9 Factors to Consider Before Choosing the Right EOR or PEO Partner
Today, in a world where business is globalized, you can take your business to international markets to expand your business operations. But the intricacies of international employment laws, payroll, and taxes are not for the faint of heart. And this is where Employer of Record (EOR) and Professional Employer Organization (PEO) solutions come into play.
With the introduction of an EOR and a PEO, you can easily streamline your international hiring and HR processes and concentrate on what you do best. However, with numerous providers available, selecting the right global Employer of Record partner is crucial. In this blog post, we will talk about nine things to look for when choosing a global Employer of Record or Professional Employer Organization so you can make a more informed decision.
What is an Employer of Record (EOR)/Professional Employer Organisation (PEO)?
Global Employer of Record (EOR) and Professional Employer Organization (PEO) are two different models that offer businesses the necessary human resources and employment services, especially during the time of hiring employees in different jurisdictions.
An EOR works as the legal employer of workers, and thus, the company can hire workers offshore without having to set up a local entity. It simplifies compliance with local labor laws by placing responsibility for payroll, benefits, and tax obligations on the EOR. Therefore, businesses can concentrate on their main operations, and the EOR will take care of the intricacies of employment regulations in different territories.
On the opposite end is the co-employment model, in which PEO assumes employer responsibilities in conjunction with the client company. In this case, the PEO does HR functions like payroll, benefits administration, and compliance but leaves day-to-day employee management in the hands of the client. However, companies have to be legal entities in the country where they want to hire to engage in PEO solutions. This requirement suggests that PEOs are better suited to companies that are already established in the local market and need to streamline HR processes than companies that wish to quickly enter new markets.
See also: What is a PEO Or EOR Service? Why Your Business Should Consider Using this Service?
Choosing a global EOR/PEO: 9 factors to consider
Geographic reach
It is essential for you to ensure that the EOR/PEO has a strong presence in the countries where you intend to hire employees. This should encompass not only your current needs but also potential future expansions, as local coverage can greatly influence your ability to hire and manage employees effectively.
Global expertise
Considering the EOR/PEO provider’s experience and history in managing employment across different countries. Look for expertise specific to your industry, as various sectors may have distinct compliance needs. A partner with a successful track record in your target markets can effectively navigate complex labor laws and offer customized solutions.
Compliance with local and international labor laws
Ensuring compliance is crucial when choosing an EOR/PEO. The provider should have strong processes to comply with local labor laws, tax regulations, and social security requirements. This helps reduce risks related to non-compliance, such as legal penalties and damage to reputation.
Converting freelancers to full-time employees
If your business model includes moving freelancers to full-time roles, EOR/PEO can help you complete the process. You must ensure they are well-equipped to help you in this process, as they should be prepared to manage the legal and administrative details of such changes smoothly.
Data security
Inquire about the provider’s data protection measures, including encryption methods and adherence to regulations such as the General Data Protection Regulation (GDPR). Given the sensitive nature of employee information, strong security practices are vital to prevent breaches and maintain confidentiality.
Ask for references and client feedback
Seek references from current or former clients to assess their satisfaction with the provider’s solutions. Client feedback can offer valuable insights into the provider’s reliability, responsiveness, and overall effectiveness in handling HR functions.
Assistance and communication
Assess the quality of customer support provided by the EOR/PEO. Effective communication channels are essential for resolving issues quickly and efficiently. Ensure they offer dedicated account management and accessible support teams.
Technology integration
Evaluate the technological capabilities of the EOR/PEO, including their HR management systems. A user-friendly platform that integrates well with your existing tools can enhance operations and facilitate efficiency.
Plans and pricing
Understanding how they price their EOR/PEO solutions can help you plan and budget accordingly. Pricing models vary between providers, with some charging flat fees or a percentage of payroll. Check that there are no hidden fees that will impact your budget.
Choose Global Squirrels to act as your global Employer of Record
Global Squirrels is a staffing and payrolling platform that offers a way to ease your hiring and workforce management processes. Considered one of the top global Employer of Record platforms, our solution allows you to ensure your workforce management is streamlined.
Our platform handles all aspects of administrative functions, including payroll & benefits management, task and timesheet management, compliance with local and international labor and tax laws, performance management, and offer letter generation. This is done while keeping your costs low. Unlike how other BPO/staffing agencies charge you 50% more than the true value by adding extra charges and huge markups, our platform helps you save up to 20% on hiring costs by eliminating them. Global Squirrels provides hiring plans based on your job requirements. They include the Purple and Orange plans.
The Orange plan finds and hires top talent who meet all your job requirements. To begin, sign up and select the Orange plan. Signing up is free and does not require adding any payment-related details. You will be asked to fill in details related to the talent you are searching, such as the job title, job description, position type, currency, budget, educational background, skills, and the country you want to hire from. You will receive pre-screened and background-checked profiles within 2 to 5 business days of submitting the information. Once you receive them, you can choose the profiles you want to interview. After the interview, you can select the candidate(s) you wish to onboard. Once you do that, our platform will begin the onboarding process and will handle all administrative functions mentioned above.
On the other hand, our Purple plan helps you onboard an already-sourced candidate by generating an offer letter with clauses that ensure they work exclusively for your business and provide a notice period before the employment ends. Once the onboarding process begins, our platform handles all administrative functions such as payroll, benefits, timesheet, task assignment, performance management, and compliance with local and global labor and tax laws.
Are you ready to hire internationally with an EOR/PEO? Request a demo today!
