About Our company

About Our company

GEO/ PEO/ EOR SOLUTION

We can assist you in rapidly and effortlessly bringing in remote talent. Our millions of highly experienced workers can work from anywhere in the world. And, regardless of your arrangement, we offer workforce solutions that allow them to securely access required data and apps. With Manpower Germany, you can hire remote workers with confidence.

Services provided under Remote Staff solutions;

  • Offshore Services
  • Remote staff hire
  • GEO services
  • PEO services
  • EOR services

Offshore Services in Germany

You won’t have to deal with any contractual commitments, up-front obligations, or recruiting costs when you engage an offshore employee with Manpower Germany.

Manpower Germany has a number of Offshore Outsourcing sites across the country to meet our clients’ needs and objectives.

Remote Staff Hire in Germany

Remote workers are used by a wide range of large and small businesses to increase operational efficiency by hiring people on a temporary basis.

Businesses have benefited from remote labor in terms of shorter turnaround times, higher productivity, and lower total operating costs.

As the need for remote workers has increased, clients have higher expectations and are becoming more reliant on them. We can give support if you require it. We work hard at Manpower Germany to ensure that you and your team feel empowered and prepared to adapt to the quick changes you’re facing.

Global Employment Organization (GEO) Services in Germany

Global Employment Outsourcing (GEO) for remote staff solutions from Manpower Germany enables firms to quickly and legally create a workforce presence in a number of countries.

Safeguard Global acts as your “employer of record,” managing local tax and labor rules, payroll, and benefits, allowing you to recruit new employees in as little as two weeks.

While we handle the HR and legal difficulties, you can focus on managing your new global staff and growing your business.

Professional Employer Organizations (PEO) Services in Germany

Manpower Germany’s PEO services enable businesses to outsource human resources, reimbursements, payroll, and employees’ claims at a low cost.

PEO can assist you in making better-educated HR decisions that will strengthen your company.

Manpower Germany’s PEOs work with businesses of all sizes, from accountancy firms to small manufacturers to physicians and mechanics.

Obtain PEO services from Manpower Germany and we assure you that your operations will be more convenient with our services from our professional crew of workers.

PEO stands for Professional Employer Organization. A PEO service is a firm that acts as your workers’ “employer” and handles all employment and HR matters for your work force. They leverage this arrangement to provide dramatically lower healthcare and insurance costs, as well as streamlined costs on HR services. Typically, a PEO charges either a percentage of your payroll or a flat fee per employee, giving you controlled costs while delivering substantial savings.

Employer-of-Record (EOR) Services in Germany

Manpower Germany also assists An Employer of Record that is legally responsible for labor law compliance. This is especially significant if you’re working in a nation where your company doesn’t have an official presence.

Manpower Germany as An Employer of Record can support you with:

  • Employment contracts
  • Employee benefits
  • Payroll and tax administration
  • Immigration or visa/work permit processing
  • Insurance

What’s the Difference Between a PEO and an Employer of Record?

Human resources (HR) tasks can be time-consuming for small businesses without a dedicated in-house HR manager, especially as the company scales. Even small and medium-sized businesses (SMBs) who opt to hire temporary employees or contractors over a permanent team can get bogged down with HR administration. 

In either scenario, you might want to outsource your HR needs to an employer of record (EOR) or professional employer organization (PEO) to save time and money. But how do EORs and PEOs work and what are the differences between the two models? Deciding which option you should choose ultimately rests on your plans for growth.

What is a PEO?

A PEO is a third-party HR company that acts as your co-employer. Given the number of employees PEOs have on their books (thanks to so many different clients), insurers view PEOs as large companies. That means smaller companies can access better insurance plans through PEOs than through an insurance broker. PEOs sponsor your health insurance,workers’ compensation and other types of business insurance, giving clients better coverage at lower premiums.

Your PEO co-employment arrangement also gives the PEO responsibility for whichever HR tasks you delegate to it. The vast majority of PEO arrangements delegate payroll, benefits administration, workers’ comp, taxation and compliance to the PEO. The best PEO services may also handle hiring, firing and risk management services.

A PEO arrangement can substantially impact your taxes as well, as your PEO uses its own employer identification number instead of yours to file taxes. As a result, choosing a PEO located in a state with a lower state unemployment tax rate than yours can lower your tax burden.

Although a PEO is your co-employer, you and your employees should barely feel your PEO’s presence on a day-to-day basis. That’s because you retain day-to-day control over tasks, scheduling, management and salaries. However, if you are concerned that a PEO may potentially overstep its bounds, choose a PEO service certified by the IRS or the Employer Services Assurance Corporation (ESAC).

Key TakeawayKey takeaway

A PEO acts as your co-employer and oversees your payroll, benefits, taxes, workers’ comp, hiring and termination.

Human resources (HR) tasks can be time-consuming for small businesses without a dedicated in-house HR manager, especially as the company scales. Even small and medium-sized businesses (SMBs) who opt to hire temporary employees or contractors over a permanent team can get bogged down with HR administration. 

