PEO Services: The Key Ingredient in business expansion

The business model that a Professional Employer Organization (PEO) offers has the advantage that suits the needs of both small and big businesses whether they operate locally or internationally. A start-up can benefit from PEO services when they cannot spend resources on setting up a HR department and a big company can benefit from this kind of services by focusing valuable time on their core-business.

«PEO Services offers has the advantage that suits the needs of both small and big businesses whether they operate locally or internationally«

PEO Services for Small Businesses

A PEO is especially designed for small employers that may not have HR expertise or the time and resources available to focus on many of their HR activities. Depending on the PEO services contracted, a few or all of the HR functions can be outsourced. In essence, what a PEO does, is to take care of all your HR-related needs, including administration, payroll, retirement benefits, employee health insurance, compliance issues, taxation, and even worker training.

Depending on the PEO services contracted,
a few or all of the HR functions can be outsourced.

A PEO is one of the key secrets of many successful small and medium-sized businesses that want to grow and expand into new countries and need a light footprint to move fast. Instead of waiting months to set up a subsidiary, using PEO services helps them to have employees working within days!

«In essence, what a PEO does, is to take care of all your HR-related needs, including administration, payroll, retirement benefits, employee health insurance, compliance issues, taxation, and even worker training«

When partnering with a PEO, it becomes the employer of record for tax and insurance purposes, filing paperwork under its own identification numbers. On the other hand, the client company becomes the operational employer, and it continues to focus its time and attention on the employees’ daily activities.

PEO Services for Big Businesses

PEOs have been around for a while now, but they are becoming more and more popular now that companies are going global. Increasingly, larger businesses are signing up for PEO services. The idea of using PEO services is particularly attractive to those companies that want to test a market before they set up a subsidiary. Since PEO services allow them to be fully compliant with the law, global PEOs are gaining importance.

This type of companies come from a range of industries such as accounting firms and high-tech companies to manufacturers and government agencies, but especially big businesses that want to expand into new countries are starting to look for a PEO that can take over the recruitment and management operations while they focus on sales operations.

Setting up a subsidiary in a foreign country can be a bureaucratic process
that translates  into a very time-consuming operation.  In some cases
in can take more than a year to start activities in a newly created entity.

When big companies start looking for PEO services, what they usually have in mind is that they want to move into a country, hire employees and be in full compliance with the new country’s regulations as soon as possible. Hiring the right PEO services for their companies can help them save valuable time and money.

«Big businesses that want to expand into new countries are starting to look for a PEO services that can take over the recruitment and management operations while they focus on sales or other operations«

Setting up a subsidiary in a foreign country can be a bureaucratic process that translates into a very time-consuming operation. In some cases in can take more than a year to start activities in a newly created entity. It is widely recommended that before a company invests time and money on a group of lawyers and accountants that will take over the creation of an entity in a foreign country, they test the market by hiring employees through PEO services. In this way, if after a certain period of time things do not go as planned, it is extremely easy to wind down all activities abroad. The main task the company will have to invest effort is in taking care of the compliance issues with the employees which usually can be done within a week.

General Guidelines on PEO Services

The expertise of a PEO enables the client company to improve business and productivity, which can save your business money while providing increased support to the employees. It can help solve small problems before they become large ones. Companies benefit from focusing their time on their core-business rather than wasting working hours on these issues. Sharing this responsibility with the PEO services often results in increased productivity. This is a great benefit to retain talented workers in their organization.

The expertise of a PEO enables the client company
to improve business and productivity, which can
save your business money while providing
increased support to the employees.

If your company is a growing start-up with a few employees or a more established company with over 100 employees, the PEO infrastructure will be able to handle your activities with minimal impact on your business.

«Companies benefit from focusing their time on their core-business rather than wasting working hours on these issues. Sharing this responsibility with the PEO services often results in increased productivity. This is a great benefit to retain talented workers in their organization.«

A PEO services seems to be the right option if you’re a business owner that wants to expand into new countries or provide more consistent services and a better benefits to your employees. You just have to determine your outsourcing needs and find a PEO that provides customized solutions that can grow with your business over time. Contact us and we will help you develop a program that best suits your needs for expansion.