Author: georgev

Do You Want to Scale Your Business Fast? Use an EOR

Did you know that, according to a study that was released in May 2021, the majority of companies (70%) said that they planned to use a hybrid work model? Additionally, according to a survey, 39% of respondents wanted a work environment that was hybrid, and 58% wanted a remote one.

If you’re thinking of hiring more workers remotely as you scale your business, you might be stressed about the whole process. After all, scaling a business can be a huge, complicated endeavor.

Fortunately, an EOR can help. In this article, we’ll review how this solution can help you scale your business efficiently.

Finally, you can grow your team and business, making your business more successful faster than ever. Read on to learn more.

What Is an EOR?

An EOR—short for an Employer of Record—is a legally-established firm that helps with a large number of administrative tasks that would be challenging for a large organization to manage. These tasks include those related to:

  • Performance appraisals
  • Insurance
  • Visa applications

They also include tasks related to employee remuneration, employment benefits, and taxation. By providing these services to businesses, business leaders can focus on managing their business on a global scale. For a business experiencing growth, this helps its business leader focus on growth.

How an EOR Can Help You Scale Your Business Fast

When you have a scalable business model, an EOR can help you scale your business in several ways. First of all, they can help you with talent recruitment. When your business is smaller and you’re hiring just one person at a time, this isn’t as challenging.

However, when you’re scaling your business and hiring more talent—especially globally—this can take a huge amount of time and effort.

Tasks you’ll have to engage in include advertising the positions, sifting through a large number of applications, and shortlisting candidates. Once you’ve decided who to hire, you then have to go through the onboarding process.

An EOR can do all this for you. As a result, you can focus on scaling your business as your team grows.

Employment Contract Management

Another service that an EOR can provide for you is employment contract management. This includes fixed-term, casual, and indefinite work contracts. If you’re hiring a large number of new employees as you scale your business, this can make the process far less overwhelming.

Payroll Management Abroad

As you scale your company, you might hire people internationally. This is another way an EOR can help you, as they can handle payroll management abroad for you. This is helpful because taxation rates can differ significantly from country to country, and laws can change yearly.

If you were to do this on your own, it would be challenging to ensure that you’re meeting all the requirements and following laws.

An EOR will be up to date with regulations. As a result, when you hire an EOR, they can help you observe compliance regarding retirement benefits, staff welfare, and taxation.

You will also ensure that you get everyone paid the right amount, at the right time. This will have a beneficial impact as it will ensure that your employees are happier. As a result, you will have greater employee retention.

Handling of Work Permits and Visas

If you start hiring international employees as you scale your business, an EOR can help you with the handling of work permits and visas. Instead of having to manage all this paperwork yourself (sometimes for several countries), they can do it for you.

This will both save you time and help you ensure that you’re following all the legal requirements of the different countries where you’re hiring employees remotely.

Assisting With Talent Retention by Providing Benefits and More

Another challenge that you might face when you’re scaling your business is talent retention. You want to be sure, as your company grows, that you can keep working with the employees you already had and retain the new talent you hire.

This is another area where an EOR can help. An EOR registers with workers’ compensation, health insurance, and pension funds providers, as well as other provider types.

They can also help you get optical and dental benefits, as well as maternity leave and sick leave.

By having access to these benefits through an EOR, you can provide your employees with the best benefits. As a result, they’ll be more likely to keep working with your company as you scale it.

The Two Main EOR Models

If you’re considering working with an EOR to help you scale your business, it’s important to know what the two main EOR models are. With the aggregator model, a major company has sub-contracting companies helping out with outsourcing.

With the wholly-owned model, the company manages the whole process. It will hire the staff itself, under its management and payroll, managing these for its clients.

Looking for an EOR Solution?

Now that you’ve learned about how an EOR can help you scale your business fast, you might be looking for an EOR solution. In this case, you should look no further than Bradford Jacobs. We have an EOR solution that can help with sustained business growth, the delegation of duties, and more.

We offer a large number of services, including global EPO, global employment organization, global talent acquisition, contractor management, and more.

To learn more about our EOR or any other services, contact us now.

Why Global PEO Services Are Necessary for Business Expansion

According to some research from Wells Fargo, 87% of United States firms believe that they need to expand internationally in order to grow in the long term.

However, international business expansion can be challenging for a small business that doesn’t have the resources or the knowledge. That’s where using global PEO services can benefit your business. 

If you’re interested in global talent acquisition, keep reading to discover the benefits of working with a PEO.

Allows You to Focus on Business

PEOs will take care of all types of HR projects so that you can spend time focusing on growing your business. They’ll take care of a lot of administrative tasks so that you can focus on tasks that are more important for your business. 

When you’re rapidly growing your business, these administrative tasks can easily slip through, but they’re still just as important. A PEO will focus on hiring the best candidates, moving you into different markets, and reporting new hires. 

When you have someone else who is handling all of those tasks, you can sleep easier at night knowing that you can do what you do best: growing your business. 

Organize Payroll

If you hate payroll management, PEO can manage this aspect of your business. This is one important factor in your business, and you need to ensure that you send out payments on time each time. 

If you don’t have a consistent payroll, then your staff will become angry and could end up quitting your company. This will cause you even more problems. Plus, having an organized payroll will make taxes much easier. 

Keep in mind that if you’re expanding internationally, there are different laws that you’ll need to follow. Instead of spending time learning about them to ensure you’re compliant, hire a company that already knows all of the regulations. 

