Global PEO

Hire Overseas Without an Entity

Take your business global and your talent with you. Hire employees abroad in record time with our Global PEO solution, ideal for businesses wishing to expand worldwide.

 

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What is a Global PEO?

A global PEO (Professional Employer Organization) is a third-party services provider that offers HR outsourcing solutions when you’re considering expansion to markets where you do not currently have a legal entity.

PEOs simplify global expansion, taking care of the most complex parts of employer responsibilities and allowing you to focus on growth.

A PEO can provide employee administrative functions management on your behalf, allowing you to work overseas without the delays of company incorporation or the risks associated with international compliance assurance.

How Does a Global Employer of Record Work?

An EOR (Employer of Record) works similarly to a PEO, allowing you to expand your operations by posting or hiring employees overseas without the need for a legal entity in your target market.

EORs hire employees on your behalf by becoming the legal employer of your workers, while they are still managed day to day by you.

Companies using an EOR in this way can thus provide compliance assurance and all the legal benefits associated with employer responsibilities in a fraction of the time and at a fraction of the cost it would take to set up a new company structure in their target market.

 

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Why Choose a PEO Instead of Company Incorporation?

Aside from the benefits of reduced setup time and lower overall employment costs, a PEO still provides many advantages over opening a new company in an overseas market.

PEOs allow businesses to bypass many of the restrictions that some countries place on foreign ownership and make scaling your operations much easier thanks to fewer steps involved in opening or closing operations.

A PEO also gives you access to local networks and resources that companies may not have otherwise thanks to the local expertise of the PEO provider.

What are the Advantages of Partnering with a Professional Employer Organization?

Keep Your Employees and Operations Legally Compliant

PEOs offer assured legal compliance to keep your operations in line with potentially unfamiliar labor laws

Drastically Lower Your Necessary Spending

A PEO provides all necessary employee setup procedures and HR functions for a single monthly fee

Increase Your Focus on Growth and Success Goal Tasks

Managing your overseas workers can take your staff away from other more important duties

Reduce Your Market Entry Time

Rather than the months it can take to establish yourself overseas, a PEO can have you operating within a week.

Streamline and Minimize Your Overall Company Structure

Have all your overseas HR requirements met efficiently via a single platform and point of contact.

Keep Your Employees and Operations Legally Compliant

PEOs offer assured legal compliance to keep your operations in line with potentially unfamiliar labor laws

Drastically Lower Your Necessary Spending

A PEO provides all necessary employee setup procedures and HR functions for a single monthly fee

Increase Your Focus on Growth and Success Goal Tasks

Managing your overseas workers can take your staff away from other more important duties

Reduce Your Market Entry Time

Rather than the months it can take to establish yourself overseas, a PEO can have you operating within a week.

Streamline and Minimize Your Overall Company Structure

Have all your overseas HR requirements met efficiently via a single platform and point of contact.

What are the Potential Disadvantages of a Global PEO?

Quality

Many PEO providers simply offer a digital platform to aid you in taking care of employee payroll using automation. While this increases efficiency short term, it does nothing to help in the face of increasingly complex international business challenges.

You need a PEO provider that uses experience and expertise to develop with you and adapt its services to your growing needs as well as the ever-changing international environment.

 

Less Control

For many, PEOs appear to limit the connection and control that employers have over their co-employed workers. In reality, however, neither PEO nor EOR agreements need to affect the way you manage your employees day-to-day.

A truly adept PEO provider establishes a clear working relationship from day 1 and offers a way to improve and simplify your HR processes without compromising on control

 

Costs

Some PEOs may charge large fees simply for acting as the go-between for you and in-country third parties. Others may charge seemingly small amounts but leave you in the lurch when presented with complex challenges.

 

How Should You Choose a Global PEO Service?

While many PEO companies offer a digital platform that appears sleek and easy to use, they often lack the real experience and support structures needed to deal with unforeseeable complications.

The best PEO providers come with well-earned experience, meaning they should be able to provide testimonials from previously satisfied customers. They should also be able to take care of your needs in the most efficient way possible rather than relying on outsourcing your needs to third parties unless it’s to provide you with a better overall level of service.

INS Global has already helped 600+ companies achieve their global expansion goals over more than 15 years. Our stories page offers talks and interviews with many of our past and current partners. 

Who Should Use a Global PEO?

A PEO is perfect for companies of all sizes and types, no matter where they are currently based. For SMEs, a PEO can provide a quality of expert service in foreign markets that may be outside the budget of a growing business. For larger more established companies a PEO can provide a way to quickly test the waters in a new territory before deciding on a longer-term option.

 

What is the Cost of a Global PEO?

PEOs typically differ greatly in the amount they cost, depending on a range of factors including the salary of the co-employed workers, the market they work in, and the range of services provided by the PEO.

In general, you pay a monthly fee for the PEO provider to take care of all the HR functions needed for your employees to operate properly, thus saving on costs by integrating multiple services into a single service package

 

INS Global Can Help You to Expand Simply, Quickly, Fearlessly

INS Global offers industry-leading HR services using a tech-based innovative approach to solving the challenges of global expansion. Our multilingual, multinational teams of international business experts are based across multiple timezones, meaning you’ll never be without support.

We tailor our solutions to your specific needs from day one, always taking into account your unique company culture and vision to offer the best possible result.

Why not talk to one of our INS Global advisors today to learn more?

 

FAQs

Yes, although the answer may be slightly more complex depending on the country. Largely, PEOs function as a type of co-employment which is legally recognized in most countries.

However, the exact status of a PEO and what services may be available can depend on the specific laws of a country and the way that a country defines an employer.

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

PEO brokers are third-party companies that connect employers with PEOs offering the services they need in their target markets for a fee. They can typically provide quality-assurance services or guidance to companies who are unsure of how to find the best PEO partner for their needs.

PEO services are a form of employment or HR outsourcing, meaning they provide the HR services that you would normally have to offer as an employer to overseas workers.

In this way, you are outsourcing your needs to a service provider who employs teams of legal and global expansion experts, so you save on time and costs while you benefit from high quality services.

Companies typically work with PEO providers to make use of the expertise they provide in every aspect of the HR process. Whether it’s smaller companies looking for specialists without hiring new staff, or larger companies wanting to streamline their structures, PEOs provide benefits to every company type.

Dealing with business and employment regulations alongside tax and payroll requirements in your home country and every target you operate in can quickly become too much.

The risk and potential damage of compliance errors increase dramatically when you begin overseas expansion thanks to unfamiliar laws or language barriers. That’s why INS Global and other international PEO providers are the keys to ensuring every one of your workers is properly taken care of no matter where they are.

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