated with the endeavor, consider using PEO services. You will be presently surprised by how wonderfully co-employment works out for your business.

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