Having different types of employees in different countries can also cause issues with taxes. While you might be operating your business in the United States, you might hire people from the United Kingdom. This might mean that they will be paying UK taxes rather than US taxes.

A PEO will act as your employer of record, and they can process and organize all the payroll on foreign soil. Working with a PEO will make the overseas payroll tasks more straightforward and easier to understand. 

Is Cost-Effective

You’ll also save money by partnering with a PEO. You won’t have to worry about tax rates on different things in the United States because your employee will technically be hired through the PEO solution.

This can help you have a big company benefit a smaller business. When you can save money this way, you can also improve profit and productivity, which will help you grow your business even more. 

Minimize Time Wasted

While having an internal accountant can really help, having a PEO can really help you save time managing accounting. 

If there’s an issue, your PEO will get involved and handle it rather than wasting money on attorney fees or researching issues on your own. If the PEO can handle the issue, they’ll handle it with no extra issue. 

In some cases, they may need to hire an attorney, but they have the background to know what kind of attorney to look for. This way, they’re helping you manage your bottom line so that you can plan your budget better. 

Enjoy Flexibility

As you’re growing your business, one of the most important things you’ll need is flexibility. With a PEO, you’ll get the flexibility to test out hiring in different markets overseas. 

You can do this before you decide to set up a legal entity. A PEO will give you the flexibility to scale your hiring and choose where you want to hire. 

A PEO will also be able to bridge that cultural gap between the market and the company by utilizing the different knowledge that they have. The prior knowledge of this employee will help you tailor all of your efforts to the right culture. 

You can still manage your employees in the US, but then the PEO will handle all of the foreign countries’ hires. And if you decide that you don’t want to hire in a certain country, you can stop without having any repercussions. 

More Successful Recruitment

To successfully expand your business, you need to be actually to actually recruit candidates. However, in a tough job market, this can be challenging, especially if you don’t know the specifics of the country’s job market. 

International recruiting also needs to be compliant as each country has its own rules. PEOs will help you manage the process, find employees, and screen them to ensure that they’re a good match for your business. 

PEOs can onboard employees within just a few days, which will help you manage your quick expansion. Since they already know all of the laws and regulations, they know how to efficiently streamline your recruiting process. 

Since most PEOs are also experts in hiring, they will know where to identify the best candidates. 

Discover More About Why You Need a PEO for Business Expansion

These are only a few reasons that PEO can help your business expansion, but there are many other benefits to enjoy. 

If you’re interested in expanding your business and outsourcing HR tasks, you need to do your research to find the right PEO for your business.

To start with your research, you can check out our company! We can offer all of these benefits, so check out our website today!

Global PEO Services: How to Streamline Employee Screening

Looking to strengthen your company with the best global staff, but don’t know how to streamline employee screenings? You are in the right place.

PEO services offer companies the opportunity to focus on business measures while it focuses on HR matters. A PEO service is a Professional Employer Organization. 

A company can hire a PEO service for a multitude of reasons. PEOs help hire employees globally, they take over all HR and payroll services, and they recruit talent and employees.

PEOs provide employee screenings before hire which can help strengthen startups and businesses looking to grow in other countries.

Our company, Bradford Jacobs offers global PEO services to best assist the growth and expansion of your company. Read on because this article will highlight all the benefits of employee screening. 

What Is Employee Screening?

An employee screening occurs before you are hired. As a part of pre-employment, screenings can include background checks, drug tests, skill tests, or, in some instances, polygraph tests. 

Employers utilize these screenings to detect what kind of person they might hire. If you want to go into a law enforcement career, but have a criminal history, you probably will not be selected for the job. 

Some factors that can affect your screening results are social media, inaccuracies, or references not expecting a call. 

Sometimes we don’t always post the most professional pictures or quotes on social media. You might not understand the importance of this when you post, but when jobs search your name, they are able to see your profiles, granting they are public. Just keep that in mind next time you want to post something that may not pass in a professional setting. 

Inaccuracies occur. Sometimes statements get incorrectly filed and sometimes the workers who handle filing mess up. Make sure you let your possible employer know if anything is odd about your history. Be transparent with them and they will appreciate the honesty. 

When you go for pre-employment screening, usually the possible employer asks for some references. You can give three references who know you well, but if they are not prepared for a call, they might not make put thought into what they say on the phone.  This is an easy fix, though. Just make sure you and your references are prepared. 

Benefits of Global PEOs

Among all the responsibilities of PEOs, one of the most important to your business is talent acquisition. PEOs have the ability to staff your company and global PEOs can do so across the world. 

Global PEOs specialize in understanding international laws and policies, making it easy for them to navigate talent across the world. PEOs search and search for probable employees and when they find talent, they can screen them to further the hiring process. 

Since PEOs focus only on HR matters, they know what to look for when it comes to future hires. Through employee screenings, the PEOs can handle the pre-employment side of the business while you focus on cultivating your business model.

Each PEO operates out of a host country. This host country usually dwells in the same country as its co-employees. So, if you have a company that runs out of the US, the PEO company you choose to partner with, probably also lives in the US. 

This matters because global PEOs can operate out of one country, and have the power to expand your business to other countries around the world. 

If the PEO does not live in the same country, your company will be partnered with a branch of their company that resides in the same place as your company. 

Global PEOs circumnavigate difficulties that arise when you try to form a separate entity to run a business out of a different country. Instead of starting a new enterprise, PEOs handle everything for you. 

