If one were to make a list of a few of the major challenges businesses face when expanding globally, human capital would undoubtedly be among the top. Not only is this a critical part of a business’ expansion efforts, but can single handedly hinder an international operation if approached from the wrong angle.
When you’ve reached the point where you’re finally looking for people to fill available positions during your expansions, you’ll probably find yourself asking some variation of the following questions. “Do I use an internal approach, or external? Do I go with a staffing agency, or an executive search firm? What’s the difference, and which is the best approach for me?” With all of this in mind, there are a few key reasons why partnering with a PEO (Professional Employer Organization) for global staffing and expansion is certainly worth exploring.
Global Staffing vs. Executive Search: Breaking Things Down
In order to understand why a PEO approach for global staffing is something businesses should consider, one must first come to terms with the specifics of using a staffing agency versus an executive search firm.
Executive search firms are often also referred to as headhunters for a reason; they typically only focus on high-level jobs in both the corporate and legal sectors. They’re the people who find Vice Presidents, CIOs, CFOs, and other higher-ups.
Because they’re going after higher level positions, they also tend to perform more services than those who are looking to fill other roles. Executive search firms become intimately familiar with a company’s operations, for example, and also take over most aspects of both the interview and screening processes. They will likely handle any and all negotiations during the talent acquisition process, too. Once an ideal candidate has been selected, they then become an employee of the company in question, not of the executive search firm.
With a staffing agency, companies are dealing with a partner who is typically looking to fill roles that come in below the corporate level. In addition to these lower level positions, they’re also ideal for filling temporary openings very quickly. One of the key differences is that staffing agencies usually have an existing, specific talent pool from which they are working; they’re not conducting a new search for every opening. Likewise, the hired employee becomes paid by the staffing agency, not by the company.
The Power of a PEO
A Professional Employer Organization is a global employment solution that enables companies in nearly every industry to quickly find employees anywhere in the world. These are teams of professionals who work quickly and compliantly to meet any need a business may have utilizing a global infrastructure and locally-compliant employment contracts.
A PEO acts as a company’s EOR, or Employer of Record. This means that a company suddenly has access to a team of people who can hire employees in whatever country into which they are expanding on its behalf. Risk mitigation, compliance, and other big picture issues are all handled by the PEO, while the company still maintains day-to-day control over your entire workforce. This provides a business with with a single solution that meets nearly every one of its needs, simultaneously.
Focus Less on Global Staffing and More on Global Expansion
In the end, it’s clear that partnering with a PEO for your global staffing needs (especially during a period of rapid expansion) brings with it a host of unique benefits that can’t be ignored. Not only is it a flexible solution to talent acquisition, but it helps address one of the most significant issues—global human capital—that can often be a major challenge to international expansion.
In an effort to avoid driving up costs and to ensure that you’re identifying the right candidates for the right positions, utilize Velocity Global’s full suite of global expansion services that include International PEO to quickly and compliantly establish your business overseas. International PEO allows companies to get up and running in new international markets in as few as 48 hours—and up to 60% cheaper when compared to establishing an entity. Reach out to Velocity Global today to learn more how we can help you realize your global growth potential.