Are you curious about PEO services, international hiring, global payrolling, and how important all these are while growing a business? Look no further! Here is a detailed article for the generally asked questions to be answered about all these you need to make an informed decision. Don’t stress over framing such a big business expansion strategy–we’ve got you covered!
#1. What are Professional Employer Organizations (PEOs)?
PEO stands for Professional Employer Organization, and it’s a business service that can take on all of the HR management tasks for an organization. This includes benefits and compensation, recruitment, payroll, and training. By utilizing a co-employment model, a PEO can hire employees on behalf of their clients while acting as an Employer of Records (EOR) responsible for relevant legal regulations and tax compliance.
#2. What sorts of businesses require the services of a PEO?
Businesses of all types can benefit from the services a Professional Employer Organization (PEO) provides. From single-handed managing offices to large manufacturing units and everything in between, the co-employment structure enabled by PEOs allows companies to deliver HR services in a more streamlined and effective manner. This makes it a suitable option for entities in any sector, such as Hi-tech, retail, financial services, technology, startups, SMBs, healthcare, and even non-profit organizations.
#3. How can clients of a PEO manage the international employees that work for them?
It is an important question that each company may ask while thinking about global expansion. Get started with self-service platforms to manage foreign teams that give the ultimate solution and customization option to choose your convenient time zones. Although these organizations fulfill all of the staffing requirements, the business owners have to oversee or take control of employees directly. This includes making decisions on job responsibilities, standards of quality or performance, wage rates, working hours, and compliance with regulations. You get to manage your employees 100% by reviewing and analyzing their performance. Your employees will completely work for you.
#4. What advantages does a PEO Offer?
PEOs are companies that provide businesses with an outsourced human resources solution, allowing them to manage day-to-day HR tasks such as payroll, employee benefits, and recruitment. Listed below are some key advantages of PEO/EOR services:
• Adherence to compliance with local and federal regulations
• Easy expansion to global labor markets
• Streamlined human resource budgeting
• Cost efficiency in every stage of business expansions
Read also: What is a PEO Or EOR service? Why your business should consider using this service?
#5. How to build an international team in case my company doesn’t have foreign entities?
Leveraging PEO/EOR services for building virtual teams across the globe is the most feasible solution for this question. They have legal local entities and an internal team of highly skilled professionals for hiring and administrating the global workforce. Partnering with the right PEO will save you a ton of money and time in establishing entities and/or offices for your company. You can avoid the headache of discovering talents, and managing their payroll, benefits, compliances, and all other legal formalities. A PEO will hire, manage and pay employees who work remotely around the world and can provide compliance with multiple countries’ regulations.
#6. How do companies pay international employees?
One of the difficulties in paying global teams will be the international payment differences between locations and different currency exchanges. This will be a mammoth task if a company deals with payments on its own. In such situations, a PEO partner plays a major role to make it simpler by integrating the local entities which they have established already. You don’t need to deal with multiple facilitators to pay overseas. Instead, you can pay at a single time to a single entity that will pay for all your international employees without any hassle. The whole responsibility of paying timely, processing the payrolls, and creating full-fledged pay sheets will be on the PEO/EOR that you have chosen.
#7. What is the best way for finding the right talent as per my requirement?
Find a Global PEO partner that deals with international recruitment having a huge database of filtered profiles of highly skilled candidates and an in-house panel of human resource experts. Rather than spending time setting up in-house recruitment teams, your PEO/EOR partner will be able to hire and onboard employees as per your requirements. For example, Global Squirrel is a budding SaaS platform that is reframing the global recruitment service at affordable rates with its self-service intuitive platform to make international hiring easier for businesses of all sizes.
#8. Is international talent hiring a smart concept, or what if international expansion proves unattainable?
When considering international expansion, it is important to consider factors such as market conditions, capacity, and available resources. However, setting up your permanent entities and investing heavily in such endeavors can be risky. To alleviate some of this risk, companies should consider using co-employers like Professional Employer Organizations (PEOs) or Employer of Record services (EORs). By doing so you are able to terminate the business expansion strategy anytime without heavy losses.
#9. How will I manage to fire my international employees?
When international employees must be terminated, the complexity of different laws and regulations can cause compliance problems or exposure to costly litigation. Professional Employer Organizations (PEOs) assist companies in navigating these complexities safely, reducing risk, and ensuring employee termination is handled in a manner compliant with local laws. PEOs offer invaluable assistance to those dealing with outbound global expansion, making sure the process of terminating international employees goes smoothly.
#10. Do we need to open bank accounts in foreign countries where we plan to employ remote talent?
Not required if you have a co-employer in another country. A PEO can help you make multinational payments without opening multiple bank accounts. Instead of dealing with multiple vendors, one payment can be made on a subscription basis, thus saving time and money. How incredible is it to eliminate the hassle of international payments in just one click?
Read also: Can a company pay international employees directly from business accounts?
#11. Is there a minimum number of employees necessary in order to utilize the Professional Employment Organization (PEO) service?
When running a business, the number of employees you might need depends on your individual situation. Companies such as start-ups or small businesses often only employ one person per country. At the same time, some companies have multiple staff members in India, Mexico, the Philippines, and so on. Make sure to find a professional employer organization (PEO) or employment outsourcing provider (EOR) that does not have a minimum requirement for the number of workers you can have. Rather than limit your team size, you can use the software as a service platform like Global Squirrels which allows limitless possibilities within your workforce.
#12. What are the challenges in running global payrolling?
Managing in-house international payroll can be a costly and cumbersome experience, filled with unexpected difficulties. Below are the main challenges for businesses if they are not planning to turn to external global payroll providers for help with their international payroll processes.
• Accomplishing global compliance
• Standardizing technology and processes
• Ensuring accurate data management
• Monitoring multiple vendors in various countries
• Eliminating currency exchange errors
• On-time and precise payroll
• Cost management
• Keeping employee data secure
• Challenges in attendance and leave management
Read also: 9 Common pitfalls in international payrolling management
Have any more questions?
Skeptical about expanding your business internationally and intrigued about building virtual remote teams in any country? We know taking a big step like that can feel intimidating, so it’s natural to have questions. Rest assured we’re here to answer them—check out our FAQs for more information. You can even connect with our expert panel if you have any unanswered questions, schedule a demo today!