In either scenario, you might want to outsource your HR needs to an employer of record (EOR) or professional employer organization (PEO) to save time and money. But how do EORs and PEOs work and what are the differences between the two models? Deciding which option you should choose ultimately rests on your plans for growth.

What is an EOR?

An EOR acts as your employees’ full legal employer. Under this arrangement, your employees technically sign their employment contracts with the EOR instead of your company. The EOR handles much of your employer’s administrative work but it doesn’t exert control over your day-to-day affairs. You still get to decide how your company operates, how much you pay your employees and who works when.

If you hire an EOR, you may task this company with payroll, benefits, compliance, workers’ comp and timekeeping. Additionally, since your EOR is legally your employees’ employer, you yield all liability in employee affairs to the EOR. In workers’ comp cases or other risky situations, the EOR is the one on the line, not you.

Did You Know?Did you know

EORs may be convenient if you plan to expand your operations into new states. Otherwise, you would need to register in every state where you open a new location. With an EOR, however, this is not the case, except for an EOR to offer its services in any state, it must already be registered there.

PEO vs. EOR: Key differences

Although both offer solid solutions for outsourcing HR functions, PEOs and EORs operate very differently. When it comes to structure, growth support, services offered, cost and flexibility, each is unique. Below, we’ve created a table for easy side-by-side comparison of the main differences between a PEO and an EOR:

Function 

PEO 

EOR 

Structure 

Co-employer

Full legal employer

Growth 

Better at supporting long-term company growth

Better for companies that plan to maintain a small, permanent workforce but hire seasonal, temporary or project-specific workers

Services 

More, but not as in-depth

Fewer, but more in-depth

Cost 

High upfront and long-term costs

High upfront, lower long-term costs

Flexibility 

Highly flexible services

Somewhat flexible services

Structure

A PEO acts as your co-employer, whereas an EOR is essentially your legal substitute for employee-facing matters. While this distinction means little as far as day-to-day operations go, it can have substantial implications for liability.

Because PEOs are your co-employer, you share all risks and liabilities with them. This is why PEOs will help manage your risks, such as facility security and workplace safety. Meanwhile, EORs entirely cover your areas of risk since they’re fully responsible for and liable to your employees.

Growth

The structural and risk distinctions between PEOs and EORs are especially important as your company grows. The co-employer arrangement of PEOs incentivizes a long-term relationship between the PEO and its clients, meaning that the PEO acts as a partner for your team. Using a PEO favors the continuous hiring of full-time employees over independent contractors.

For companies that instead prefer to hire seasonal or temporary employees, project-specific employees or independent contractors, EORs may be better. Since an EOR understands federal, state and local labor laws thoroughly, you take on less risk as employees come and go. Without an EOR, someone on your staff would need to know these laws and oversee compliance ― a substantial burden ― instead.

Services

A PEO is a great choice if you want a service to handle your payroll, benefits administration, taxation, workers’ comp and risk management and you want access to higher-quality insurance with lower premiums. Through a PEO, you can offload a sizable chunk of your HR administrative work and take comfort in the knowledge that your co-employer is handling your HR tasks in a compliant and fair manner. Some experts say, however, that EORs can obtain workers’ comp more easily for small businesses in nonclerical industries.

An EOR can also offer all the aforementioned services, although it often takes on fewer tasks than a PEO. Your EOR may help you hire temporary employees or independent contractors. Since the EOR acts as your legal employer, your employees are covered under the EOR’s insurance. You won’t pay out-of-pocket costs to cover your insurance premiums. As with PEOs, EORs are large companies that can access higher-quality plans.

TipTip

Outsourcing your HR to a PEO or EOR can be a way to access better insurance plans for less, especially for small businesses. Read more tips about how small businesses can save money on business insurance.

Additionally, only an EOR can register your business in new locations. These registration services are huge timesavers, since, without an EOR, you must personally register your company in all states where you employ people. For corporations and limited liability companies, this registration process is especially tedious, which makes an EOR partnership even more valuable.

Cost

Depending on the PEO you select, you pay either a flat fee per employee, per month, or a percentage of your payroll per pay period. Per-employee PEO fees typically cost $150 to $200 per employee, per month, with payroll percentage fees hovering around 15% of your gross wages paid. Some PEOs charge a one-time setup fee.

EORs have similar fee structures and rates but they cost less overall than PEOs. That’s because EORs fully cover your benefits and insurance plans, thereby saving you a substantial amount of money.

Flexibility

EORs generally handle fewer HR functions than PEOs, but the HR responsibilities they handle for companies can often be more complex than what a PEO handles.

Some PEOs do not accept microbusinesses (companies with fewer than 10 employees) as clients. However, EORs are flexible working with small companies. Additionally, microbusinesses may prefer EORs, given the EOR’s ability and experience in overseeing temporary employee or independent contractor arrangements.

Did You Know?Did you know

Companies that work with a PEO grow 7 percent to 9 percent faster and have 10 to 14 percent lower employee turnover. They’re also 50 percent less likely to go out of business, according to the National Association of Professional Employer Organizations (NAPEO.)

PEO or EOR: Which service should you choose?

