Reasons to Use 3PE

There are legal and cost benefits associated with third party employment. Major reasons include risk reduction, administrative cost reduction and overhead reduction provided when using this solution.

Risk Reduction

Third party employment provides Pentad’s clients with reduced risk, since a firewall is created between the staffer and the client organization. Pentad serves as the employer of record and administers payroll services and benefits packages. We handle all human resource and legal compliance issues and also provide liability and workers compensation coverage. Pentad manages the recruitment process and screens, interviews and conducts background checks to ensure only high caliber candidates are selected. We administer the entire onboarding process. Co-
employment is a legitimate, legal, and essential part of staffing relationships. Pentad provides the expertise and guidance to professionally manage co-employment.

Administrative Cost Reduction

There is a significant cost savings when a company transitions payroll and benefits administration to an accounts payable function. We can help minimize the cost and time of performing these tasks internally. Pentad provides effective and cost efficient solutions.

Overhead Reduction

There are hidden costs associated with employment; these include mandated employer payroll taxes and obligations, health, welfare and retirement benefits, paid time off and required insurances. The average US manufacturer pays $1.52 for every $1 they pay employees.¹ These collective costs can be disproportionate when applied across employee classifications. Because Pentad owns the employee-employer relationship and tailors its benefit programs to nonexempt and functional support level roles, we can deliver a considerable cost savings, thereby reducing overhead and mitigating risk.

¹ U.S. Department of Labor, Bureau of Labor Statistics: Employer Costs for Employee Compensation – June 2010 (Washington, D.C., September 8, 2010, USDL-10-1241), 12.