What is an International PEO?
International PEO is an employment service that helps companies with the compliant hiring of international candidates. They source candidates from anywhere around the globe without setting up a legal entity in the hiring country. It saves companies from HR and legal hassles involved in the recruitment and maintenance of international candidates.
An International PEO manages complex processes like international payroll plus onboarding and offboarding of the candidates. It deals with conflicting local labor laws of the hiring country, employee engagement, employee retention, etc.
The HR tasks can often be finicky especially when a business is dealing with international candidates. In such cases, employers have to be particularly expert in handling individual HR issues all by themselves.
Employers may find themselves in the middle of nowhere with this humongous responsibility and miss out on stellar candidates. Fortunately enough, there is an employment model (International PEO) at hand to save the day. It holds an expertise that will easily eradicate the operational conundrum. It also makes these tasks rudimentary in the global expansion process of a company’s workforce.
This legal employer comes in handy for a company’s global workforce along with all the compliance and administrative heavy lifting. It helps manage employee benefits, contracts, and taxes at a very cost-effective budget. The International PEO employment service is however frequently confused with other interconnected employment services. This involves global PEO, domestic PEO, and global employer of record (EOR).
There is a thin line between these three-letter employment acronyms in spite of being closely related. It is clear by now that all of them are responsible for hiring and managing an organization’s workforce. However, the terms and conditions for each model vary largely from one another.