When starting a business or expanding your company abroad, there are many things to take care of. Day to day administrative tasks may easily drain you of resources and valuable time you need to focus on keeping your operations going. From payroll to tax compliance, there are certain duties you won’t have time to take care of. If you want to maintain control over every aspect of your business without investing too many resources, PEO is the right solution for you.
What Is PEO?
Professional Employment Organisation (PEO) is a service that allows employers to outsource all HR needs. Including administration, payroll, employee health and retirement benefits, worker’s compensation insurance, compliance and staff training.
Why is PEO beneficial for your company?
1. Liability shift
The PEO acts as a co-employer responsible for all Human Resource related tasks and functions. While workers remain under your management control. The PEO provides a layer of legal protection in the event of a workers’ compensation claim or compliance question. This means that you are no longer solely responsible for employee-related legal issues. In addition to this, most PEO arrangements include multiple insurance options. Such as health, payroll, workers’ compensation insurances and business owner’s policies.
For instance, at Bradford Jacobs we offer 5 Million Euros cover for Public Liability Insurance and 1 Million Euros cover for Professional Indemnity Insurance.
Many businesses share a common concern about the ever-growing costs associated with human resources. Using a PEO company costs less than hiring a permanent full-time HR professional. Not mentioning that it can be up to 70% cheaper when compared to creating a foreign subsidiary. In addition to this, a professional employment organisation will reduce your health insurance and unemployment tax costs.
PEO solution cuts the time it takes to enter a foreign market up to 80%. Once a candidate has been identified, International PEO can have them working for you in as little as 48 hours. Moreover, the PEO takes care of all employee onboarding, risk mitigation, compliance, payroll, and benefits, allowing you to focus on your business.
4. 100% compliance with local legislation
What is the worst nightmare you can imagine while expanding abroad? Legal charges! Therefore, it is extremely important to stay compliant with the local legislation of the host country. PEOs are experts in labour and tax legislation. They will help you mitigate liability and employment-based risks by providing you continuous in-country support. You will be able to understand local labour laws and local culture better, as well as remain compliant in a foreign market.
There are many more advantages to the Professional Employment Organisation your company can benefit from. Whether you are a small local business or a large multinational corporation, a PEO can provide you support you need to take the next step. Now that you have a better understanding of what PEO has to offer your business, it is important to choose the right one for you.
If you are looking for a seamless solution to provide infrastructure for your international employees, enabling them to perform their duties successfully, reach out to Bradford Jacobs today to discover how we can assist you to expand swiftly and smoothly.