Confused Between Choosing PEO and EOR? – All companies aspire to grow and develop quickly. With more new business competitors expanding globally each year, more businesses are also realizing that the complexity involved in expansion.

Many of these companies are unprepared for the labor management and HR costs associated with expansion. Some companies are overwhelmed by very important HR tasks such as payroll handling, accounting, taxation, candidate search, screening/selection, legal compliance issues that apply in each country, and others.

In addition, companies expanding into Indonesia from outside the country can benefit from payroll solutions, outsourcing, such as: PEO & EOR. Knowing and understanding PEO & EOR, can help you avoid confusion and give you better input and understanding.

Below, we will explain the pros and cons of PEO & EOR.

Companies that have difficulty managing HR tasks and costs can partner with a Professional Employer Organization (PEO) or Employer of Record (EOR). which one is better for you?

What is Professional Employer Organization (PEO)?

Professional Employer Organization (PEO), providing employee management solutions and administrative assistance. In short, the PEO acts as the legal employer of the workforce, on behalf of the client company. While the services offered by PEOs may vary between providers, services often include payroll processing, recruitment, benefits management, and HR solutions.

What is Employer of Record (EOR)?

Employer of Record (EOR) also known as International PEO is a global employment solution where a third party provider employs your employees in your name. The EOR Provider becomes a legitimate and responsible employer for all work relationships, work benefits and HR. The final client company only manages day-to-day responsibilities.

Advantages of Using PEO & EOR Services

Choosing PEO & EOR is important or depends on your needs. PEO & EOR as a job management service offers several benefits.

As a startup, PEO & EOR can gather employees from several companies both Big, Medium and Small, taking advantage of economies of scale to offer excellent and affordable services in payroll/HR Management etc.

Below are the advantages of using POE & EOR services:

Minimize Risk

Setting up an entity or branch in a new location can be a very risky move. With PEO & EOR, businesses can run without making big commitments.

Enter the Market Quickly

Lack of paperwork and bureaucracy can reduce the time it takes to do business and enter the market.

Trusted Compliance

Professional PEO/EOR will ensure you fully comply with the applicable laws and regulations in the country with the correct and appropriate payroll, tax, social security & health system and deductions.

Eliminating Potential Lawsuits

Employers should know their obligations with respect to work. If they are not checked, one small mistake can result in a lawsuit.

Work-related lawsuits such as termination of employment (PHK) or discrimination.

Weakness of PEO & EOR

1. The influence of outside companies on your culture.
2. Reduced value of the internal HR department.
3. Loss of institutional knowledge.

Difference Between PEO & EOR

Some of the services offered by PEO & EOR service companies overlap, the two clearly have differences in terms of partnership models. For details, please see the link https://indoservice.co.id/the-differences-between-peo-and-eor/

Things to Consider when Choosing PEO & EOR

There are several important things to consider when choosing the right Global PEO & EOR to help your business expand overseas:

Reputation

Reputation or an image that is in someone’s mind. Reputation can turn bad or negative, if later it turns out that it is not supported by actual abilities or circumstances. It is important to find a PEO & EOR/ Partner service provider company with a good reputation and good and reliable.

Efficiency

The way to achieve an optimal goal (fast and precise) and as desired, by minimizing the resources expended. The resources in question are energy, money, and time. Use it to avoid wastage. Working efficiently is working with appropriate resources.

Due Diligence

Conduct an investigation of data or facts from company records against something that has the potential to be profitable (profit) and grow (growth). Don’t just choose the cheapest option, make sure that the PEO & EOR service provider you choose has a business license and can keep proper records of all employees to be hired on behalf of your company.

Conclusion

Before choosing between PEO or EOR, you should analyze their specific needs to determine which of the two is best suited to meet their needs.

By using a PEO/EOR provider that has payroll services. Automate you not to do the usual things, i.e: process the payroll accounting of your employees which is usually done by HR.

Indoservice is a modern employment agency and payroll company, and therefore we offer PEO/EOR services under our company, if you are ready to hire an employee, but not ready for the legal hassle that comes with it. Our professional staff and payroll services can help.

Contact us at email: admin@indoservice.co.id and Telp./Whatsapp +62877-1449-8500 for more information and special offers.