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Guide to International PEO Services December 11, 2018

Growth-minded businesses look at the rest of the world as their oyster. Seeing international expansion by establishing the business in new geographical territories across borders is a time-tested way of being successful. The opportunities are plenty. The demand is high. Supply of quality services and resources low.

Different companies have different kinds of needs. While some are looking for a simple introduction into new territory, some are looking for connections that help them establish fruitful relationships. Entering into a business partnership with a new country and creating a market for yourselves there can be easier than it looks provided you have all the prerequisites for it.

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PEO

The first and most important of them all is the right partner to take you beyond your comfort zone. That partner, staffing partner, is your PEO. Professional employer organization. This entity helps a company place its employee in a different country or location where the company may not have its presence or cannot directly deploy its employees. Also known as Secondment, it has a broad range of services including visa processing, relocation logistics, HR / Payroll processing, amongst others to choose from. The company can select one or more Secondment services depending on its need.

What does a PEO do

The utilization of a PEO is a popular and practical option for companies that operate/wish to operate on different lands. The vast difference between the state laws on the corporate registration, payroll and employment can be mind-boggling. A PEO can help identify and execute deployment of employees without the company feeling the related hassle.

The services are also used in different foreign countries for simply employment and payroll support. The client-company creates a position of a co-employer in the PEO.

Fundamentally, the hired PEO does not involve in management issues with respect to the position of the employee at work. The company, you, will retain all rights relating to the agreement with the employee, position duties, compensation and termination.

  • In charge of the paperwork (visa, work permit, etc.) for the employees.
  • In charge of compliance with the laws of the land, local contracts and protection of the rights of the employee
  • In charge of ensuring that the laws and regulations are broken by the employee during their stay in the country. Includes advising the client company on rules of termination, severance payments, etc.
  • In charge of ensuring that the stay of the employee in the country is smooth and that all the needs are met such that the project execution does not get affected.

Why hire a PEO

Every country has its own unique rules and regulations related to employment, payroll conditions and work permit. Complying with the various legal proceedings has a significant impact on the future of the company. The challenge of keeping up with the laws of various lands is a major hurdle to the smooth expansion of the business across borders.

The priority of a business is to take care of the internal proceedings. It makes sense to accept what we are good at and to outsource what could be beyond our expertise. This is especially applicable to smaller businesses that have limited HR resources. The PEO is in charge of the execution of the legal and regulatory prerequisites of immigration, employment and payroll.

Advantages of hiring a PEO

Many companies make the assumption that they would not require a PEO. How hard can it be to book a couple of plane tickets and hotel rooms, would be the question. There is more to a PEO than what meets the eye. The benefits are immense.

  • An External HR support infrastructure provides the company with expertise and experience not only in the logistics but also by ensuring the right connections with the new country
  • The in-house key employees can be utilized for projects at home. Liaising with new countries with no personal contacts can be more than a hassle.
  • The risk on non-compliance of the laws of the country is reduced with an international PEO. The exposure that exists with a professional staffing company cannot be replaced by the local HR team.
  • A team dedicated to the activities that take place beyond the boundaries of your country leaves you with more bandwidth in your company. The HR team can work with recruitment and retention of your skilled employees. Administration work can be outsourced.
  • PEO does not mean you lose control over your employees. You still have the upper hand over all crucial decisions to be made.
  • International hurdles such as understanding the law of the land, culture and networking with the key persons are taken care of by the PEO. The employee is in safe hands overseas.
  • There are cost savings on hiring, employee benefits, health coverage and insurance, etc.

How to pick a PEO

Yes, the crucial decisions are still in your hands. You still need to know the PEO very well before you hire them for your overseas assignments. Here are some of the questions you can ask.

  • The organization of the PEO, their license, owner and controller of the PEO
  • The activities that they undertake
  • The other clients of the PEO / other contracts
  • The countries that they are familiar with
  • Litigation status

Hire a PEO. Everyone will be thankful. There are advantages in different platforms - financial, logistics and business-wise. They improve business operations and handle issues that are beyond your control. Make a financially sound decision that will not only keep your business afloat but also expand the reach beyond your comfort zone.

Create a new future by bringing a PEO onboard. Give us a call, and we can tell you a lot more. We give you various personalized packages that are as unique as your needs. Let your business thrive and reach long-term goals

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