In today’s global and competitive economy, businesses have encountered some major growth opportunities at expanding into international markets. In this sense, you can diversify your corporate assets, improve brand awareness, reach more consumers, access to new talent pools, and gain a competitive advantage over your competitors.
However, starting operations in new global markets can be really challenging. Companies are required to establish a legal entity in the country and comply with complex local labor laws. For this reason, International PEO stands out as an effective employment solution for small and mid-sized businesses that are looking to start operations overseas.
What is an International PEO?
An International PEO (Professional Employer Organization) provides co-employment services for your global business expansion. PEOs will assist you in hiring talent in foreign territories without the burden of setting up a legal entity.
This solution allows you to outsource certain employment liabilities and processes such as payroll, taxes, training, employee benefits, and risk management. All these essential HR responsibilities are managed by PEOs in compliance with local regulations and labor laws.
How Can a PEO Partner Help your Business?
Over the past years, the demand for international PEO partners has increased significantly. During 2008 and 2017, the number of worksite employees that were employed by PEOs had a compounded annual growth rate (CAGR) of 8.3 percent―according to a PEO industry report. This growth rate is approximately 14 times higher than the CAGR of employment in the U.S. economy overall during the same period.
Take a look at some of the leading benefits that your business can obtain when partnering with a PEO.
1. Save Time and Costs
Establishing a legal entity in a whole new country is an expensive and time-consuming process. There are many requirements that you must acknowledge―keeping in mind total compliance with local policies and laws―to register your company.
Certainly, these processes can be bypassed with PEOs as you don’t have to worry about a setup process and all the costs of operating physically in a new territory. International PEOs will help you to recruit and hire foreign talent from where you are.
2. Attract and retain qualified talent
A recent study revealed that 54 percent of business professionals are very concerned about finding the right talent with suitable skills for their job positions―where a lack of applicants is mentioned as the main reason for this concern.
For these cases, PEO partners will help you access to new qualified talent. These applicants are carefully interviewed by PEOs, ensuring a correct fit with your business job requirements. Even more, PEOs offer better employee benefits and a variety of plans―such as private medical insurance, car leasing, life insurance, office leasing, work tools, etc.―to attract and retain top local talent.
3. Invest more time for managing your business
When partnering with an International PEO, you will have more time and freedom to manage your employees’ daily tasks as you leave behind time-consuming HR tasks. Therefore, you can focus entirely on finding better business opportunities for your growth.
4. Support from HR Experts
International PEO will give you the right HR support, ensuring compliance with local labor regulations and mitigating risks related to employment management. With Serviap, you will partner with HR experts who completely understand the local culture and legal employment requirements. We cover countries from North America, Central America, The Caribbean, and South America―such as Mexico, Chile, Argentina, Canada, Brazil, among others.
Basically, PEO partners help companies to:
- Start immediate operations abroad
- Take away HR administrative tasks
- Focus on business growth and employee retention
- Comply with employment regulations in multiple locations