Pros And Cons : Use Of PEO And How It Can Help Businesses In Expansion To India During COVID

PEO Services Pros and Cons

Table of Contents

PEO (Professional Employer Organisation)  OR EOR Service (Employee of Records ) refers to a company that manages Setting up New Entity,  outsourcing of HR and other administrative tasks for companies. It is an innovative means of having proper  infrastructure of HR without any efforts that are required for an organization to run smoothly and successfully. It focuses on different aspects that organizations sometimes don’t focus on. Through PEO companies get relaxation from obstacles that they face in administration and other operations related to employees. 

Let’s have a look at some pros and cons of PEO – Professional Employer Organization


Reduces Risk

Through PEO, one  can share the responsibility of getting involved in various types of threats to your business. It reduces such risks, for example it can reduce the number of lawsuits that involve sexual harassment in offices etc .

People Management

There are certain responsibilities that an organization has to look after and most of them are bound by certain rules and regulations. PEO and EOR Service in India is able to handle and ensure that the organization is in compliance with all the local , state and federal laws. They have certain benefits and other processes that include administration, recruiting , on boarding , compensation etc. 

Pay For What You Use

If the organisation hires an HR they will be paying salaries and  other benefits to them, but by using EOR service and PEO companies only need to pay for the time and the service that they use.. This way it reduces extra costs on the services that organisations don’t require. 


Challenging Process

Sometimes it becomes difficult to be the only customer of PEO and it leads to trouble in getting attention from them. It’s important to ensure that the partner has a dedicated compassion towards the business. 

Compliance Remains With The Organisation

After outsourcing HR and other responsibilities the business has to maintain a compliance program. It is important to look for those PEOs that ensure and give a guarantee that if anything goes wrong they are responsible financially. It’s better to review from other customers so that it  can be ensured that the PEO firm is trustworthy and maintains the guidelines of compliance. 

Company Culture May Suffer

When employees are having problems that require HR or benefit experts, it can be a challenge to direct them to a third-party. In many cases, PEO wants to own the responsibility of the HR  so they can maintain a strong company culture around it. Thus , it’s better to use a PEO firm that has the same culture and values as your organisation follows as it will ensure a smooth experience for both the employers and employees. 

How Payroll Outsourcing Can Be A Boon To SME's & MSME's?

How PEO Benefits Small Businesses?

PEOs offer small businesses a chance to direct competitive benefits with minimal cost and below you can have a look at them..

International Professional Employer Organization Services

PEOs Reduces The Cost

PEOs give the organizations a  chance to save money on major expenses like employee healthcare since they give wide range of options in these tough times.

PEOs Take Care Of Payroll And Taxes

PEOs handle the payroll services and yearly taxation filings. They help with payroll generation and proper deduction of taxes from employees. They  know how to manage state and federal taxes.In addition, most PEOs provide online platforms for the organizations to check their tax information anytime, and anywhere.

Know How PEO Can Be Benificial For Startup's

PEOs Helps To Hire Right Talents

Professional Employer Organization often help clients to hire new and qualified candidates as they have access to all kinds of recruitment networks with specially focused employment services. They also  help in screening applicants that in turn saves time. 

Tracks Employee Performance

PEOs provide employee performance tracking software, complete the  forms for both employees and employers  that are based  on a schedule set by the company. In other words, they provide a performance reporting structure that helps in understanding both the organisation and employees and also the individual goals of the employees and their areas for improvement. 

How are they helping organizations in present situation?

Resolving Employee Queries

Being a part of PEO helps in answering the queries of the employees throughout the process. As the organization changes the PEO becomes more flexible and informative. The transparency helps employees to get support by the company and helps them in making better decisions.

Covering Healthcare Expenses

PEO covers the healthcare expenses through insurance so that employees don’t have to incur huge costs in case they come in contact with COVID. 

Managing Staffing Needs

Despite the challenges organisations are facing currently, with the help of PEO the requirements of staffing can be met. Considering this PEO ensures that a large number of employees are outsourced to a third party who has faced layoffs  from their previous organization.

Managing Remote Workers

Despite the challenges organisations are facing currently, with the help of PEO the requirements of staffing can be met. Considering this PEO ensures that a large number of employees are outsourced to a third party who has faced layoffs  from their previous organization.

Globally, this Professional Employer Organization or other wise called as EOR { Employee Of Records), is the only possible ways to expand business to India with our having any entity in India. As this covers wide range of opportunities  and benefits to companies as mentioned above, We at Husys as international partners to provide tremendous knowledgeable support to our clients together. Ate you the one who is looking for success together then, you can write us at to understand more for your business expansion.

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3 thoughts on “Pros And Cons : Use Of PEO And How It Can Help Businesses In Expansion To India During COVID”

  1. Hi! It is such a well-articulated article.
    With each individual and business looking up to expand globally, PEO/EORs can help a lot.
    They manage the risks and guarantees that the company’s employees benefit from following the local and worldwide HR and tax laws. There are so many ways in which they can help you grow your business, like assisting in visa applications, reducing risk related to HR, and ensuring timely payment to employees.
    It is very important to choose the right Employer of Record for your business. Skuad is an EOR I know about, that helps companies with cost-efficient and time management techniques in hiring remote teams worldwide.

  2. Hi I am thinking of starting a company in the US. I would like to hire from India in WFH platform and not register a company in India. However I need the employees to be employees of the US company and not employed by an EOR. Can I hire a PEO to handle the India payroll requirements for the India workers and not have an India registered company?

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