Tag: global peo

What Are the Pros and Cons of PEOs?

Should you use a PEO for your business? Right now, there are 487 private employment organizations in the United States alone, serving millions of employees.

When it comes time to decide if using a PEO is right for your business, it’s wise to consider both the pros and cons of such a service.

Below we explain some of the top pros and cons of using PEOs to help you with your decision.

What is a PEO?

A PEO, or a professional employer organization, is a type of HR outsourcing that is known as co-employment.

Businesses work together with a PEO so that each is responsible for different tasks. The PEO will take care of administrative tasks like payroll and benefits, leaving the business to focus on more important decisions.

Some PEOs also offer strategic services but no PEO organization operates entirely alike. Each one will have its mix of offerings, benefits, and drawbacks, which we will touch on in the following sections.


PEOs are a quickly growing industry. PEO employment growth is 16 times higher than the rest of the US economy since 2013.

One reason for this is the numerous benefits that a PEO brings to a business. Below are just a few of the top benefits you can expect to experience when using a PEO.

Affordable Benefits

PEOs are known for giving employees the best benefits possible without costing the business significant cost increases.

A PEO will work with insurance companies and benefits providers to negotiate benefits and insurance policies for the group.

Since PEOs often work with upwards of thousands of employees, they can leverage their massive buying power to obtain better deals from service providers.

Employees at the small- to mid-sized companies partnered with the PEO will have access to a greater range of benefits, from health care to retirement plans.

Shared Liability

Businesses that enter into a partnership with a PEO are entering a co-employment relationship. The PEO will split the legal responsibilities of the employee.

Should a lawsuit occur or a problem arise with an employee, both the PEO and the company would have to take steps to mitigate the situation.

Frees up Resources

Using a PEO will save you both time and reduce your bottom line. You’ll be able to use these newfound resources to focus on growing and developing your company.

Costs saved from a PEO could allow you to hire employees or give better training to new employees. You can focus on giving more value to existing team members while focusing your efforts on larger goals.

Better Recruiting Position

With all of your additional benefits, you will have positioned your business as a more competitive option for candidates.

Those looking for a closer work environment with fewer employees won’t have to sacrifice the benefits that they may have only been able to get from working at a larger company – they will truly be able to get the best of both worlds.


PEOs are great opportunities to outsource some of their more mundane tasks and focus on building employee relationships and growing their business.

However, PEO services are not perfect. You should be aware of potential drawbacks or obstacles you may have to overcome when using a PEO service.

Custom Plans

PEOs are known for providing employees with greater benefits that come at a lower bottom line for companies. Unfortunately, in some cases, this may come at the cost of allowing employees to have individualized plans.

PEOs work with insurance companies and benefits providers to find group solutions. While the overall cost may be lower, some people may not receive the individual choices that they’d like.

The best solution to combat this is to work with a PEO company that has ample resources and connections and can leverage its expertise to create a dynamic set of benefits that works for as many employees as possible.

Relinquished Control

Company leaders will certainly enjoy that the PEO shares risks and takes some off the burden of the company. However this comes at a cost – the employees are co-employed by the PEO.

This means that you will be relinquishing some of your control as a business owner. 55% of entrepreneurs say their largest motivation for starting a business was so that they could be their boss, so many top executives may have to adjust to the fact that they will no longer be making 100% of the decisions.

Less Access to Information

PEO services take responsibility for tasks like payroll services and employee benefits. When they do this, they gain access to important company data and use it to make decisions.

Once the PEO services have access to the data used for benefits and payroll, the company will have little insight into this information.

In some situations, all communications and transactions will have to go through the PEO, even if it’s a small request that would be easily taken care of if it stayed within the organization.

It’s important to understand that you’ll have to accept some elements of a “hands-off” approach when using a PEO service. The small communications that you could handle before will now be under the purview of the PEO.

Compliance Not Guaranteed

PEOs are responsible for handling your taxes and payroll filing. But if they fail to do this properly, it’s you who is vulnerable to fines or penalties for noncompliance.

When looking for a PEO, make sure to select an organization that does guarantee tax compliance with payroll processing. A compliance guarantee means that the provider will take care of your taxes as the reporting agent on your behalf, as well as be responsible for any fees or fines that occur from their errors.

Using PEOs for Business Growth

PEOs are a great option to consider for your business whether you’re looking to streamline operations or expand your company.

Start your search for PEO services with Bradford Jacobs. Our team of consultants would be happy to discuss how we can meet your business’s needs. Do not hesitate to contact us, and we will be in touch shortly!

7 Major Benefits of Using a PEO Service

Businesses continue to try to answer the age-old question: how is it possible to achieve growth using proven methods?

Enter PEO. Economic analysis shows that PEO employment growth is 16 times higher than the rest of the US economy since 2013.

And this growth translates to businesses: companies in PEO arrangements grow 7-9 percent faster and have lower employee turnover.

