Tech companies that choose to hire remote employees across the globe have a variety of options — to hire with the help of an employer of record (EOR), create a local entity, hire independent contractors, or hire with the help of a Professional Employer Organization (PEO) — each with its own pros and cons.
Hiring remote employees via a professional employer organization is a popular option for many tech companies that want to add global talent to their teams. These organizations function as a co-employer with the ability to handle payroll, employee benefits, training, and compliance with local employment laws to allow you to focus more on business operations.
Truss provides global hiring, payroll, and employer of record services for tech companies that hope to hire in Central Asia and Eastern Europe. With knowledge and experience in finding, recruiting, hiring, and managing remote tech employees in emerging markets, we are here to help answer your questions about PEOs and we want to highlight the common difficulties when hiring through a PEO.
Contact Truss for more information about our global hiring services!
READ MORE: Common Difficulties of Hiring Through an EOR
What Are the Challenges of Hiring with a PEO?
No matter how you decide to hire remote employees for your tech company, you will be faced with challenges that impact your business operations. Professional employer organizations are no different and before you decide to hire with a PEO, it is important that you know and understand the challenges that you may face when you choose a PEO provider. Armed with this knowledge, you can better prepare for potential outcomes when you hire abroad.
1. Lack of Flexibility
Many professional employment organizations provide HR support and employee benefits that include health insurance, retirement plans, and more via their own partners and providers, which restricts your options when providing benefits for remote employees. This lack of flexibility can create challenges for your company and your remote workforce.
2. Lack of Compliance Support
When you hire abroad, it is important to follow the local employment laws in that country or risk legal and financial penalties. Remote employment methods like an employer of record take on the responsibility of compliance support and protect your company from legal repercussions. PEOs provide an element of support that can help your company remain compliant, but it isn’t a guarantee.
3. Not Cost Effective
Hiring via a PEO may not be the most cost effective way to find, recruit, hire, and manage remote employees in a different country. When you choose to hire with a PEO, the costs are most often based on the number of employees and their HR services that you use. With this method, recruiting, HR, and management costs can add up to a significant amount.
4. No Control Over HR Processes
When you hire remote employees, it is important to maintain a degree of control over your team. With a PEO provider, you may sacrifice control over payroll and employee benefits. Remote employees are subject to the HR providers employed by the PEO and with that process in place, you may not have the ability to resolve employee benefits issues at your level.
READ MORE: How To Hire Foreign Workers Without an Entity
Why Choose Truss and an EOR for Remote Hiring
If you and your company hope to add remote tech talent to your team, a professional employment organization is a valid option — but is it the best one? We believe that it is important that you understand your options and we have highlighted the common difficulties of hiring through a PEO and hope that it has answered your questions.
Hiring with an employer of record may be the right method for you and your company. Truss is a premier employer of record provider in Central Asia and Eastern Europe and we are here to help you find, recruit, hire, onboard, and manage top-tier tech talent. When you partner with an EOR, the provider takes on the responsibility of compliance to protect your interests, provides flexible hiring options, manages payroll, and provides employee benefits based on your company needs.
Contact Truss today to find out how our employer of record services can help you find the right people to fit your global team!
