2020 saw a growing interest among businesses, in Professional Employer Organization or Employer of Record Services (PEO/ EOR). This service can play a crucial role in not just helping businesses sustain, but also grow and expand.
We will now try to understand, how businesses can simplify and pace up their process of business expansion while utilizing PEO services for their HR operations and what role we at Husys can play in the fulfillment of this ambition of yours, but before that, we’ll try and give you clearer a picture of what are PEO’s.
What is Professional Employer Organization OR Employer of Record Service?
A PEO is a professional employer organization, It is also known as EOR (Employer of record) in some countries, like the UK. It’s a third-party organization that hires and pays an employee on behalf of another company and takes responsibility for all formal employment tasks. PEO services include recruitment, payroll and benefits, on-boarding of new recruits, taxation, labor regulation compliance, and other statutory compliances.
Using a PEO service, allows companies to legally and efficiently engage with overseas workers either in a new country or state, without having to set up a local entity or risk violating local employment laws. Thus, making them a legal employer, and in charge of all of the liabilities of hiring, employing, and terminating workers.
PEO’s provide small businesses with the infrastructure and resources to navigate about employment-related complexities, employee relation assistance and help them adjust to the rapidly changing business environment such that these businesses can focus on growth and market penetration instead of being bogged down by due compliances.
As per data by NAPEO (National Association of Professional Employer Organizations), US, small businesses that use professional employee services, can grow 7-9% faster than those that use a more traditional approach, have reduced employee turnover by 10-14%, and are approximately 50% less likely to go out of business in trying times.
PEO’s don’t just help small local business ventures grow. They can also help remove the complications of setting up a new foreign subsidiary and help businesses cut down on excessive avoidable costs, by employing talented individuals on behalf of these businesses and handling all other essential related steps, ranging from drafting terms and conditions of employment contracts, to payroll, taxation and managing insurance schemes thus helping these foreign businesses with expedited market entry into lucrative Indian markets.
Understand the Pros and Cons of using PEO Services
2020 pandemic and its impacts on the global workforce
The potential threat of contracting Covid-19 has pushed most office spaces online resulting in a work from home (WFH) setup. While the sudden shift to WFH brought with it an onslaught of issues, it has now become the new normal. Several major companies are now looking to allow some employees to continue working from home in the long term while some other companies are looking to create Hybrid workspaces while some employees will be allowed to permanently work from home while the others will have to switch between WFH and regular office hours.
There has also been an observed growth in the percentage of short term, project-based employment on a contractual basis, over full-time employment.
The financial and economic downsides of the pandemic resulted in businesses showing an increase in M&A activity, resulting in greater organizational complexities as well as challenges concerning management of these rapid changes.
In light of these circumstances, it becomes even more important to understand the relevance of PEO’s today. As we enter 2021, businesses continue to grapple with navigating about workforce requirements and making requisite adjustments. PEO services are best suited to help businesses (whether an Indian MSME or foreign company looking to expand its operations within India) adjust to this new normal, including remote work, in a seamless fashion.
New employee recruitment and Onboarding in a remote set-up is also a new challenge that can become a daunting task for some businesses. PEO service providers can help build a foundation for electronic on-boarding, enrollment, and communication.
How can Husys help your business grow this 2020?
Ensuring legal compliance
We at Husys have the requisite professional expertise to ensure that your employment contracts are compliant with local laws and regulations and customized such that they meet your business’s desired terms and conditions.
We will prepare the documentation needed for in-country employment and payroll based on local tax and social insurance systems, and fixed, daily, or hourly rates, bonuses, overtime, etc, thus allowing your business to focus on growth instead of juggling with local norms and compliance issues.
You can also leverage our resources and expertise to start assessing your company’s current stance on all of these compliances and design a plan for a future course of action.
Understand How PEO/EOR can be helpfull for startups
Recruitment and payroll
Husys can help businesses bring on board, a staff member the company has already taken interest in, abroad, or we can also help carry out the entire recruitment process as your Employer of Record, with ease.
We have the necessary Human resource information system and other such HR cloud platform as well as trained professionals in place, to ensure the dispensation of accurate and on-time payroll and tax compliance.
Hassle-free integration of foreign employees into the Indian business framework
Often international businesses, especially in the UK and US are looking to venture into the Indian markets but do not wish to spend the additional costs whether administrative or infrastructural, to set up their business in India.
Husys will allow expatriates to work here seamlessly, on a work visa while all other compliances with regards to payment of taxes and meeting mandatory procedural compliances are taken care of by us, as your PEO service provider. Sponsoring and application for visas for such foreign employees, and their dependents traveling with them is also a part of PEO’s responsibilities.
Complete employee and Client information safety
At Husys, the data safety of our client’s information is our top priority. Our information security management systems are ISO/ IEC 27001:2013 certified indicating that we have demonstrated a clear understanding of external as well as internal security issues and have put in place a well-structured information security policy and protocol to handle any such issues. Therefore, if you choose to entrust us with the responsibility of undertaking various PEO services for your company, you can rest assured that all your data is safe with us.
We aren’t sure of what the future will look like, but the work environment, as we previously knew it has greatly shifted and we are likely to see more and more businesses invest in PEO services in this post-pandemic future.
If you would like us to handle any of the above trends write us at email@example.com or Call us @ +91 72040 12636.