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How PEOs are Helping Businesses Expand Internationally

Updated: Aug 12, 2022

For almost any business operating today, international expansion is realistic as the business grows over time. And, although global businesses have become more popular, a lot of businesses lack the knowledge and resources to successfully grow abroad. And that’s the job for PEOs.

International expansion requires companies to follow the laws and customs of each country they want to operate in - e.g. tax and employment laws. Yet, many companies may not be familiar with global markets and regulations, so they can be at risk of experiencing compliance issues that can lead to negative legal issues. To prevent problems like that, businesses are partnering with International PEOs. PEOs work by having their in-country recruitment and employment experts hire your international employees and become their legal “Employer of Record”.

“Employer of record” is a way for companies to benefit from international talent without having to set up a legal entity and comply with local laws, regulations, and customs. The PEO has a registered company within the country that you’re hiring international employees in, making it easier to deal with all the formalities. Consequently, allowing you to scale your international operations very quickly, since you can add new international employees without having to worry about the expense and compliance risks.

The Benefits of a PEO Can Give Your Business a Competitive Advantage:

1. Employee benefits

PEOs have thousands of employees in the system, giving them a leverage with insurance companies and other benefit providers.

This means they are able to give the same benefits to a small company as they are to a big one. This includes providing relocation sponsorship, healthcare plans, worksite benefits, life insurance and commuter benefits.

This is a great bonus especially when most companies may not have anything else to offer other than few basic benefits.

2. Access to Better Talent

There is a war on talent, so having a competitive advantage of being able to hire people from all over the world, for them to live anywhere, is a massive bonus.

​Similarly, with COVID-19, remote and hybrid work became popular and more companies choose to utilize the method. The market is radically shifting and adapting to the world, searching for job positions that suit their needs whilst also providing employee satisfaction through different methods like remote working, employee-wellbeing, and a true work-life balance. Businesses must be ready to face this challenge head-on or be left in the back whilst the world advances.

3. Fast-market entry

Since International PEO already has everything set in place—you only have to discuss the requirements with them and they’ll do all the work for you. While they take care of establishing a legal entity, getting financial and tax affairs in order, and everything else you need, you can focus on hiring the right talent and focusing on your growth.

4. Global hiring simplified

An international PEO can use its local knowledge and expertise to their benefit to hire the very best and most qualified international talent for your company, which can be achieved without having to establish a local legal entity.

5. Saves time

PEOs take on several roles including taking care of payroll administration, guidance with employment law compliance, navigating taxation laws, securing work visas, back office outsourcing, and company formations.

While your HR is likely to spend a significant time on other daily tasks, PEO can free up their time so you can continue growing your company. This is ideal while you’re trying to expand your business globally.

6. Saves money

Each PEO essentially “employs” workers from numerous individual workers, which gives them an advantage when negotiating with insurance companies. This advantage allows them to obtain cheaper and high-quality benefits for small business employees while simultaneously lowering the cost (a PEO will usually use a fixed monthly fee per employee or percentage of payroll.

#BecauseUMATR 💙💫



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