How to Choose a Global PEO Provider

As global economies blend together and trade markets develop, there will new opportunities for U.S. companies to expand into new foreign markets and hire international talent. A global PEO provider removes the traditional barriers to hiring talent in other countries.

A global professional employer organization (PEO), also commonly referred to as an employer of record, is a way to quickly hire workers in new international markets. All without having to take on the cost and risk of establishing an entity in a foreign country. A global PEO provider facilitates all employment requirements on behalf of a client organization. This means the business maintains full control of the employee’s day-to-day tasks, while the PEO manages all the administrative requirements.

Related: What is an employer of record?

Companies can efficiently build a compliant global workforce at a much lower cost than setting up their own legal entities in other countries and employing workers directly. Using a global PEO is a great way to test new markets and facilitate rapid growth. You can capitalize on untapped opportunities or engage in short-term projects with complete flexibility.

But how can you know for sure if a global PEO will make a good partner in your growth journey? When choosing a global PEO provider, you’ll need to understand some foundational criteria:

1. How many countries do they have a presence in?

2. Do they have a system for you to grow and scale operations?

3. Can you trust them with employment laws?

4. Do they have the right technology to streamline HR and payroll?

5. Do they have a partnership approach?

Global growth has its fair share of challenges, but a PEO provider should relieve much of that burden. Some providers only offer limited services in a limited number of countries. This often forces businesses to hire multiple vendors in various countries. As they continue to grow, this accumulated vendor list can quickly become burdensome to manage.

A centralized partner, with a single point of contact will ensure you have the foundation to grow and scale your global operations. When choosing a global PEO provider, they should handle all aspects of HR and payroll anywhere in the world.

Considerations:

· Can you help our team establish legal entities in countries where our operations are more stable?

· What is your implementation and account support system for clients?

· Is your system SOC II or ISO certified? Is your company GDPR compliant?

Related: How to maximize ROI during global expansion

Global growth has its fair share of challenges, but a PEO provider should relieve much of that burden. Some providers only offer limited services in a limited number of countries. This often forces businesses to hire multiple vendors in various countries. As they continue to grow, this accumulated vendor list can quickly become burdensome to manage.

A centralized partner, with a single point of contact will ensure you have the foundation to grow and scale your global operations. When choosing a global PEO provider, they should handle all aspects of HR and payroll anywhere in the world.

Considerations:

· Can you help our team establish legal entities in countries where our operations are more stable?

· What is your implementation and account support system for clients?

· Is your system SOC II or ISO certified? Is your company GDPR compliant?

Related: How to maximize ROI during global expansion

Expertise in a country’s employment laws comes from time and experience in that country. It’s important to know how long a PEO provider has been in business, as well as how long they’ve had entities established that country. Following local employment laws is critical for successful management of full-time employees.

The right PEO partner can solve disputes over time off allowances or limits on overtime. They can also advise your business on compensation and benefit expectations. These EOR services should provide all the HR support you need to recruit, hire and onboard new employees. Failure to comply with these laws could lead to expensive penalties, fines or even civil lawsuits.

Considerations:

· Can you support hiring contractors, part-time and full-time employees?

· Is there a limit to how long a country allows companies to work through a Global PEO?

· How does the PEO ensure data privacy and security?

· Can you help with local laws, taxes and compliance?

Global payroll and HR services can quickly become complicated. With different social and benefits requirements for each country, it can be difficult to manage leave calendars, time off requests, bonuses, payroll timing and so much more. Your global PEO provider should have the technology infrastructure in place to streamline these processes to ensure you maintain a happy workforce.

HR and payroll technology should benefit everyone involved. The employers will be able to track the employees, make payments, and implement onboarding procedures. The employees will be able to view their pay, submit time and expenses, and enroll in benefit programs.

Considerations:

· Does the PEO provide a platform to streamline and simplify employee management?

· What features are included in the employment management platform (payroll, PTO, onboarding, HR/compliance, performance tracking, etc.)?

· Does the PEO integrate with any U.S.-based HRIS/HCM systems?

Many global PEO providers may not be interested in your growth journey. Instead of advising you on the best opportunities for expansion for your unique circumstances, they will simply disappear after you hire an employee.

Working with a global PEO partner means they are invested in your success. They will lend their expertise to your business’s industry and locations to ensure you have optimized growth. The right PEO partner can even advise you when it’s best to set up your own legal entity and guide you through that process when the time comes.

Related: 5 questions to ask when evaluating a global business expansion partner

Considerations:

· Can you provide financial stability and transparency?

· Do you know how to set up a business in any country?

· Can you support my compliance needs?