Following the ever-increasing trend of small- and medium-sized enterprises (SMEs) entering international markets and trading overseas, employing a global workforce can provide more headaches than ever. Employment Law, payroll administration and employee benefit packages are just three aspects of hiring a workforce which vary enormously across borders.
Through the embarkment into a partnership with a Professional Employment Organization (PEO), you can outsource the stress of overseeing the finer details of employing a global workforce. By taking the weight of administrative challenges associated with employment off the shoulders of employers, businesses can thrive in a new environment by rationalizing their day-to-day operations.
Tasks such as employee renumeration, tax filings, recruitment, termination protocol and managing employee benefit packages are just a few of the services a PEO can offer and hence streamline the focus of a business owner. PEOs were borne of the discontent business owners underwent when administrative work associated with employment regulation constrained their capacity to grow their business. However, the benefits of a PEO today, far exceed the individual function of reducing workloads for business owners.
Benefits of using a PEO
Particularly when expanding a small business overseas, owners can find themselves stuck in the web of compliance regulation which is presented daily to businesses entering a new market. Instead of a business owner stumbling through the intricacies of country-specific social security regulations for example, a PEO can remove this frustration, doing it more efficiently and more accurately. As new-to-market businesses are quickly aware, there are far more challenges which present themselves to companies starting up on new soil than employment regulation. By removing this hassle, it frees up owners to satisfy customers or grow their business.
Mitigate risk to your business
Entering a new market has numerous risks of its own. Generally, the fewer the risks, the more seamless the transition to a new market. Employment on its own triggers a number of red flags for business owners.
However, with the alliance of a PEO, these risks can be mitigated. With employment regulation varying greatly from country to country, newcomers to the market can easily trip up, becoming lost in legal labyrinths and consequently incurring penalties. By simply partnering with a PEO, legal experts can help to avoid being blindsided by these traps and aid in the seamless cross-border establishment of a business.
PEOs consist of experts in the various caveats of international law, so whether its drawing up a compliant contract or conducting the fair dismissal of an employee, business owners can rest assured that the task at hand is being conducted by an authority in their field.
Attractive work conditions for employees
PEOs not only offer in-house aid but they can also provide incentives to outside prospective employees. A company with a PEO on board appears far more desirable to employees than one without. With the knowledge that your employment will be fully protected under an outside agency, employees can rest easy under the pretext that they are protected by a security net of compliant employment regulation.
Not only looking appealing for prospective candidates, businesses working with a PEO can compete more aggressively with much larger companies when it comes to sought-after employees. Thanks to PEOs significantly bringing down the cost of retirement savings plans, health insurance and other employee assistance programs to an affordable level, smaller businesses become equally appealing to desirable employees.
With these extensive but discounted employment benefit schemes, smaller companies are put on an even playing field with larger ones when scouting and hiring talent.
Benefits of having an employee overseas for business
A number of different PEO services exist – some are more geared towards recruitment whilst others have their expertise in staff remuneration services and employee tax. Similarly, some PEOs provide extensive assistance on a domestic front, whilst others fulfill functions for businesses looking to expand their horizons internationally. It is important to choose a PEO appropriate for your business’ needs.
Test a new market
Internationally outward-looking PEOs can aid particularly small and medium-sized businesses by employing a team to act as a proxy. A proxy team setup by a PEO in your chosen location can quickly establish whether there is a gap in the market or who the competitors are. These initial excavations and probes of the market can provide the prospective business with key information before a larger investment and team are committed. Particularly for smaller businesses with limited resources, initial explorations can be the difference as to whether they sink or swim in their new environment.
Similarly, PEOs with international expertise can also help an incoming business to understand the social and cultural norms of conducting business in a country. Business conduct and societal norms vary an enormous amount around the world and although often little emphasis is placed on it, advice from a PEO on how a business interacts with its customers and its employees in a country can be crucial to a its’ success.
Contact us to get started
By partnering with a PEO, countless headaches can be avoided whilst many more avenues can be explored. To find out which PEO might suit the needs of your company, get in touch through [email protected]. We have experienced, specialized experts who can provide customized insight into overseas employment services.