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What are International Professional Employer Organization (PEO) Services?

By June 9, 2022May 26th, 2023How to Outsource to the Philippines2 min read

What are International Professional Employer Organization (PEO) Services?

Professional Employer Organizations or PEOs provide services to 173,000 small and mid-sized businesses, employing 4 million people.

There are a total of 487 PEOs in the United States.

International professional employer organizations (PEO) do the same things that a local PEO would do, except in a different country. These organizations make it easy for companies to be compliant with local laws when hiring globally. They do not however, help with management, recruiting, and other things that make global teams successful.

Services covered:

  • Payroll
  • Tax
  • Insurance
  • Compliance
  • Benefits Administration

Strengths:

  • Access to the global talent pool
  • Ability to start at small scale
  • Scalable
  • 100% compliance
  • Flexibility, visibility, and control of employees

Weaknesses:

  • High Training and Management cost
    • In the International professional employer organizations (PEO) model, 100% of the training and management of the employees is on you and your team, thus requiring high cost and high effort.
  • Recruiting
    • The Recruitment process is 100% on you. This can be really challenging for companies that lack physical presence in the place of hiring.
  • IT Support
    • Similar to the freelance model, IT support management is not possible without a physical site or available remote technical support.
  • Turnover Risks
    • As mentioned, turnover is difficult because it is solely managed by you and your team. No support or assistance is available in this model to help manage this and make it easier for you and your team.

Professional Employer Organizations or PEOs can benefit from a third-party outsourcing vendor by enabling them to help fill critical staffing positions to support the functions above and improve both productivity and efficiency. Currently, Connext Global Solutions supports several PEOs with back office offshore staff across a variety of functions. Learn more about Connext here.

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