Professional employer organizations lack the ability to employ workers in other countries on your behalf. PEOs typically provide most of the same human resources services as EORs, but without the additional layer of international compliance. PEOs also do not typically offer the local legal guidance that an EOR would.
Your PEO is typically not involved in your employment contracts. A PEO is more of a services provider than a partner for global expansion. An EOR, on the other hand, immediately allows your company to employ workers around the world. Your business, your employee, and your EOR all participate in employment contracts to ensure your employment of international workers is legal.
It is important to remember that an EOR can also provide all the HR services your business needs, such as payroll and benefits management. When you expand your team into new countries, having an all-in-one partner to handle these key processes in addition to your compliance needs can make life much easier.