The Ultimate Guide to EOR, PEO, and GEO
- Global Employment Solutions. How to Mix and Match Them
- Employer of Record: What, Why, How, and When?
- PEO (Professional Employer Organisation): What, Why, How, and When?
- Difference between an EOR and a PEO. Employment Risk Mitigation Strategy
- GEO (Global Employment Organisation): What, Why, How, and When?
- Acumen International, Your Gateway to the Global Talent Market
- Summing Up
Global Employment Solutions — EOR, PEO, and GEO. How to Mix and Match Them
What are the key differences between EOR, a PEO, and a GEO? This Ultimate Guide to EOR, PEO, and GEO provides a brief overview of some critical differences between three of the most popular global employment solutions helping you decide which option is best for your company.
Acumen International provides an easy guide to give you the confidence that your company will have success expanding globally and is ready for global expansion and international workforces. This Global Employment Solutions Guide will tell you what to expect and how to navigate the challenges and help you create an effective global employment strategy. With our Global Employment Guide, companies can avoid common pitfalls and set themselves up for success in their new venture.
EORs, PEOs, and GEOs are global employment solutions that help companies hire and retain talent around the globe faster and more efficiently. Each operates differently and suits a unique set of hiring and business needs. Each solution has advantages and disadvantages, making it better suited for specific businesses strategy.
Your company needs to grow its global presence, and you’re wondering how you can do it without risking your current business model, resources, and capital.
Hiring employees worldwide is a big responsibility, so some businesses choose to engage talent through third parties. You could try to go it alone and hire an international team from scratch. Or, you could partner with a professional employment organization, such as PEO (Professional Employment Organization), GEO (Global Employment Organisation), or EOR (Employer of Record). Payroll, HR, legal, and immigration processes are often complex for businesses, but these third-party options can take the administrative burden off companies. So why might a business want to hire through one of these solutions providers?
The Ultimate Guide to EOR, PEO, and GEO talent engagement models covers different aspects of global employment models. It provides a brief overview of some critical differences between PEOs, EORs, and GEO — three of the most popular hiring solutions helping you decide which model fits your company best. Finally, it outlines the services Acumen International can offer — from the initial planning stages to implementing any employment model.
9 Steps to Help You Navigate through Global Expansion Journey
- Determine Your Global Expansion Strategy
- Building a Global Expansion Team
- Choose the most business-friendly and cost-effective countries
- Determine the most effective mode of entry, keeping the ease of exit in mind.
- Determine the right talent engagement model
- Develop a robust global talent acquisition strategy. Find an experienced and reliable partner
- Compliantly hire local and foreign talent in multiple jurisdictions
- Create Global HR Compliance and Employment Risk Management Strategies
- Maintain reliable talent management systems. Adhere to local labor laws and HR compliance regulations.
- Global Talent Retention Programs.
9 Global Employment Challenges to Consider
If you’re thinking about expanding your operations to a global level, you’ll want to consider all the details that go into that decision. That includes everything from choosing the most cost-effective country and the right entity type to preparing for the challenges of doing business across borders. Choosing a location that works with your overall strategy and offers lower taxes could be one way to help improve profitability.
As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges.:
- Every country in the world has its own set of unique laws for businesses.
- The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome
- Global HR Compliance challenges
- Need to understand and keep track of ever-evolving local labor laws and tax regulations across multiple jurisdictions
- Need to understand the local labor market
- Need to understand local business practices pertinent to employment
- Need to adhere to the company’s global employment policies
- Need to understand local competition and benchmark against standard business practices
- Working with different languages, time zones, customs, and cultures
No matter which countries you expand to or what type of operation you open, there are some significant issues you will always have to deal with.
Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.
3 Options for Multi-location International Employment
Businesses establishing a global presence face the challenge of managing and scaling an employee base with no common borders or language. To successfully expand abroad, companies have several options for enabling hiring in international markets.
There are six key things to consider when choosing an employment method for your company’s global expansion:
- Budget and time frame
- Tax implications
- Employment liability
- IP protection
- Asset acquisition.
The most commonly used ways are by doing the following:
- Overseas Permanent Establishment (a representative office, a branch, a subsidiary, and other foreign legal entity types )
- Selecting independent contractors to handle tasks remotely.
