The skilled trades are the backbone of the American economy. Electricians, plumbers, heating, ventilation, and air conditioning (HVAC) technicians, and other craftsmen keep our homes, businesses, and infrastructure running smoothly. The skilled labor market is experiencing high demand, particularly in fields such as construction, manufacturing, and energy. Many trade business owners are finding it harder than ever to manage the day-to-day responsibilities that come with running a company.

That’s where a professional employer organization (PEO) like Group Management Services (GMS) comes in. Partnering with a PEO empowers skilled trades businesses to delegate administrative tasks, allowing them to focus on delivering high-quality work.

The Challenges Facing Skilled Trades Businesses

Skilled trade owners are no strangers to long hours and tight deadlines. But on top of that, they often juggle:

• High turnover rates and labor shortages, especially among younger workers entering trades.
• Time-consuming HR tasks, such as onboarding and crew management, across multiple job sites.
• Complex payroll processing and tax filing with job costing, prevailing wage, and overtime tracking.
• Compliance with constantly changing labor laws and safety regulations, which vary by state.
• Rising costs of employee benefits and workers’ compensation.
• Little time left to pursue growth opportunities, such as new contracts or training initiatives.

These challenges are not only inconvenient but also costly. Small business owners spend an average of 20+ hours per week on HR-related tasks. That’s valuable time that could be spent on job sites, bidding on new projects, or training employees.

How a PEO Partnership Helps

GMS offers full-service PEO solutions designed to support the unique needs of skilled trades businesses. Here’s how we can help:

Risk management

From Occupational Safety and Health Administration (OSHA) requirements to workers’ comp, skilled trade businesses face a complex web of regulations. GMS creates comprehensive risk management plans to keep employees safe and reduce workers’ compensation rates. Partnering with GMS helps businesses address hazards, reduce workplace injuries, manage claims, and enjoy lower insurance rates.

Employee benefits

Attracting and retaining top talent requires competitive benefits, but managing them can be costly and complex. GMS streamlines this process, offering cost-effective benefits that keep employees engaged and businesses competitive.

Human resources support

Our expert team handles a wide range of HR tasks, including recruiting, onboarding, employee training, payroll, and benefits administration. By partnering with GMS, businesses can streamline their HR processes, ensure compliance, and focus on their core operations while we manage the complexities of HR.

Payroll and tax administration

No more worrying about missed deadlines or incorrect withholdings. We offer streamlined payroll services designed to make managing payroll easy and stress-free. We handle everything from payroll processing and tax management to providing access to payroll software, where employees can view their payroll information anytime, anywhere.

Real Results from Real Businesses

Businesses that partner with a PEO see measurable improvements. According to 2025 data from the National Association Of Professional Employer Organizations (NAPEO):

• PEO clients grow 7% to 9% faster than businesses that don’t use a PEO.
• Businesses that use a PEO have 12% lower employee turnover.
• PEO clients are 50% less likely to go out of business.
• The return on investment when using a PEO, in cost savings alone, is 27%.

Why Skilled Trades Should Partner with GMS

Whether you’re running a small plumbing company or a growing construction business, GMS understands the unique demands of skilled trades. We help simplify your back office so you can focus on scaling your operations, supporting your team, and serving your clients.

Hear from our skilled trades clients:

“GMS presented a comparative cost savings of their services versus our ‘in-house’ accounting and workers’ compensation. The amount saved was substantial for our sized firm…They have helped our company save money on workers’ compensation, as well as accounting expenses.”

– HVAC Company

“In addition to our payroll services, we have utilized many of the services GMS offers, from human resources to workers’ compensation. With today’s ever-changing laws and regulations, it is difficult to keep up. As a small company, we find it a great comfort to have their expertise at our fingertips.”

– Manufacturing Company

“GMS has saved our company hundreds in workers’ comp alone. They are truly a partner in all HR functions. Although we are a small company, GMS helps us to operate with the professionalism of a large corporation.”

– Construction Company

The skilled trades are essential to our future and so is making sure those businesses have the support they need to thrive. Let GMS take care of your business, so you can take care of the job. Learn more about partnering with GMS today.

Co-employment is a strategic partnership between a business and a professional employer organization (PEO) that enables the sharing of employer responsibilities. This arrangement allows business owners to focus on core operations while the PEO manages essential human resources (HR) functions such as payroll, compliance, and benefits administration. Understanding the dynamics of co-employment can help businesses leverage their benefits effectively and avoid potential pitfalls.

Defining Co-Employment

The National Association of Professional Employer Organizations (NAPEO) states, “The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).” Ultimately, the PEO does not make decisions for the business; all control remains with the business itself.

The business is responsible for all business decisions, operations, day-to-day supervision of employees, job assignments, employee reviews and assessments, and determining the employee’s salary and benefits offerings. Although the PEO may be recognized by the state as the employer of record, the business retains the ultimate authority over crucial business decisions. The main advantage of sharing employer status is to receive access to tools and HR services that are typically out of reach for small businesses.

Benefits Of Co-Employment

Greater buying power

Small businesses often lack the purchasing power of larger companies, but co-employment helps level the playing field. Through a co-employment relationship, businesses can leverage economies of scale. PEOs utilize the collective buying power of all their group health clients, allowing them to secure more cost-effective, high-quality group health plans.

