Small businesses and multinational companies got exposed to unparalleled opportunities across the globe post-Covid-19 pandemic. While expanding globally, their primary focus generally is the core competencies. At this stage, getting help from an international PEO service provider becomes a smart decision for them.
A professional employer organization comes with local expertise. They have a contractual allocation with their company to manage the employer’s responsibilities and liabilities. An international PEO acts as a foreign company’s legal employer of record (EOR) and gives them access to the international workforce. To begin with, let us study the benefits PEO services in India bring to SMBs:
- Human Resource expertise – Small businesses generally struggle with budget and resources for HR support. A PEO offers a “hands-on” approach to handling everything that falls under the human resources umbrella at a much lower cost. They assign each client a Human Resources Manager or use HRMS tools. These mediums manage HR tasks right from sourcing, recruiting, and onboarding to retaining employees to tracking attendance.
- Compliance with employment and tax laws – The PEO engages with employees and keeps track of their compliance, payroll & taxes. Engaging with an international PEO gives security from legal issues. Their compliance experts keep a check on the rules for wages, working hours, payments, insurance, abiding by the law, and so on.
- Help with payroll – It becomes crucial to choose the right partner as we entrust them with access to employee and business banking information. Their expertise helps in handling salary negotiations, payrolls, taxes, and so on.
How to choose the right PEO service provider?
- What is the first step towards choosing the right service provider?
To begin with, ensure that the chosen PEO is well established. Checking if the PEO is rightly exposed to the target market is a deciding factor for its services being reliable and financially sound.
- Is it necessary to look into their previous and current work?
Understanding what kind of organizations the PEO works with the help to understand whether they can manage your expectations. Ensure they have the required knowledge, skills, experience, and expertise to serve your needs.
- How to trust a PEO with their work?
Check reviews and ask the PEO for references of past and present clients. Studying the testimonials on their website also adds value. It can help you get the correct insight and make an informed decision.
- Ask the PEO if they provide training or professional development for the employees?
The legal partners also focus on professional development & employee training opportunities to attract potential candidates. Understand how your provider caters to these needs to maximize the potential of your existing workforce.
What are the most common challenges companies face while choosing the right partner?
The SMBs generally start their search with a service provider from their country willing to extend EOR. But to avoid the fear of the unknown, you might consider existing or in-country service providers from the target country. A few professional employer organization in India offer productized or unmanned services while a few others might offer customized services. These options are inexpensive but they do not help beyond payroll and compliances. On another note, if you wish to set up a legal entity in India down the line, then wouldn’t it be easier working with a partner you trust or who understands your business? You might also need support with infrastructure and IT as your team in India will mostly be working from home or in a small office.
As we move forward, let’s check if Remunance services help you save your money, time, and hassle.
Remunance has customized its working module to address the needs of businesses looking for multiple services like HR, payroll, recruitment, and immigration. You do not have to invest separately in a law firm, talent acquisition agency, or immigration agent when you can outsource the entire employment & global mobility lifecycle to the same partner! While we act as the Employer of Record for several companies across 16 countries, we also help them establish their legal entity in India if needed. So when you choose Remunance as your local partner, we take ownership of the management activities such as employees’ wage coverage, benefit programs, compliances, leave management, employee training, office infrastructure, etc.
We believe we have helped our clients build, scale, and grow their businesses. Hope these inputs by Jeff, the CEO of IntervalZero Inc. helps you in making the right choice!