Professional employer organizations (PEO) provide services to 173,000 small to mid-sized businesses. Inside the U.S., the PEO industry employee base is about the same size as all Amazon, Home Depot, Kroger, and Walmart employees.
Is your business looking for global expansion strategies to establish new revenue streams? Hiring international talent gives you access to the brightest and best in any field. By taking your business outside the U.S., you gain a competitive advantage.
What may hold you back is the time-consuming process. Vetting remote employees, learning payroll challenges, and more takes time. This is where a Professional employer organization can help.
Global PEO services help you find and hire employees faster and reduce risks. They ensure you are compliant with both U.S. and international requirements.
We’ll explain global expansion services in this guide. Keep reading to learn about strategies and improving your organization’s international expansion.
Why PEO Is Valuable to Global Expansion
Professional employer organizations operate as outsourcing partners to your company. They provide companies with the benefit of new:
- Talent pools
- Markets
- Supply chains
- Distribution channels
When engaging in global expansion, companies must follow all regulations. They must handle time constraints, onboarding struggles, HR legal requirements, and tax obligations.
A PEO provides the support necessary to expand. You do not need to become versed in all international rules and regulations.
For instance, when a U.S. company hires international employees, they develop a diverse worker pool. To be successful in the process, they must take the following steps:
- Analyze requirements such as visa requirements and local regulations for remote employees
- Create an appealing job description to attract international applicants
- Review legal requirements in both the U.S. and the country where employees live
- Get certifications from the Department of Labor for hiring international employees
- If appropriate, petition U.S. Citizen and Immigration Services for visas
- Develop a plan for recruiting, screening, and onboarding
- Meet with legal counsel to ensure compliance with international and domestic laws
- Ensure finance personnel have the training to handle international employees
- Maintain records to prove compliance with rules and regulations
Working as an employer of record, the PEO handles all legal compliance in the host country. They remove your company’s need to establish a physical presence on foreign soil.
PEO Services
Professional employer organizations perform a wide range of services. For a company seeking global expansion, they can handle the following:
- Payroll
- Compensation
- Employee Benefits
- Tax
- Employment Contract
- HR Management
- Unemployment Management
- Compliance
- Visas
- Safety Risk
Avoid getting caught trying to navigate unfamiliar territory. Using a PEO and employer of record allows you to concentrate on business operations. The PEO focuses on your company’s global expansion.
Global Expansion Strategy
A global expansion service will handle the legal and financial issues. This goes beyond hiring employees. They will oversee income tax, social security contributions, and more.
The PEO ensures compliance with all local and international rules and regulations. They remove the financial commitment necessary to establish a permanent foreign physical presence.
Your PEO employer of record will assist with all necessary contracts. This includes international employees, administrative companies, and employing company contracts.
Recruit Globally
The COVID pandemic put the world on a remote work platform. Many employees no longer desire employment in a physical office. They prefer working remotely, which allows them to pursue worldwide employment.
Professional employer organizations assist in global expansion by streamlining the international hiring process. They screen employees to find the perfect fit for your company.
The PEO is an extension of your in-house team. They provide support throughout the process.
Once you hire an employee, the PEO help with onboarding. This gets the person working for you as soon as possible.
Mitigate Risks
Each country has its own employment regulations and laws. You are busy running your business. You may not have time to learn international labor laws and foresee potential risks.
Professional employer organizations are knowledgeable about remote employee hiring. They understand the steps necessary for not establishing a foreign physical office.
Failing to follow another country’s tax and labor laws can have profound implications. This may be financial, legal, or both. By using a PEO for your global expansion, you have experience and knowledge on your side.
Using a PEO allows you to test a foreign market without a permanent commitment. In a volatile economy, this is an economically sound business decision.
Global Compliance
Hiring international employees raises two areas of concern. You need to ensure you meet both U.S. and international payroll requirements. You must also meet the human resource requirements of both locations.
Processing payroll can become frustrating when juggling international and national law. If staff handling the process are unfamiliar with international law, it is prone to errors.
Your PEO can act as an employer of record. Operating on your organization’s behalf, they organize and process payroll in another country. This makes managing overseas employees easier.
The second area of concern is understanding another country’s human resource requirements. This includes familiarity with appropriate interview questions and hiring procedures.
Your PEO stays up-to-date on foreign compliance laws. This ensures your company remains compliant throughout the vetting and hiring process.
Save Time and Money
Partnering with a PEO saves time and money. There is no need to learn the logistics of international hiring. You avoid the expense of training employees on handling global payroll and taxes.
You continue saving after hiring employees. You don’t need to keep up-to-date on changes to international employment law. Monitoring by your PEO will keep you current on all regulation changes.
Hire a Professional Global Expansion Service
Now that we’ve explained the benefits of using a PEO for your global expansion, are you ready to hire and onboard international talent for your business?
Remote working becomes a reality when you team up with Bradford Jacobs. Using consultation and implementation, we attract, engage, onboard, and induct the best employees for your business.
Our approach is tailored to your needs. We will help you hire anyone, anywhere. We ensure your business is 100% compliant with local laws and customs.
Contact Bradford Jacobs today to expand your company with global hiring and expansion.