Some PEOs offer additional benefits beyond medical and dental insurance, such as retirement savings plans, pet insurance, legal insurance, and more. By combining the collective strength of all their clients, PEOs enable small to midsize businesses to access competitive premiums similar to those of large companies. This means businesses can benefit from lower health insurance premiums while still offering comprehensive coverage to their employees.

With rising health care costs, this buying power is more valuable than ever, allowing companies to provide top-tier benefits without sacrificing their bottom line.

Simpler payroll processing

In a co-employment relationship, the PEO is responsible for paying your employees. Businesses must apply for an Employer Identification Number (EIN) to manage payroll. Companies in a co-employment relationship agree to let the PEO handle this responsibility under its own EIN.

While changing the EIN might not seem exciting, it lets you offload many complex, time-consuming tasks. Using the PEO’s EIN, the PEO becomes responsible for more than just issuing paychecks. These additional payroll administrative tasks include:

• Calculating and withholding income and payroll taxes from employee paychecks
• Calculating and distributing overtime pay
• Reporting these taxes to the Internal Revenue Service (IRS)
• Determining proper employee classifications
• Filing and issuing W-2s and other payroll forms

This transfer of responsibility saves you significant time and effort. Additionally, having your PEO manage these tasks ensures that all calculations and filings are accurate and compliant with payroll guidelines. With a PEO, you can trust that your payroll is handled by trained professionals.

Safer workplaces

Businesses can also benefit from a co-employment relationship through improved workplace safety and risk management. A PEO can help your company qualify for workers’ compensation discounts and maintain lower unemployment tax rates, saving you money and reducing future headaches.

PEOs can assist with safety culture and claims management. These processes not only create a safer environment for employees but also help reduce workers’ compensation costs. Risk management measures include:

• Safety training
• Risk assessments
• Timely reporting
• Post-accident investigations
• Return-to-work programs

Better business alignment

As your company grows, you may need more than just payroll administration or benefits assistance. The co-employment relationship gives PEOs a vested interest in your business goals, working with you to identify growth opportunities and retain talented employees. A PEO can support your growth through:

• Employee recruiting and training
• Performance management
• Unemployment claims
• Human resource audits
• Wellness programs
• Telemedicine

In addition to helping you grow, being co-employed by a PEO means you have access to experts when you need them. This breadth of resources helps you stay on top of trends and regulatory changes that can impact your business.

Common Concerns About Co-Employment

Despite its benefits, some business owners hesitate to engage in co-employment due to misconceptions, such as:

• Loss of control: Business owners worry they will lose authority over their workforce. However, in a co-employment relationship, the client company retains full control over hiring, terminations, and workplace culture. A PEO serves as a trusted advisor, providing expert support and resources while allowing the business to maintain its leadership and decision-making power.
• Cost concerns: While partnering with a PEO requires a financial investment, the long-term savings on compliance, payroll, and benefits outweigh the costs. Businesses can streamline operations, reduce errors, and access high-quality benefits, ultimately enhancing efficiency and profitability.
• Employee confusion: Some employees may initially feel uncertain about their relationship with the PEO. However, clear communication and transparency about roles and responsibilities can alleviate these concerns and foster a positive working relationship.

Co-Employment Statistics

Partnering with a PEO through a co-employment arrangement offers numerous tangible benefits, including:

Cost savings on HR and benefits

• Studies from NAPEO indicate that businesses partnering with PEOs experience a 27% return on investment (ROI) through cost savings in HR administration and benefits procurement.
• PEOs leverage economies of scale to negotiate better health insurance rates, saving businesses up to an estimated 30% on premiums compared to standalone plans.

Improved compliance and risk mitigation

• PEOs stay updated on evolving labor laws, ensuring businesses remain compliant with regulatory changes such as overtime pay rules and workplace safety requirements under the Occupational Safety and Health Administration (OSHA).
• They assist with Equal Employment Opportunity Commission (EEOC) compliance, helping prevent discrimination lawsuits and penalties.

Enhanced employee retention and satisfaction

• Access to comprehensive benefits packages, including employee assistance programs (EAPs), professional development opportunities, and flexible spending accounts (FSAs), can boost employee morale and reduce turnover.
• According to NAPEO, businesses using PEOs have 10-14% lower turnover rates than those that don’t.

Streamlined hiring and onboarding processes

• PEOs offer applicant tracking systems (ATS), background checks, and onboarding software to ensure a seamless hiring experience.
• They help small businesses attract top talent by offering competitive compensation packages and structured onboarding programs.

Selecting The Right PEO Partner

When choosing a PEO, businesses should conduct thorough due diligence, considering factors such as:

• Accreditations and certifications: Look for PEOs certified by the IRS, ensuring they meet strict financial and ethical standards. These PEOs are called CPEOs.
• Industry experience: Choose a PEO with experience in your specific industry to ensure compliance with sector-specific regulations.
• Service offerings: Assess whether the PEO provides the necessary HR services tailored to your business’s needs, such as recruitment support or performance management.
• Technology capabilities: Ensure the PEO offers user-friendly HR technology solutions for payroll, benefits management, and employee self-service.

By partnering with a reputable PEO, businesses can access valuable resources and expertise that would otherwise be out of reach, creating a more efficient and productive work environment. If you’re considering co-employment, Group Management Services (GMS) can help guide you through the process and tailor solutions that meet your business’s unique needs. Contact us today to learn more about how we can support your business growth and help you reclaim your valuable time.