What is a PEO and How Could Working with One Benefit Your Business?

Benefit Your Business

Saving money and ensuring compliance are two things that are a huge concern for many companies, particularly when expanding into an international market. Partnering with a professional employer organization or PEO can help your company ensure that it is getting the best value and reducing risk when ensuring compliance with laws and regulations, protecting your business from risks, conducting payroll activities, expanding into a different country, providing perks and benefits to employees and more. Not only can a PEO help you find and hire the best overseas employees to represent your company in a new market, but it can offer many other services to help keep your business running smoothly and getting the results that you want.

Professional Employer Organizations Explained

A PEO is an organization that partners with mostly small to medium enterprises to support with various tasks and provide assistance with several processes. This could involve finding and hiring talent to work for the company overseas, getting access to a better and wider range of employee benefits, managing certain human resources aspects, managing payroll and taxes, and taking charge of administrative functions that are crucial to the smooth and successful running of your company. Working together with G&A Partners, an experienced PEO, can help with freeing up your time to focus on the most important tasks by taking over a lot of the routine and mundane work that is necessary for running your business. Your business can work with a PEO for several different things including:

HR and Payroll

Handling payroll and HR duties can get trickier and more work intensive as your company grows and starts to hire more employees. Most business owners will get to a point where they struggle to manage this on their own and may need to consider bringing in additional support. Working with a PEO allows your business to streamline payroll and avoid mistakes, especially if you are expanding the business into an international market and have new laws and regulations that your business will need to comply with. Choose a PEO that is knowledgeable about the market you are expanding into, as they will be able to assist with adapting your business to different hiring laws, tax rates, local banking practices, currency exchange rates, and so on.

International Expansion

Expanding into a new international market is the main aim of many businesses that find working with a professional employer organization beneficial. A PEO is an excellent choice to help you facilitate a move for your business into an international market. Since growing your business overseas can be a lot of work, it’s a wise idea to partner with an organization that has knowledge of and experience in the particular market you are looking to expand into. Choose a PEO that understands your new market, and you will be able to get advice and assistance on various important aspects of your expansion such as getting to grips with a new business culture, hiring processes, legal compliance, expected employee benefits and more. Your business will benefit from a smoother expansion into a new market overseas, find it easier to overcome language barriers or cultural differences, and get set up for success in a new country when you have the support of a PEO.

Support with Compliance

When it comes to employing people to work for your business, ensuring that you are compliant with hiring laws, employment law and tax laws not only in your home country but in overseas countries that your business is expanding into can be tricky. Working with a PEO is one of the best ways to ensure that your company is a compliant employer and avoid the risk of being fined or penalized for mistakes and errors that can be quite easy to make.

Employee Benefits

A professional employer organization can help you get access to better employee benefits for your business. When you work with a good PEO, one of the main advantages is that they can assist your company with getting better access to employee benefits that employees want at a competitive rate to employers, including both main benefits like retirement plans and health insurance, to supplemental benefits like discounted shopping or health center memberships. They will do this by accessing bulk discounts on employee benefits for all of the small businesses that they work for, allowing you to get access to things like health insurance cover at prices that would normally only be accessible for larger companies, helping you save money while providing the best perks to your employees at the same time.

What are the Main Benefits of Working with a PEO?

How can a PEO help your business succeed? Whether you are trading in your home country or are considering moving into an international market, working with a PEO can have a range of benefits for any company including:

Risk Protection

Over 30% of small businesses annually deal with penalties and fines for avoidable compliance mistakes and errors. Trying to handle payroll and tax on your own can often be complicated for small business owners especially when this is not their strong suit. It can be even harder to comply with local tax laws when you are expanding your company into a different country and there are different laws and regulations to consider. A PEO will ensure that your company is compliant wherever you are trading in the world.

Save Money

Another reason to work with a PEO is that this investment can help save your business money over time. With a more streamlined hiring process thanks to experienced professionals, you will not waste money taking on employees who are not a good fit for your business. You will also be able to save money on accessing the best employee benefits and save even more when these perks help you improve employee retention over time.

A PEO or professional employer organization is well worth considering when it comes to finding assistance and support for your business, particularly in the areas of employee benefits, international expansion, and compliance support.