- Work with a global EOR (Employer of Record) and GEO (Global Professional Employer Organisation) Partner.
Employer of Record: What, Why, How, and When?
What Is an Employer of Record (EOR)?
A professional employer organization (PEO) helps businesses by taking on many employee responsibilities and liabilities. This includes payroll, compensation, benefits administration, and employment taxes. A PEO allows businesses to outsource their human resource functions and focus on their core competencies while accessing their needed workforce.
Why Use an Employer of Record Solution?
Now, more than ever, startups and large corporations alike are struggling with how to hire remote employees and scale their teams globally without running into local labor and tax laws. Employers of Record can help companies achieve their goals while avoiding these legal and HR compliance risks – foreign specialists and knowledge workers fill positions as a service, which gives companies flexible access to talent without hiring them directly.
An Employer of Record (EOR) can also provide a registered entity for running a local, compliant payroll, managing payroll taxes, benefits, deductions, and employee information. An EOR can advise the client on the host country’s required notice periods, termination rules, and severance pay.
An Employer of Record (EOR) like Acumen International can take on all of the responsibilities of hiring an employee for you, including the legal and bureaucratic hurdles, and manage the entire employment process.
The EOR is solely responsible for paying salaries and benefits to employees and ensuring compliance with the host country’s local labor and employment laws. All HR aspects related to hiring an employee abroad get handled by an employer of record, which means that the client company does not have to establish a subsidiary or branch office in the target country where it needs to place its employees or contractors. EORs facilitate immigration policies, permits, and work visas for both employers and employees, depending on the conditions of the engagement.
What Services Does Employer of Record (EOR) Provide?
Summing up, the employer of record usually handles part of BPO services, particularly human resources-related issues regarding global remote personnel. These issues include but are not limited to:
- Payroll management;
- Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
- Handling employment contracts:
- Background, education, and other checks;
- Onboarding and termination processes, as well as employee’s compensation;
- Arranging visas and work permits for employees;
- Ensuring the working process is organized under local labor laws;
- Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
- Process maps, employment guides, and other documentation.
What Services Does EOR Not Provide?
On the other hand, here are the services not included in EOR solutions:
- Quality control of employees’ work and their promotion;
- Decisions regarding contract termination and compensation, except for legal document processing;
- Project management.
Who Can Use EOR Services?
An EOR can be hired by any company that wants to expand internationally but does not want to establish a legal entity abroad due to time constraints or high costs associated with setting up an office abroad. International businesses without subsidiaries may also use this service if they hire only one employee abroad for specialized roles, such as business development managers who scout for new business opportunities in foreign markets or sales directors who manage sales teams working remotely from other countries.
Companies that want to hire contractors outside their home jurisdiction can also use employers of record to handle contractual obligations such as compensation packages, tax or benefits administration, and immigration permits required by employees worldwide.
Benefits of Using an Employer of Record
1. EOR Allows to Skip Incorporation and Avoid The Pitfalls of Setting Up a Local Subsidiary
So you can’t be bothered with local incorporation in your target countries. There is no need to go through the hassle and expense of setting up a local entity via incorporation and registration when you can utilize an Employer of Record. The EOR already has a legal entity that can handle all aspects of payroll, employment, and immigration requirements in the host country, negating the need for your company to do so. In addition, the EOR has the network and in-house expertise to ensure full compliance with local labor laws and regulations, making it the best choice for handling these matters.
2. No Immigration Compliance Issues
Immigration compliance is a top concern for multinational companies. With constantly changing immigration policies and increased scrutiny from foreign governments, it is essential to maintain compliance to avoid legal consequences.
If you want to avoid the hassle and stress of constantly changing immigration laws and regulations, consider using a GEO solution with a local EOR. The EOR eliminates any risks associated with remote payroll, overuse of business visas, or multiple entries into the country. The EOR takes care of all work permit and visa requirements, ensuring a hassle-free experience with no complications from immigration authorities.
3. EOR Runs Local Payrolls in The Host Country
As an employer, it is crucial to follow local standards for running payroll and withholding deductions for pensions, health insurance, and taxes. Assigning employees abroad requires setting up a registered entity in the host country to comply with these regulations. The EOR can help ensure a smooth transition for employees.
