What is an International PEO? Guide for Global Businesses

An International PEO is introduced in the employment world to ease the global hiring process of businesses trying to expand internationally. International PEO is not a co-employment of international employees but is a service similar to an employer of record service (EOR) to onboard resources without having an entity in a foreign country. Basically what an International PEO does is to help businesses set up a fully functional and legally thorough international remote team without the need of setting up an entity in the country a company is hiring from.

Let us take a closer look at how an International PEO actually works, what is the difference between an International PEO and other closely related employment models, what are the requirements to collaborate with one of them, the benefits of collaborating with them, and how to build a dream team with the help of them.

What is an International PEO?
International PEO is an employment service that helps companies with the compliant hiring of international candidates from anywhere in the globe without setting up a legal entity in that country of the candidate. It saves companies from HR and legal hassles involved in the recruitment and maintenance of international candidates. An International PEO manages complex processes like international payroll, onboarding and offboarding of the candidates, dealing with conflicting local labor laws of the hiring country, employee engagement and employee retention, and many other related operations. The HR tasks can often be finicky especially when a business is dealing with international candidates and employers have to be particularly expert in handling individual HR issues all by themselves.

Employers may find themselves in the middle of nowhere with this humongous responsibility and miss out on stellar candidates. Fortunately enough, there is an employment model (International Professional Employer Organization) at hand whose expertise will not only eradicate……