If outsourcing payroll and some HR functions are important for you, you may prefer a PEO. If you’re more focused on expanding into other states or hiring temporary employees (or contractors) than permanent employees, you may prefer an EOR.

Additionally, you can often save money on insurance premiums with EORs but you may have fewer plans from which to choose. With PEOs, you’ll have a more diverse set of choices. You’ll also delegate fewer legal powers to a third party, thus relieving some of the potential stresses of bringing on an HR partner.

Choosing an HR partner that grows with your company

Partnering with a PEO or an EOR can position your company for the future by reliably managing your HR tasks. When choosing between a PEO and an EOR, you’ll need to evaluate your company’s short-term needs and long-term plans. If you’re looking to hire temporary or contract workers and expand your physical footprint into different states, an EOR will save you time and money. If you’re looking for an HR partner who can reliably handle day-to-day tasks like benefits administration and payroll and you expect to grow your permanent workforce in the future, a PEO might be the best option for you. Ultimately, your plan for growth will determine which model is best for your company.

What is a PEO?

A professional employer organization (PEO) is a type of HR outsourcing firm that sponsors your health insurance workers’ comp and other types of business insurance. It does so through a co-employment arrangement in which it assumes the full burden of whichever HR tasks you assign to it. Small businesses like yours typically hire PEOs to handle benefits, payroll, legal compliance and taxation.

Taxation is an especially notable PEO service, as your PEO will handle taxes under its employer identification number (EIN) instead of yours. If your PEO’s state unemployment tax rate is lower than yours, you’ll pay less taxes. 

Your PEO co-employer agreement is more of a formality than anything else, as you’ll experience no changes in how you manage your employees day to day. Your workplace won’t change significantly, but if you remain worried about changes, you can choose a PEO certified by the IRS or Employer Services Assurance Corporation. These PEOs adhere to rigid standards that all but guarantee no serious modifications to your operations.

What is an international PEO?

An international PEO is a PEO that specializes in offering HR services to domestic clients expanding internationally. International PEOs can assist with payroll, and all the regulations involved in tax, insurance and risk management needs that come with expanding into a foreign market. As a result, you’ll save time and money trying to navigate the complexities of expanding beyond your borders.

Note that international PEOs, contrary to somewhat popular belief, are not global employment organizations (GEOs). We’ll explain this distinction later.

An international PEO is a company that can help you establish legal operations in foreign countries, but it is not a global employer organization.

How do PEOs help you expand internationally?

International PEOs can help you lower your compliance risks as you venture into new territories where you’re likely not familiar with the laws and regulations. Similarly, your PEO can keep you informed of statutory changes that come with expanding into new markets. Your international PEO can also help you register your company in each of its new foreign locations.

To offer these functions, PEOs will, as mentioned earlier, sign a co-employer agreement with your company. Through this contract, you can designate which international employment duties you delegate to the PEO and which you prefer to handle yourself. No matter which tasks you contractually assign to your PEO, you’ll remain responsible for day-to-day employee management and all salary negotiations.

What is an employer of record?

Earlier, we mentioned that international PEOs are not global employment organizations. That’s because whereas PEOs are co-employers, GEOs are employers of record.

An employer of record (EOR) is a third-party company that takes on all your employment administrative work. Your international employees thus sign employment contracts with your GEO instead of you. Although you retain day-to-day operational control and can set employees’ schedules and salaries, your GEO is recorded as their employer.

The EOR arrangement of GEOs means that you won’t have to register your company in every new location into which you expand, which isn’t true with international PEOs. Additionally, your GEO will obtain work visas for your team, advise you on international labor laws, protect you via international business insurance and run international payroll for your team.

FYIDid you know

An international EOR offers foreign employment administration and signs employment contracts directly with your employees.

Pros and cons of international PEOs

Although PEOs and GEOs may seem necessary for launching operations in another country, they aren’t exactly mandatory. That said, they offer many advantages that streamline international growth and minimize liability, though these benefits don’t come without drawbacks. That’s why we’ve listed the pros and cons of international PEOs below.

Pros of international PEOs

Here are some of the reasons you might want to hire an international PEO.

  • Built-in international HR: Like domestic PEOs, international PEOs give you access to HR services. This access is perhaps even more important internationally, as tapping into experts based in the areas where you need assistance minimizes your chances of misunderstanding (and thus failing to comply with) regional law.
  • Time savings: Even if you’re enthusiastic about expanding beyond your borders, you’re probably not thrilled at the prospect of the paperwork. And all that hassle will come after hours spent trying to master the ins and outs of international labor and tax laws. Hiring a PEO to handle these tasks on your behalf may be well worth your while – what you spend in money, you earn back in time.
  • Easier legal compliance: With an international PEO, you don’t just get back all that time you might have planned to spend on mastering international labor laws. You also get an HR partner that specializes in keeping your company compliant with those laws. As a result, you can enter international markets with less risk of government fines, employee lawsuits and financial loss.
  • Bang for your buck: PEOs do more than ensure your international compliance. They also set up your international payroll, obtain the appropriate insurance for your company and help to manage your risk. For the amount you’ll pay for your PEO services, what you get is often quite a good deal.
  • Co-employment structure: As compared to choosing a GEO when you expand internationally, PEOs take on fewer of your employment administration tasks. Perhaps this could translate into more work for you, but it will mean that you retain more control over your HR operations.

