Simplify Your Human Resources With International Employer of Record Solutions

Within the United States, it is very common for companies to streamline their operations and keep their accounting simple by using PEO services to staff up. Whether they use them for extra worksite labor due to a sudden increase in business or they make a practice of utilizing PEO services to keep their business structure simplified, they rely on these companies to take responsibility for tax and human resources compliance and to provide recruitment services. Internationally, PEO companies also provide international employer of record solutions, allowing the client company to focus on the needs of their jobsite while allowing the PEO to focus on employee management.

How Employer of Record Solutions Balance

Since the payroll services provider is the employer of record, they maintain all employee records and payment information, manage human resources compliance, and take care of the requisite tax withholdings and other required paperwork. The client company, as the recipient of the worker’s labor, directs and controls on-site operations to ensure that every employee is working toward the assigned goal and contributing up to the company’s standards.

In the event of disciplinary or quality control issues, the client companies remain in control of the workforce, but in the event of disciplinary action or employee turnover, the services company manages the employee communication and recruitment. This allows client companies to focus on projects by taking advantage of the in-country expertise provided by their payroll services company.

Cost Savings

Depending on the level of support provided by your payroll services company, international employer of record solutions have been shown to provide up to 94% cost savings over the establishment of a ground-up in-country infrastructure for recruitment and human resources compliance. The exact number depends on the services needed and engaged, volume of business in the contract between companies, and individual price quotes from individual service providers, but with diligent shopping and careful bid management, it is easy to view this solution as the only one that is not cost-prohibitive. The alternative, even if it is desired as a long-term solution, is simply so much more expensive that it tends to be more appropriate as a long-term goal than it is for initial operations.

Expand More Quickly

When you reduce your overhead costs for moving into new countries, it is easier to expand more quickly. This means that the right partnership with an employer of record service provider will empower your company to expand its operations and maintain its competitiveness in a truly global marketplace. For businesses looking to make the most out of their expansion abroad, it provides a clear path to an easy-to-manage administrative structure that also aids with recruitment, making it a vital service during the starting phase of any operation.

Putting It All Together

The next step in your company’s development gets a lot easier when you let international employer of record solutions come from a company who specializes in finding the talent you need and managing the payroll and other human resources compliance issues you need to adapt to as you move into a new environment.

Taryn Johnson is an avid writer. She loves all things about electronics and marketing. In a perfect world, Taryn would be writing from the beaches of Hawaii all day long.