PEO/ EOR essentially involves a PEO service provider legally employing staff on your behalf and seconding them back to you under a services agreement (i.e. the PEO provider becomes your employer of record). This arrangement massively simplifies your expansion – enabling you to effectively hire staff immediately to perform your sales activities, market research, set-up activities without the need for the various costs, times and commitment associated with setting up an entity.
Be it business expansion or a solution to a headcount freeze, PEO and EOR provide clients with great flexibility. PEO employment ensures that you can quickly scale up and down before taking the plunge. This is especially true in the case of business expansion. As a guideline, hiring under a PEO arrangement is at least 50% cheaper than setting up a legal entity when expanding your business to a foreign location.
The cost savings, are driven by PEO employment, removing the need for the administrative costs of maintaining a legal entity. Most importantly, a good EOR/ PEO service provider will save you time by enabling you to hire immediately and remove any HR administration, visa applications, employee insurances, pension, and tax payments that prevent you from focusing on your business growth.
Both PEO and EOR are very similar in services, however, there are differences between the two. An EOR will put a proportion of your business and your workers on its payroll whereas a PEO will take on all of your employee workforces and also provide your business with all Human Resources administrative services and functions. When working together with PEO, you may hold employment contracts but when working with an EOR, the EOR keeps the employment contract and you collaborate on a service agreement.
Are you interested in building an effective business expansion strategy? Business growth strategies can be effectively executed when you utilise PEO/EOR services. So how can PEO/EOR help with Business Expansion and Market Expansion for your company?
What Does Links International’s PEO/ EOR or Secondment Services Include?