Maximize Efficiency and Growth with a Professional Employer Organization (PEO)
By now, many business owners know that outsourcing HR can save precious time. But few consider the fact that outsourcing can also increase business productivity and raise profit in turn.
Outsourcing HR responsibilities to a third-party Employer of Record (EOR) or Professional Employer Organization (PEO) will streamline your processes and make your business more profitable. Research from the National Association of Professional Employer Organizations (NAPEO) shows that businesses who partner with a PEO are 16% more likely to report increases in profitability!
A PEO or an EOR can help you expand your team worldwide, extending your operating hours while your domestic team is off the clock.
So how does it work? First, we’ll take a quick look at the differences between EORs and PEOs.
What is an EOR/PEO?
What is an EOR?
An Employer of Record (EOR) is a third-party organization that takes on the legal responsibilities of hiring and payrolling employees for companies hiring globally. There are several responsibilities which an EOR can take off the hands of a company. These include:
- Visas and work permits
- Employment contracts
- Employee termination
- Compliance with local employment laws and regulations
- Payroll and remuneration
- HR services
With the help of an EOR, organizations can contract workers across borders, all over the world, bypassing the need to create legal entities in different countries.
What is a PEO?
A Professional Employer Organization (PEO) is a third-party organization which allows international companies to hire local remote workers without setting up a legal subsidiary in a foreign country. A PEO works as a joint employer of staff, essentially leasing employees to the employer and sharing employee or recruitment-related responsibilities and liabilities.
- A PEO provides a number of services, including:
- Payroll and remuneration processing
- Management of benefits
- HR services
A PEO can hire international, remote workers, acting as their ‘Employer of Record’. The PEO will handle the processing, compliance and administration responsibilities, while acting as the employer for tax and insurance purposes, while the employee works directly under your instruction.
How can working with an EOR or PEO help you increase business productivity?
So how can outsourcing with an EOR or PEO increase business productivity? Let’s have a look at the main factors.
When a business outsources payroll responsibilities to a PEO or EOR, less time needs to be spent working on the administration within the business. While a third-party organization handles HR matters such as recruitment, onboarding and remuneration, you can focus more time on growing your company.
A PEO or EOR doesn’t need to replace your HR team either; by giving the administrative responsibilities to a third-party organization, your HR staff have more time to focus on the more strategic aspects of the job, such as training, developing and up-skilling your existing workers.
Smoother Recruitment Process
While EORs and PEOs don’t have total control over the hiring process – you will still choose which individuals to hire, and which to terminate – they can offer support throughout the hiring and onboarding process. These third-party organizations can share knowledge and help identify ideal candidates from talent pools, helping you to hire the right candidate every time.
Finding the perfect candidates to fit particular roles boosts business productivity by reducing absenteeism and turnover, and the aid of an EOR or PEO can ensure you secure talent in candidates who will fit well with company culture.
Hiring Internationally – Global Employee Benefits
Hiring through an international PEO or EOR organization allows you to recruit remote workers around the globe who can work across multiple time zones, keeping your business running while your domestic team is off the clock.
Canada is an excellent choice for hiring international remote workers. The country has six different time zones within its borders, and has thus created a workforce that’s acclimatized to working off-hours. Moreover, many Canadian workers find it easy to settle in with both US and UK colleagues based on cultural similarities and shared language, so you won’t be sacrificing company culture by hiring international, remote workers.
Working with an EOR or PEO to hire international remote workers who can work outside of the hours of your domestic team extends your operating hours, increasing business productivity.
Working with an international PEO streamlines the process of hiring international remote workers. With a third-party PEO, there’s no need to set up a legal entity in the country you’re hiring in. Plus, hiring with a PEO based in that country means you can rely on local expertise to assure full compliance with region employment law. If you were wanting to expand your business to service customers in North America, for example, then the team at Canadian Payroll Services can help you hire remote workers in Canada.
Creating a Successful Global Team to Increase Business Productivity
Hiring international workers through a third-party PEO or EOR saves time, money and stress, allowing you to increase your business productivity with a global team of staff working across multiple time zones to extend your operating hours.
While the employees hired through a third-party report directly to you, you don’t need to worry about the administration and HR processes as these will be taken care of by your partner PEO or EOR organization, allowing you to concentrate on your business.
How we can help you increase business productivity
As a PEO that also offers EOR services, Canadian Payroll Services hires, onboards, and payrolls Canadian remote workers to support your core business in different time zone. We have the local expertise to provide ongoing compliance services, recommendations, and employment law briefs. Our certified HR account managers and payroll practitioners are experts in Canadian employment law and payroll rules, and keep on top of legislative changes so that you don’t have to. You can check out our blog on Ontario’s right to disconnect bill to see how we’re doing just that.
Want to learn more about how Canadian Payroll Services can help you increase business productivity with international recruitment? Get in touch!