PEO services are definitely a boon in today’s business world considering the backdrop of the pandemic outbreak. Big, small and medium enterprises—all are bound to benefit from the one-stop solution provider—PEO. When you enter into a contract with the PEO, it takes care of all your responsibilities pertaining to HR and payroll, risk management, compliance, employment compensation management and other vital issues. In other words, you get ample time to focus on your business goals and expand your horizons.

Pros of PEO services

1. Easy Way of Foreign Expansion: When you wish to expand your business overseas without setting up an office, you can hire the services of a PEO. A PEO enjoys legal entity in the foreign country and can easily handle all the important business functions such as HR, employee benefits, risk mitigation and compliance related matters of your overseas business. In simple words, the PEO becomes the employer of your employees in the foreign country.

2. Provides Global Recruitment: In the process of global expansion of your business, the PEO offers recruitment of employees at the global level. It makes arrangement for their work permits, travel visas and prepares their employment contract in adherence with the laws of the country. Hence, without setting up your own entity, you can try tapping the new markets within limited time span.

3. Handles all Compliant Matters: One of the biggest pros of hiring a PEO is that it shoulders all HR related activities in a compliant manner. A PEO keeps it itself updated with the changing labour laws in the country. It prepares the Letter of Intent or termination letter as per the provisions of the existing laws of the country. By working in this manner, the PEO also mitigates risk to a large extent for your business. In addition, the PEO comes to your rescue in case of any disagreement or dispute between you and your employee. The PEO offers a way out in an efficient and compliant manner.

4. Payroll Management: The computation of salary, disbursal of salary, tax deductions and filling of tax—all these activities are handled in an efficient manner by the experienced staff of the PEO. Indeed, the PEO handles all the painstaking tasks and saves your time and money too!

5. Employee Benefits: Another significant benefit of hiring a PEO is that it offers cost-effective health benefits to your employees. Small businesses do not have the resources to offer healthcare coverage to their employees. This obstacle can be easily overcome through a PEO.

6. Provides Ample Scope for Focussing on Growth: A PEO by handling all the vital business functions in a cost-effective manner leaves ample time and money for you to focus on your business growth. You can easily concentrate on not just achieving your business goals but also on global expansion.

Cons of PEO services

1. Lack of Human Touch: One of the most significant cons of PEO services is the lack of human touch felt by the employees of your business. In case of any query or problem, the employee has to contact an outside person and this might result in feeling loss of human touch.

2. No Internal Team to Handle HR: As a business owner, you will be left with no in-house HR personnel to keep a check on the activities of the PEO. This is essential to ensure that the PEO is working in consonance with the guidelines set by your business.

3. Rigid Pricing Structure: Significantly, several PEO service providers are available in the market today. You must be sure of the services you require, your budget, business expansion plans, employee count and other vital factors to be able to select the right PEO vendor. You must select the vendor that offers flexibility along with cost-effectiveness.

Conclusion

Therefore, to conclude, the pros of PEO services certainly outweigh the cons to be highly desired for the growth and success of your business in this competitive business environment. 

Have you come across the term an Employer of Record (EoR)? An Employer of Record is an organization or a company that is responsible for handling all the compliance related issues, HR and payroll related matters of employees. Regardless of the type of your business, hiring an (EoR) brings several benefits with it. Hiring an (EoR) is especially beneficial when you wish to expand your business across countries or you already have a business with offices in several states of India. In either case, an (EoR) offers numerous benefits reducing all kinds of complications for your business.

Why to hire an Employer of Record?

The essential question which comes up is: Why should you hire an Employer of Record (EoR)? Companies generally hire an (EoR) to reduce all the complications and changes which happen across geographical boundaries with reference to hiring of employees, welcoming employees on-board, providing health benefits and insurance cover to employees, keeping updated about the labour laws of the country and the various states, deducting payroll taxes, salary processing and distribution to employees, and ensuring statutory compliance by employees.

So, when you hire an EoR, it becomes the employer of your employees. An (EoR) ensures that your business in various states of India remains in compliance of the various laws, rules and regulations. At the same time, an EoR is of immense help if you wish to expand your business across countries of the world. It is to be noted that in several countries of the world such as the USA, labour laws vary across states and are complex as well. In such a scenario, an EoR will help you to expand your reach across new markets, manage all employment related matters and even make arrangement for work permits of your employees.

What are the benefits of using an Employer of Record?

• Hiring an (EoR) primarily helps your business in saving time and using it effectively in other vital areas of your business. You get to witness significant changes in terms of overall handling of areas such as the human resource function, employee benefits, compliance of state and central laws and employee compensation.

• The second major benefit of hiring an EoR is in terms of saving cost while hiring and handling legal and employee compliance related matters. This leads to marginal cost cutting and the money saved can be redirected and utilized in other arenas of your business. Moreover, this fund can be utilized in achieving the goals of your business in a quick manner.