What is an International PEO? Guide for Global Businesses -

What is an International PEO?

International PEO is an employment service that helps companies with the compliant hiring of international candidates from anywhere in the globe without setting up a legal entity in that country of the candidate. It saves companies from HR and legal hassles involved in the recruitment and maintenance of international candidates. An International PEO manages complex processes like international payroll, onboarding and offboarding of the candidates, dealing with conflicting local labor laws of the hiring country, employee engagement and employee retention, and many other related operations. The HR tasks can often be finicky especially when a business is dealing with international candidates and employers have to be particularly expert in handling individual HR issues all by themselves.

Employers may find themselves in the middle of nowhere with this humongous responsibility and miss out on stellar candidates. Fortunately enough, there is an employment model (International Professional Employer Organization) at hand whose expertise will not only eradicate this operational conundrum but also make these tasks rudimentary in the global expansion process of a company’s workforce.

This legal employer for a company’s global workforce along with all the compliance and administrative heavy lifting, comes in handy to manage the employee benefits, contracts, and taxes at a very cost-effective budget. The International PEO employment service is however frequently confused with other interconnected employment services such as global PEO, domestic PEO, and global employer of record (EOR).

While each of these services is responsible for hiring and managing an organization’s workforce, there is a thin line between these three-letter employment acronyms and the terms and conditions for the individual models vary greatly from one another.