Passing any aspect of your business to a third party is a daunting process, especially when outsourcing your business' international expansion. Therefore, you want to make sure you have chosen the right PEO company for you. Read on to see what to look for when choosing a PEO company.
Do you need a PEO?
First things first, it's important to decipher whether you need a PEO to support your global expansion and what support you need from them.
A professional employment organisation (PEO) provides employee management services such as employment contracts, benefits, insurances, visa applications, payroll and taxes. In doing so, a PEO allows you to expand into a new market without the need for a legal entity.
While some larger businesses may find it cost-effective to establish their own entity in a country, a PEO can save you time, money and resources making partnering with a PEO a beneficial option for most expanding businesses.
How to choose a PEO company
The market is full of different global PEO companies but not all are created equal. From cost to customer service, here's what you should look for in a PEO company.
Cost of a PEO
Ultimately, when employing a PEO company you are looking to cut costs compared with setting up a legal entity. Therefore, it's important to price compare when looking for a PEO.
However, the cheapest quote may not be the best value. Evaluate what each PEO is offering to see who is giving you the best value for your money. It's also vital to look at how you will pay. For example, if you are hiring one employee to start with the hope of growing your international team, how will the cost go up? If you need to add services on, such as recruitment, can your provider add this cost on? Will you pay a retained monthly fee or a fee per employee?
Reviews and testimonials
As with any service, the results speak for themselves. When choosing a PEO company, take a look at their customer testimonials for their PEO services to see how other companies have rated them. It will give you an idea of what services they offer, in what countries they have operated and, most importantly, whether their clients would recommend them to other businesses.
Can a PEO help grow your business?
Of course, when looking for a PEO your initial enquiry is to do with the current country you are looking to expand into. And, while it may seem this current expansion will occupy your business forever, it's important to look to the future and whether your chosen PEO can grow with you.
What kind of services can you add as you grow? What other countries can they offer PEO services in? How many employees can they onboard for you under their PEO service?
A team you can trust
When working with any third-party you want to put trust in them and establish a thriving working relationship. So, before signing on the dotted line it's worth finding out a bit about the team you will be working with. You may speak with the PEO team when discussing a quote which can give you a good feel of whether they're a good fit for you and your company.
It's also worth asking who your point of contact will be and where your PEO contact will be based. For example, Leap29 have seven global offices as well as UK headquarters, putting our PEO teams right where you need them.
It is also critical that your PEO company is trained in relevant labour and employment laws so you can rest-assured that your international business is being handled compliantly. Any credible PEO company will be able to tell you this upfront so it's worth asking.
Bespoke PEO solutions
Your business and its expansion are unique, with different needs and requirements. Therefore, you need a PEO that is flexible in their approach in order to cater to and fit your needs.
Leap29 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, Pharmaceuticals, Renewable Energy and Technology sectors set up in new markets with fantastic results.