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Employer of Record

Benefits of PEO for global expansion

The process is usually exciting but challenging when an organization plans to expand or build a team in a new country. Expansion into new countries involves several daunting activities such as payroll management, hiring and onboarding talent, compliance with country-specific employment laws and regulations, and so on.

To ease the challenging and time-consuming processes of expansion or to build a team in a new country, partnering with a PEO is the solution.

A PEO, Professional Employer Organization, is also known as a co-employer. It is an entity that provides organizations with all they need to expand internationally. A PEO offers cost-effective solutions to employment challenges in the new expansion country. By providing tailor-made solutions, PEO simplifies the processes of hiring, onboarding, and complying with employment laws and regulations.

This article will highlight the benefits of PEO for your global expansion and how it can work for you.

What does a global PEO do?

While a global PEO primarily enables organizations to hire and onboard talent globally, the value of a global PEO is seen in its ability to provide other essential services such as:

Payroll duties

Global PEOs help organizations with payroll processing and management. The PEOs enable the organization to make payments to employees in their preferred currencies and help file taxes.

Manage benefits

Managing and administering benefits are core organizational activities. However, due to the complexities of managing a global team, organizations usually find it overwhelming to provide the right benefits to their employees distributed globally. Global PEOs help organizations appropriately manage and provide benefits to employees of their client organizations.

Mitigate risks

Managing a global organization comes with several risks and complexities. A global PEO helps organizations mitigate risks such as filing and reporting tax records, employing foreigners and making payments according to the country’s payroll laws.

Benefits of using a global PEO

According to the National Association of Professional Employer Organizations (NAPEO), Global PEOs provide services to over 170,000 small and mid-sized businesses, hiring over 4 million employees. For organizations planning to expand internationally, a global PEO offers several benefits for organizations. These benefits include:

Building a team without a subsidiary

Expansion into new markets is challenging and time-consuming. Establishing a subsidiary is tedious for many organizations and requires a lengthy government approval process. However, with a global PEO, organizations can expand and build a team in any country without setting up a subsidiary or an entity. The global PEO acts as a co-employer and enables organizations to hire and remain compliant with country-specific employment laws.

Effective payroll management

Managing payroll is challenging, especially when dealing with a globally distributed team. Poor payroll management results in unfavorable outcomes for the organization, such as fines, dissatisfaction with team members, and a drop in productivity. While payroll management is a complex process, partnering with a global PEO simplifies the complex problems of managing payroll for a global team. The global PEO enables organizations to make accurate and timely payments to employees and contractors, manage payroll, and help administer payroll benefits and tax filing.

Local laws compliance

Every country has unique employment laws and regulations that every organization operating in their market must comply with. For global organizations, dealing with the compliance of numerous countries can be overwhelming and seemingly impossible. However, a global PEO helps organizations stay compliant with country-specific employment laws and tax regulations with no hassle.

Save time, money, and resources

Expanding or establishing a subsidiary in a new country is time-consuming, expensive, and requires a lot of resources. These resources and money-intensive factors include getting a physical location, hiring a team, and administering benefits. However, with a global PEO, organizations can carry out business operations without setting up an entity or dealing with the most challenging functions.


A global PEO offers several benefits for companies planning to expand or build a team in a new market. A Global PEO becomes a better option when organizations consider the money and resources required to set up entities or subsidiaries. Also, global PEOs like Skuad provide an insulating layer of legal processes that ensures global companies encounter no challenges in their employment plans as they build a global team.

Skuad enables organizations to hire contractors and full-time employees in over 160 countries without setting up a subsidiary as a global PEO platform. Skuad’s global employment and payroll platform also enables talent onboarding and payroll management and ensures total compliance with country-specific employment laws.

To know more about Skuad, book a demo today.



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Skuad PTE Ltd

Skuad PTE Ltd