Global PEO talent acquisition enables you to expand your business globally without having to deal with HR-related activities like talent acquisition, payroll, and compliance.
Companies that use PEO grow faster and are more likely to stay in business than those that don’t. The same study found that PEO clients have significantly higher employee satisfaction and lower employee turnover.
So let’s dig deeper into the benefits of global PEO talent acquisition and how to choose the right one for your company.
Maintain Statutory Compliance Across States with Global PEO
One of the biggest challenges for businesses expanding internationally is understanding local labor laws, mandatory and non-mandatory employment benefits. Besides, even in the same country, labor laws might vary.
For instance, the minimum wages law in India differs from state to state. If you have offices in multiple states, keeping up with the regulations could be challenging.
Moreover, statutory submission deadlines are spread out throughout the year (monthly, quarterly, semi-annual and annual). Failing to upload even a single document could invite fines.
However, an International PEO takes away all these concerns by placing the task in the hands of local employment laws experts. You won’t even have to worry about new regulations being introduced. Your PEO partner will take care of everything.
Boost International Brand Reputation
What your employees say about your company can significantly improve your brand reputation. When expanding your business globally, you’d want them to talk positively about your organization both offline and online.
Besides, a better reputation will help you attract right talent, which, in turn, will have a positive impact on your bottom line.
However, this will only happen when your HR department complies with necessary rules, provides them with a fair working environment, and ensures no payroll mistakes.
A reputed global PEO can offer all these benefits to employees, thereby enhancing your brand reputation in new markets. In addition, they can also advise you on how to provide a happy working environment for all your employees.
Enhance Global Hiring Process
Hiring foreign employees has a lot of benefits for businesses expanding internationally. For instance, you benefit from their knowledge and understanding of the local market. Also, they cost much less than expats and help build better relationships with your customers.
However, it also comes with several challenges, such as understanding local labor laws, cultural differences, background checks, and more.
The best way to overpower the challenges with benefits is by leveraging global PEO hiring services. They take care of all the complications associated with local hiring, so you get the maximum benefits.
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Mitigate Business Risk
While there’s always a risk of failure, companies must take calculated risks. For instance, Coca-Cola had to leave India in 1977 due to stiff government regulations, which the company wasn’t prepared for.
Apart from compliance-related risks, you also have to take care of permanent establishment risks. It refers to the risk of local tax authorities considering that your business is running continuously in the country rather than sporadically. When this happens, it will mean that your business is a permanent establishment in the country and is liable for all corporate taxes.
With an International PEO, this risk can be reduced significantly. A global PEO acts as the employer of record for your business, ensuring compliance with local tax regulations. Also, global PEOs report and pay taxes on time, eliminating the risk of fines and penalties.
Managing Global Payroll
Even if we keep the compliance factor aside, companies still face a lot of barriers in international payments. That’s because of different currencies and conversion charges.
This makes it challenging to ensure your employees receive accurate and timely salaries each month.
Since a global PEO manages payroll on your behalf, they ensure that payments are made timely and accurately in time zones across the globe.
Why Global PEO Can not relay on Hire Remote Workers as Contractors or Freelancers?
While you think about hiring remote workers or freelancers, it is worth noting that it could be challenging to enforce NDA, non-compete, and IP protection clauses.
Even if you implement a non-compete clause, there’s no guarantee that they will adhere to it. And when that happens, you have the chance to take legal actions, but that’d again be costly for your business (in terms of time, money, and reputation).
Also, freelancers usually work with multiple clients. This means that they won’t be dedicating as much time to your business as you’d want them to.
Hassle-Free Entry To The New Market With PEO
How to Choose the Right Global PEO For Your Business?
Now that you have decided that global PEO hiring is right for you, it’s time to choose one for your business. Since no two PEOs are the same, you should analyze the following before making a final decision.
Ensure they provide all the services that you need
It is essential that you choose a PEO that offers all the services you need (or will need in the future). Many PEOs tailor their services as per the business size, industry, and geographic locations. Make sure that your PEO can support you as your business grows internationally.
Analyze their pricing structure
PEOs either charge a flat fee per employee or take a percentage of your payroll. The former is more predictable and assures things stay within your budget. Irrespective of what pricing structure you choose, ensure that there are no hidden charges. You can also ask for a sample invoice to better understand their pricing structure.
Explore the prerequisites
Some PEOs partner only with businesses with a certain number of employees, while some require you to give them advance notice for canceling their services or terminating employees. If not, you risk paying hefty penalties. Therefore, watch out for all the prerequisites before you make a decision.
Expanding your business comes with tons of responsibilities and legalities. Global PEO hiring can share your responsibilities by managing the compliance part of business expansion. To see how PEOs can make it easier for you to enter new markets, connect with us at email@example.com or call our team at +91 7204012636