PEO stands for ‘professional employer organization’ and is also known as a co-employer. PEOs perform a range of tasks including managing the payroll, benefits, and other HR duties for the employees of their clients. Generally, a PEO will have an employee base that possesses extensive experience in HR, tax, accounting, legal, and client services. Businesses tend to partner with them in order to reduce the cost of administering staff benefits, streamline their payroll, and in some cases, make expanding into an international market easier. A global PEO does much the same as a PEO, but for employees who are located outside of the company’s home country.
Why Choose a Global PEO?
A global PEO can be an extremely valuable partner for businesses that are looking to overseas – particularly if this involves hiring employees in different countries. This is because cultural expectations regarding employment, laws, and regulations can vary widely between different countries. A global PEO with extensive knowledge of the country where the business is looking to expand can make it easier for them to navigate these differences and ensure that the expansion is a success. They can provide the following benefits:
Compliance with Local Regulation
International employment is subject to constant change, and failing to comply with local regulations such as taxes, benefits, and payroll could see your company fined. Without expert assistance, this is all too easy, particularly if you are operating your company from a completely different company. For example, if you decide to expand to Japan, you’ll need a Japan employer of record, as you will find a range of regulations, rules, and cultural expectations that are very different from what you are used to at home. An experienced PEO or Japan employer of record can help ensure that your company complies. For more information, check out the New Horizons global partner program, designed to help your company expand to different overseas markets with little hassle.
Sometimes, different countries will pass data regulations that can have a big effect on international business; for example, the General Data Protection Regulation (GDPR) in Europe, which establishes security rights and key privacy for individuals in terms of their personal digital data. Any businesses operating in the EU, whether or not they originated from an EU country, now need to keep data on employees and clients secure, and ensure that it is safely transferable and accessible to the individual. A global PEO can ensure that your business complies with regulations such as these to avoid penalties and fines.
Last but not least, a global PEO can help to make your company more attractive to potential talent looking for work in overseas markets. It can be difficult for small to medium businesses, in particular, to offer employees a comprehensive benefits package, particularly when expanding into new markets – but without these benefits, recruiting top talent is tricky. A global PEO can help small businesses offer all the benefits that their potential employees have come to expect.
No matter the size or industry of your business, if you want to expand into a global market, a global PEO can help you do it with ease.