EOR Solution by Acumen International: Global Employment Done Right and Fast
Acumen International’s EOR solution lets customers tap into the local workforce without setting up a new office or bank account. Acumen will take care of the employee onboarding, payroll, and compliance with local tax laws and regulations, freeing customers to focus on the employee’s day-to-day tasks.
Our global employment cost estimation technology, coupled with our global presence, experience in managing global payroll & local compliance and immigration regulations, and knowledge of local benefits and taxes, allows our clients to optimize the management of their extended workforce. Acumen’s global EOR services are delivered leveraging a single global platform that ensures data accuracy across all countries of operation.
Drawbacks to Using an Employer of Record
A few potential drawbacks to using an EOR may depend on a company’s employment needs and business strategy. Despite the advantages, companies should be aware of these potential limitations before deciding whether or not to use an EOR.
1. It May Not Be Suitable for More Than 10 Employees or Generating over 100K in Sales
A company expanding into a new country may find that an EOR is not the best solution for more than 15 employees. It may consider incorporating an entity and hiring local experts to help manage the payroll process. In that case, the EOR may only be an interim solution to get employees hired quickly.
Suppose you plan on hiring foreign workers to provide services or generate sales over $100,000 annually in any country. In that case, you should consider setting up an overseas subsidiary or branch office. Doing so will help to mitigate the risk of permanent establishment.
2. Employers Give Up Control of Host Country Payroll Process
Many employers are reticent to cede control of payroll processes in the host country to a local EOR, although this is purely for administrative reasons. This may be a completely novel concept against conventional business thinking regarding direct employment for some companies. While it may be a new concept for some companies, using a local EOR can provide greater business flexibility and freedom.
3. Indirect Relationship between Company and Its Employee
The company relies on the EOR to handle claims since the employment contract is between the EOR and employee, rather than between the company and employee. While the company does have the rights under its agreement with the employee, these rights are secondary.
PEOs can give your business the personalized attention and care needed to thrive. However, many PEOs are large companies that serve thousands of small businesses. This means that your company and employees could potentially get lost in the shuffle. When looking for a PEO, choose a company that treats its clients right — and gives them the tools, support, and services they need to grow their business. Remember, you always have the option to cancel your services if unsatisfied.
PEO (Professional Employer Organisation): What, Why, How, and When?
What is PEO (Professional Employer Organisation)?
A professional employer organization, or PEO, is a company that provides human resource management services and managed solutions to small, mid-size, and growth businesses. PEOs help businesses grow by taking on many HR-related tasks and responsibilities. Their services include payroll, benefits, HR, tax administration, and regulatory compliance assistance.
PEOs typically enter into a joint-employment relationship with an employer, which gives the PEO responsibility for many employee-related functions such as employee benefits, compensation and payroll administration, workers’ compensation, and employment taxes. PEOs allow businesses to outsource their human resources functions and gain economies of scale by having more benefits options, sometimes at lower rates.
With PEOs, your HR department can function at total capacity. Rather than limiting its scope to the traditional functions of HR, a PEO provides a comprehensive range of HR services tailored to your business needs. With a professional workforce of experts in multiple locations, PEOs ensure that employees work compliantly according to host country laws.
PEOs typically enter into a joint-employment relationship with an employer and generally operate within a single jurisdiction or country, such as PEOs located in the United States. A crucial part of PEO services is assuming responsibility for complying with the laws and regulations governing the payment and reporting of federal and state taxes paid on employee wages.
What Services Does PEO Provide?
If you’re planning to expand your business, you’ll need the help of an expert services partner that can guide you along the way. The team at PEOs usually provides strategic guidance and a wide array of high-quality, cost-effective services tailored to your specific requirements that can help your company grow and scale up safely. Here are some of them:
- Human resources administration, including payroll, taxes, and benefits administration; employee training and development; recruitment; employee relations; compliance training; background or education checks; timekeeping services;
- Regulatory compliance assistance, including payroll tax law and reporting requirements;
- IP protection and offboarding;
- Hiring and HR compliance services, helping you navigate through local regulations and avoid prohibited HR practices, including discriminatory job listings, Illegal criminal background checks, misclassified workforce, inaccurate payroll, and tax payments;
- Human resource support;
- End-to-end talent management, including recruiting, onboarding, engagement, performance management, and termination (upon employer approval);
- Liaison with legal counsel on employment issues such as discrimination, wrongful termination, sexual harassment, whistleblower protection, non-compete agreements, severance agreements, and other employment law matters.
