Italy is one of the major economic forces in Europe. It ranks 8th among the largest economies in the world and 3rd in the whole European Union (EU). The country offers well-established infrastructure that is highly attractive to foreign investors. Italy’s geographic location also provides a strategic advantage, which is why it has been made as one of the major logistics hubs and gateways to the EU market.
Italian labor laws are highly in favor of workers, providing strong employee rights protection. This means that you will need great attention to detail and a deep understanding of local employment practices to ensure compliance and avoid penalties. The employment market can be tricky to navigate and present a number of challenges to both foreign and local entities operating in the country. Thus, the need for an employment expert in Italy in the form of a Professional Employment Organization (PEO).
What is a global PEO?
Also referred to as a local employer or co-employer, a global PEO provides international companies assistance in hiring employees. They act on behalf of your business in employing people without the need to establish a registered entity in the country where you will put up a company. Hired talents will be registered under the global PEO, but you can utilize them as if your business has directly employed them.
Not all companies have the resources to register their business, establish a physical presence, and directly employ talents abroad. The paperwork, regulations, and restrictions can become hindrances for businesses to organize a global presence and take advantage of managing a diverse workforce. PEOs have made a way for this to happen by making it easier for companies to hire employees while ensuring compliance with local regulations overseas.
How Does a PEO Work in Italy?
Your company needs are unique, requiring tailor-made solutions fitting to your business plans and goals. PEOs in Italy hire employees by contracting them per Italian labor laws. The burden of compliance falls on the shoulders of the Italy PEO, leaving you free from legal liabilities and contractor risks.
The distinctive cultural customs, employment regulations, business registration processes, and language barriers can result in delays when expanding into the country. Establishing a company or branch in Italy entails you to go through the following processes: registering with the Tax Office and other government organizations, setting up a bank account, creating employment contracts, researching taxation and insurance requirements, planning payment schedules, and other time-consuming tasks. Complex processes can rob you of resources you could have spent on running your company and thinking of ways to improve it.
Professional Employment Organizations in Italy help you hire and manage talents without establishing your own entity in the country. They provide you with the speed and efficiency to rapidly expand into international markets without sacrificing compliance or quality.
Who needs a PEO Solution?
A PEO solution can be used by many different companies, depending on your specific needs. Here are some examples of what kind of business can use a PEO in Italy:
- Small to medium-sized enterprises that don’t have the necessary resources to establish a legal entity in Italy.
- Businesses, especially start-ups, that want to test the waters in Italy while enjoying a low-risk entry into the market.
- Companies that want to diversify their workforce and make their brand globally competitive.
- Small and medium sized businesses that want to be more competitive.
- Large enterprises who want to setup a smaller office in Italy.
- Companies that need HR professionals to filter the right international candidates.
- Enterprises that plan to expand in Italy and hire local professionals in just a matter of days.
- Any company that needs a quick, legal, and cost-effective solution to hire talents abroad.
Benefits of PEO Services in Italy
- Stress-free and cost-effective – Skip expensive and time-consuming processes of hiring overseas talents. PEOs in Italy help you maintain a mobile workforce legally without establishing a legal entity in the country.
- Full compliance – Avoid the risk of not complying with employment laws and regulations in Italy. Enjoy minimal paperwork or red tape through the expert guidance of PEOs.
- Fast and efficient – Benefit from the rapid hiring solution for your international expansion. You can have Italian employees working for your business within days.
- Tailor-made solution – Depending on your company’s employment requirements, our PEO in Italy can make the necessary adjustments to match our hiring strategies with yours to ensure the acquired talents fit the role they will be fulfilling.
- Simpler payroll processing – Professional Employment Organizations in Italy will take care of salary and payroll processing, social security contributions, and local tax payments of your international employees.
- Expert HR service – We offer human resource services that you may not currently have. We allow you to outsource most HR functions like managing health benefits, compensation claims, insurance claims, and payroll processing.
- Employee management – You get full control over how you utilize new hires as if your enterprise has directly hired them.
- Enhanced focus on operations – Instead of worrying about how to hire employees while ensuring compliance with local regulations, you can just focus on working on business operations and improvements.
- Consistent quality – By streamlining the hiring process, you get quality candidates that fit the company culture, share the same value, and are consistent with what you need to improve the workforce.
INS Global as your Partner PEO in Italy
As an established PEO with over 15 years of experience, here at INS Global, we aim to help you find the right staff in Italy for your business. We offer various human resources-related services including recruitment, Employer of Record, payroll and tax administration, and more. Contact us today and let us help you create a custom-fit employment solution for your business.