What is Co-Employment?

Whether you're a beginner or an expert, you will find this Glossary useful.

Co-employment is the relationship between an employer and a firm specialized in employee leasing or a Professional employer organization (PEO).

what-is-co-employment

Co-employment definition

Co-employment is the relationship between an employer and a firm specialized in employee leasing or a Professional employer organization (PEO). It includes the division of responsibilities for human capital management between an HR department and a PEO.

Advantages and disadvantages of Co-employment

Companies opt for co-employment to ensure they have qualified workers and to make it easier to hire industry experts. The PEO handles administrative and personnel-related activities while the employer controls their role in business such as daily job responsibilities.

Disadvantages of the practice include:

- unemployment potential increase due to a lowered need for labor

- confusion between two companies working with the same employee

- employees being unsure of whom they should speak to when a problem arises


Free Glossary of Human Resource Terms

Improve your HR vocabulary by learning the most important HR terms & Definitions

Download Now

2018 Guide for Buying a Recruiting Tool

Download this guide with useful advices for buying a recruiting software tool that will help you improve your hiring efforts.

Get the Guide
TalentLyft ATS

Your Hiring Teammate

TalentLyft is intuitive and simple recruitment software specialized for SMBs.
Try it free for 14 days!
No credit card required, unsubscribe at any time.