For many businesses, saving money is at the top of the priority list – especially when moving into an international market. If you are expanding your company abroad, working with a PEO can help your business get the best value in terms of hiring employees, employee benefits, risk protection, compliance and much more. Not only can working with a PEO make it easier for your business to find the best overseas employees, but it can also help ensure that things run smoothly by managing certain parts of your payroll and HR department.
So, what is a PEO?
A PEO, or Professional Employer Organization, works closely with small to medium enterprises to assist with a range of tasks including providing access to better employee benefits, managing certain aspects of human resources, managing taxes and payroll, and other employer-specific admin functions that are necessary to run a business successfully. Partnering with a PEO allows you to focus on the tasks that matter the most since they can often take over a lot of the mundane, routine tasks associated with running your company. So, what exactly can you get help with from a PEO?
One of the main reasons why many businesses today work with a PEO is to help them facilitate expansion into an international market. Growing your business overseas can take a lot of effort invested to get things right, and working with a PEO that has experience in the particular market that you are looking to expand into will ensure that you get the right advice when it comes to important factors such as hiring, legal compliance, business culture, expected employee benefits and more. For example, if you want to expand your business into Taiwan, working with a recruitment agency in Taiwan enables you to hire the top local talent with no concerns regarding travel or language barriers. New Horizons Global Partners recruitment agency is part of their PEO service that benefits businesses looking to expand into markets located all around the world by hiring the best employees.
Working with a good PEO can make it easier for your business to access a range of benefits for your employees, particularly if you are running a small business that would not normally have access to the same type of benefits that larger businesses would be able to provide, such as dental, medical and vision insurance coverage for your employees. Working with a PEO either at home or internationally can help your business attract the top talent. You will be provided with access to better employee benefits as a PEO will be able to aggregate the employees of multiple small businesses together and take advantage of the purchasing power typically only accessed by larger organizations.
A PEO can help you access a range of additional perks alongside the standard employee benefits that most people expect from their place of work. Perks like financial benefits, discounted gym memberships and discounts when shopping can help you build a stronger relationship with your employees and attract the top talent to work at your company.
Working with a PEO can help you ensure that your organization is a compliant employer in various different areas, particularly when it comes to employee tax and payroll. Working with a PEO can help you be more compliant at home, but this service tends to be the most useful when a business is moving into an overseas market.
Payroll and HR
As your company grows and you take on more employees either at home or in different locations around the world, managing human resources and payroll can become trickier. At some point, most business owners are no longer able to do everything by themselves and it may even reach a point where there’s too much for your accountant to take on alone. Partnering with a PEO allows you to streamline all aspects of payroll both at home and in any international segments of your organization. This service is again particularly helpful for companies that are expanding abroad, since an experienced PEO typically has more experience of local banking practices, currency exchanges, tax rates and more. A PEO can help to streamline your payroll process in any location.
How Does a PEO Offer All This?
Co-employment is a practice that allows the PEO to take on such responsibilities as the above. According to the National Association of PEOs, co-employment is defined as contractual sharing of some employer responsibilities between the PEO and their client. As a result of this contract, the PEO becomes an employer of record, allowing them to handle tasks such as tax filing, payroll, HR support, access to employee benefits and more. With your PEO handling all this, your company can free up time to retain responsibility for general management of your business and employees plus everyday operations. This can benefit your business in a range of ways, including:
Partnering with a PEO enables your business to save money in several different ways, especially when it comes to better employee hiring processes and attracting the top talent with better employee benefits. When your employees are grouped together with the employees of other companies that your PEO is working with, you will be able to gain access to a range of benefits that are typically only accessible to much larger companies. And, the PEO can handle hiring, HR, payroll and many other tasks which results in cost savings when you avoid the need to hire a team to handle these aspects of your company in-house.
Every year, more than thirty per cent of small businesses are faced with fines for making easily avoidable payroll and tax mistakes. Compliance can often be a complicated process for small business owners who are not experienced with this side of things, and it can be even trickier to ensure that you comply if you want to expand your business into an international market where the laws, legislation and regulations may be different from what you are used to. There’s a lot involved with ensuring that your organization is compliant with employment regulations and laws in different parts of the world. While it’s possible to facilitate this yourself, many businesses find that working with a PEO allows them to avoid mistakes and relieves a lot of stress while expanding into an overseas market.
Focus on What Matters
Last but not least, any small business owner knows the feeling of wearing all the hats at the same time. If you’ve started to feel like you’re in a constant race to get all those smaller admin tasks completed and are losing time to focus on the important stuff in your business, working with a PEO can help. You can hand over the responsibility of essential yet mundane tasks that every business faces to your PEO, freeing up more time to focus on expanding your business.
Whether you want to provide your employees with more satisfying work experience and better benefits, want to free up your time to focus on expanding your company at home, or are looking to move into an international market and start your business in another country, working with a PEO can be a very beneficial and cost-effective way of getting the right support.