A Professional Employer Organization is a company that assumes all the HR responsibilities in a co-employment relationship
. It’s ideal for small and medium businesses that want to expand their operations in a foreign country.Hiring an international PEO will help you save time and money by hiring the right candidates for your company. At the same time, they will ensure that you comply with the legal procedures, as well as with tax payment of the country
you want to settle in.
6 advantages of hiring an international PEO
Reduces HR expenses
You’ll get a specialized team that will help you through the process of hiring
, and administrating payroll, employer taxes, audits, and benefits enrollment, among other HR responsibilities
.Also, they will help you make sure you keep up with other country’s laws and taxation systems.
The best PEOs use technology to analyze and process information related to your personnel. Those metrics can be useful to measure and compare the growth of your company.
Become a co-employer
This form of hiring is perfect for those who don’t want to invest too much in the HR, tasks or in settling a whole HR department, but still, want to keep control
of who’s working in their company.At the same time, when you have a long-term relationship with your PEO company, they can fully comprehend your needs, your values and, therefore the type of workers that will help you grow your company. By doing so, you can minimize risks and obstacles
related to choosing the right person for strategic positions within your company.
An international PEO
can become a strategic partner for those goals you have set for the foreign branch you’ve just open. They can establish an onboarding process that will help the company maintain a long-term relationship with their workers.If the PEO you’ve just hired has the right technologic resources, you can open direct communication between workers and employers.
Once you hire a PEO company, it’ll begin with its growing process. So, the company must be ready to solve and offer solutions as your company grows. If for any reason, your company has too many workers and you need to downsize it, a good PEO must be ready to assist you in that matter.
Hiring the right PEO will provide some benefits to your employees, such as healthcare, insurance, among others. By doing so, workers will feel motivated, and their productivity will increase.A PEO can also provide them with compensation coverage through their own worker’s compensation insurance program.
How does international PEO help any business to grow?
When you have chosen the right Professional Employer Organization, it can reduce up to 50% the probability of any company to go out of business due to several reasons:The first one is that by using this co-employement method, the employee turnover lowers between 10 to 14%. That’s because they create an onboarding process according to the values and mission of your company. Also, they have a group of expert that can decide if the candidates are right for the position you wish to fill.In addition, businesses that have used a PEO company reported savings up to 35% in the HR administration
, while guaranteeing that their workers obtain their benefits.At SERVIAP we have broad experience hiring and managing local personnel
, taking care of your payroll and your local personnel while you reach your objectives. We invite you to contact us today to take the first step towards expanding your business.You probably want to read this article as well: 4 strategies to expand your business internationally