What is PEO, and why is it so effective?

Below we’ve created the following guide explaining the benefits of using a PEO service and how it can grow your business.

What Is a PEO?

A professional employer organization (PEO) works with small to mid-sized businesses to give them access to better resources and provide them with more efficient HR functions.

Traditionally, companies would either need to rely on in-house HR or outsource HR completely. With PEO, businesses can automate certain processes while keeping their private information in-house. Meanwhile, they’ll benefit from all of the PEO’s professional services.

A PEO typically specializes in payroll, benefits, HR, and labor compliance services. It will streamline company operations and may even help your company grow faster.

How Does a PEO Work?

PEO’s work by co-employing your employees. The PEO will use your workforce for administrative purposes like paying employees and filing taxes, but you will still have full control over who you hire and the benefits offered to employees.

The PEO will act as the administrative employer, while you act as the worksite employer. This means that they employ your workers on record for the purpose of taxes as you maintain fulfillment authority over your team members.

Each party will have certain responsibilities, but you never lose control of your company’s overall strategy, business operations, or marketing and sales.

7 Benefits of Using PEO Services

Using PEO services will benefit your operations in more ways than one. Below are 7 of the top benefits of using a PEO company.

1. Smoother Payroll

Maintaining smooth payroll operations is necessary for a high-functioning business, but it can be difficult to master. Executing the process seamlessly, from handling withholdings to recording accurate employee hours, is a time-consuming and imperfect process.

A PEO will make your payroll run much more smoothly and reduce accounting costs. PEOs can automate numerous parts of your payroll process, handling important documents like your W-2s, and take care of your withholdings.

2. Better Employee Benefits

PEOs often have thousands, if not, hundreds of thousands, of employees in their system. This gives them leverage with insurance companies and other benefits providers.

Ultimately, they’ll be able to secure the same benefits for your small or mid-sized business that only a large company typically has access to.

Most PEOs are able to offer some combination of these services:

  • Healthcare plans
  • Worksite benefits
  • Mental health support
  • Commuter benefits
  • Life insurance and disability insurance

Companies that may not have been able to offer anything more than basic benefits will be able to provide employees with an array of options thanks to a PEO. This is especially relevant following the Covid-19 pandemic, as a recent survey revealed that 4 out of 5 employees would prefer more benefits over a pay raise.

3. Lawsuits

While every business hopes never to face a lawsuit, sometimes they do happen. A single lawsuit can devastate your business, but working with a PEO will help to minimize damage.

PEOs share some of the liability associated with certain employment-related claims. The PEO will also have numerous experts who can help you mitigate a tense situation.

4. Payroll Compliance

Both federal and state employment laws are constantly changing. If you don’t follow them vigilantly, you’re subject to pay high penalties. More than 40% of small businesses are fined each year for missing payroll taxes, according to data from the IRS.

Staying compliant with taxes and laws is necessary for the healthy operation of your business, but this process takes long hours from your week.

A PEO will help maintain compliance and monitor employee liability, giving you the assurance that your business is meeting law requirements.

Many PEOs assist with areas including payroll compliance, benefits compliance, and out-of-state compliance. Their expertise will allow them to stay on track with regulations in a more timely manner than individual HR employees within your business.

5. Saves Time

Many PEOs assist with areas including payroll compliance, benefits compliance, and out-of-state compliance.

Your HR team is likely spending a significant amount of their time working on mundane tasks from filing paperwork to reading through changing employer-related laws.

Using a PEO will free up the time of your HR team so it can focus on helping you grow your company.

PEOs will work to automate routine tasks like tracking hours for payroll, paying employees, and general employee management.

6. Saves Money

Research from NAPEO shows that the ROI from using a PEO was over 27% in cost savings alone. 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.)

7. Recruiting Benefits

As a result of all of the benefits that a PEO will provide, your business will have a more competitive position when it comes time to recruit new candidates.

You’ll be able to offer similar benefits as a larger company while providing the tight-knit feel of a small business. Candidates will not feel like they have to compromise between a personal working environment and the great benefits traditionally only associated with working at a larger firm.

Leveraging a PEO Service

Using a PEO service does more than just streamline your business operations it can be a catalyst for growth. By saving time and money with numerous business processes, you can free up resources and leverage them to gain more opportunities.

Bradford Jacobs offers global PEO services so that you can achieve your business expansion goals. Contact our consultants to explore your growth options.

What is a Global PEO?

When a company is looking to begin their global expansion, the process can be exciting, but it can also be overwhelming. Expansion involves a number of procedures, such as payroll, recruitment, and incorporation. But, international law and red tape can intervene in these plans.

A PEO, or a Professional Employer Organization, is also known as a co-employer. They take care of all areas of employment in a new territory, so you don’t have to. Payroll, benefits, and other HR responsibilities for the employees of a client’s company are all handled by the PEO. They make sure that the work you do for your business is easy and hassle-free.