Benefits of Using PEO (Professional Employer Organisation)
There are many benefits to partnering with a PEO for businesses expanding to new locations. Perhaps the most significant benefit is that PEOs can provide access to cutting-edge global employment solutions that are usually beyond the reach of many organizations. This can give your organization a significant competitive advantage.
Businesses can benefit from the value propositions that PEOs bring to the table in five different ways
- Improving clients’ ability to attract and retain talent.
- Enabling clients to focus on their core businesses while PEOs handle HR matters.
- Expert HR knowledge and resources to improve their overall business performance.
- Reducing HR-related overhead costs.
- Eliminating the need to deal with legal compliance and HR issues.
- Legal protection
- Reduced payroll administration costs.
The primary benefit of partnering with a PEO, Professional Employer Organization, is a co-employment relationship that gives you the flexibility to focus your attention on the direction and growth of your business.
A PEO assumes administrative and HR compliance tasks, enabling you to invest more time in strategic decision-making. Professional employer organizations can provide services to business owners and management teams that they wouldn’t otherwise have the time or expertise to run independently.
Co-employment is an excellent way for growth companies to enjoy the benefits of a professional HR solution on a long-term basis while maintaining direct control over day-to-day operations. A PEO is an organization that provides HR and payroll services but doesn’t hire or terminate employees independently. Those responsibilities are shared between the employer and the PEO.
PEOs typically offer Employment Practices Liability Insurance (EPLI) to their clients, which can offer protection if a former employee sues for wrongful termination or discrimination. This type of insurance can be invaluable for businesses, as it can help cover the costs of litigation and potential damages that may be awarded.
Statistically Proven Benefits of PEO
The National Association of Professional Employer Organizations (NAPEO) has shown in its whitepaper that:
- Businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business.
- PEOs can offer a broad array of HR services at a lower cost and offer access to retirement plans to small businesses that may not otherwise sponsor them.
- PEOs provide services to 173,000 small and mid-sized businesses, employing 4 million people.
- There are 487 PEOs in the United States.
- The total employment represented by the PEO industry is roughly the same as the combined number of employees for Walmart (the United States only), Amazon, Kroger’s, and Home Depot.
- The PEO industry’s 173,000 clients represent 15 percent of all employers with 10 to 99 employees.
- The ROI of using a PEO (in cost savings alone) is 27.3 percent.
Drawbacks to Using PEO (Professional Employer Organisation)
PEOs can be a good fit for businesses of all types and sizes. While this model offers many benefits, it also has drawbacks. Here are some of the disadvantages of using PEOs:
1. Higher costs
The main reason why PEOs cost more than traditional employment is the administrative fees they charge. These fees cover the cost of managing your payroll and other expenses related to hiring employees. On average, these fees range between 10 and 15 percent annually.
2. Lack of control of HR processes and employees
PEOs can be very helpful in managing employee-related activities, but they also lack the flexibility and strength of an in-house team. If you need to change processes or policies, you may have to go through multiple levels of approval before implementing them.
3. No influence on your company culture
A PEO might be able to help you with HR issues, but it probably won’t be able to solve cultural problems that arise within your business. For example, suppose an employee is acting up or causing issues in the office. In that case, an outsourced HR provider may not be able to help you address these issues as effectively as an in-house human resources department would be able to do. The same goes for any other internal problems that arise within your business.
4. The lower value of the In-house HR department
The main disadvantage of using PEO is that you might lose the value of your in-house HR department. You still employ the employees, so all internal policies and procedures are still in effect. If you want to change any of these policies, you must involve the PEO.
Your employees won’t know who’s looking out for them. When an employee has an issue or concern, they might not always know who they should contact at their company or PEO — especially if their employer has multiple locations or works with various providers. This could lead to confusion and frustration among employees who don’t feel like they’re being heard.
