During the time of pandemic and even after it settled down, business owners have been seen addressing their business strategies towards cost reduction. One of the common methods used by businesses in UAE for reducing cost is outsourcing payroll services. Through Payroll outsourcing services companies in UAE have successfully matched their forecasted growth even during the pandemic. In addition to this, EOR and PEO companies have also contributed through their services to businesses expand globally.
In this blog we will learn in detail what EOR and PEO companies are and how do they help businesses to grow.
What do we mean by EOR and PEO?
EOR(Employer of Record )
EOR or Employer of Record is a third party employer that appoints and manages the staff and handles legal affairs on behalf of your company in a new country. When a company decides to extend its existence to a new country, it is best for it to partner with an Employer of Record. The EOR does not only help businesses in creating a talented portfolio of human resources but also makes sure that all the legal matters relevant to your business are well compliant and taken care of. Precisely, EOR acts as a legal employer on behalf of the company in the country you wish to expand your business in.
PEO(Professional Employer Organization )
PEO or Professional Employer Organization is also referred as PEO Payroll company sometimes as it is a third party company that co-works with your company taking responsibility of payroll services and benefits of the staff on behalf of the company.
Read also: The Difference between EOR and PEO Companies
How do an EOR company and PEO Payroll Company help businesses?
As mentioned earlier, partnering with an EOR company is the perfect and cost effective channel for global business expansion. Businesses while deciding to enter a new market or country must learn the benefits of PEO and EOR companies to save time and money.
Here are some benefits that businesses experience through EOR and PEO companies:
- Minimization of Risk
- Fast Entry in the Market
- Legal Compliance
- Negotiation for potential Lawsuits
- Payroll Assistance
- Employee Benefits
Minimization of Risk
Expanding your business in a new country is actually a very big and risky decision. If your business does not align well with the new market it may lead to huge loss and even withdrawal from the country causing serious financial damage. Partnering with a PEO or EOR can help you with testing waters before making a financial move.
Fast Entry in the Market
As a business owner you must value time as money. An EOR and PEO potentially save your business a lot of time and effort by skipping the part where you have to set up an entity yourself before entering the market. Through availing services from a reputed EOR and PEO your business can reduce the time of months or years to few weeks for setting up an entity.
There are many crucial matters to look into when you decide to expand your business in anew country. One of these crucial matters is the local labor laws and other legal economic regulations. A professional EOR company will assure that all laws and regulations are abided by your company on your behalf. Every country has different kinds of taxation and employment laws for which an EOR company will guide you accordingly preventing your business from hefty penalties in case of any non-compliance.
Assistance in Employment Lawsuits
As an employer it is mandatory to learn about your liabilities especially when entering in a new country. A tiny mistake such as wrong termination or discrimination by the employer may also result in a lawsuit leaving your reputation devastated. For this scenario, EOR and PEOs protect your business by handling employment related lawsuits.
Payroll outsourcing services give businesses a big time relief. PEOs along with payroll services also offer benefits to your employees helping you in retaining them while you focus on your business growth strategies.
PEOs and EOR companies act as a legal employer for your company’s staff on your behalf. They hire and manage the employees for your business along with providing those perks and benefits such as pension and wage bonuses. This allows companies to retain the best talent for longer.
How does Payroll Middle East help your business to grow?
Are you thinking about business expansion in Dubai? We at Payroll Middle East offer a wide range of services to businesses for catering global expansion. From acquisition of trade licenses to HR outsourcing and payroll outsourcing services, we cover everything in UAE. Our alliances with legal and government authorities enable businesses in UAE to run their business without worries smoothly through channeled procedures. We have partnered as an EOR company for many businesses in the past making a great deal of clientele. If you wish to partner with us for your business expansion, call us today and book a free consultation session.
Read also: Top Benefits of Outsourcing Payroll and Benefits Administration in UAE