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
Pro's of using PEO in India during COVID
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.
Con's of using PEO in India during COVID
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 PEO Benefits Small Businesses in India?
PEOs offer small businesses a chance to direct competitive benefits with minimal cost and below you can have a look at them..
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.
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
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 reach@husys.com to understand more for your business expansion.
