Global PEO's and How They Empower Tech Companies to Hire Globally

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An essential metric for tech companies’ growth is their ability to scale business operations to all parts of the world and have their tech products utilized globally. Technological advancements leverage its ability to unite the world as a global village in this age. While this is the goal for tech companies, their growth is usually plagued with several challenges such as onboarding new tech, employees, and processes. Other challenges include payroll management, global hiring complexities, and compliance. All of which can be overwhelming - unless managed by a global PEO.

What is a PEO?

A Professional Employment Organization or a global PEO is a platform that enables organizations to hire contractors and full-time employees. It also manages payroll, employee benefits, and every HR management function. PEOs are also commonly referred to as Co-employment, PEO HR Outsourcing, or Business Process Outsourcing. Due to the complexities organizations face when hiring internationally or building remote teams overseas, global PEO services are essential to the growth and expansion plans.

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When to partner with a Global PEO

Global expansion

When you are growing into different countries, and you want to avoid navigating through multiple vendors in different countries.

Salary compliance

When you want to provide your employees with a competitive suite of statutory and optional benefits, in compliance with all local legal standards.

Business demands quickest time-to-hire

When you want assistance in hiring and onboarding local talent within days, because establishing an overseas entity may often take many weeks or months.

On-Site HR & Legal Team

When you want in-country legal counsel for employee hiring, contract renewals and termination, distribution of benefits, and HR compliance, as well as local tax, legal, and financial experience.

Talent Acquisition

When you need a healthy talent pipeline at all times at different global locations that ensures you discover the right talent to help your global expansion.

A tech solution for managing global talent

When you need a safe and streamlined web gateway for managing your global talent from anywhere.

Advantages of PEO

The benefits of using a PEO for tech companies go beyond enabling them to scale their business operations. A global PEO enables tech companies to navigate the complex process of affordably hiring remote talent from anywhere in the world. While compliance with local employment laws acts as an obstacle to building a team in a foreign country, a PEO ensures the organization is compliant with country-specific taxes, thereby avoiding legal risks and fines. 

Access to cost-effective benefits

One of the primary goals of a global PEO is to enable an organization’s employees to access very comprehensive and cost-effective benefits. Usually, providing these benefits comes with overwhelming and costly challenges. However, global PEO services can offer a wide variety of benefits to the organization’s employees with less effort.

Seamlessly manage HR

The HR management of global organizations is susceptible to errors as it involves multiple international employees, legal compliance of different countries, and complex payroll calculations. However, with the help of a global PEO, HR management can be automated and seamlessly managed via the HR platform. 

Increase in business productivity

HR management is time-consuming and challenging. Local compliance and tax regulations are subject to regular changes, and for global organizations, this is a significant challenge. The organization can focus on other core business functions with global PEO services. At the same time, the PEO handles the complex and challenging aspects of HR management.

Reduced stress

The primary functions of global PEO services are to handle every HR management function, enable organizations to hire and onboard talent quickly, and manage payroll. By outsourcing these functions to a PEO, the organization has fewer activities to worry about and can focus on scaling business operations.

How PEOs help tech companies grow globally

Global PEO services primarily handle comprehensive HR services for tech companies, including payroll processing, risk management, employee benefits, compliance with local laws, etc. Once the tech company hires employees, the PEO handles the hiring and onboarding process on behalf of the tech company. The PEO also manages the employees’ payroll and compliance, allowing the company to focus on its business needs.

Also read - Benefits of hiring a global workforce

A global PEO handles the following for tech companies:

Hiring and onboarding remote talent

Global PEO services enable organizations to hire and onboard contractors and full-time employees wherever they are in the world. Recruiting from the worldwide talent pool can be challenging for remote tech companies as there are numerous candidates to vet, manage compliance, time and money spent on ad placements, etc. Hiring the wrong talent can be a costly error for the organization. 

A global PEO assists with hiring and onboarding contractors and full-time employees on behalf of the organization by offering additional services that simplify the recruitment process for the organization. By leveraging a PEO, tech companies can grow globally without dealing with the challenges of hiring and onboarding.

Positive ROI and faster growth rate

According to the National Association of Professional Employer Organizations, tech companies see an astounding annual return on investment of 27.2% by utilizing the services of a global PEO. This kind of positive ROI ensures that the tech companies grow at a faster rate and improve their chances of staying in business for much longer.

Payroll management

Payroll management is a time-consuming and challenging process for global tech companies. The complexities involved make it a delicate aspect of a company’s operations, as payroll errors can result in fines and employee dissatisfaction. A global PEO automates and processes payroll for tech companies via its platform. By managing payroll on behalf of the organization, the PEO ensures fast and accurate international payment of employees in their preferred currencies, payroll systems administrations, compensations and severance payments, and tax regulations.

HR compliance

Global PEO services reduce tech companies’ risk with HR compliance by providing several risk protections and ensuring the organization is compliant with statutory employment laws and tax regulations in the country of employment. By insulating the tech companies against compliance risks, the organization can quickly scale their business and expand with no hassles.

IP and data security

HR management handles sensitive information relating to its clients and employees. Poor HR management can pose a significant threat to the organization’s safety or lead to data theft. A global PEO service ensures that the tech company’s sensitive information gives maximum care and protection.

Partner with Skuad

Skuad is a Global HR Platform that enables organizations to hire contractors and full-time employees in over 160 countries, seamlessly. 

Our Global HR Platform also ensures top-notch payroll management, digital onboarding of talent, cross-border payments, and compliance with statutory employment laws and tax regulations in the country of employment. 

Skuad streamlines the entire employment lifecycle for tech companies, thereby enabling them to scale their business operations with fewer expenses and a simplified HR administration.

To know more about Skuad, book a demo today.

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