A PEO offers cost-effective and tailor-made solutions for your international expansion and be up-and-running in a new market within hours – with your goals in mind. Find out below how a PEO works, how it can work for you, as well as the benefits that you can get out of using a Professional Employer Organization.

How does a Global PEO work?

PEOs are experts in all areas of international employment and global expansion – which include, but are not limited to:

  • Human Resources & Compliance: A PEO’s staff must decipher and implement a variety of labor laws, to ensure that the companies stay compliant in all types of the country’s regulation that apply – including local, state, and national laws. When regulations change, the team must research the possible impacts, as well as make the necessary adjustments.
  • Benefits: PEOs must also coordinate location-specific benefits with health insurance companies – which can include medical, dental and vision. Benefits being given can also include commuter benefits, flexi-spending, and sick leave. PEOs offer flexibility when it comes to employee compensation.
  • Payroll & Tax: PEOs must calculate tax contributions, make direct deposits to the employees’ accounts delivered on-time, and other issues that are related to Payroll.

The staff must keep well-informed in all these areas, and stay updated about changes in local laws and regulations in countries where PEO services are offered/where the employees are located.

The starting blocks for global expansion

PEO works to make the starting blocks for a client’s expansion goals. An important part of the PEO’s work include handling the legwork and risks of their client’s expansion, whilst you focus on your company’s success.

A global PEO not only performs the required tasks, but they also work as your strategic partner. They form part of your expansion team and will guide you in your next steps for acquiring the best results, as well as the best people on your team.

International employees may also be able to use a global PEO as their Employer of Record (EOR). If you have an international employee, they would be legally employed under the global PEO. They will take care of almost all administration and compliance, but you would be responsible for their day-to-day activities.

If you have any more queries about how a PEO works, check out our most Frequently Asked Questions on our Global PEO or What is PEO pages.

Who should use a Global PEO?

A global PEO can be utilized by any company – no matter their size or industry. All you need as a business owner are global expansion goals and dreams, and we can handle the rest.

Business owners of small and medium-sized companies can use PEO services by outsourcing their Payroll, HR, and administrative tasks whilst they focus on what they do best. Large companies may also benefit from the services of a Global PEO. They can continue their expansion and global reach without worrying about the costs, time and resources on administrative and recruitment needed to reach their goals.

If you are a business owner and you are looking for:

  • Opportunities in global expansion
  • To test potential markets in new territories
  • To find international talent without the hassle of handling immigration procedures and payroll administration
  • Have ambitions goals for expansion, but lack the finances and resources to get there at present

Then a PEO is the best service for you!

What are the advantages of a Global PEO?

A Global PEO is a service that supports many employees and businesses worldwide – over 4 million employees in the world have been hired through a PEO – and includes the following benefits:

  1. Saves time, money, and resources
  2. Cuts risks and reduces lawsuits
  3. Takes charge of employee benefits to ensure the happiest employees
  4. Streamlines expansion as well as hassle-free withdrawal
  5. Tests new markets at no great risk to you
  6. 24/7 support
  7. Happier Employees

What does Bradford Jacobs provide?

At Bradford Jacobs, we know business expansion can be complicated. It is our goal to provide the best solutions that are tailored for you and your company’s expansion goals.

We are a Global Professional Employer Organization service provider, benefitting from a network of PEOs all over the world. We believe in a world of globalization, and want to see it happen for you, too!

By using our global network, you can turn international freelancers, contractors, or consultants into a dream team – with employees from anywhere around the world.

We provide a number of services, including:

  • Employer of Record Services (EOR) – if you want an employee in a specific territory, or the employee you chose cannot be moved to where you want them to go, you can benefit from our EOR services. They are registered under Bradford Jacob’s payroll, but you are responsible for their tasks and day-to-day activities.
  • Outsourcing Payroll – Our teams ensure that employees’ taxes, social security contributions and benefits are paid compliantly and on time. No issues for you or your employees, wherever they are.
  • Recruitment – We assist in building your company’s global workforce, without the hassle of complex international onboarding processes. We make sure that your employees are happy with their conditions and benefits.
  • Global Mobility – Whether you need visas or to relocate your current workforce, we are experts in immigration laws and requirements. We can help you build up, reduce, or move your workforce from any country, and to any country you prefer.
  • International Knowledge of Compliance – When you use our PEO services, you have access to our team of experts. They have extensive knowledge of international laws, regulations, and cultural practices of a number of countries.
  • Continuous Support – our team will work tirelessly to ensure that your plans are going well. We also anticipate any new developments within your company, industry, and market to keep your business keeps thriving in its expansion.

If you would like to see more of how our PEO services work according to the country, then check out our Countries We Serve page.

Contact us

Using the services of a Professional Employment Organization is a great asset in globalization and global expansion. At Bradford Jacobs, we want to hear your story, ideas, and goals – and make them a reality.

Contact us today to see how we can help you achieve international expansion.