- January 26, 2022
- Posted by: Easy Source HR Solutions
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.