With co-employment, two (or more) companies share a single employee, and each employer shares the skills and the responsibility for the employee. As you may think, there are certain benefits and risks of this type of work arrangement, which can include:

  • Having access to a high-level employee who elevates the business reputation
  • Being able to work together with the employee in a partnership or collaborating on a big project
  • Possible sharing of a portion of the employee’s wages, benefits, and access to technology and work resources
  • One employer may manage payroll and benefits while the other manages the projects and clients

For the above reasons, many companies enjoy a positive relationship and great results in co-working arrangements. However, before going into this type of agreement with any employee, it’s important to understand and manage any potential risks especially when bringing on temporary employees through a staffing organization. Here’s how.

To avoid co-employment issues with a temporary employee,do not counsel the employee on matters of attendance, tardiness, transportation, day care, or other personal matters. Refer this to the company that is managing the contract for the employee, because legally this is considered the primary employer.

Time-keeping, payroll, and benefit questions should be managed by the employer that is handling this. Redirect all questions of this nature here.

If the employee’s work contract is to be terminated, communicate this to the legal primary employer so that the employee can be notified properly and any unemployment claims are handled well. If a replacement is needed, the sooner this happens the better.

Keep the lines of communication open at all times when it comes to a temporary employee to further reduce risks associated with this kind of arrangement. Remember that the staffing agency is the go-to resource for resolving any performance issues or changes in the project scope.

To partner with a two-time recipient of Inavero’s Best of Staffing® Client Award, contact Arlington Resources today and find out how a staffing agency can help in your job search – locally, regionally and nationally.

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