How Can PEO Be Helpful for Global Staffing Companies?

Global Staffing

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Global staffing agencies usually have thousands of employees across the globe. They help companies fulfill their hiring needs by giving their employees on lease for a certain period. While that seems an exciting opportunity, it comes with many complexities, and ensuring compliance with local and international laws is one.   

You must classify employees correctly, ensure they’re paid on time in their local currency, and offer benefits per the local labor laws. Even a minor mistake could invite penalties and lawsuits, not to mention the damage it’ll do to your brand reputation.  

So, as a global staffing company, your best bet for meeting compliance requirements is a PEO provider. They have the necessary expertise and resources to manage the HR requirements of your employees.  

But before we move forward to how PEO helps global staffing companies, let’s quickly understand what a PEO is.

What is PEO?

PEO, or a professional employer organization, is a third-party company that helps you with HR and payroll functions. Your PEO partner works with you at every stage of employee management, from hiring and onboarding to development and separation. They also help you pay employees in their local currencies and offer comprehensive benefits.  

Why Do Global Staffing Companies Need PEO?

A good PEO provider like Husys helps staffing agencies improve brand reputation, reduce expenses, avoid legal issues, and provide better employee benefits. Let’s look at these benefits in detail.

Prevent Lawsuits and Maintain Brand Reputation

Employment laws are complex and often change, making it difficult for companies to keep up. And when you have workers across the globe, things can get complicated quickly.  

For instance, employers in the US are legally required to offer employees social security, Medicare, and federal and state unemployment insurance benefits. However, some of India’s mandatory requirements are gratuity, provident funds, and maternity benefits.  

Since global staffing companies are often in a hurry to hire skilled employees for their clients, ensuring compliance is easy to miss out on. And non-compliance takes many forms, including 

  • Unintentional failure to comply with health and safety protocol 
  • Not providing benefits per the local employment laws
  • Lack of proper security measures to safeguard employees’ details 
  • Discrimination against job applicants based on race, ethnicity, religion, sex, gender identity, national origin, age, or disability. 

It is also worth noting that 21 states in the US have made it illegal to ask for a job seeker’s past salary, including Alabama, California, Hawaii, and New York. So, the questions you can ask candidates also depend on where you’re hiring.  

However, when you work with a PEO, they can help you understand these situations and avoid noncompliance issues, preventing you from potential lawsuits. They also have people with expertise in employment laws of different states, making it easier for you to get on-demand guidance.  

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Improve Brand Reputation

Employer brand reputation is critical to any staffing company’s success. The ease of leaving reviews online has made it even more important to offer the best experience to both employees and clients. So, how does a PEO help with it?  

PEO providers ensure your business complies with government regulations, assist employees with HR needs, and offer good benefits. PEOs also ensure your employees are paid fairly per their region’s industry standards and cost of living.  

Another way PEO companies help you enhance your brand reputation as an employer is by guiding you on employee management best practices. They also ensure your employees are happy, satisfied, and engaged throughout their employment with you. 

Reduces Overall Costs

Let’s say you want to expand your business to India and Australia. You hire a few employees from each country. Now, you need to provide them with medical insurance per employment laws. However, insurance would be expensive in most cases unless you’re buying it in bulk (probably for a few hundred employees).   

That’s where a PEO comes in. Since they’re already helping companies and staffing agencies with HR needs, they probably have insurance partners who can give you better premiums. Again, this enables you to save money and time that you’d otherwise spend comparing insurers. 

Another way they reduce overall costs is by providing HR solutions at better rates. For example, when you have employees across the globe, the requirements for human resources increase significantly, requiring you to expand your in-house HR team. However, when you outsource the HR needs to a PEO, you don’t need to build an HR team. 

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Makes Scaling Easier

Let’s say you have a client who needs 100 employees in different domains. After a few months, the client says they need 100 more workers, and you don’t have the bandwidth. What do you do? Hire them, right? But that can take weeks to months, depending on the requirements. 

However, you can close the positions much faster with a global PEO. This is because they already have the infrastructure set up in different countries and probably have a database of potential employees. Therefore, the right PEO enables you to find the right people for your clients from across the globe much faster without worrying about compliance requirements.  

This means no lost business, more revenue, and better client retention! 

Concluding Thoughts

Even though most global staffing companies have in-house human resources teams, they can dramatically benefit from PEO providers. PEOs have in-depth knowledge of local labor laws, reduce employee turnover, minimize operational costs, and help improve brand reputation.  

Ready to take your global staffing agency to the next level with a PEO? Let’s connect over email at or over the phone at +91 7204012636. 

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