Another potential downside is a lack of control and indirect communications. For example, if an employee has a question about their benefits or wants to file a claim for some compensation, they might call their HR representative at the PEO’s office instead of yours. This could mean losing contact with key employees and missing valuable information about your company’s performance.
5. Lack of process customization
A significant advantage of having an in-house HR department is that they can customize people-related processes to fit company culture and needs. With a PEO, these processes will change depending on which partner you select (and whether or not they’ve developed customized processes). If this is important to your company culture or strategy, it may be worth keeping your HR team rather than outsourcing payroll and other services to a PEO.
6. Limited flexibility
Many PEOs have strict rules about when and how you can terminate an employee’s contract with them. In most cases, you must give at least 30 days’ notice before terminating an employee’s agreement with you and pay any applicable taxes and unemployment insurance premiums during that period. This can be problematic if you need to make immediate changes to your staffing levels because it forces you into a situation where you have too few or too many employees at once.
7. Stock options
Considering using a PEO arrangement for your business, it is essential to know
the potential compliance challenges. Stock options can be complicated, and it can be difficult to ensure compliance if the employees are not considered your employees. This should be carefully considered before deciding to use a PEO, as legal complications may be involved.
Tax advisors have noted that it is possible to route significant gains from stock options exercises in other countries through payroll providers (PEOs). PEOs typically charge a percentage of the gross payroll amount, meaning increased earnings from stock options gains can lead to higher PEO costs.
How Much Does a PEO Cost?
The price of a PEO depends on the specific services it provides and the number of employees you have. When you sign up for a PEO, you must pay setup and ongoing management fees. Some companies also offer discounts for large organizations that use multiple services.
PEO vs. EOR: What’s the Difference Between a PEO & EOR?
Before hiring employees overseas, you should know a few key differences between a Professional Employer Organization (PEO) and an Employer of Record (EOR). While they may seem similar at first glance, they are legally distinct entities with different implications for your business. Understanding the distinction between the two is essential to ensure a smooth and successful international hiring process.
A professional employer organization (PEO) can be a helpful way to outsource some of the administrative tasks associated with running a business, such as a payroll and filing taxes. Co-employment is a term used to describe the relationship between a business and a PEO, where both entities jointly employ workers. This arrangement allows businesses to outsource their HR functions to a PEO. With co-employment, the company and the PEO share responsibility for employment-related obligations. However, it’s important to note that a PEO does not provide access to international hiring if you do not already have a local entity in place. A PEO can be a good option for companies that don’t have an HR department or want to outsource some of their HR functions.
An EOR is a company that takes on the legal risks of employing your workers, including finance, legal & compliance, and safety risks, saving you from any potential problems down the line. This means that all of the responsibilities that come with being an employer are shifted to them — from tax reporting to handling any injuries or issues on the job. You’ll have none of these hassles but will take responsibility for managing your employees’ tasks and performance. Additionally, because an Employer of Record talent engagement model can be used for employees in other countries without setting up a business entity, it is an ideal solution for businesses that want to maintain a presence in multiple countries.
Global PEO and EOR Comparison
|Employment Model||Co-employer||Sole Employer|
|Permanent Establishment Factor||Can only work with clients who have a registered in-country (state) entity||Facilitates foreign expansion without setting up an entity|
|Key Services||Global employment, payroll, benefits, immigration (visa, work permits), mobility||Global employment, payroll, benefits, immigration (visa, work permits), mobility|
|Responsibilities||Responsible for the entire array of HR functions||Responsible for a portion of HR functions|
|Tax Administration||Depending on local tax regulations may require taxes to be filed under the client’s taxpayer ID||Files taxes under own Taxpayer ID Number|
|Payroll Funding||Requires advanced payments from the client||Provides payroll funding|
|Local Entity Establishment||Required||Optional|
|Local Entity Ownership||Does not own the entities. Instead, partners with a local or global third-party provider. A PEO does not allow you to hire in countries where you do not have a local entity.||100 % owns legal entities in the country of service. Allows to hire a workforce in other countries without setting up a business entity|
|Liability||Shares responsibilities and liabilities||Assumes all responsibilities and liabilities. EOR hires the employees in the new country under its local business entity and takes on all of the legal risks.|
|Legal Advice||Optional||100% compliance required|
|Global Labour & HR Compliance||Optional||100% compliance required|
|Insurance||May require the client to provide their own insurance.||Provide general liability (GL) and workers’ compensation (WC) insurance coverage.|
|Benefits||Provides higher quality employee benefits at competitive prices||Provides higher quality employee benefits at competitive prices|
|Employment Agreement||The client must draft and sign the employment agreement with an employee.||Drafts and signs the employment agreement directly.|
|Pricing Structure||– Fixed monthly fee per employee|
– Percentage of payroll plus applicable taxes
|– Fixed monthly fee per employee|
– Percentage of payroll plus applicable taxes
GEO (Global Employment Organisation): What, Why, How, and When?