Company Growth  

By utilizing a global PEO, companies’ retention and expansion rates multiply. Think about it. If a local company tries to grow its staff and clientele by word of mouth, it will only reach the local level. 

When PEOs step in, they use their global access to help your business and the company has the ability to grow tremendously in staffing, clientele, and diversity. 

Having a global reach opens up money markets in other countries and interests from other places. 

Say you live in Canada and sell purses. Your Canadian customers might love the product, but eventually, customers grow bored and look for a different product. 

Opening up shop in France could skyrocket your earnings and increase your audience. Customers in France now know about this amazing Canadian purse and tell their friends and family in other countries. 

Using global PEOs also opens opportunities for diverse employees. If you only hire those who live in one area in Canada, you probably don’t have a very diverse crew. However, global PEOs know how to navigate global networking companies to acquire talent all across the globe. 

Different time zones can mean a 24-hour work schedule. Someone in England might work a 9-5 day, but England’s 9-5 in America is 4 a.m. to 1 p.m. Employing workers in different countries leads to more success because the company never closes!

Streamline Employee Screening 

Businesses just starting out might not resort to employee screening because they need to staff their establishment. If a new business starts screening its possible employees, they might not know what to look for, it limits time spent on the actual business, inhibits growth, and can be costly.

Once you partner with a PEO, you will never have to worry about staffing or employee screening measures again. In fact, global PEOs know exactly how to streamline employee screenings so companies can focus on their product.

PEOs find top talent through the use of global networks. These sites also show in-demand markets that best benefit company expansion.  

Invest in a Global PEO Service Today

Global PEO services benefit the remote working world by hiring employees globally, taking over HR and payroll services, and expanding company growth. 

Global PEO services handle employee screenings to staff your company with the best global talent out there while your business expands.

To learn more about the global PEO service we offer click here

If You are a Small Business Owner, Should You Use a PEO?

According to some research, 98% of business owners said that they would recommend a PEO to a small business.

If you’re a small business owner, this can sound very appealing. But what are the other benefits of using a PEO?

Interested in growing your small business and hiring the best team? Keep reading to learn about why you need a PEO. 

Lower Benefit Costs

global PEO service will allow you to save money on expenses like healthcare. They will provide more options than you would be able to as a small business, which can help attract more employees. 

In 2019, employer health coverage cost is $7,188 for single care coverage. For a family, it was closer to $20,000. These costs can add up as you grow your business, and it can be challenging to grow with those costs. 

However, a PEO can help you save so much of that money. The amount they charge will vary depending on the states that your employees live in since each state has specific laws. Different PEOs can charge different costs as well. 

If your business has more than fifty people, you’ll need to offer health care insurance thanks to the Affordable Care Act. So if you’re planning on scaling your business, PEO will help you bundle your health insurance and save. 

Avoid Hiring Internal Staff

A PEO will also ensure that you don’t need an entire internal human resources team. You can hire people who need to do non-administrative tasks because the PEO will handle all of the other functions. 

You can spend time hiring subject matter experts to handle any major problem. However, a PEO can handle payroll that you wouldn’t want to trouble an internal team with. 

Can Handle Various Services

A PEO can also offer different services, and you can tailor their solutions to fit your needs. When small business owners hear about the PEO, they only hear that they offer lower benefits and workers’ compensation coverage. 

But they offer much more, like payroll services, managing employee handbooks, investigating employees, administering benefits, ensuring compliance, and managing organizational philosophy. 

When you hire a new employee, they can also train that employee. They will be in charge of leaving the first impression on your new candidates, making them more likely to stay at the company. 

Hire New Employees

When you want to bring new employees to your team, it can be difficult to identify and reach out to the best candidates. You’ll have to post job openings on the right job board, sort through hundreds of resumes, and know where to source candidates.

With the Great Resignation and a competitive candidate market, it can be challenging to find those candidates and recruit them to your company. Thankfully, the PEO already has a pipeline of candidates and has relationships with potential candidates. 

Their experience helps them screen applicants to save you time. They will handle all stages of the recruiting process and then refer the best candidates to interview and choose. 

However, keep in mind that if you remove yourself from the recruiting process as much as possible, you won’t have as much control over it. That’s why you should hire a PEO who will let you have the right balance. It’s also helpful to hire someone that you trust.  

Better Hiring Processes

If you’re trying to grow your business globally, it can be challenging to have a hiring process in other countries. There will be different rules and strategies in foreign countries that you’ll need to follow. 

Hiring in other countries can slow down your hiring processes as you learn all about the rules and procedures. Thankfully, a PEO will already know all of the rules and regulations, and they will save you time finding those candidates. 

You’ll be able to work with a PEO who will also connect you with experts in recruiting for specific regions, which can help you manage your hiring process and find the best employees for your company. 

Improve Employee Retention

Companies struggle to retain top talent, with employees jumping from job to job. Some employees leave after only a few months of working at a new company due to a bad onboarding process. 

However, most PEO services are experts in human resources, and they can offer a great candidate and onboarding experience. When this happens, they’re more likely to help an employee feel comfortable at your company.

Since they’re experts, they will also know what to look for in the perfect candidate. When they can quickly identify the best candidate, you’re more likely to have a successful hire and have someone who will stay at your company for a long time. 

Track Employee Performance

As a small business, you need to ensure that everyone is performing at their best, and the PEO will ensure that your team is running at the best possible level. 

