As his business grows, george finds he does not have either the time or the skills to manage the human resources function. he has decided to outsource part of personnel management to an organization that handles paperwork and administers benefits for his employees in an arrangement called

This arrangement is called co-employment. Co-employment is the contractual allocation and sharing of the responsibilities of an employer between a professional employer organization or POE and its client. In a co-employment agreement, workers are employed by the business owner or client employer and the PEO or co-employer.