The Outstaffing Business Model
Outstaffing is a PEO: PEO is the abbreviation for Professional Employer Organization. This solution is becoming increasingly popular in today's business environment because it allows employers to free themselves of the all-consuming “employer role” in payroll and benefits administration and maintenance; at the same time, it allows them to provide group benefits for their employees - something that would typically be out of reach as a small business employer. This solution moves the clients' employees under the Outstaffing group to provide, manage and administer all aspects of payroll and employee benefits. For tax purposes, the client effectively ceases being the employer and retains the onsite supervisor responsibility (co-employment). More than simply a payroll processor, Outstaffing supports all aspects of employee payroll/HR from the hiring to the termination. In addition, business owners and employees alike recognize the trend, started by the banking industry, to move payroll/HR “out of the back-office” to secure, web-based and mobile applications. We have included a diagram that helps explain the relationship between Outstaffing, the Employer, and the Employee.