Understanding Your Options for Global Expansion

We are often asked why the PEO model is better than other options for overseas hiring. Wouldn’t it be easier to use a freelance website or an outsourcing company?

Let’s look at why the PEO model may be a better solution for your business and how our onboarding process is different.

Freelance Websites

When you use a platform like Upwork or Toptal, you have instant access to a number of freelance contractors. These freelancers build their reputations through positive reviews so the vetting process is fairly simple.

However, freelancers will have a have a wide portfolio of clients, your business being one of them. They often work during non-traditional hours so you have less control over the process. And if there is a large investment of time to get the freelancer up and running, you may want to consider hiring a full-time employee instead.  

Freelance websites can be useful but the parent company will not have a high level of commitment to helping you find and retain the best talent.

Outsourcing Companies

Some companies will consider outsourcing work through business process outsourcing (BPO). This can allow you to add specific skill sets to your company.

If you use an outsourcing company you will want to ensure that there are no hidden costs. Make sure all of your financial obligations are outlined from the start so there won’t be any surprises down the road.

And it’s important to remember that the employees you are outsourcing work to are that company’s employees, not yours. If the relationship with management becomes strained you could lose those employees overnight.

International PEO/EOR Model

An international PEO will become the employer of record for your overseas employees. They become an extension of your business and are a resource for all employment issues.

A PEO will onboard your employees and create compliant employment contracts. They will also manage payroll and benefits. They assist with HR functions and reduce your liability risk.

But you still retain ultimate control and the employees work for you, not the PEO.

How the Onboarding Process Works

When you use a freelance contractor, you hire someone for individual projects. Many companies begin working with an international freelancer on a trial basis. And occasionally, when the relationship is successful, they decide they want to hire them full-time.

This is where we can help. Here is a closer look at our onboarding process and how it benefits your company:

 

• Hiring: Your company will find and recruit the candidates. Once you are ready to move forward with an offer, we step in. We help with employment contracts, benefits, and any country-specific requirements.

 

 

• Onboarding: We will continue to work with your candidate through the onboarding process. We discuss setting up bank accounts and online dashboards for your employee.

 

 

• Risk reduction: We will navigate payroll, taxes, and compliance. Meanwhile, you now have a global presence and international employees that work for you.

 

Conclusion

Many U.S. companies want to prove their commitment to foreign contractors by welcoming them as full-time members of the team. But paying taxes, providing benefits, and navigating international employment laws can be challenging for a growing business.

Clearfront HR helps you onboard full-time employees without the hassle of setting up a foreign entity. To learn more about our services, contact us to request a free demo. We will walk you through our services and help you develop a global expansion plan for your business.