Why Having A PEO Partner Is Essential During The COVID-19 Pandemic
COVID-19 has resulted in businesses changing hiring practices and reducing costs where possible, such as downsizing their office spaces and encouraging remote work. Businesses are finding new ways to maximise resource efficiency in the new normal. However, that doesn’t mean that companies have to put a halt to their international expansion plans despite it being a daunting process. Even without establishing a legal entity, PEO is able to tide businesses through this tumultuous period.
What is PEO?
PEO stands for “professional employer organization”. It is also known as a joint employment relationship with an employer by leasing employees to the employer. A PEO shares and manages payrolls, benefits, compliance and other HR related responsibilities for the client’s employees while the employer focuses on their strategic business goals.
Some of the HR challenges that emerged during the pandemic include ever-changing compliance standards, restriction on employee mobility and unfamiliarity with flexi-work arrangements. These challenges can become a hindrance to international business expansion plans and lead to a significant loss in opportunities.
What Are The Benefits Of PEO?
✅ Building a Remote International Workforce
Despite border closures and scrutiny, PEO helps companies hire remote employees or teams to manage operations abroad without establishing a physical entity. With a PEO, companies can build an international remote team without upfront capital expenditures as there will be no physical presence in the country. Businesses can also enter new markets without a local entity, saving them time and money for them to focus on strategic activities.
✅ Cost Reduction
According to Global Workplace Analytics’ 2020 estimate, companies can save an average of $11,000 per annum by hiring a part time remote telecommuter. Hiring remote international workers through PEO will reduce overhead costs from administrative tasks, such as complying with different in-country laws & regulations. PEO also creates opportunities for small to medium sized businesses to enjoy the benefits of big businesses which might not be accessible to them. These include health and life insurance.
✅ Stay Agile & Vigilant
If companies need to hire quickly, PEO can help businesses scale up fast and keep up with local labour law compliances without establishing a local legal entity. With PEO, companies can test new markets before working towards a full expansion and company incorporation. PEO also provides market trends and insights that help with long term business success.
Who Needs A PEO?
PEO services are perfect for businesses that seek to enjoy a robust yet cost-efficient go-to-market strategy, in order to accelerate and simplify their global expansion into other countries around the world during this post-pandemic period.
While PEO aims to provide a seamless market expansion, SMEs can also engage PEOs to provide payroll and staffing services to provide critical support in accelerating growth.
Choose TG As Your PEO Partner Today!
With 30 years of human capital experience in both the B2C and B2B landscape, our extensive network of partners and regional presence in more than 50 countries allow companies to expand seamlessly and surpass the geographical boundaries brought upon by the COVID-19 pandemic. Our strong expertise and proven track record in employing, onboarding and managing a global workforce effectively address complex HR workforce problems and optimise expansion strategies during the new normal.
Our team of HR professionals are uniquely positioned to help companies navigate the complex employment issues we see today, such as return to work protocols, restructuring of work arrangements, as well as ever-changing labour law regulations and compliance.
Accelerate global expansion with global PEO compliance today! Find out more about PEO here or talk to our expert consultants.