Key GEO Drivers
The global economy has been increasingly shifting in recent years, with more businesses expanding their reach to international markets and taking control over risks. This has led to a rise in the demand for Global Employment Organizations (GEOs), which help businesses navigate the complexities of managing employees in multiple countries.
Several key factors are driving this trend. First, there is a growing focus on corporate governance and transparency, as investors and regulators place greater emphasis on these issues. Second, the war for talent has intensified as companies compete for the best workers in an ever-shrinking pool.
Finally, Permanent Establishment risk has become a significant concern for businesses, given the increased scrutiny of multinationals by local tax authorities worldwide. GEOs can provide a valuable service for companies looking to operate internationally, helping them overcome these challenges and maximize their growth potential.
What Is a GEO (Global Employment Organization)?
A Global Employment Organization is a cutting-edge solution that has completely changed how companies can expand their business by enabling them to hire employees from anywhere in the world quickly, efficiently, and without having to establish a foreign legal entity. This innovative solution has enabled businesses to tap into a global talent pool, allowing them to grow and succeed in today’s competitive marketplace.
EORs, or Employers of Record, are often just part of a much larger Global Employment Organization (GEO). GEO service providers help companies of any size to quickly employ a workforce in a foreign country, ensuring compliance with local labor laws, taxes, and work permit requirements. They may also help manage payroll and benefits administration for the workforce.
A Global Employment Organization helps streamline or centralize HR and operational processes globally. The GEO solution offers access to a global talent pool, making it easier to find and hire employees or providing specific employees to suit particular business and talent requirements.
Businesses expanding globally that don’t want to hire directly or establish foreign legal entities can use GEOs to comply with local laws quickly and affordably without having to go through the hassle of complying with multiple sets of laws and regulations and risk of misclassification. With GEO, employers can take on ambitious international projects with the best skills available.
GEO (Global Employment Organization) Differentiator
A Global Employment Organization (GEO) is a subset of employers of record that perform their duties internationally in several countries worldwide.
When Do You Need GEO (Global Employment Organization)?
There are a variety of situations where GEOs may need to manage a globally distributed workforce. A GEO can facilitate quick employment and promote consecutive global moves.
5 Most Common HR Challenges for Businesses Going Global
- An organization wants to hire the best talent from around the world, regardless of location.
- An organization offers remote working options, and employees are allowed to work from anywhere they choose.
- In the event of mergers, acquisitions, or sales activities, employees may be stranded in an area without a company presence. A GEO can help employ these one-time, third-country nationals in these cases.
- When employees are part of a company’s global mobility program or when they work for a company that operates in multiple countries.
- An organization must establish tight cost control and management reporting concerning its global mobility program.
What Services Does a GEO (Global Employment Organization) Provide?
- A single point of contact for all your cross-border payroll administration. A specialized employer organization (GEO) administers a local payroll through the EOR, which gives employees the confidence they will receive statutory employment benefits and protections. Local payroll management is one of the most challenging aspects of running any business, so it’s crucial to work with an experienced GEO having expertise in global payroll.
- A Global Employment Organization (GEO) ensures that the employment contract meets local labor law requirements. A GEO also works with employers to help them understand and comply with employment laws in different countries. The GEO also provides resources and training to employees on their rights and responsibilities under the contract.
- A Global Employment Organization (GEO) provides work permits and visas for employees from other countries. This makes it possible for these workers to come to the employer’s country and work there for a set period.
- A Global Employment Organization(GEO) guides clients on employment law matters such as notice, severance, termination, and statutory benefits.
