Professional Employer Organization ( PEO ) in India.

Let’s first understand what are PEO’s. PEO stands for Professional Employer Organization, it is interchangeably referred to as HR outsourcing, co-employment, or business process outsourcing. These are organizations that help businesses set up a locally operating office for a target market in another city or country.

The general misconception related to PEO’s is that businesses lose control over operations or decision-making, which is certainly not true. This is a support system that operates as per the company guidelines providing it with services that saves time and cost for the company. The terms Professional Employer Organization, HR outsourcing, co-employment, or business process outsourcing are suggestive of the services they provide but, we at Shrofile believe in understanding things a little better, so here are 5 things PEO’s do for companies

Handle HR services

Be it onboarding the staff, payroll processes, employee benefits, attendance management, leaves system, employment taxes, everything that can be categorized as an HR service is managed by PEOs.

Policies and Compliances

Company policies, especially in the case of an overseas PEO, need to be reviewed as per the legal policies of that particular company, A PEO, in this case, will act like the gap bridging system merging the company and country policies that is in the best interest of the company and does not overlook any rules of the locally established laws. Employment compliance can be tricky for a foreign country, the PEO help with employment compliance which follows the framework of the company’s original employment compliances but is tweaked as per the locally favoured processes here and there

Saves time and cost

Setting up a locally operating system in a foreign country is not a visitor-friendly job. Outsourcing assistance comes with the expertise and knowledge of laws. This expertise helps in speeding up the process which otherwise can take a long time. It also makes it a little error-proof. As far as saving costs is concerned, it is saved in terms of time, the sooner the business is set up and a process is put into place, the sooner the operations can begin. The expertise of local PEOs can benefit the company in making business decisions as well. It can be a major contributor of insight that is not available anywhere else. People and place data is a very valuable resource to business nowadays and it is readily available with PEOs.

Helps in reducing liability

The State unemployment taxes, payroll taxes, and even paying wages becomes a liability for a new business set up in a foreign land, the outsourced PEO help with this liability and enable smooth functioning of the business

They put up processes and promotions that are locally very attractive and target it towards the employees so that the company receives great word of mouth and people feel encouraged to join the company. The expertise of the local market comes into play when planning to promote the company. PEOs make the business attractive and employees feel a sense of pride working for the company this way, which builds loyalty and makes retention easy.

All these are services provided by PEOs, however they don’t hold the authority to take over daily operations, hirings and firings is not their decision entirely. They handle the responsibilities for your company so that the company can focus on operations. The daily operations like allocating labor at a worksite etc. need to be taken up by the company stakeholders. We hope this was helpful information, Shrofile is a tech-based new age HR service providing company that customizes solutions as per the company needs. We are a team of experienced HR professionals who can help you with all the PEO services discussed above. Reach out to us by clicking the contact us button for any further information or assistance.

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