Cons of international PEOs

Some aspects of international PEOs might give you pause.

  • Less comprehensive business registration: If you choose a GEO over a PEO, then you won’t need to register your company in every new location into which you expand. The same isn’t true for PEOs, but they may somewhat make up for this gap by assisting you with registration.
  • No EOR arrangement: Unless you fear a loss of control over your employment practices, the lack of EOR arrangements that accompany international PEO contracts may be a point of concern. Without an EOR arrangement, you still retain most legal employer responsibilities. If your employment terms violate international labor laws – and again, slip-ups are easy in places where you’re unfamiliar with the laws – you’ll be primarily liable.
  • Higher financial risk: The absence of an EOR setup with international PEOs sets your company up for troubles beyond compliance violations. If an international government levies fines on you for your violations, your PEO shoulders only part of this burden as your co-employer. A GEO, on the other hand, accepts the entire responsibility.
  • Potential loss of control: Although international PEOs will never involve themselves in your day-to-day affairs, some small business owners still may feel reluctant to make any third party a co-employer. The only solution to this concern is to go entirely DIY when expanding internationally, as GEOs take even more control of your affairs.
  • Fees and other costs: Sure, the amount and quality of services you get from international PEOs for what you spend is a great deal, but you’re still spending considerable money to hire a PEO. If you’re hesitant to pay too much money on your expansion, PEOs might not be a viable option. In this case, only the DIY route would work.
  • Legal questions: Co-employment is a common arrangement in the United States, but in some other countries, it’s illegal. Since a PEO acts as your co-employer, your PEO arrangement might not be valid in the territory into which you’re seeking to expand. Additionally, both you and your PEO must register yourselves as businesses in the territory in question. If not, there could be compliance consequences.
Key TakeawayKey takeaway

PEOs efficiently package many important international HR services into one bundle, but they don’t eliminate risk or international registration needs.

Although not all employees are required to provide health insurance, you may wonder whether the increased employee satisfaction accompanying employer-sponsored healthcare is worth your premiums’ costs. This question becomes far less pressing if you choose a PEO over an HRO company for third-party HR services. While both options cost money, PEOs can lower many of your health insurance costs – and that’s not their only benefit over HRO companies. Learn more below.

What is a PEO?

A professional employer organization (PEO) is an HR outsourcing firm that acts as your co-employer. In this arrangement, your PEO shares all your business risk and obtains lower-premium health and workers’ compensation insurance plans. It also remits your business taxes under its own employer identification number (EIN) instead of yours. If your PEO’s state unemployment tax rate is lower than yours, you’ll be taxed less.

PEOs specialize in connecting small businesses like yours with health and business insurance plans you might otherwise struggle to afford. Your PEO should also handle payroll on your behalf, and you can add even more HR services to your contract if you so desire. Either way, since your PEO acts as your co-employer, it will handle all the time-consuming administrative tasks often associated with HR. For an example of a PEO, read our Oasis PEO review.

Although your PEO is your co-employer, it won’t have any power over how you run your business. Yes, it can step in for whatever HR needs you desire, but it can’t execute your actual work tasks for you. Even with your co-employer arrangement, you can continue to run your business exactly as you have been.

That said, it’s understandable to worry that a co-employer could overtake your business affairs. This outcome is highly unlikely, and it’s guaranteed not to happen if your PEO is certified by the IRS or Employer Services Assurance Corporation. PEOs with these certifications must adhere to rigid standards that make for trustworthy company affairs.

What is an HRO company?

A human resource outsourcing (HRO) company is a business that offers your company a suite of HR services from which you can pick and choose. For example, if you need someone to handle your payroll and health insurance but nothing else, you can contract an HRO company for just these needs. You’ll remain responsible for any HR concerns not specified in your contract, and this division of responsibility can prove advantageous for certain companies. For an example of an HRO service, read our Paychex HRO review.

What is the difference between a PEO and an HRO company?

While a PEO is your co-employer, an HRO company is just a third-party provider that you hire like any other firm. As your co-employer, a PEO sponsors your health insurance, workers’ comp and other types of business insurance. With an HRO company, you’ll just pay for whichever services you ask it to provide. Additionally, unlike an HRO service, a PEO will handle your company’s tax affairs under its own EIN instead of yours.

FYIDid you know

A PEO offers and sponsors HR products and services through a co-employment agreement, whereas you’ll pay out of pocket for the services of whichever HRO company you choose.

PEO vs. HRO company comparison and table

To better understand how the PEO co-employment model compares with the standard third-party service arrangement of an HRO company, consider the below factors:

Setup

As your co-employer, a PEO enters an arrangement with you that takes on all your business risks. For example, in the event of a tax audit, you and your PEO are equally liable. With an HRO, it’s solely your responsibility to handle all IRS affairs during a tax audit, though you’ll need to obtain relevant documents from your HRO company.

