At work, people spend up to 41% of their time on activities that are not satisfying and could be done by another person. This is especially true of business owners who typically work more than the standard 40 hours a week.
How can businesses cut down on time spent on tasks that take a great deal of time? They can implement strategies like co-employment that use professionals.
If you are asking yourself, what is co-employment and can it help my business and want to know how co-employment works, keep reading.
What is Co-Employment?
When two parties (or more) share the legal administrative tasks of working with employees, they are employing co-employment strategies. Typically, one part takes over the employment tasks for a client.
A co-employment service, like avitusgroup.com, can help with hiring temporary staff, manage payroll, and deal with legalities. This saves the client time so they can focus on other aspects of running the business.
Things Co-Employment is Not
There are sometimes some confusion about the types of co-employment and what it means for a business.
A Professional Employment Organization (PEO) does not take control of the business. The PEO is simply a means of delegating employment responsibilities. The business can determine what responsibilities the PEO has.
Some businesses feel that employees will not accept co-employment because there is an outside company managing things. Quick processing of benefits, leaves, and payroll are co-employment benefits for employees.
Staff in the HR department may be concerned that they will be replaced. The PEO works with the HR department by removing repetitive tasks. This lets the HR team focus on growth.
Benefits of Co-Employment
One of the most obvious benefits is that the management of payroll becomes more efficient. When the PEO takes over paychecks and salaries and reporting, business owners can focus on doing what they enjoy. The PEO can also deal with payroll and employee tax compliance issues.
A co-employment service can also make sure that employees like independent contractors are properly classified. When staff are not classified correctly, there can be many complications for a business.
Employee benefits and compensation claims can take a lot of time to deal with. A PEO will manage all of that. They can also manage holiday time, leaves of absence, retirement benefits, and wrongful termination claims, and all the legalities that go with them.
If your company needs help with planning, the PEO can help with this, too. They can help develop policies and guide the company in growing its staff.
Co-Employment is a Tool for Growth
The short answer to the question, what is co-employment is this: it is a tool to help your business grow. Co-employment for small businesses is a means to give business owners to remove repetitive, time-consuming tasks.
When small businesses start implementing co-employment, they will have space to grow in every direction.
Would you like to read more about small businesses? Check out the Business section of our site.