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Now that many companies are working at least partly remotely, they can have a more global outlook. International PEO services are companies that enables businesses like yours to expand overseas by providing employment solutions in one or more countries within the same continent. PEO stands for Professional Employer Organization.
Using international PEO services means all the legal and regulatory procedures are taken care of, such as quickly and legally hiring and paying employees abroad, saving you the hassle of operating as your own foreign legal entity.
The provider of international PEO services will handle all kinds of employee administration processes such as hiring, managing employee payroll and benefits overseas on behalf of your business. They are similar to EOR services, and you may want to investigate employer of record vs PEO as well.
If you think that you might benefit from international PEO or EOR services, contact us today.
Benefits of using international PEO services
International PEO services are designed to make it easy to hire abroad and enter new markets. While international recruitment is new to most businesses, PEO companies have a lot of experience in the field and therefore know exactly what to do and how to manage any issues that come up.
1) Saving your business from costly legal fines
It can be hard to know every law in your home market, let alone having to learn the complexity of another country’s legal code. Something that is not necessary in your country may be a legal requirement in another, or vice versa.
International PEO services will have the local resources to ensure your business is always 100% in line with the laws and regulations regarding employment classification and taxation of the location you decide to expand to.
2) Attracting only the best talent fit for your business needs
Because of their deep local market knowledge, you can rest assured that an international PEO will hire only the most qualified talent for your company. International recruitment is their business, which means they are well versed in matching up workers with companies.
Different countries tend to specialize in certain areas. A good PEO company will know which places are best for call center outsourcing, for example, and where might have the best IT workers. This will make sure that you are recruiting from the right
3) Saving you time and money
If there’s anything the pandemic has taught businesses all over the world is that the key to success is working smarter, regardless of location.
Remote work opened the door to a bigger and more diverse talent pool. Partnering with a company that offers international PEO services will not only grant you access to the very best global talent, but it can also save your company a lot of money if those workers are in a more competitively priced economy.
4) Ongoing and fully legal payroll management
Anyone who’s taken their business overseas will tell you international taxes and payroll management can get very problematic very quickly. Even a small oversight could make your business fall out of compliance, and you don’t want that.
Since an international PEO has a legal presence in the country you’re expanding to, it automatically frees you from these issues. Additionally, it will make sure your employees abroad are paid on time and in full amount, removing any risks and potential liabilities.
5) Business expansion
Globalization provides businesses with new opportunities in emerging markets and exciting possibilities for expansion. However, this also means you’ll most likely have to deal with costly fees and confusing foreign administrative and governmental regulations, which could delay your business expansion for months, or even years.
However, international PEO services can take care of all that for you, expediting your company’s entry and eventual exit from any country. by handling all the administrative tasks implied, such as complying with foreign laws and regulations at all times. Happy expansion!
Challenges of hiring international PEO services
While there are many advantages of hiring the services of an international PEO, it doesn’t suit every business. Certain companies may have good reasons for not wanting to work with international PEO services, so check that none of the following applies to you.
1. Being comfortable with sharing delicate information: When you work with international PEO services, you’re implicitly agreeing to let them handle most, if not all, of the legal and administrative requirements to keep your business abroad up and running.
This means a PEO will have full access to your company’s most confidential information. Some business owners may not be so comfortable with having a third party know such delicate information, which might result in tensions and difficulty reaching common ground.
2. Dealing with control issues: You might feel like you’re the only one who knows what’s best for your business, but international PEO services are designed for delegation duties. Since an international PEO has all the legal expertise and regulation knowledge of the country you’re looking to expand to, it’s them who will be advising you on the best way to do things.
They may be aware of things that are outside your knowledge base and therefore give advice that may be different to your normal way of working. If you’re the kind of person that struggles to let go of control and instead prefers to handle all matters internally, international PEO services might not be the best solution for you.
How do international PEO services work?
As we mentioned before, an international PEO services works by providing employment solutions to local businesses looking to expand abroad. The work of an international PEO comes in two stages. First is recruitment, hiring, and onboarding new employees when you are starting off. This is a one-time service for each worker.
After that comes legal and ongoing payroll management for each worker for as long as you need them. Even if you do decide to establish yourself with your own legal entity abroad, the PEO can still handle international payroll on your company’s behalf
Serviap Global provides international PEO services
There are many emerging markets in the world now with incredible potential to be unlocked. As the business world is changing, new possibilities are opening up in different parts of the world. It’s time to think global in your approach to talent acquisition.
With Serviap Global, you will partner with HR experts who understand the local culture and legal employment requirements in many different places. We cover countries around the world, with a strong focus on emerging markets.
Our journey started in Mexico, expanded into Latin America and the US before moving to a fully international focus, meaning we know all about global expansion from firsthand experience.
