How Co-employment Benefits the Financial Sector
As a business owner in the finance industry, you are likely aware of the many challenges that come with managing your workforce. From navigating complex regulatory requirements to keeping up with changing industry trends, there is no shortage of obstacles to overcome. However, one tool that can be incredibly helpful in managing your workforce is co-employment.
Co-employment is a legal relationship between two companies in which they share responsibility for the management of a single employee or group of employees. In this arrangement, one company (often called the “client” or “primary employer”) retains control over the day-to-day work of the employees, while the other company (often called the “co-employer” or “professional employer organisation“) handles administrative tasks like payroll, benefits administration, and HR compliance.
While co-employment is a useful tool for businesses in many different industries, it can be particularly beneficial for those in the finance sector. Here are just a few ways that co-employment can help your finance business succeed:
Access to specialised expertise
The wealth of a wider candidate pool can help finance businesses navigate complex regulatory requirements and compliance standards. By having a more experienced workforce there run fewer risks of compliance issues.
If a provider is able to find highly skilled workers, they could assist with tasks like anti-money laundering compliance, KYC (know your customer) regulations, and cybersecurity risk management.
With co-employment, finance businesses can gain access to HR professionals who understand the unique challenges of recruiting and managing talent in the financial industry.
Co-employment can help finance businesses manage the costs associated with employee benefits and high UK salaries when providers use overseas labour.
Because co-employers often have their own location for the employees assigned to your business, this means you can save a huge amount on rent and utility costs.
Co-employers can also help finance businesses reduce the costs associated with compliance, such as legal fees and fines for non-compliance.
Improved recruiting and retention
With co-employment, finance businesses can offer employees access to benefits and HR services that might not be available to them otherwise, such as group health insurance plans or professional development opportunities.
Using a PEO can help with tasks like payroll and benefits administration, which can reduce administrative burdens and allow finance businesses to focus on more strategic initiatives.
Depending on your provider, they can benefit your retention levels by offering employees great working environments and initiatives like career support plans.
Co-employment can help finance businesses manage the risks associated with employee lawsuits and regulatory compliance issues.
As well as this, providers are likely to take care of issues like wage and hour compliance, harassment and discrimination policies, and employee termination procedures.
With co-employment, finance businesses can also mitigate the risks associated with employee turnover, such as lost productivity and knowledge transfer issues.
In conclusion, co-employment can be a powerful tool for businesses in the finance sector. By partnering with a co-employer, you can take advantage of specialised expertise, save money, improve recruiting and retention, and reduce risk. If you’re interested in learning more about co-employment and how it could benefit your finance business, consider speaking with an HR consultant or professional employer organisation today.