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Employment Legal Business EmploymentPEO stands for “professional employment organization”. These types of professional employer organizations are responsible for providing payroll, benefits, and human resources support to small businesses.
There are many reasons to consider working with a PEO. For example, an optimization of labor costs and the search for talent when we do not find it in our country. Theseorganizations can be a fresh start for some SMEs by attracting new workers and growing the business.
A Professional Employment Organization (PEO) provides Human Resources administration services and administrative assistance. In other words, it is responsible for hiring a workforce on behalf of another company. Their services, while they may vary, are generally payroll processes, recruiting, hiring, benefits administration, and HR solutions. Its objective is to reduce the time to find the required workers and the investment of the organization for which you work to achieve success.
It is common for hiring companies to be start-ups or growing companies in need of administrative support. Although it is also used by companies to hire a sales network or companies in the IT sector that do not find some profiles. So, they choose to hire these professionals in countries where they do not have a company, for example, Java, Android or iOS programmers. This service is also known as personnel outsourcing.
At UR Global, we offer the service of personnel outsourcing or personnel outsourcing in Mexico, Chile, Colombia and Peru. We are aimed at companies that, because they do not have a subsidiary in the country or for tax reasons, wish to have their personnel subcontracted. We do this thanks to the fact that we have a staff of 250 people in Latin America. Our staff provides support at the labor level to all the needs of a company:
Although professional employment organizations are increasingly used, they are not a new business concept, as they have been around for several decades.
The concept of “employee leasing” has been around since the 1960s when Marvin Selter popularized the model by renting employees to a doctor’s office in California.
Although the current concept emerged in the 80s in the United States as entities that provided payroll processing services to companies. Subsequently, HR and employment laws began to be tightened.
These laws generated greater complications and costs in human resources administrations, so outsourcing this function became increasingly common in small and medium-sized companies.
According to statistics, companies that do not have a PEO invest 25% of their time in paperwork related to their employees and have fewer options to find the professionals that their organization requires for its growth. Companies that have used a PEO for at least a year have a 50% better chance of survival. A PEO reduces sick leave, between 10 and 14% less per year.
Professional employment organizations, therefore, have proven to be an effective solution to reduce costs and ensure compliance with labor laws. In fact, there are currently more than 150,000 start-ups and SMEs using a PEO. And its business model will become increasingly important in many companies.
Coemployment is a specific form of PEO offered in some countries. In co-employment, two companies (one of them is usually a PEO) act on an employee, where a tripartite agreement is established in which the three parties agree on their rights and obligations. These two companies are:
At UR Global we will take care of managing the hiring of your employees. And we will share our knowledge of the countries in which we operate: Mexico, Colombia, Peru, Brazil, Chile and Portugal.Don’t wait any longer to make your business a success and contact us.
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