- Global Employment Organization(GEO) provides communication and coordination between the EOR, client company, and employees through regional account managers, allowing for a more efficient and effective working relationship between all parties involved.
- A Global Employment Organization (GEO) strives to create global pay strategies and structures that are fair and competitive. They consider many factors when setting pay levels, such as internal business needs and market rates. They also examine how local taxes and regulations can impact those rates to create a cohesive global model.
- A Global Employment Organization (GEO) can help align HR programs with global function and business needs
9 Benefits of Using a GEO (Global Professional Employment Organisation) Solution
- Facilitated and unified global mobility administration
- Centralized control over the global workforce
- Enhanced international employee and employer compliance
- Proactive global workforce cost management
- Alignment of global talent with opportunities
- Advice on favorable tax, benefit, and social security locations
- Reduced permanent establishment exposure risk
- Simplified global reward structure and administration
- Multi-location compliance risk management.
Global Employment Cost Assessment
In today’s business world, it’s more important than ever to be mindful of costs when expanding your company internationally. Hiring talent in different countries can be expensive, so you must know each country’s compliance, tax, labor, and immigration requirements. One way to save money when hiring employees or independent contractors is to choose the most cost-effective and business-friendly country. This can help you reduce expenses by up to 50%.
Different countries have different labor laws and benefits, so it’s essential to do your research before making a decision. So why not take advantage of our Global payroll Calculator — the advanced country-by-country employment cost comparison tool? With just a few clicks, you can compare the payroll costs, benefits, employer and employee taxes, and mandatory benefits for 190 countries. The Global Payroll Calculator can make it much easier to find cost-effective locations for your next global expansion move.
The tool considers local taxes, payroll regulations, benefits, compliance requirements, and other labor-related factors that can impact an employer’s budget. By tracking developments in 190 countries worldwide, the research team behind the calculator strives to keep the data up-to-date so businesses can make informed decisions about expanding their operations internationally.
Acumen International, Your Gateway to the Global Talent Market
Acumen International’s mission is to provide services that make the world a smaller place. It aims to help businesses of all sizes in any industry reach international growth and expansion through various services.
Looking to hire employees quickly and efficiently in any of 190 countries? Acumen International can help with our Express Global Employment solution. In just 72 hours, businesses can have their globally distributed employees working for them – perfect for when you need to get things up and running immediately. This solution also comes in handy during mergers and acquisitions, helping transfer and retain key personnel during the transition process.
Comprehensive Global EOR and PEO Service Portfolio of Acumen International
- Preparation of mandatory documents for in-country employment and payroll;
- Compliant client and worker onboarding and offboarding in support of global expansion, remote workforce, or merger & acquisition requirements;
- Audit-proof local labor law compliance;
- Compliant statutory and voluntary employee benefits provision and management for local and expatriate talent, including health insurance, automotive leasing, office equipment, accommodation on-demand, and related technology requirements;
- Coordination of monthly payroll, employee & employer tax payment processing, including year-end tax statements, and consolidated monthly invoicing;
- Compensation management, severance, and employee termination services;
- Immigration requirements processing, rendering work permit sponsorship, visa applications & extensions, and expatriate support;
- Global mobility and relocation services;
- Cloud-based Global Payroll Calculator provides total cost of employment estimates for local talent and expatriate personnel;
- Local market benchmarking services for clients considering market expansion (e.g., salary, bonus, the total cost of hire, etc.);
- Tailored on-demand international recruitment and staffing provided through in-country partners (ICPs).
Hiring needs vary in scope and duration, so the type of employee you choose should be based on your specific needs. PEOs are best for small-scale or short-term hiring, while GEOs are the best choice when you need a larger pool of workers.
Cross-border workers are a crucial part of many international companies. Globalization means organizations have expanded by reaching out to new markets and hiring workers from other countries. That complicates compliance because some organizations employ people in multiple countries and may have employment regulations. Managing these workers can be challenging, but there are ways to make it easier. The three innovative global employment models — GEO, PEO, and EOR can help minimize risk, centralize administration, and streamline operations.
Acumen International Global PEO and EOR solutions can help organizations develop effective global employment programs to ensure compliance with local legislation and provide a comprehensive and cost-effective solution across multiple locations. Acumen International is like a tailor-made suit that fits your business perfectly.