Do PEOs Save International Companies Time And Effort?

As a company that’s considering entering another country’s market, such as the People’s Republic of China, it requires enormous effort to get started. The amount of work involved in understanding what’s required to form a legal entity, hire local employees, create legal contracts, and navigate the local, regional, and national cultural differences are often immense.

One option is a PEO – a professional employer organization – that removes much of the heavy lifting involved and allows a business to begin trading in China in less time.

What Sort of Tasks Do PEOs Undertake?

The PEO co-partners with a business to handle various tasks that your company would otherwise need to manage alone.

Here are a few examples:

Contract Labor

Hiring local staff to work in an office in China is near impossible to do from a distance. It requires a detailed understanding of the local market and culture around employment. Plus, accessing a talented pool of potential employees isn’t something easily achieved as a foreigner.

Payroll and Tax Management

The payroll management for employees in China is managed locally to ensure there are no difficulties with employees being paid promptly.

The PEO acts as a co-employer along with their client as the other co-employer. Also, the necessary taxes payable by the company and/or on behalf of the employees to the relevant tax authorities are taken care of too.

Liability Issues

Liability concerns from employee actions can form part of a broad PEO agreement as well.

Visa and Immigration

Relevant paperwork relating to visas and to cover immigration issues allowing a person to work within the Chinese border can be organized. This allows foreign executives to visit China to oversee progress and be allowed to work within the business while onshore.

How Do PEOs Save a Business Time?

Whether working with a PEO or a China EOR, which performs a slightly different role by being the sole Employer of Record, there are many benefits to it, including time saving.

Finding local representatives to perform all the various support functions that a PEO does would require considerable time.

Not every rep would be an ideal choice, sometimes requiring their replacement and starting the process over. This trial and error in a foreign country like China consumes precious time that could otherwise be used to get the operation up and running.

It’s worth it to consider New Horizons Global Partners as a reliable PEO and EOR because of their extensive experience and professionalism. With a network of global offices in the U.S., Europe, and across China, the company is perfectly positioned to support any expansion plans.

Can a Business Move Forward into Asia without a PEO or EOR?

Yes, it can. However, the reality is that entering any new country while dealing with a different language, customs, and unfamiliar business practices is fraught with difficulty.

The process will slow the company down enormously. Even if you find a handful of local representatives, getting them to work together will likely be arduous and lead to much confusion. It’s going to be far smoother to partner up with a PEO that’s already geared up to step into the roles required.

Ultimately, working with a PEO will speed up the entry into a new market. And for most businesses, this is their highest priority.

© New To HR