If you don’t have a lot of management experience, it can be difficult to manage your employees. However, a PEO can help you use employee performance tracking software to manage all of your employees. 

Discover More About If a Small Business Owner Should Use a PEO

If you’re a small business owner, these are all the reasons that you should use a PEO to grow your business.

With a PEO helping you, you’ll have time to focus on running your business and being as successful as possible. 

If you’re ready to start using PEO services, check out our website! We can help you grow your business.

Using a Global PEO for Hiring Remote International Employees

Did you know that 18% of people work full-time remotely? Additionally, over 4.3 million people in the US work remotely, meaning that 3.2% of the whole US workforce is working this way. Also, the percentage of companies that hire full-time remote employees is 16%.

If you’ve been thinking of making your company remote or hiring remote international employees, you might be feeling stressed about how to get the best talent.

After all, it can be difficult to know how to get started with this global, greater talent pool. Fortunately, a global PEO can help.

In this article, we’ll review the advantages of using a global PEO for hiring remote international employees. Finally, you can hire the best employees for your company, making it more successful than ever. Read on to learn more.

You Can Seamlessly Manage Your HR Processes

One of the biggest benefits you get from using a global PEO is that you can seamlessly manage your HR processes. When you have a remote company, there are many potential errors your HR could end up dealing with.

This is because global HR processes include complex payroll calculations, different countries’ legal compliance, and multiple international employees.

However, if you hire a global PEO to manage your global employment needs, they can handle all of these different complex issues and processes.

Cost-Effective Benefits Access

If you want to have satisfied employees, it’s important to provide them with benefits. However, being able to provide employees with cost-effective, comprehensive benefits is a challenge that many companies face. Usually, providing benefits such as these can be overwhelming or costly.

Fortunately, when you work with a global PEO, they can offer your employees many comprehensive and cost-effective benefits.

Higher Productivity

HR management processes are challenging and time-consuming. Tax regulations and local compliance can change regularly, and when you’re running a global company, having to deal with these issues from country to country can be challenging.

However, when you work with a global PEO, they can manage these issues much more easily.

As a result, you can spend more time focusing on your business’s core functions. This will lead to higher productivity within your business.

Simplify the Process of Hiring Remote International Employees

One of the processes you might have to deal with when you run a global company with a remote team is the process of hiring remote international employees. Whether you’re hiring full-time employees or contractors, this can be challenging.

Why? First of all, when you’re recruiting worldwide, you can end up having a large number of applicants in your applicant pool.

Second, there’s the issue of having to manage compliance internationally.

Third, you have to spend money and time creating ad placements. This can be challenging when hiring internationally, too. After all, you may not know which places are best when it comes to where to advertise your job openings.

A global PEO can manage this process for you. In addition to saving you the time you’d spend hiring remote employees yourself, this will also get you employees who are a better fit for your company.

Simplify the Process of Onboarding Remote Talent

In addition to simplifying the process of hiring remote talent, working with a PEO will simplify the process of onboarding remote talent. They can handle setting up payments, putting employees on staff, and setting them up through other HR onboarding processes.

As a result, when your new employees join your team, they’ll be ready to get started.

Simplify Payroll Management

The process of payroll management is challenging and time-consuming. When you add having international employees into the mix, it becomes even more so. This can make it more likely that payroll management errors would occur.

Those payroll management errors could result in employee dissatisfaction or fines.

Fortunately, when you work with a global PEO, they’ll manage payroll for you. As a result, they can ensure that your international employee payments are accurate and fast.

Additionally, they can provide payment in the preferred currencies of your international employees.

The PEO can also pay according to tax regulations, handle severance and compensation payments, and manage payroll systems administrations.

Secure Company Data

When you hire people to work at your company, your HR management team will often handle sensitive information related to your clients and employees. If this information isn’t managed correctly, it can pose a threat to the safety of your organization or lead to the theft of data.

Fortunately, when you hire a global PEO, they’ll protect this sensitive information with maximum care.

HR Compliance

Another advantage you get from working with a global PEO is that they will ensure that you’re compliant with the tax regulations and statutory employment laws of the countries where your employees live. As a result, your company will be following HR compliance rules and regulations.

Positive ROI

In addition to experiencing less stress because of the advantages we’ve covered so far, you’ll also benefit from the positive ROI that comes from hiring a global PEO. Even though it’s an investment, it will help your company grow faster and make it more likely it will stay in business.

Looking for a Global PEO?

Now that you’ve learned about the advantages of using a global PEO for hiring remote international employees, you might be interested in hiring one. In this case, you should look no further than Bradford Jacobs.

At Bradford Jacobs, we’re experts when it comes to hiring remote talent. We help you enter global markets with our hiring services.

To learn more about our global PEO services, get more information now.

What Is the Difference between PEO Services and HR Outsourcing?

The remote work world increases in popularity daily. More and more people want to work from home, travel while they work, and forfeit their commute to the same place, but still work for a company they love. 

In addition to the conversion of in-office to remote work, new companies form because of the desire for remote work. Both new and existing companies demand access to outsourcing services to grow their business.

At the core of the conversion from in-office to remote workers, the idea is simple: take everything that is in the office and put it online. For the businesses, it takes a little more effort.

One main consideration for a business to weigh is the outsourcing service. Two general outsourcing services exist, PEO services and HR outsourcing.  

