When expanding your business, PEO services might be the last thing in your mind. But it shouldn’t be.
Global PEO services help you take care of your overseas employees through a co-employment model. PEOs manage everything from their payroll to HR support on behalf of you.
Through a co-employment model, PEO service providers can provide comprehensive human resources support even without a physical presence in the country.
In other words, PEO service providers in India can help you manage the HR aspects of your employees in the US, UK, or Australia.
Between 2008 and 2019, the growth rate of business revenue of PEO clients was at 13.5% versus 8.5% for non-PEO clients. Also, companies that used a PEO saw a reduction in administrative costs by as much as $450 per employee.
But that’s not it. There are even more ways a business can benefit from global PEO services when expanding to other countries. Let’s take a look at them.
What is a Global PEO?
Global PEO (Professional Employer Organization) takes care of your global HR requirements through a co-employment model. Their services often include:
● Benefits and administration
● Payroll management
● Ensuring legal and regulatory compliance
Let’s suppose you’re in India but want to expand your business in the US. The state and federal laws (regarding employment) in each state in the US are somewhat different. So, if you’re operating in different states in the US, you’ll need to comply with each of them. If not, you’ll probably pay heavy penalties.
Sounds challenging? Global PEO services can make things easier for you. They ensure legal compliance, irrespective of the state you’re operating in. From hiring the right talent to managing their payroll and filing taxes, they’ll do everything.
On the other hand, you will decide if the person they hired is the right one for the job and the employees’ day-to-day activities.
Depending on your contract, the PEO can also offer additional benefits to employees like health subsidies and training.
Published by Husys Consulting