What is “co-employment”?

What is “co-employment”?


Co-employment is defined by the National Association of Professional Employer Organizations (NAPEO) as the contractual allocation and sharing of employer responsibilities between a PEO and its client.  Under these relationships, a PEO will assume many employee-related responsibilities from the client.


How Co-Employment Works

How can businesses benefit?


Businesses that partner with a PEO have access to more competitive products, oftentimes not accessible by small employers, such as:


  • Technology, including an HRIS platform with employee self-service models and electronic onboarding features.
  • A wide variety of cost-effective benefits for employees, including health insurance and retirement plans.
  • Competitive workers’ compensation coverage with pay-as-you-go options.
  • Comprehensive HR support from certified professionals.


A PEO will essentially serve as a one-stop shop for your company in all things Human Capital Management (HCM).  Your PEO will act to support your existing HR staff, not replace them.  Your employees will not be negatively affected by a co-employment relationship and your PEO will not take part in your general business operations and how you manage your people.


Studies have shown that there is notably lower employee turnover among PEO clients.  Furthermore, 98% of PEO clients would recommend a PEO to a small business colleague.  Human Capital has been in business for over 20 years, providing small business with the resources they need to compete in today’s job market.  Contact Human Capital to learn more about ways you can enhance your employees’ experience.


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