Are you looking to manage your risks and preserve your business’s future? Co-employment has become more and more popular in the modern working world, so you must understand how it works.
Learn how to prevent workplace and financial risks by digesting our guide to co-employment risk management. You and your company will have the tools and knowledge to mitigate the danger.
Get started with our easy tips and tricks today!
Businesses seeking a Professional Employer Organization must understand co-employment. Co-employment concerns are an essential part of risk management.
An excellent roadmap to risk management should include four key steps. The first step is to look for possible risks, collect data, and determine the job liabilities.
The second is to mitigate by devising and implementing a plan to manage employment risks. The third is to ensure the PEO meets applicable co-employment laws and regulations. Finally, it is to review, evaluate, and update the employment plan as needed.
When considering this, it is essential to determine first ASO vs PEO. This way, all risks can be accounted for and, thus, limited.
The Roadmap to Risk Management
To tackle co-employment concerns, organizations need a defined plan for managing risks. This includes the following:
Clear Contractual Agreements
All contingencies should be spelled out in the contract. This includes the following:
- scope of the assignment
- salary agreements
- workers’ compensation claims
- overtime guidelines
- statement of work
- methods of payment
The contract should also include a description of the rules for regular reporting and contact.
Regular and ongoing communication is key to managing co-employment risk associated. It begins by having a clear conversation between the two parties to understand the roles and responsibilities of each. This can be looked at again occasionally to keep up with new rules, changes in the nature of the relationship, and other unplanned events.
Compliance audits are an essential part of risk management for co-employment concerns. A good co-employment compliance audit plan can help a business figure out where it might be vulnerable. This can mean taking a close look at staff records and contracts to find possible co-employment problems.
Employee handbooks often play a large role in risk management. It should contain any information related to employees and their rights in the workplace, as well as policies and procedures that the employer wants its staff to follow.
Termination protocols are essential when it comes to employment risk management. Policies should be established so that employers are aware of what termination practices are and are not acceptable.
One goal of a proper termination procedure is to reduce the risk of being sued for discrimination or wrongful termination. As well as clarifying how job roles should be filled when an employee leaves. This ensures compliance with applicable laws and protects the rights of both employers and employees.
Understanding Co-Employment Risk
The challenge of compliant shared staffing can be significant but also represents an opportunity to strengthen organizational relationships. With proper understanding and planning, risk management of co-employment risks can be straightforward and logical.
Take the first step – embrace the challenge and develop your risk management roadmap.
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