For companies looking to directly employ a worker in a different state or foreign country, a Global PEO (Professional Employment Organisation) can prove incredibly useful.

Also known as an EOR (Employer of Record) or GEO (Global Employment Organisation), a Global PEO takes on all the responsibilities and liabilities for issues regarding employment such as payroll, taxes, benefits, compliance and other admin operations.

In effect, they become the registered employer of your workers — although, as the original employer, you still maintain all supervisory and management control.

Why is it something worth paying for?

One of the primary reasons you might choose to use a Global PEO is to overcome the regulatory and cost hurdles associated with employing international workers.

Every country (and some regions or states) has its own employment, payroll and work permit requirements for non-resident companies doing business.

Even for the savviest businesses, the challenge of meeting those rules can be a major obstacle to expansion across international borders.

Although they can hire quality employees almost immediately, a Global PEO is not merely a staffing agency — it is a valuable outsourcing service that enables you to escalate your growth plans quickly.

Partnering with a Global PEO allows you to manage your time more efficiently and effectively, improve cost structures, ensure regulatory compliance for both national and international scenarios and reduce risk.

Man on phone - Engage a Global PEO

Speaking of risk…

Not all Global PEO companies are created equal. When looking for a company to partner with, expertise should always be top of your checklist.

Here are five tangible risks of not engaging an expert in Global PEO:

1. Missing out on top talent

If the onboarding of an employee is not handled correctly and promptly (or you bring an employee on but then mess up their pay), you risk losing them. Or at the very least, you will make the person less productive and give them a poor view of their new employer.

2. Being led by your new employee

Without a country expert guiding your HR team, you could end up with your new employee telling you what to do. Although they may be an honourable individual, they have a vested interest in negotiating their employment contract and working conditions to their advantage. Therefore, you need to know what is a legal requirement or genuine customary norm versus what your new employee might have you believe.

3. Navigating complex local regulations

HR and payroll rules are complicated and differ from one country to the next. If you don’t follow the right process, file the right form or make the right payment, you risk non-compliance, fines and potentially a bad reputation as well.

4. Additional unforeseen costs

If your PEO provider doesn’t have the necessary expertise, that doesn’t mean you no longer need it. However, supplementing substandard PEO advice with legal counsel is not the way to go. Don’t risk getting a second-rate PEO and still having to pay for expensive legal counsel. Instead, hire a comprehensive and expert PEO in the first place.

5. Wasted time

Finding out that you didn’t pick an expert takes time. By then, you will already have spent hours performing your own research, speaking to your network and started the long-winded process of separation from the substandard PEO. If some of the things your potential provider is saying seem contradictory or they need a second opinion, stay clear.

At TopSource Worldwide, we employ a team of talented experts with relevant qualifications and years of experience in helping businesses to expand overseas. We are dedicated to providing them with the latest knowledge and industry thinking — and our exceptional client retention record, a wealth of client testimonials and willing referees are a testament to this.

We are the experts in Global PEO. To find out more about our premium services, get in contact with the team today.

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Published On: March 28th, 2020Last Updated: July 8th, 2022

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About the Author: Sam Barnes

Sam is our Global Business Development Manager for Employer of Record services. For the last 10 years, he has assisted companies in the successful execution of their international expansion plans. Sam tells us “There’s something inherently exciting about growing a business into overseas jurisdictions. Each country does things slightly differently and it’s great to be able to share learnings on statutory requirements and cultural nuances”. Email: