For SMBs trying to branch out globally, hiring a professional employment outsourcing (PEO) firm is an excellent solution to manage their HR functions. Working with a PEO firm is a co-employment model. The setup allows SMBs to access top-level business benefits, such as risk management support, better compensation packages, and workers’ insurance benefits. Moreover, small businesses can take advantage of the PEO firm’s expertise to develop HR policies and practices and onboarding and employee development plans according to the regulations of the country where they want to set up a global office.
Choosing a professional employment outsourcing provider
Like other service providers, PEO firms have identical features, but each has different factors that make their companies worth considering. Thus, a client needs to compare providers and choose the one that has the best features matching their requirements and preferences. Here are some pointers.
Industry focus and expertise.
Your company might be similar to others, but you have the edge over others in the same industry. To ensure success in your global venture, you should work with a peo UK company that matches your product or service. For example, if your main business is in coffee processing, look for a company with experience or expertise in that particular sector.
Since you entrust your HR functions to the company, you should ensure that the people the company will assign to manage the hiring process have the right qualifications. For example, they should know local employment requirements and laws, tax laws, compliance issues, employee benefits, and compensation. In addition, they may need government and industry certifications to handle HR functions for international clients.
The PEO will act as a co-employer, meaning it will be the face local authorities and employees will see and deal with throughout the contract. As the entity working on your behalf, constant communication is vital. They should be available to you during business hours for meetings, discussions, updates, and other concerns necessary to keep the business operations moving smoothly. In addition, they should respond to emails and phone calls immediately.
Check if the company has the flexibility to adjust to your needs when your business starts to grow. They should provide you with solutions tailored to your needs. Aside from expecting high-quality service, it would be best if you considered a company that can work as your partner as you grow bigger.
Consider how they will bill you, which should be transparent and clear. Typically, they charge according to the number of employees you maintain in the subsidiary; thus, you should compare quotes before signing a contract.
HR information system.
Find out about the HR information system they use. It is an essential part of the service, and its portal should be accessible to clients, managers, and employees. Check how robust their system is and how easy it is to use. It should be user-friendly, flexible, and customisable.
If you are planning to hire a PEO company, you should have enough knowledge about the companies you are considering. Compare services, pricing, and features. The company you choose should be an industry pillar since you will entrust the hiring and the establishment of your foreign workforce based on their credibility.