Professional Employment Outsourcing Helps SMBs That Are Going Global


Today’s companies require higher skill sets from potential employees, making HR’s recruitment tasks more difficult. In addition, the search becomes more challenging if the company plans to establish subsidiaries in other countries. The logistics issues alone could be tremendous.

Luckily, professional employment outsourcing (PEO) companies are here to help. They help small and medium businesses perform the HR and payroll of a business in a foreign country without establishing a legal entity. The setup is advantageous for foreign companies and local employees because both ensure they meet local compliance requirements.

Advantages to foreign SMBs

For SMBs deciding to go global, their focus includes considering their target audience and geographical preferences and providing the right kind of service or product. Then, they have to hire local employees to manage their subsidiary office.

Today, companies can hire a PEO company to take charge of some of their HR duties in the local environment, simplifying the process and saving time and resources. They handle the requirements according to their contract with the client and bill them regularly.

  • No need to set up and hire new HR staff. The company helps manage HR tasks and payroll without the company needing to set up a new HR department in the target country. For example, a  firm will allow a foreign client to hire potential UK employees without the company establishing a legal identity. It will manage all tasks related to human resources, taxes, payroll, employee benefits, and labour compliance requirements.
  • Hiring the best talents and provide better onboarding processes. A PEO UKcompany has access to a large pool of talents, enabling it to select the talents with the skill sets that meet the client’s requirements. It will provide the most suitable onboarding process to help the employees understand what the job requires, the company culture, completing and submitting the paperwork, new employee training, understanding the company’s mission and vision, and following company rules and regulations.
  • Managing payroll. Instead of the parent company handling local payroll requirements, the PEO company manages the local payroll as the employer on record. Thus, the employees know their salaries are under local regulations, and the tax deductions and other benefits follow local standards.
  • Enhanced employee benefits packages. Getting the right workforce is critical to a company’s success and growth. With the right talent pool, a company has an advantage over the competition. And to attract the right employees, it can prepare a lucrative employee benefits package to attract the best candidates. In addition, their experience and knowledge of the local market allow them to prepare the best strategy for hiring the most qualified employees.

Advantages to local employees

Local employees gain many benefits as well. The local PEO company, will deal with the successful candidates. The provider prepares the best compensation package matching the requirements of the job. It assures the employees that their salaries, compensation packages, taxes, and other employee benefits, such as health insurance and retirement, follow local labour rules and regulations. Their probation period is shorter or non-existent, based on the parent company’s guidelines.

If your company plans to go global, consider the expertise and knowledge of a professional employment outsourcing firm to help you start the process faster, more efficiently and cost-effectively.


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