Additionally, the standard third-party contract you sign with an HRO company allows you to add as few or as many HR services as you desire. HRO companies can advise you on legal compliance and organizational strategy without becoming your co-employer. PEO contracts focus more on shared risk and employment responsibilities than consulting agreements.

HR services

Theoretically, PEOs and HRO companies can both offer as few or as many HR services as you desire. However, HRO companies are more widely associated with an “a la carte” model in which you can pick and choose what you want. That said, you can technically designate which HR services you want in your PEO contract.

A more obvious distinction is that PEOs are often higher quality. Since a PEO will sponsor your health insurance, workers’ comp and sometimes other business insurance, you may find yourself with more comprehensive plans that you couldn’t afford on your own. However, PEOs offer a narrow breadth of plans compared to HRO companies. Sure, you’ll pay more to obtain insurance plans through HRO companies, but you’ll have far more options.

Costs

PEOs often charge $150 to $200 per employee per month, whereas HRO companies usually cost less. Additionally, a PEO setup fee can cost thousands of dollars. However, with an HRO company, you’ll have more expensive insurance premiums, so the higher upfront costs of a PEO can sometimes mask lower overall costs.

Both PEOs and HRO companies may charge a flat fee per employee per month for their services. Some PEOs might go another route and charge a percentage of the total amount you pay your employees each pay cycle. In this model, you may also pay administrative fees that vary by employee.

Benefits flexibility

A PEO will offer your company its exclusive, rigid set of insurance plans only. Although these plans are often among the best around, you cannot customize them. You also won’t have many plans to choose from, as you would with an HRO company. That said, the plan diversity of HRO companies doesn’t include the substantial premium savings found with PEOs.

So that you can more easily understand all of the considerations above, we’ve organized the key distinctions into a table for quick side-by-side comparison:

 PEOHRO
SetupCo-employment arrangement and attendant joint-risk burdenStandard third-party services agreement and no risk management
HR services offeredFundamental services, though you can add moreFlexibility to choose as few or as many as you want
CostMay be higher upfront but occasionally less expensive overallMay be lower upfront but occasionally more expensive overall
Benefits flexibilityInflexibleFlexible

Which should you choose?

PEOs often work with small and midsize businesses (SMBs), since their co-employment models entirely remove the time-consuming burden of HR from these thinly spread companies. SMBs may also benefit from the higher-quality benefits administration and plans they can access for less money through a PEO. 

Large companies often hire HRO companies instead of PEOs, since these companies are more likely to have a full-time HR staff. HRO companies can handle certain tasks these in-house staffers don’t cover, or they can help build strategies around appropriate organizational structures.

That said, some small business owners may use HRO companies to keep their costs low and to set up payroll and benefits only. However, HRO companies assume no risk and can leave you with plenty of tedious administrative work. A PEO may be the better choice overall for most small businesses. Find the right one for your needs with our best picks for PEO services. Whether excellent customer service or tailored industry HR is your primary concern, you’ll find the right PEO in no time.

What is Co-Employment?

The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).

​

For the obligations a PEO agrees to take on with respect to its clients, the PEO assumes specific employer rights, responsibilities, and risks through the establishment and maintenance of a relationship with the workers of the client. More specifically, a PEO establishes a contractual relationship with its clients whereby the PEO:

​

  • May assume certain employment responsibilities for specified purposes regarding the workers at the client locations.

  • May reserve a right of direction and control of the employees with respect to particular matters.

  • Shares or allocates employment responsibilities with the client in a manner consistent with the client maintaining its responsibility for its product or service.

  • Remits wages and withholdings of the client's workers.

  • Issues Form W-2s for the compensation paid under its Employer Identification Number.

  • Reports, collects and deposits employment taxes with local, state and federal authorities.

 

A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing relationships with the client's employees and administering certain employer rights, responsibilities, and risks as agreed with the client.

 

The roles of the PEO and the client depend upon the facts and circumstances of each relationship --- that is, each obligation should be examined individually as employment responsibilities are assigned in the parties' CSA.  Each party will be responsible for certain obligations of employment, while both parties might share responsibility for other obligations and be "an" employer, but neither party is “the” employer for all purposes.

 

Both the PEO and the client company establish a relationship with worksite employees. The PEO might engage with worksite employees with respect to specific matters involving human resource management and compliance with employment requirements, while the client company directs and controls worksite employees in the client's day-to-day operations as well as the manufacturing, production, and delivery of its products and services.

 

The client company provides worksite employees with the tools, instruments, and places to work. Some PEOs provide assistance and suggestions to clients when it comes to offering worksite employees a workplace that is safe, conducive to productivity and operated with best practices with employment rules and regulations.  Additionally, the PEO assists clients and worksite employees with workers’ compensation insurance and a broad range of employee benefits programs.

 

PEOs create a real relationship with worksite employees over certain matters. This relationship exists in fact, not just in form. PEOs often assist with the risks attendant to the personnel functions of the worksite employees. PEOs manage liabilities by monitoring new employment trends and requirements and developing policies and procedures for their clients and the worksite employees, as stated in the client service agreement.  

