The Benefits of Co-Employment

Co-employment is an arrangement in which a business shares employment responsibilities with a professional employer organisation (PEO). The business continues to manage its employees for daily operations, and the PEO handles HR-related tasks, such as payroll and benefits. 

Here are 5 Benefits of Co-Employment:  

Receive HR Support

Companies might worry if they outsource HR matters through co-employment, the processes will be chaotic when a new team takes over the administrative tasks.  

However, a co-employment arrangement can work seamlessly and provide the company with much-needed HR support. The key is for employers to communicate their needs with the PEO to ensure no hiccups in their collaboration. 

Simplified Payroll Administration

The appointed PEO is responsible for paying employees on time, withholding the required taxes, and checking and approving employee claims. 

Small business owners lacking dedicated HR departments face challenges in managing the payroll process themselves. But with the help of a PEO, who utilises payroll processing software, these businesses unload the administrative burden and focus more on managing operations. 

Access to Compliance Expertise

A PEO will help employers to comply with employment and HR laws and regulations. Payroll and industrial relations experts within the PEO team will review HR processes and monitor regulatory changes to minimise their client company’s compliance risks. 

Cost-Effective Health Insurance Benefits 

In a co-employment arrangement, a business can request the PEO to provide quality, cost-effective health insurance benefits for its employees.  

Since established PEOs have existing working relationships with insurance providers, they will provide your company with competitive benefits. Additionally, the PEO can also manage onboarding and other benefits-related administrative matters.  

Strategic Advice on Talent Management

Some PEOs have a division within their team that specialises in talent management. They will advise you on managing employees’ performance management, compensation analysis, supply and demand reports, and engagement and coaching strategy.


Choosing a PEO can be complex but with TG Group, it doesn’t have to be. 

Send your enquiries to to find out how we can help you stay agile in a competitive business ecosystem.

Alternatively, WhatsApp us: Singapore +6598276511 | Malaysia +60175729483.