If you have a short-term or limited-scale project, or would simply like to get to know the Peruvian market better before making a deeper commitment, you may find that hiring staff through a professional employer organization (PEO) in Peru is your ideal solution.
Because when you hire through a PEO — which can also be known as an employer of record (EOR) — your staff are officially employed by the PEO firm, while you retain full control over their workloads and schedules. That means you can have a local workforce in only the time it takes to find the right personnel, as well as avoid the time-consuming and more costly process of company formation in Peru.
Peru has experienced consistent economic growth over recent years, with gross domestic product hitting $226.85 billion in 2019 (all figures in USD), having only slightly dropped during three of the past 20 years. That has seen a corresponding rise in prosperity, as measured by gross national income (GNI), which reached $6,740 per capita in 2019.
The Andean country is one of the most popular destinations for foreign direct investment (FDI) in the region, with FDI inflows hitting $8.89 billion in 2019. Peru is also party to a range of free trade agreements (FTAs), providing local businesses with preferential access to major markets in Europe and Asia, as well as the Americas. It is also a founding member of the Pacific Alliance, a regional economic integration initiative that also includes Chile, Colombia, and Mexico, and which has ambitions to expand beyond the region.
Among Peru’s major export products are precious metals, clothing, fish, and agricultural products such as soy, fruits, and nuts. Main recipients of Peruvian goods include Canada, China, South Korea, and the United States.
If you are interested in entering this growing and prosperous market, read on to understand the advantages of hiring through a PEO in Peru. Or go ahead and reach out to us now to discuss your go-to-market options.
What is a PEO in Peru?
A PEO firm in Peru is an organization that can provide support in a range of HR functions. While it is most commonly associated with hiring staff on behalf of a client, there are also a number of other functions that a PEO will provide that will alleviate the administrative burden of your operations. These functions include giving termination assistance, paying social benefits to employees, and providing the necessary training so that your staff can do the job correctly.
Because a PEO in Peru will also have an established recruitment network, which you could access in order to find those staff, as well as in-depth knowledge of the local market that will be beneficial when it comes to effectively filtering potential candidates. They will also be able to provide payroll outsourcing services, managing the payroll of your employees, even if they are employed in-house.
Furthermore, with corporate, labor, and tax law experts on staff, a PEO in Peru will offer you timely advice and forewarn you of any upcoming regulatory changes that could affect your business.
Benefits of hiring staff through a PEO
The main benefits of working with a PEO in Peru include:
Cost-effectiveness: While your PEO in Peru will charge you a service fee per person you employ through them, that cost will likely pale in comparison to outlay involved in company formation, maintaining your own in-house people to manage their payroll, and the subsequent liquidation.
Time-efficiency: Tapping into its established recruitment network, your PEO in Peru will be able to find your ideal staff quickly. Thus, depending on the profiles you are looking for, you could have operations moving within a couple of weeks, or even just a few days of signing the service agreement with the PEO firm.
Guaranteed compliance: When you hire staff through a PEO in Peru, part of the service agreement will include a guarantee that all hiring will be carried out in accordance with local regulations and norms, meaning that you can rest assured that your company will remain in good standing with local authorites, while avoiding any potential legal inconveniences.
Market maneuverability: As well as allowing a rapid market entry and exit, hiring through a PEO in Peru is also a great way to get to know the market ahead of a possible deeper investment. It can also be used as a stop-gap to get your operations moving while you go through the company formation process.
Legal representation: Your PEO in Peru will provide any legal representation you may need in relation to the staff you hire, as well as ongoing advice on legislation and regulatory updates that will help you develop your strategy in the market.
Biz Latin Hub can provide hiring & PEO services in Peru
At Biz Latin Hub, our multilingual team of hiring & PEO experts has extensive experience helping foreign companies find the best local talent. With our full suite of back-office support options, including high-quality legal and accounting services, we can be your single point of contact for market entry and ongoing business support in Peru, or in any of the other 15 countries in Latin America and the Caribbean where we are present.
Contact us now to find out how our services can be tailored to your specific needs.
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