Think your business could benefit from PEO services or HR outsourcing? This article highlights the meaning behind both and the differences between the two. Read on to see which one will help your company more. 

PEO Services 

PEO services, or professional employer organizations, assist businesses with growth and expansion through outsourcing methods. PEOs work with your company to streamline HR tasks like payroll, benefits, taxes, risk reduction, and time management, as well as recruitment. 

This allows businesses to focus on running their company, which in turn makes for a more successful business. They also let companies expand to other countries without moving their physical offices.

Your employees will be happier too! PEOs work to increase employee retention rates, create the best benefits package, and sort out payroll issues. PEOs offer packages to businesses.

HR Outsourcing

Businesses utilize HR outsourcing (HROs) as 3rd-party providers. HR outsourcing focuses on single HR needs for the company. 

For example, if a business needs help with payroll, it can use an HR outsourcing company for assistance. Since HROs are third-party providers, they are not considered co-employers with the company that hired them.

HROs can offer packages, but they mainly provide single services. 

Differences between PEO Services and HR Outsourcing

One of the main differences between the two agents is what kind of company uses which service. As mentioned previously, PEO services are used in newer and smaller businesses. 

This is for a couple of reasons. Smaller businesses need to gain traction, so using a service designed to recruit and retain workers helps tremendously.  

Since PEOs focus on every kind of HR matter, smaller companies tend to invest in them so they can focus on their own work while their business grows.

Bigger and established businesses favor HROs because they do not have to outsource them for each HR operation. These companies have been around longer, so they know which administrative tasks they can work on themselves and which ones they need to outsource.

Legalities Involved 

PEOs function as co-employees to the company they partner with. This means that when a PEO works with a company, it is responsible for legalities involving its employers, taxes, and revenue. 

When a PEO signs on with a company, they both agree that the PEO takes full responsibility for legal responsibilities and ramifications thereafter. They sign a binding contract.

PEOs handle every HR responsibility because the company is not legally allowed to get involved with HR duties. PEOs work with several companies at once, however, it is difficult to get out of the agreement once it starts. Companies include PEOs on their taxes as their co-employees.

Being a third-party provider (HROs) means you do not sign a contract granting them access to all HR matters. Business owners can hold responsibility for certain HR matters they want to handle in-house.

HROs are not considered co-employees, and the company is not indebted to work with the same HRO. Companies can freely choose which HRO companies they want to use for different tasks.

Companies do not include HROs on their taxes as co-employees. 

Insurance Deals

PEOs offer lower insurance plans to businesses as part of their services. Since PEOs consider themselves large businesses, they can access lower insurance plans. 

Without PEOs, companies would not qualify for these great insurance benefits on their own. However, remember the partnership between a company and a PEO? Since the PEO is a co-employee with the business, insurance companies can offer their deals to the businesses through the PEOs. 

Another benefit to an insurance plan through a PEO is that taxes encompass the services they provide. Not only will you have better insurance through your job, but the PEOs also handle all of the nitty-gritty insurance policies and paperwork. 

HROs handle specific requests and do not offer insurance packages or bundles to company employees they work with. 

PEO Security Measures 

Keeping yourself safe in the modern world is tricky, especially on the internet. When it comes to cyber protection, you should make sure you always have the highest level of safety. 

PEOs can help you with better security. Those who work for PEO services train to handle sensitive data such as social security numbers, addresses, and tax information with the utmost care. 

This is where the co-employee contract comes in handy. PEOs and the company share equal responsibility when it comes to taxes and audits. 

HROs can help security measures within your business, but come tax season, they do not hold responsibility for audits. HROs are third parties and not co-employees, so if your company gets audited, they do not legally need to help you. 

PEO or HRO

PEOs and HROs both help businesses with administrative HR tasks that diminish time spent on daily operations. With the help of a PEO or an HRO, you can grow your company, assist your employees, and provide a better work atmosphere for your business. 

Choosing between a PEO and an HRO depends on your business. If you want to grow your employee pool you should look into a PEO. If you want to grow your clientele while taking care of your employees, you should look into an HRO. 

Contact us to see the PEO services we offer.

Benefits of Hiring an Employer of Record Over a Staffing Agency

According to some research, 52% of small businesses said it is now harder to find the best talent. 

If you’re also struggling to hire employees, you might benefit from using the services of a staffing agency or an employer of record. However, there are a few differences between the two.

Hiring an employer of record over the staffing agency has many benefits, but keep reading to discover what factors you should consider before hiring one of them!

What Is an Employer of Record?

If you’re going to be hiring internationally, it’s best to have an employer of record. An EOR solution will be legally responsible for paying your international employees and handling all of the employee’s taxes, benefits, and insurance. 

If your employees are going to move between different countries, they’ll also manage the sponsorship applications and collect visas. 

What Is a Staffing Agency?

You can also use a staffing agency to grow globally, but this agency will work to match employees with open positions at your company. 

These pairings are generally temporary or on a contractor basis. The staffing agency will manage resume databases and facilitate communication between employees and employers. 

They’ll also collect all the feedback from their most recent job placements to provide the best candidates for businesses.

The Main Difference

The main difference between these two types of businesses is the role that they’ll play in your company. An employer of record will serve as an employer for a group of employees. While the employees don’t work for them, the employer of record will handle all of the HR functions for the individual.

They will manage all the streamlined processes, like onboarding paperwork, I-9 forms, payroll processing, verifying backgrounds, and handling unemployment insurance. 