Does a PEO Handle Staffing Or Employee Leasing?

  • Does a PEO Handle Staffing Or Employee Leasing?

    • Modern business owners are able to meet the needs of their companies in more ways than ever before. There are a variety of different solutions to human resources, administration, and financial problems available to everyone from small business owners to mega-corporations. Though temporary staffing or employee leasing are valid options, these are distinctly different from the way that a PEO operates.

    The main difference is that, through the co-employment relationship, businesses that use PEOs like the ones in the nationwide network of continue to employ their employees even after the relationship with the PEO has ended.

    How Employee Leasing Works

    You are a business owner who is overwhelmed by the time and expenses that you are devoting to handling paperwork, administering employee benefits, overseeing payroll management, and numerous other tasks. One solution is to use employee leasing.

    Though an employee leasing company, a small business owner can bring in temporary employees to accomplish similar solutions as are provided by PEOs. For example, these new employees (who are employed by the leasing company and temporarily leased to the client business owner) can provide such services as:

    • Handling of payroll
    • Benefits administration
    • Handling of workers’ compensation claims
    • Human Resources administration

    The client business owner employs these HR workers until the relationship between the client business and the leasing company ends. When that happens, these employees typically leave with the leasing company to pursue other projects.

    When a client business works with a PEO, on the other hand, the PEO’s experts handle the provision of services. That is, the client business does not lease these employees from the PEO. Instead, the client business pays the PEO to provide specific services, and this usually involves the co-employment relationship.

    How the Co-Employment Relationship Functions

    When a client business hires a PEO, the two entities sign a co-employment agreement. This is a legal relationship that distinguishes the PEO as a co-employer of the client business’ employees, which in turn allows the PEO to provide services to those employees.

    Defining the Relationship

    The co-employment relationship does not mean that the client business loses control over their company or employees. They still employ their employees and are considered the primary employer. Often referred to as the worksite employer, the client business owner has the final say over hiring and firing decisions and retains control over the direction of their company.

    A PEO in a co-employment relationship acts as a secondary employer to the client business’ employees. However, the PEO’s authority is limited in scope and is spelled out in the co-employment agreement. When the co-employment agreement ends, the PEO is no longer a co-employer of the client company’s employees.

    Services Provided Through Co-Employment

    PEOs can provide a wide array of services to client businesses, similar to those obtained through employee leasing. However, there are some significant advantages to using a PEO. For starters, PEOs often employ seasoned experts in the areas of:

    But perhaps the most significant way in which a co-employment arrangement with a PEO is better than employee leasing is the administration and provision of employee benefits packages.

    How Co-Employment Improves Employee Benefits

    By entering into a co-employment arrangement with a client company, the PEO becomes a co-employer of that company’s employees. Since PEOs often have many different client businesses that they serve at the same time, their employee pool has the potential to be exponentially larger than that of a single business. With this larger employee pool, the PEO can provide higher-tier benefits for a lower cost, as the cost of those benefits packages are spread among the entire employee pool.

    Entering into a co-employment relationship also has a significant indirect benefit. Not only can PEOs help client companies with their recruitment processes, but having access to these better benefits packages can help the client businesses to attract top talent.

    Solve Your Staffing and HR Problems Today!

    If you are a small business owner looking for sustainable solutions to your growing paperwork, human resources, administration, staffing, and compliance issues, Manpower can help. As a PEO brokerage service, we can connect you with several candidate PEOs from our nationwide network. We have an industry-leading client retention rate of 95% and client satisfaction rate of 100%.

    Is A Staffing Agency a PEO?

  • Is A Staffing Agency a PEO?

    • If you run a business and are considering for expanding your operation, you may be curious about what options are available to help you. You may have heard about staffing agencies and PEOs but aren’t sure if they are the same thing. A staffing agency is a different sort of entity than a PEO, which is also known as a professional employer organization. Which choice is right for your company will depend on your business’s needs.

    Staffing Agencies

    A staffing agency is an organization that recruits employees to match with client businesses. Staffing agencies may conduct interviews and other assessments to determine an employee’s skill set. When an opening exists for an employee working with a staffing agency, they may be sent to work at the client’s business site for a temporary period.

    While a worker is employed with a staffing agency, even while they work on a client business’s site, they are employees of the staffing agency. Typically, there is a set term for the employees to work at the client site. In some cases, an arrangement may exist for the client company to hire the employee as a full-time worker after a set amount of time temping on behalf of the staffing agency.

    PEO

    A PEO is an HR and accounting outsourcing organization. PEOs partner with client businesses to take care of HR and accounting functions that would otherwise be handled by an in-house employee or department. A PEO might help a business by:

    • Administering payroll and benefits
    • Creating an employee self-service site or employee handbooks
    • Managing employee liability claims, including workers’ compensation
    • Handling compliance with state and federal labor laws

    The specific functions a PEO helps the client business with is set out in its client service agreement (CSA). As part of the partnering process, both the PEO and the client business become employers of record for the client’s employees. In legal terms, employees working under a co-employment agreement are employed both by the client business and the PEO.

