According to 21% of executives, global mobility is the key to attracting and retaining top talent. As the exodus of employees known as the great resignation has begun, more people are looking further afield to find top talent. But how do you manage the legalities of this?
One way is to outsource all the recruitment and payroll involved in international hiring with a professional employment organization (PEO). Read on as we discuss why you should consider an international PEO in your hiring process.
What Is an International PEO?
Remote working is no longer a necessity facilitated by the pandemic, but a way of life. Not only does it mean local hires can work from home, but it also opens up a world of possibilities when hiring. Companies are finding it hard to find employees and one of the only options is looking further afield.
When it comes to hiring in different countries, issues can arise as other countries and states each have their own rules. These can be regarding tax, payroll, benefits, and other complex systems. Global PEO can solve that problem.
When a company wants to hire someone from a foreign country, it can outsource the legal hiring requirements and tax to a PEO company. They manage the payroll service, while the client directs the daily tasks of the employee.
Global PEO can be given a number of names. GEO stands for Global Employment Organization and EOR stands for Employment of Record. They all serve the same function but have slightly differing monikers.
Advantages of a PEO Service
There are a number of advantages to using PEO services. Many of them apply to all PEO services, though even more are applicable to international ones.
1. Precise Problem Solving
Calculating and complying with foreign recruitment and hiring is a tough task. You need to know the laws and regulations of the country itself. If you don’t speak or read the language in-depth, this becomes even more taxing.
Inevitably, errors occur. When they do it can be extremely hard to find out what the root of the problem is. This can be a headache for your HR department to solve.
With PEO companies that specialize in the country, that becomes a thing of the past. They are experienced in all the hiring processes of that country, along with employment requirements. As they read and speak the language, they are much more able to keep up with changes to rules and regulations.
2. Expertise in Local Markets
One overlooked advantage when hiring an international PEO company is their knowledge of local employment. They will know how many people in the area are available to fill the position and the right salary you need to offer to entice talent.
For example, some countries have it in law that you get a designated amount of time off when working for a company for a specific length. Others may operate a 13th and 14th-month pay. This local knowledge can help you incentivize applications.
In addition, it lets you tap into the talents that are based in a certain area. The only other way to do this is to set up a legal entity within the country. This takes a lot of time and can be a huge expenditure.
3. Security
Any HR management comes with the unavoidable task of handling sensitive information. This is to protect both the employer and employees of the company. If you don’t have the right protection in place it can result in data theft and legal action.
Any quality PEO service that is handling data across countries should have the right systems in place to protect data. Their business depends upon it. Check that they are willing to provide a rundown of security protocols, and you may find it is even better than your own.
4. More Productivity
If you already have an internal HR team, you’ll know the myriad of tasks and problems that can occur. Even in small businesses with a few employees, small tasks can take up a lot of time. When you go global, these issues need a whole different approach cutting into the time and resources you have.
This can allow your HR department time to concentrate on other issues. If you are doing this task yourself in your own firm, then you can concentrate on the things that matter such as increasing sales and searching out new leads.
5. Stress Reduction
Managing HR can be extremely stressful. If you are paying by the hour and have multiple people doing extra shifts, then it can become a minefield. Operating this in different countries and time zones becomes even worse.
Add to this tax dates and paying people on time, and you will soon see the stress mounting up. By outsourcing you can give all these dates to your PEO company and let them deal with it, giving you peace of mind.
6. Saving Money
Time is money and when you outsource to a PEO company, you are saving a lot. Compare any quotes you get against the hours it would take your internal HR team to do the payroll, recruitment, and hours worked.
You can then direct staff to other tasks, essentially saving you money in other areas. As well as this, missing deadlines and tax dates can cost you more money. This can be hard enough to do when working in one country, so imagine doing this across borders.
Starting the Process
The number of international PEO companies is growing. Speak with other business leaders for recommendations or check online for reviews. You are sure to find the employees you need when recruiting from an international pool.
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