When you’re looking to expand your company globally there can be many confusing aspects, from international payroll to employment legislation.
To combat these complexities businesses often turn to external organizations for support. But, do you need a Professional Employer Organisation, an Employer of Record or a GEO. To help you choose the best partner for your business, we’re looking at what the difference actually is between an EOR and PEO.
What is a PEO?
The term PEO (Professional Employer Organisation) originated in the USA to refer to a company who manages HR requirements on behalf of businesses.
By this definition, a PEO could not act as your legal entity but rather as a HR and administrative resource. However, the term ‘PEO’ has now advanced and is often used to refer to third-party businesses who can act as legal entities for expanding companies as well as providing HR, employment management services and payroll solutions.
What is an EOR?
An Employer of Record manages employees on your behalf, meaning you can hire without a legal entity and simplify the global expansion of your business.
Sounds pretty similar to a PEO, right? Exactly. Essentially, the difference between the three is largely semantics with many now using the terms interchangeably. However, it is worth checking what exactly your EOR or PEO can provide for you.
What is a GEO?
Now that’s that cleared up, what about a GPEO or GEO? A Global PEO or Global Employer Organisation is again essentially the same as a PEO and EOR. They all refer to an organisation, such as Leap29, who can manage your employees, run international payroll, navigate employment laws, and manage HR and benefits, taking the liability of global expansion from your shoulders.
At Leap29, we can run payroll, employ on your behalf and take care of HR by acting as your EOR, PEO or GEO and removing the need for you to establish a legal entity. Whatever term you’d like to use, we can be the partner you can trust to simplify your global employment. If you would like to find out more, contact our experts today.