    Why PEOs Can Seem Similar to a Staffing Agency

    PEOs and staffing agencies both alter the employer-employee relationship from a traditional relationship. Using either sort of service adds an extra layer to any employment decisions you may make.

    PEOs can also help your business when it’s time to expand. When you’re ready to fill a new role, you can work with the HR professionals at your PEO partner to create a job listing and develop a strategy for searching for candidates. You can also allow your PEO partner to handle the processing of applications and even the initial phone screenings of candidates. However, you can have the final say on who becomes an employee for your business when working with a PEO.

    Determining if You Should Use a Staffing Agency or a PEO

    If you’re unsure of whether to reach out to a staffing agency or a PEO, think about your business needs.

    Are you in need of a temporary worker to fill a vacancy that will be filled when an employee returns from medical leave? Do you have a sudden project that you need a few extra hands to complete on time? A staffing agency may be a better option in those instances.

    If you’re interested in long-term solutions that include recruiting employees, a PEO may be the better option for your business. Say you need someone to fill a permanent role and you’re already struggling with payroll for your existing employees. The cost of hiring a dedicated HR staff member to help might be too much for your budget, but a PEO is a cost-effective alternative.

    What Is the Difference Between a PEO and a Staffing Company?

  • What Is the Difference Between a PEO and a Staffing Company?

    • PEOs and staffing companies both offer HR solutions for businesses, but the sorts of services they provide are very different. PEOs offer a wide range of HR outsourcing solutions to ease the burden of paperwork for small- to medium-sized businesses. Staffing companies, on the other hand, offer one option for businesses looking to add workers to their workforce.

    Understanding the PEO-Business Relationship

    When you partner with a PEO, you agree to have the PEO handle certain HR functions on behalf of your company. As part of this arrangement, you establish a co-employment agreement with the PEO. The co-employment agreement allows the PEO to have the legal authority to conduct the HR responsibilities on your behalf. The legal framework works by having your employees also be employees of the PEO.

    Despite this legal framework, your employees still work directly for you. You maintain control of the daily functions of your employees, while the PEO manages the agreed-upon aspects of HR for you.

    PEO Services

    PEO companies offer services aimed at streamlining how your business handles its HR functions. Rather than hiring an HR team in-house or handling these functions yourself, the PEO’s team of HR professionals handles them. In this way, the services of a PEO save you time and money.

    Managing Payroll and Benefits

    Handling payroll and benefits administration can be a nightmare, especially for business owners without a background handling these complicated tasks. These tasks can become a drain on your time and energy as your company grows.

    PEOs can take the headache out of the process. A PEO can help you track employee timesheets, process payroll, handle benefit claims, and even cut payroll checks on your behalf.

    Compliance with Regulations

    When handling HR matters, there are many federal, state, and local regulations that must be followed. Failure to follow these regulations, like the Affordable Care Act, can result in hefty penalties for your business.

    When an Alabama PEO handles your HR functions, they are responsible for ensuring your continued compliance with any necessary state and federal regulations. You can rest easier knowing that your business is in the hands of HR professionals who will stay ahead of current and upcoming legislation so that your business doesn’t need to worry about these penalties

    Recruitment Help

    One reason some people may confuse the work of a PEO and a staffing company is that a PEO can help you attract new talent. Your PEO partner can work with you throughout the hiring process, from job posting through employee on-boarding. You can even have your PEO partner handle the initial phone screenings for new employees, making sure that you speak with the best candidates for your open role.

    Staffing Companies

    PEOs offer tools to help you with HR functions, including recruiting regular employees. But what if you need employees on a temporary basis? Staffing companies may be a solution for your business.

    When you work with a staffing company, you lease an employee from the staffing company to work at your business. While the worker is at your job site, they remain employees of the staffing company. The staffing company cuts the payroll checks for the worker, pays for any employee benefits, and will still be the employer to the worker when their assignment with you comes to an end.

    Determining if You Need a PEO or a Staffing Company

    If you only need workers to handle a short-term need, such as filling in for an employee on break under the Federal and Medical Leave Act (FMLA) or to help with an emergency project, a staffing company may be a good choice for your business.

    However, if your business needs more help than just recruiting new employees, then you likely could benefit from partnering with a PEO. The PEO can help you find new, permanent employees, while also allowing you the opportunity to focus more time on operating your business.

    What Is the Difference Between Employee Leasing and a PEO?

  • What Is the Difference Between Employee Leasing and a PEO?

    • Many people confuse an employee leasing agreement with the co-employment agreement that you sign when you partner with a PEO. After all, both arrangements can alter how you hire and retain employees. The difference lies with your responsibility to the employee under each type of agreement.

    Employee Leasing

    Employee leasing is one form of temporarily hiring staff. This allows an employer to have employees on hand for a set amount of time or until a specific project is completed. Typically, a business will get in touch with a staffing agency in order to lease an employee.

