What is the difference between temporary staffing services and a PEO?
Like a leasing situation, a temporary staffing service recruits employees and assigns them to clients to support or supplement the client’s workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client’s workforce. A PEO contractually assumes and manages employer responsibilities for all or a majority of a client’s workforce. Industry ratios identify the PEO arrangement as a long-term relationship with nearly 86 percent of the clients and work site employees remaining with the PEO for a year or longer. Work site employees participate in the PEO’s full range of employee benefits including, health, dental, and life insurance, vision care, and retirement savings plans. How many Americans are employed in a co-employment PEO arrangement? It is estimated that 2-3 million Americans are currently co-employed in a PEO arrangement. The average PEO has grown more than 20 percent
