A Professional Employer Organisation (PEO) is a business entity that provides a wide range of human resource management tasks including payroll, employee benefits, workers compensation, recruitment, and training. Following a co-employment model, clients outsource their human resources to the PEO to offer employees higher quality benefits and they can devote more time to concentrate on growing their business.
Co-employment refers to the contract between your business and a PEO. The PEO acts as the administrative employer and your company acts as the worksite employer. A PEO handles the time-consuming administrative tasks that are associated with the employment relationship while your company retains responsibility for the day-to-day operations and management of your company including employee supervision and staffing decisions.
It is estimated that PEOs provide services to between 156,000 and 180,000 small and mid-sized businesses and 2.7 to 3.4 million Americans are currently co-employed in a PEO arrangement. According to a survey of NAPEO members for the past six years, the average PEO has grown more than 20 percent per year. The PEO industry generates about $68 billion annually in gross revenues.
No. In this case, you retain the ownership of the company and the relationship that you have with your employees will continue. It simply means that the PEO will focus on the countless back-office administrative and human resource tasks and headaches involved in having employees on your payroll. However, you will remain the on-site employer responsible for the actual everyday business operational decisions that affect your company’s bottom line.
Virtually all products and services that Mannforce offers as part of our service agreement are included at no additional cost. We offer additional services on “a la carte basis” to allow us to create a customized plan suited to your specific needs. You can select as many services as you need and pay only for the ones you choose to use
PEOs’ make money by charging their client firms a fee per employee per month. However, a PEO will help you realize significant savings on your HR functions. In many cases, customers save hundreds per month by getting access to less expensive employee benefits. These savings can be more than what the PEO charges
It is the responsibility of a PEO to provide clients with guidance and education regarding employment laws and regulations. But, ultimately the responsibility of complying with these laws and regulations lies with the client.
When you partner with Mannforce services you will become better positioned to:
Lower your expenses and increase profits by gaining access to cost-saving human resources and payroll services.-Focus on your business by removing non-revenue producing tasks and spending more time on what counts -managing and growing your business-Gain peace of mind by protecting your business with improved risk management, guidance on legal compliance, safety support, and claims processing services-Become an employer by choice by attracting and retaining great employees with world-class benefits programs.