The Philippines is one of the fastest growing economies in South East Asia and offers tremendous opportunities to businesses in a variety of sectors. As a consumer-driven population with a population of nearly 107 million people, the country offers foreign investors many domestic and regional market opportunities. The Philippines can also serve as a strategic position for further expansion into the Asia-Pacific region. The country stands out among others in the Asia-Pacific region primarily due to its strong, capable workforce (especially in the IT and engineering sectors) and its high proficiency in English.
PEO stands for Professional Employment Organization and is a service provider that hires employees on their payroll, but work for other companies. The term Employer of Record (EOR) is also used in the same context. Among core HR functions, the PEO/EOR handle the following so you can focus on your core business in the Philippines:
There are two main scenarios when using a PEO/EOR would be a good option for a company seeking to enter a market for the first time. Firstly, when the company is looking for a quick and easy way to enter a market; and secondly when the company simply wants to test a new market.
Let’s say you want to enter the Philippine market and establish presence there. In the first case, using a PEO/EOR enables your company to use an already established local entity to hire your talent in a matter of weeks, as opposed to waiting several weeks to register a company. This means you can begin conducting business in the Philippines almost immediately. Secondly, a PEO/EOR solution would give you a flexible way of taking your first steps into the Philippine market without having to make a long-term commitment. If you decide that after a year, you’d like to exit the market, ceasing operations is much simpler under a PEO than closing a locally incorporated company.
Expanding to a new market can be a challenge, especially if you have no prior knowledge of the HR and business landscape. That’s why it’s important to choose the right partner to make your venture into the Philippines smooth, cost-efficient and flexible. With over 15 years’ experience in the Asia-Pacific market, INS Global have helped over 300 companies meet their global workforce needs through our range of solutions. Contact us today to find out how we can help you set up and grow your business in the Philippines.