Can I switch PEO provider?

A PEO is a great way to outsource your business expansion in order to save you time and money as well as ensuring compliance. However, there can be some occasions where your PEO partner is no longer fulfilling this role for your company. This is where you may want to consider switching PEO provider or even setting up your own legal entity. 

Why would you switch PEO provider?

There can be numerous reasons you want to switch PEO provider, some of which we have outlined below. 

Expanding into new countries

Following your initial expansion, your company may now be looking to expand into further countries and thus grow your business. However, if your existing PEO does not provide a PEO solution in your new country then it can hinder your global expansion. 

While a new provider could be used for each country, it can be easier and more cost-effective to have all countries housed under one PEO provider. Therefore, companies can choose to switch PEO company when they wish to expand their business into new countries. 

Looking for additional solutions

A PEO's primary aim is to manage the employment of your international hires so you can concentrate on the day-to-day management of your business. However, when running a company in a foreign country there may be additional areas where you require support. 

Global recruitment, for example, can be especially difficult for businesses and cause stumbling blocks to true growth in your new country. At Leap29, we have been providing recruitment solutions for over 20 years and can therefore offer global recruitment solutions in conjunction with our PEO solutions. This joint approach can therefore cut the cost of partnering with two providers whilst also increasing the benefits of working with a PEO. 

Outgrown your PEO solution

This final reason encompasses an array of reasons for leaving your PEO. From poor service or increased service costs to simply not having the capacity to manage the number of employees you require, your PEO may no longer be meeting the needs of your business. 

As such, you may look to switch your provider to a larger PEO company or look into establishing your own legal entity to accommodate your growing business. 

Setting up a legal entity

As your company grows on a global scale, you may consider establishing a legal entity in your chosen country of expansion. More often than not, this decision arises after a PEO company no longer becomes the most cost-effective, efficient solution for managing your international team. 

It is worth noting that switching from a PEO to setting up an in-country entity is demanding and costly. Therefore, it is vital that you do adequate research into setting up an entity and ensure it is the most effective solution for you and your company. Read more on whether a PEO or legal entity is right for your business here.

Switching PEO provider

Of course, if your company isn't ready to set up an in-country entity then it is possible to switch from one PEO company to another. Whatever the reason, your company is free to change PEO provider in the remit of your contract. 

As with any outside agency your company decides to work with it is vital that you undertake sufficient research when looking for a new PEO provider. For example: does the company have a licence to work in your chosen country; can they provide the benefits you require; is the cost appropriate?

For more information on choosing the correct PEO, you can read our previous blog here


At Leap29 we offer global PEO services that are tailored to your individual business needs. Working across a range of countries worldwide, we have successfully helped businesses across Engineering and Construction, Oil & Gas, PharmaceuticalsRenewable Energy and Technology sectors set up in new markets with fantastic results. 

For more information on our PEO services and to see how our expert team can support your international expansion, contact us today.