A professional employer organisation (PEOs) provide outsourcing for all tasks and functions typically performed by an in-house human resources department such as payroll and administration, employee health and retirement benefits and many more HR issues. PEOs act as a “co-employer” with your company as they share contractual obligations with your employees. However as the company you still guide the daily job duties and responsibilities of your employees while the PEO manages their payroll and administration related tasks.
Working with a professional employer organisation can save you considerable time when it comes to employing people. When you are employing contractors who are working on a short term contract it often doesn’t make sense to be spending endless amounts of time setting up contractors payroll when they will be leaving in a few months. Also if you are employing a large amount of contractors for a particular project you may not have the staff to do such a big task. This is where a PEO can come in handy as you can outsource the whole on boarding process to them.
Many employers and contractors are still wary of all the administration that comes with contracting. Using a PEO helps to cut back on the time required to make contracting work. This leaves employers and employees free to focus on their core business. By using a PEO the legal administration is taken care of and salary payment and invoicing are done in a timely manner, assuring the hassle of administration is minimalised. PEO’s make sure they are up to date with the rapid changes in laws and regulations that comes with employing staff. This will prevent you from receiving penalties and fines as these laws can be complicated for your average business owners.
However there are professional employer organisation disadvantages. The main drawback is that you can feel distant from your employees. All questions about HR will now be handled by your PEO instead of contacting the HR department of your company. This can often feel distant for some of your contractors who are not used to this method.
If you think a PEO is right for you then we can help. TCP Solutions are a European Professional Employer Organisation and Compliance specialist with over 20 years’ experience. Our expertise lies in the employment of skilled temporary/contract workers on behalf of clients across 12 European countries. We are always aware of changes in legislations in all countries we operate, meaning we can provide the most suitable solutions per contractor.
Would you like to know more? Please contact our sales team on +44 (0)208 580 0800 or send us a message via our contact page.