A Complete Guide to Global Employment Outsourcing (GEO)

Global Employment Outsourcing (GEO): An Industry Guide

Global Employment Outsourcing (GEO): An Industry Guide

April 7, 2022


Picture of INS Global



Picture of INS Global



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Key Takeaways

  1. Global Employment Outsourcing (GEO) is a solution for companies looking to solve the various problems of overseas employment.
  2. Outsourcing your payroll alone is estimated to save you as much as 18-20% on overheads.

Global Employment Outsourcing (GEO) is a solution for companies looking to solve the various problems of overseas employment.

Companies wishing to expand their operations overseas face many when considering global employment and recruiting. Unfamiliar local labor regulations, high costs and long delays associated with setup processes, and difficulties finding the right talent to hire can form serious roadblocks when looking overseas.

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What is Global Employment Outsourcing (GEO), and How Does It Work?

GEO works by providing a local entity in your target market through which you can hire employees. This way, you can employ staff locally while avoiding the problems of incorporating a company.

A GEO provider acts as your global employer of record (EOR) in this case. These employment outsourcing services provide HR and compliance functions for your staff and take care of all related responsibilities. These responsibilities include taxes, legal administration, onboarding, payroll, and benefits management.

The specifics of how a GEO provider may act like this on your behalf may carry according to the country’s laws regarding employment. Typically, it involves the GEO provider hiring your employees on your behalf through their local entity.

Hiring Checklist to Improve Your Recruitment Process

What are the 5 Greatest Benefits of Global Employment Outsourcing?

Global Compliance Assurance

Labor regulations vary significantly around the world. It is a surprise to many companies how much work is involved in overseas compliance. Minor HR errors can create potentially substantial fees and fines.

A GEO provider can offer compliance assurance in your target market to give you the peace of mind needed to succeed with growth targets.

Scalability and Flexibility

When expanding globally, you need to be ready to make the most of opportunities as they occur. A GEO provider means you can be prepared to hire or transfer staff to new markets in a matter of days for a fraction of the cost. Outsourcing your payroll alone is estimated to save you as much as 18-20% on overheads.

You can also benefit from outsourcing termination functions if you need to remove or adapt your operations.

Multiple Services Streamlined Into a Single Package

Professional GEO providers employ many specialists in all areas of global recruitment, payroll, and HR. As a result, these companies can provide you with a range of services related to HR to suit your specific requirements.

Rapid Market Entry

Company incorporation in a new country can be cumbersome, complicated, and time-consuming. You may feel tied to a process that can take months before you can even begin operations and make sense of the possibility of success.

GEO provides a way to move your staff into your target market and get to work in less than a week.

Access to Greater Global Talent Pools

Many GEO companies also act as global employment and RPO (Recruitment Process Outsourcing) providers. These are experienced recruiters with many resources and networks in your target market.

By partnering with a provider like this, you gain access to the best local candidates in your target market.

Global Employment Outsourcing (GEO)

GEO, PEO, and EOR: What are the Differences?

When researching global employment outsourcing services, these three services will inevitably come up. While all provide ways to employ staff overseas, how they do it and where these services are available may differ.

  • EOR (Employer of Record) options take full legal and official responsibility for employees by hiring them on your behalf. In these cases, a contract agreement is made directly with the employee as directed by you.
  • PEO (Professional Employer Organization) options work more as “co-employment.” In these cases, the PEO provider offers HR functions for your employees, and the contract remains between you and your employee.

Here, you must already have an established presence in the country you are operating in, which may not be available in all countries.

  • GEO (Global Employment Organization/Outsourcing) is a more descriptive and catch-all term. Less defined, this may describe a company that provides PEO services for companies outside of their home market if this service is a legal option in that country.

A complete understanding of the legal options available in your target market is essential to remaining fully compliant when seeking any employment outsourcing services.

Global PEO