3 Advantages of Global PEO Services

Each global expansion is unique, but all expansions share at least one common factor: it is a complex process that requires significant resources and planning—no matter the market. A European expansion is quite different from a Latin American expansion; the same can be said for companies looking to take advantage of opportunities in Asia.

Because of this complexity and variability, many companies choose to enlist the services of a global professional employer organization (PEO) to help the process go as smoothly as possible. To that end, there are three key advantages to working with a global PEO— in any region across the globe.


An International PEO Can Significantly Simplify Hiring

Perhaps the biggest benefit of utilizing global PEO services is for many business among the most immediate: a simplified hiring process.

A global PEO acts as an official Employer of Record (EOR) in the new market. The global PEO hires on the company’s behalf while they remain focused on their daily operations and responsibilities; all risk mitigation, compliant hiring practices, and other key issues are all handled by the global PEO.

More Flexibility Than an Entity Establishment

Traditionally, if a firm wanted to expand into a new market, it needed to first set up an entity. The requirements in each market vary wildly, but the two major factors that remain true throughout most locations is that entity establishment is A) time-consuming, and B) costly.

With a global PEO, on the other hand, firms are able to test markets before deciding if permanent establishment is in its best interests, removing uncertainty. Businesses can get into a country faster and can even exit a market much more easily than with an entity establishment.

The United Kingdom is one of the top markets for international expansion right now, for example, and firms will likely have to pay between $15,000 to $20,000 just to begin the process of setting up a non-resident entity. Couple that with the fact that it costs thousands per year just to maintain that entity (not to mention the incredible level of uncertainty surrounding Brexit), and an entity exposes businesses to unpredictable political and economic risks.

Avoid Misclassified Independent Contractor Risks

Likewise, many companies need compliant employment solutions when expanding into a new country. Many organizations hire independent contractors early on, but the risk of working with independent contractors is high. If a firm is found to have misclassified actual employees as independent contractors, it exposes itself to significant financial penalties and other compliance violations, along with the type of bad PR that could stifle expansion efforts before they've fully begun.

With a global PEO, however, firms have a clearer path to meeting all local employment requirements without resorting to independent contractors— making it a much more viable option for businesses around the world.

Let Global PEO Services Simplify Your International Expansion

Taking your business global comes with many complexities—but global expansion doesn’t have to be difficult. Velocity Global’s International PEO solution has helped hundreds of companies find success in markets all over the world. And, with capabilities in 185 markets and counting, we can help your business take the first step towards realizing your global expansion goals.

Want to learn more about how International PEO has changed the way companies expand overseas? Or how you can remove all risk of misclassified employees when building your global team? Reach out to us today.

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