    The leased employees are employees of the staffing agency. This means that when the need for the employee is over, whether that’s the predetermined time or the completion of a project, they are returned to the staffing agency that leased them. At no time is the leased employee an employee of the client’s company. If you end your relationship with the staffing agency, even if the project or timeframe isn’t completed, the leased employees will not be showing up at your work site.

    PEO

    A PEO, or professional employer organization, has a different relationship with client companies. Instead of being a firm that leases employees to their clients, a PEO becomes an employer of record for the client’s employees. This is known as a co-employment agreement.

    Under a co-employment agreement, your workers work for both you and the PEO under a legal framework. This legal framework allows the PEO to handle HR matters like benefits administration and payroll. However, as the employees work directly for the client company, severing a PEO partnership does not change the employee’s relationship to the employer. Once the partnership is severed, employees still report to the client’s work site to continue their jobs.

    How PEOs Can Be Similar to Employee Leasing Agreements

    According to the National Association of Professional Employer Organizations (NAPEO), PEOs can trace their origins to employee leasing arrangements. This is why some state and federal regulations can use the terms employee leasing and PEO interchangeably.

    One other reason an individual might confuse a PEO agreement and an employee leasing agreement is that PEOs can help you hire new talent. While you maintain great latitude in your hiring and firing decisions when you partner with a PEO, your partner can assist you in the recruiting process. PEOs can devise hiring strategies, conduct initial phone screenings for prospective employees, and help with the on-boarding process.

    Other Ways PEOs are Different from Employee Leasing

    While PEOs can assist with hiring new employees for their clients, that is only a single aspect of the role a PEO takes on when it partners with a client. When you partner with a PEO, you may receive assistance with:

    • Payroll
    • Benefits
    • Worker’s compensation
    • Employee self-service functions
    • Liability management

    The specific functions of your partner are determined when you sign a co-employment agreement with the PEO. You can determine the extent to which the PEO is involved with your business’s administration when negotiating the terms of your agreement. If you are looking for a bit of help with certain key accounting or HR functions, or if you’re looking for a full-service solution, there’s a PEO option available for your business.

    Finding the Right PEO Can Be Hard on Your Own

    When looking for a PEO partner, you should understand what you need out of the partnership. Not all PEOs offer the same services or operate in every location, so you may need to devote substantial time finding the right PEO.

    What Is the Difference Between Temporary Staffing Services and a PEO?

  • What Is the Difference Between Temporary Staffing Services and a PEO?

    • The difference between temporary staffing services and a PEO is the way in which they support their clients. A temporary staffing service provides support with staffing needs on a limited basis, while a PEO provides support on the administrative end of running your HR requirements.

    What a Temporary Staffing Service Does

    Imagine you received a big contract that you needed to complete over the course of six months. With your current staff, it might be practically impossible to meet the client’s order on time.

    In this scenario, you may want to contact a temporary staffing service for assistance. You may reach an agreement to have workers come to your worksite to help complete a given project. Whether it’s a week or a year, you have some definite endpoint for your increased level of staffing.

    The workers at your worksite are employed by the staffing service, even if their day-to-day tasks are handed out by you. You pay the staffing service a fee for their employees, which they use to pay the workers’ salary. No matter how long they work with your company, they will remain employees of the staffing service. Any issues with performance must be referred to the staffing agency.

    What a PEO Does

    A professional employer organization (PEO) is a type of business that specializes in providing HR outsourcing solutions to small- and medium-sized businesses. If you run a small business, you may turn to a PEO for help with HR functions that are overwhelming the operation of your company.

    A PEO can provide supplementary assistance to your existing HR structure or it may act as a complete, out-of-house HR department for you. Services provided by a PEO included:

    • Payroll administration (e.g., wage calculations, paying taxes, issuing checks)
    • Benefits (both the paperwork aspect and providing benefits directly to your employees)
    • Risk consultancy
    • Workers’ compensation claims
    • Regulatory compliance
    • Employee self-service

    A PEO can provide these services after you sign a co-employment agreement. Under this agreement, your employees are functionally employees for both your company and the PEO. Your day-to-day arrangements with your employees are unchanged by the agreement, as your employees are still under your supervision, go to you for wage increases, and are subject to your performance reviews. The PEO becomes the “employer of record” as a legal mechanism to manage your employees’ information for HR purposes.

    How a PEO Can Help with Staffing Issues

    While a temporary staffing service can help you with short-term workforce needs, a PEO can assist you with all types of staffing needs. As part of their services to you, a PEO can provide you with assistance in recruiting and onboarding new employees.

    If you’re in need of a new worker, whether permanently or temporarily, your PEO partner can manage the initial part of the recruitment process. They can put up notices on job boards for the opening and can even conduct screenings for candidates. While the PEO facilitates much of the process on your behalf, you still make the final decision about who works for you.

    Working with a PEO Broker to Find the Right PEO

    While there are many PEOs, not all of these organizations provide the same services. Some may provide only a limited number of services, and others may offer only full-service options. While your employees may be eligible to receive improved benefits under a co-employment arrangement, you may not be able to customize the benefits they receive with certain PEOs.