When you hire a staffing service, they’re responsible for finding, recruiting, and placing employees. However, these employees will generally be temporary, but they can be permanent. 

Staffing agencies might handle payroll services, but they usually don’t handle the other human resources tasks. 

Finds a More Permanent Role

Some of the benefits of using an EOR over a staffing agency will be providing an employee who will fill a more permanent role. 

There is more of a collaboration between the EOR and the client. The employee will work for the client, but the EOR will handle all human resource functions. 

They’ll also manage all the paperwork that comes with hiring a permanent employee, like running background checks, drug testing, terminating employees, or managing benefits. 

On the other hand, a staffing agency will only recruit candidates to fill your open positions for a short time. 

Assumes Liability

When you partner with an EOR, you will still retain control over your business operations and workplace safety. However, the EOR will assume liability for any employment issues that HR would generally be responsible for. 

They’ll be responsible for issues like: 

  • Taxes
  • Benefits
  • Maintaining employee records
  • Administration

The employer of record will assume responsibility, which can be helpful when you’re hiring in other countries where you’re not familiar with the laws. This will give the business peace of mind to know qualified professionals are following all the rules.

Saves Time and Money

In the long run, outsourcing all of these tasks will save you time and money. You can delegate all of those functions to another company so that you don’t have to have an internal team dedicated to those functions. 

You won’t have to worry about spending so much money and time on resources trying to find great talent, and you can spend time focusing on growing your business. 

With an EOR, they’ll handle all of the onboarding and the paperwork. They can do all the background checks and screen the candidates to know you’re hiring the best person for the job. 

Plus, most of these human resources tasks are primarily administrative, consuming a lot of time and money. By outsourcing those roles, you can let your internal teams do other jobs to bring value and support to your company. 

Plus, most EOR providers offer these services at a very competitive cost, which allows you to quickly compare this with the price it would be to do all of those tasks internally. Some solution companies will also let you convert the resources from their payroll onto your staff with no extra cost.

Manage Terminations

According to some research, 74% of employers said they have hired the wrong person. It’s inevitable, and you’ll need to terminate those employees at some point. 

When you need to hire an employee in another country, the requirements for firing them can change, and if you violate those requirements, you’ll have heavy consequences. 

For example, if you hire in the United States, the employment is based on the at-will status. That means that an employer can fire an employee at any time. However, if you were to fire an employee in the Czech Republic, you would have to provide that employee with a two-month notice. 

An employer of record will know all of the rules for each country before they fire an employee. They will draft all employment agreements and manage all notice periods and severance. 

They will also manage your data and provide greater security to ensure that your data and intellectual property are safe after they terminate an employee. 

Discover More Benefits of Hiring an Employer of Record

These are only a few benefits of hiring an employer of record versus a staffing agency, but there are many more advantages!

Before you hire an EOR, you need to ensure that you do your research before picking one.

Thankfully, we’ve made it easy for you. We can help you expand your team worldwide, so work with us today!

HR Outsourcing: How to Make the Most of Your PEO

Did you know that, during the COVID-19 Pandemic, almost half of employees worked full-time remotely? Additionally, nearly half (48%) of employees will continue to work remotely after the pandemic, some of the time, at least.

If you’re thinking of using a PEO to run your company globally, something you might be wondering about is how to make the most of this HR outsourcing solution.

However, if you don’t know how to do this, you may be feeling stressed. Fortunately, we can help.

In this article, we’ll review how you can make the most of your PEO. Finally, you can use PEO services efficiently, saving both time and money. Read on to learn more.

Benefit From Their HR Expertise

When you work with a company that offers PEO services, one of the biggest benefits you get is access to their expertise. So if you’re dealing with an HR issue, you should take advantage of this benefit. There are many situations where they can help, including ones related to:

  • An employee complaint
  • A compliance issue
  • An employment law changing

In the US, there are over 180 federal laws related to employment. Add employment laws and compliance rules and regulations on a global scale, and many issues come up that you may not know how to handle.

Fortunately, a PEO will have extensive experience and expert knowledge on these issues. So, if any of these issues come up, go to your PEO immediately. They can help you manage the situation before it gets more serious.

Have Them Handle Benefits

One of the most time-consuming tasks your HR team would ordinarily have to manage is the benefits you provide your employees. But, in addition to being time-consuming, another challenge that comes with getting the right benefits for your employees is how costly they can be.

A PEO can simplify this process and make it less expensive for you. They’ll have access to a larger amount of benefits, making it possible for you to provide more high-quality ones to your employees at a cheaper price.

You’ll be able to save money on SUI (state unemployment insurance), workers’ compensation, and group insurance.

They can also manage the benefits process for you. As a result, you’ll have more time to focus on other business tasks.

Have Them Manage Hiring and Onboarding

Another way an EPO can help you is to manage the hiring and onboarding processes. This can be especially helpful if your company is undergoing quick expansion and you’re looking to quickly expand your team globally.

They can manage advertising open job positions, reviewing a large number of global applicants, and conducting interviews.

Then, when your new employees are finally hired, they can provide you with easy staff onboarding services. This can be especially helpful if you’re hiring employees internationally.

A PEO can help you ensure that you’re following the right hiring procedures according to international labor laws and set up payments according to international tax laws and regulations.

This way,  you won’t run into any legal issues related to international employment law or taxes when you hire the talent for your global team.

