How Consulting Firms Are Saving Companies Time and Money Around the Globe
As a Professional Employer Organisation (PEO), we provide Employer of Record (EOR) services that enable us to sponsor and payroll our clients’ staff to work in over 120 countries. Whether you want to hire the best talent or are deploying your staff overseas, consulting firms like Procorre can support this through PEO Services.
Professional Employer Organisations (PEOs) can save businesses time and money and allow expansion into new markets and territories far more easily than setting up a permanent branch office.
The advantage of a PEO is that they will cover every aspect of employee administration; as a co-employer, the PEO becomes the employer of record for tax purposes, and responsible for all aspects of payroll. However, the client business obviously remains in control of the workforce, work culture, and has the final say in all hiring and firing decisions.
Where a PEO comes into its own is when payroll and commission rules differ country-to-country and are significantly unlike rules and regulations in the US and UK. HR teams can be overwhelmed with trying to keep up with the administration needed to abide by laws in different countries, which can be a real drain on resource and time. PEOs investigate and decipher labour laws, ensuring companies stay within compliance of local, state, and national regulations. In addition, a PEO can manage tax contributions, direct deposits, on-time payments, and other issues related to payroll.
If you pick the right PEO, they can handle most (if not all) of the HR functions so that the client doesn’t have to. Essentially, the client company could outsource its entire HR, legal, and, at times, accounting structure over to the PEO. In doing so, they don’t have to worry about the compliance and legal issues to deal with, insurances, wages and taxes, and the cost – both in terms of time and money – of administrating it all. Procorre goes a step further and can also offer medical, dental, vision, and location-specific benefits. Additionally, we can provide things like commuter benefits, flex spending, sick time, and other perks that you’d expect from a full employment package.
Any company can use a PEO, but for growing businesses expanding overseas, using a third party means they can focus on managing core business functions while outsourcing the HR administrative burden to a third party. After all, not all organisations have direct expertise when it comes to HR, legal, or tax requirements. These areas of business are easily outsourced to PEOs, which specialise in these functions directly.
It’s also not just for smaller businesses; corporates often use a Global PEO as well. In any one country, the infrastructure and cost of hiring employees directly may outweigh the advantage of having companies in each country. For many large companies, engaging PEOs across borders to facilitate international expansion makes total sense.
Procorre could potentially leverage a benefits package that is more cost-effective and delivers more than your business could ordinarily offer on its own. The result is that you can offer more attractive perks for employees while also allowing more time for you to be hands-on with your business, so you can focus on growing and expanding that rather than becoming bogged down by the paperwork from running it.
We specialise in meeting the global expansion challenges of our clients around the world so there’s no need for them to set up or maintain a foreign corporate entity or permanent establishment. Find out more about our PEO services here.