PEO stands for Professional Employer Organisation, which is an outsourcing company structured to help businesses maximise their worth; via consolidated HR and Financial Services.
You will hear the phrase ‘Joint Employment’ or even ‘Co-Employment’, which is the fundamental basis of a PEO, an American business outsourcing model which has had huge success for many years. ‘Joint Employment’ provides you with many resource advantages, hence it’s popularity in America, where this model has grown by 8% year-on-year since 2008.
Your business and the PEO will both be officially recognised as the individual’s employer, with appropriate contracts outlining responsibilities and liabilities for both parties, whilst also providing clear guidance to individual employees.
When you stop and think about it, numerous parts of your business could or maybe already are being outsourced, such as: IT, Marketing, Cleaning, Security, Lead Generation. Due to the raft of legislative changes, outsourcing payroll is now a popular choice, mitigating your risk and enabling you to focus your time on activities that support your profitable growth.
With the JMK PEO, you as the employer maintains full control. With typical outsourcing, you will often worry if the work is being completed accurately and compliantly; because if anything goes wrong, you will ultimately be responsible. You can reduce your risk due to the JMK PEO inheriting a level of responsibility and legal accountability for any penalties incurred.
Simply put, yes. Plus, it is financially prudent to move a number of internal administrative and support functions to an outsourced specialist, particularly one with the years of compliant experience behind JMK.