PEO Consultants Blog

Risky Business: How a PEO Reduces Your Exposure

Being in business is risky. Not only do you have to remain competitive in your industry with proactive research and development, marketing, and production innovations, you also must take care of the people who make it all possible – your employees.

Just one employee injury or lawsuit could put your business under. The management of human resources is one of the most complex, risky responsibilities business owners have. This is due to rising healthcare and workers compensation costs, increased government compliance issues, and employee retention. And the stress of these issues may keep you up at night and occupy your day, keeping you from concentrating on successfully running your business.

Of course, your employees are the most important asset you have. For their benefit and your own, it makes sense to entrust human resource to a professional who makes sure your company is adhering to all labor and tax laws.

Sharing the Risk with a PEO

Co-employment with a Professional Employment Organization (PEO) gives you time to focus on your business instead of employment rules, regulations, and paperwork. You share the legal responsibility for the employees with the PEO. And your PEO partner becomes the employer of record for tax and insurance purposes while you retain control of business operations and worksite employees.

PEO Areas of Responsibility

Business Areas of Responsibility

A co-employment relationship with a PEO reduces your risk as a business owner by sharing liability and responsibility with the PEO. Co-employment also can reduce payroll and administrative costs while freeing your time to devote business strategy and goals.

“I have an expert resource in my back pocket, and I can more safely navigate the risk of having employees and the need for having employees and really manage that in a meaningful way. You can’t outsource to an HR service and actually, have the liability shift to an HR generalist, you still own the liability. When you’re co-employed, you’re bringing in a professional employer to actually participate in the risk with you, and to me that’s probably where the game is won
– Aaron Pratt, SVP Employee Benefits, Frost Insurance.

With 44 percent of business owners admitting they are not confident in their ability to meet compliance requirements, PEOs provide a smart alternative to potential employee claims and disputes.

Contact PEO Consultants to find the perfect co-employment partner for your business.


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