The Secret to EU Expansion through PEO

Last updated: 5 April 2024


The average cost savings from using PEO is $1,775 per year per employee. No wonder the PEO industry is experiencing exponential growth. Many other benefits will bring a positive long-term outlook for your business if you decide to take this route: from exposure to foreign investment opportunities, access to more talent, learning about new cultures and markets, to growing their potential for new revenue. If your business's goal is to eventually expand activities overseas, learn how you can do it through PEO. 

When expanding your commercial activities in a new territory, one of the greatest concerns to employers is the risk that comes with employment. Failing to stay compliant with local labour and tax laws comes with huge financial consequences. This is why PEO and EOR services are becoming more common. PEO or Professional Employer Organization enables businesses to expand into international markets quickly, and smoothly while saving money and efforts in recruiting and managing local talents.


How Does PEO Work? 


With PEO services, you can easily hire employees abroad without having or setting up a permanent establishment. It is a cost-effective solution for companies who are hiring foreign employees where someone manages payroll, benefits, and other HR tasks on behalf of the client company. With PEO, you can be sure that your workforce is compensated according to local laws and regulations because PEO service providers have extensive experience in HR, legal, tax, accounting, and all the other administrative tasks that will help your business operate fully compliant.

Some of the tasks your PEO partner will provide you with:

  • Help with hiring and managing talent in a foreign country without setting up an entity.
  • Calculate tax contributions, make direct deposits, deliver payments, and handle all questions related to payroll.
  • Handle all employee benefits that are included in the package. You will get unlimited flexibility when it comes to employee compensation.
  • PEO makes sure that your business is compliant with local laws and regulations.
  • PEO handles workers' compensation, they can take care of performance management, termination pay, FMLA, and other employee requests.


How Can Businesses Benefit from Using a PEO Service?


Nowadays companies are facing a deluge of problems, such as unhappy employees, burnouts, missed deadlines, mistakes, and even legal challenges - that is why many turn to a PEO service partner. But what kind of benefits can it bring?


Faster Business Growth


According to the National Association of Professional Employer Organizations (NAPEO), if you are using PEO services you can help your business grow between 7-9% faster. This becomes possible because business owners can focus on growth activities such as product development, sales, and marketing rather than getting buried in administrative tasks.

Once you find a PEO partner, many growth opportunities will open up for you. Hiring overseas will enable to you meet your new clients in the way they are accustomed. You will have your team in various time zones, speaking different languages, and with various cultural backgrounds. This will show your potential clients and business partners that you respect their traditions, which increases the chance of conversions and stronger partnerships. From a commercial perspective, it helps to break the market faster and establish there permanently.

Also, if you are planning to establish a new department or if your company requires hiring a lot of employees due to increased job volume, through PEO you can do that much faster. Not only that the hiring process will be faster, but thanks to a PEO partner, you can find the right talent for your business. They can also advise you on the average compensation for the position you are looking to fill, as well as the mandatory and cultural benefits per country.


Strategic Focus on Business 

The biggest challenges that businesses are facing is poor marketing, an insufficient business model, budget management issues, and not having the right team in place. All of this results in being outperformed by competitors. Businesses are failing because shareholders don’t have time to focus on strategy and improving their leadership. The NAPEO reports that small businesses are 50% more likely to stay competitive when they work with a PEO. Again, it is because PEOs are helping with time-consuming tasks and the business owners can focus on bigger issues.


Improved HR Infrastructure 



Many small companies tend to fail when they are on the verge of becoming mid-sized. It is because the workforce increases and the business will need more policies and procedures in place to keep everything on track. In-house HR departments usually get overwhelmed with responsibilities such as hiring and onboarding new employees, addressing any red flags, taking care of safety issues, employee complaints, payroll, etc. That’s where a PEO can step in and help you with all the tasks we’ve mentioned above. It is simple - when your business is growing, your HR needs to grow too. Finding the right PEO partner is a great solution for your business to reach its goals and save money at the same time.


Money & Time-Saving Solution


If you were about to hire a full-time HR team, then it is a big endeavour that requires a lot of time and money. Or if you want to hire employees abroad, you would have to register your business in that country. On the other hand, if you have a PEO partner, you can avoid all of this. No need for you to set up an entity because they will take care of that for you. It will save a significant amount of time for your HR department because PEOs can accurately handle payroll calculations, including sick leaves, vacation overtime, etc. And no risk of potential lawsuits.


Who Should Consider Using PEO Services? 


Now the question is - who can benefit the most from using PEO Services? The answer is simple, any company can use a PEO to help with HR, finance, administrative, and legal tasks. Especially companies that are planning expansion. However small and medium-sized businesses will gain the most by working with a PEO because they can focus on managing core business functions while outsourcing administrative burdens.

Many SMEs think that this is a service for big companies, but in reality, it is the perfect solution for them also because it can offer employees many benefits without the company having to deal with HR administration.

If you are noticing some of these challenges, maybe it’s time to contact us and learn more about the PEO Services:

  • You have too much work on your plate, but not enough time or workforce
  • Your HR processes are becoming more complicated and time-consuming
  • Teams are expanding and you require additional oversight
  • You are struggling with cash flow management
  • Team members are not delegating responsibilities effectively
  • You wish to hire overseas, but you don’t want to commit to establishing an entity

How to Find the Right PEO for Your Business 


Not all PEOs are offering the same services or the same quality. That’s why it is essential to understand what you are paying for. Whether you would like to use a software platform that offers only customer support or you would prefer to have an actual team that will be your point of contact for everything and anything, for both you and your employees. If you prefer a boutique HR outsourcing partner, EuroDev is the right choice. We’ve worked with over 500 companies and helped them expand their business to various European countries.


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