Have Them Manage Payroll

When you run a company, one of the tasks that take up most of your HR team’s time and effort is managing payroll. This takes a lot of effort because HR teams have to ensure they pay employees the right amount and pay them in the right way (for example, through direct deposit to the correct account).

Additionally, they have to ensure that they pay employees on time. Sometimes, they also have to make additional calculations related to taxes and overtime.

In addition to taking up a lot of time, payroll being so complex can sometimes lead to errors. This could end up leading to employee dissatisfaction or even legal issues.

This is why it’s smart to have your PEO manage payroll. They can manage all of these tasks, giving you more time to manage other business tasks.

Additionally, the PEO will be able to handle the more complicated payroll aspects that come with having a global team. For example, they can ensure that employees are paid in the currencies they prefer.

Have Them Help You With Risk Management

Another way a PEO can help you run your business is by assisting you with risk management. By getting this assistance, you can make your work environment safer than ever. One of the ways they can help is by ensuring that you have an adequate workers’ comp insurance plan in place.

They can also handle any comp claims that arise efficiently and promptly.

Your PEO can also ensure that your company is following OSHA (Occupational Safety and Health Administration) compliance.

A PEO can also provide you with access to substance abuse programs. Additionally, they can help with loss prevention. This way, it can be less likely that employee theft will occur.

Looking for an HR Outsourcing PEO Solution?

Now that you’ve learned how you can make the most out of your PEO, you might be looking for an HR outsourcing PEO solution. In this case, you should look no further than Bradford Jacobs. Without help, you can increase efficiencies, improve security, get HR assistance, and more.

We provide many services, including global employment organization, recruitment process outsourcing, contractor management, employer of record, and global PEO.

To learn more about our PEO solution, get more information now.

How PEO’s Improve the Remote Hiring Process

About 55% of brands around the world offer remote work opportunities.

Remote hiring provides the unique advantage of expanding into new territories. You’ll have access to worldwide talent without setting up physical offices. You’ll also get instant access to a greater pool of talent.

If you’re looking to adopt remote working strategies, you should consider hiring a PEO. PEOs have fine-tuned recruitment methods, which can fast-track the hiring process. Instead of hiring employees who don’t perform well or leave, you’ll only be working with quality candidates.

How exactly can a PEO help with hiring remote employees? Read on to find out.

What Is a PEO?

What exactly is a PEO? PEO is an acronym that stands for professional employer organization. It’s a specialized service you can use to expand globally.

A PEO allows you to employ overseas without setting up an expensive legal entity. How exactly does it work? International employees will get to use the PEO as their employer of record.

The PEO would then function as the legal employer of your new employee. You’ll be able to turn international freelancers and consultants into effective teams of employees.

Streamlined Processes for Remote Hiring

Having a PEO means you’ll be able to leverage their expertise to create the best onboarding process possible. Your PEO will work directly with new hires to help acquaint them with their new rules and your corporate culture.

A robust onboarding process means that employees know what’s expected of them in the company. The more clear roles are, the better employee retention will be. Alternatively, a weak onboarding process can cause high employee turnover. 

Luckily, the PEO can assist remote employees every step of the way. During the onboarding, PEOs help with filing paperwork, answering new hire questions, and beyond. Not only will your employees be happy, but it’ll be easier for you to guarantee legal compliance.

Paying Wages Overseas

As a business owner, you already have enough on your plate. The last thing you need to do is spend hours studying the different foreign payroll requirements for remote hires.

Thankfully, an experienced PEO will be able to make paying wages to oversea employees an easy task. You won’t have to worry about whether or not you’re complying with legal requirements for the different countries where your employees work.

Are you hiring US-based employees? During the remote hiring process, your PEO will handle workers’ compensation, federal withholding tax, payroll requirements, etc.

Many business owners choose to have a global PEO employee and pay their workforce as their own. Since the PEO understands all compliance requirements and diversity obligations, your employees will get precisely what they need. The PEO can even assist with creating salary structures and regulating the benefits that you offer.

Free Up Your Internal HR Team

A PEO isn’t going to replace your internal HR team. Instead, they’re going to free up their time so that your HR department can focus on strategic initiatives. For instance, instead of worrying about onboarding remote hires, your HR department will get to focus on building a unique company culture that retains top talent.

Unlike an HR team, where you’ll pay its annual salary, your PEO will use a unique pricing structure. Typically PEOs use a fixed monthly fee per employee. However, there are situations where PEOs will use a percentage of the payroll plus applicable taxes, employer practice liability insurance, and workers’ compensation.

Keep in mind that both the fixed monthly fee and the percentage payment plan come with setup charges and administrative fees. Make sure you fully understand the contract before working with the PEO.

Get the Best Employee Practices Liability Insurance

In addition to helping out with human resources, some PEOs even offer employment practices liability insurance. Employment practices liability insurance or EPLI provides business clients with coverages for claims brought against them by employees.

If an employee decides to sue an employer for some wrongful employment act, EPLI can help protect the business. Examples of wrongful employment acts include harassment, discrimination, retaliation, wrongful termination, and other workplace grievances.

When you’re getting EPLI Insurance offered through your PEO, request a copy of the policy as soon as possible. Take your time and evaluate the key terms to assess whether the policy will sufficiently cover all of your needs.

The best PEOs will have insurance policies that go beyond generic coverages. If you wind up canceling your partnership with the PEO, your EPLI insurance will likely cancel.

Legal Compliance for Drug Testing Programs

Are you familiar with all of the different types of drug tests available to employers? If your new hires have to undergo drug testing after a conditional offer of employment, a PEO can help make things easier. The PEO can decide what type of testing would be best for the filled position.

Even if you don’t live in a state where you’re legally required to drug test employees, it can still be a good idea to implement an effective program. Having a strong drug testing program can help create a safer work environment that’s also more productive.

Unfortunately, many employers make mistakes when they try to implement a new program. A lack of clearly defined rules or legal compliance can cause problems. Other issues include non-comprehensive drug screenings and poor test choices.

Thankfully, you’ll be able to leverage your PEOs expertise to find out the best way to implement a new program. You won’t have to worry about accidentally evading any laws since your PEO will be an expert at legal compliance.

Implement a Smooth Onboarding Process

It’s clear that you’ll save time and money on remote hiring when you hire a PEO. You’ll also get access to a greater pool of talent to create an unstoppable workforce.

At Bradford Jacobs, it’s our vision to create a world of opportunities without any limitations. We’re committed to helping business owners expand globally with the world’s top talent.

Are you ready to change the way you’re organization does business? We’d be happy to help you explore your options. Reach out to us today by email or phone to get started.

How a Professional Employer Organization (PEO) Works: A Guide

Did you know that, according to NerdWallet, there are several top reasons good employees quit? These reasons include feeling that there’s a lack of trust or respect, low pay, a poor company culture, feeling underappreciated and overworked, and more.

If you’re worried about good employees quitting their jobs at your company, this can be stressful.

Fortunately, with the help of a professional employer organization (PEO), you can outsource a large number of your human resource functions.

In this article, we’ll review how a PEO works. Finally, you can use this solution to run your business more smoothly. Read on to learn more.

What a Professional Employer Organization (PEO) Is

If you’re asking the question, “What is a PEO?” we’ll answer that question here. This is a company that a professional employer works with. The PEO will provide the employer with human resources expertise and services that the employer might not have been able to provide on their own.

When an employer works with a PEO company, the PEO allows that employer to do several things.

These include sharing employment liability and outsourcing many human resources functions. Often, they also include gaining economies of scale. These bring a benefits package that’s improved to the employer’s employees.

What Is PEO in Terms of Services?

PEO services often include handling things such as workers’ compensation claims, health benefits, tax compliance, payroll processing, human resources practices and policies, and unemployment insurance claims.

Additionally, PEOs can offer even more specialized services. These include (but aren’t limited to) risk management, international partnerships, and employee development and training.

How PEOs Work

The way that a PEO works is related to the co-employment concept. Co-employment is a term that refers to a contract where responsibilities are allocated and shared. When a PEO and an employer do this, they’re sharing certain employer responsibilities.

The way this works in practice is that responsibilities and risks are things that both the employer and the PEO share when they’re working together. Much of this relates to employer compliance.

The PEO, as a co-employer, will provide you with information regarding federal and state compliance issues that have an impact on your business and you.

The PEO representative working with you will communicate what these requirements are. Often, they’ll also provide you with guidance on how you can meet these requirements.

Sometimes, however, you’re the one responsible for taking the action that’s required for meeting compliance.

For example, say that the PEO provides you with a poster that’s required by federal and state labor law.

Even though they provided you with it, you’d be the one responsible for posting it in a worksite area where it’s visible to all of your employees.

The important takeaway from all this is to understand that both you and the PEO are responsible and taking on risk. So both of you are invested in ensuring that you minimize and mitigate your and their risk.

Specific Tasks PEOs Can Do for You and Their Benefits

If you’re looking for the best PEO for you, it’s important to know what specific tasks they can do for you and their benefits. These include HR professionals managing administrative HR tasks for you, having an expert resource regarding compliance issues, and more.

HR Professionals Managing Administrative HR Tasks

One of the tasks PEOs can do for you is managing administrative HR tasks. They’re HR professionals, so they can more easily manage payroll. They’ll ensure that you’re staying compliant and managing tax properly.

Additionally, they can administer direct deposit transactions and keep records that are accurate and thorough.

You can still maintain oversight when it comes to payroll, even though they’ll be managing it for you.

This will make it possible for you to be aware of what’s going on with payroll while spending more time focusing on other tasks at work.

It will also free up time for your employees to focus on what they’re specialized in, getting important work done.

Having an Expert Resource Regarding Compliance Issues

A huge benefit that comes with working with a PEO is that you’ll have an expert resource regarding compliance issues. A PEO can keep you informed of local, state, and federal compliance regulations. They can also advise you on these matters.

As a result, you won’t have to deal with any unexpected penalties in a situation where you haven’t followed compliance regulations correctly.

Access to Better Benefits (For Your Employees)

When you’re working with a PEO, another benefit you get is that your employees can have better benefits. This is especially the case if you run a smaller business. It’s hard often to compete with large businesses when it comes to benefits.

However, a PEO will make it possible for you to offer more because they’ll have those benefits available.

For example, they would have access to health insurance. You might have many limits or costs in regards to health insurance if you own a small business, but you won’t have to worry about this if you’re working with a PEO.

Want More Information?

Now that you’ve learned how a professional employer organization (PEO) works, you might want more information. Maybe you want to learn more about other ways you can solve business solutions or make your employees happier.

In this case, you should look no further than Bradford Jacobs. We’re experts when it comes to helping businesses, especially concerning their employees.

We also offer global recruitment services. To learn more about these services, contact us now.