Why do you need Co-Employment?
Posted by Mike Lopez on Tue, Jun 22, 2010 @ 11:27 AM
Why do you need Co-Employment?
Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment." As businesses grow, most owners do not have the necessary human resource training, payroll and accounting skills, the knowledge of regulatory compliance, or the backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer. A Co-Employment gives small-group markets access to many benefits and employment amenities they would not have otherwise.
You still run the company you started, but with less headache.
The client retains ownership of the company and control over its operations. A Co-Employer and client will contractually share or allocate employer responsibilities and liabilities. The Co-Employer will assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. The client will continue to have responsibility for site specific items including direction and control of the workers. In general terms, Co-Employer will focus on employment-related issues and the client will be responsible for the actual business operations.
More companies are turning to co-employment options.
It is estimated that 2-3 million Americans are currently benefiting from a co-employment relationship. The average company in the industry has grown more than 20 percent per year for each of the last six years, according to a survey of the National Association of Professional Employer Organization members. The industry generates approximately $51 billion in gross revenues annually and professional employers have an exceptionally high client retention rate due to strong client and employee satisfaction.