Evaluating New Global Expansion Opportunities by Establishing a PEO | reesmarxGLOBAL
Picture of Ericha Hartz

Ericha Hartz

Share this blog post:

Evaluating New Global Expansion Opportunities by Establishing a PEO

Small businesses and start-up enterprises need the talent to grow.   Launching a product or a service that is in demand is only the first part of the success equation.  The next step is to manage the myriad of operational and administrative requirements that come with hiring a team to scale your business.

Recruiting for SMBs is always a challenge.  Qualified candidates tend to migrate to large corporations.  There is a perception (which is not always accurate) that enterprise level employers provide more career and advancement opportunities.  When in fact, joining a small business on a growth trajectory can also provide tremendous professional growth.

The one area where corporations have a competitive advantage is offering benefits and employee assistance programs.  The human resource supports and perks made available to employees through a group benefits program.  It is a business size advantage, and economies of scale make it more affordable for large businesses to offer the kind of incentives that draw talent.

A Professional Employer Organization (PEO) is a service and tool that small businesses can use to compete with larger corporations.  However, many businesses do not know about the competitive (and affordable) option.

What is a PEO?

A Professional Employer Organization is a method of providing corporate-level services for small businesses.   Providers of PEO services help small businesses access benefits, advanced human resource functions, and other employee-related functions on a larger scale. 

One of the best ways to visualize a professional PEO service provider is someone who is hands-on with the administrative aspects of your business. This can include hiring and recruitment and management of payroll taxes, corporate taxes, health, and disability insurance, and much more.

The PEO provider can also manage key issues of human resource and legal compliance including:

  • Reporting on new hires or projecting the need for new personnel.
  • Liability Insurance
  • Unemployment Insurance Filings
  • Processing requests for stimulus or government funds or unique financial and lending opportunities available for small businesses

With all the administrative services managed by the Professional Employer Organization, business owners can gain more freedom and time to focus on production workflows and sales and distribution growth.

In the United States, the Internal Revenue Service began issuing Certified Professional Employer Organization designations for PEO providers that must complete a certification process to receive the designation.  It is also a stamp of approval and compliance for international small businesses that wish to expand into the United States, utilizing a PEO.

Why Do Businesses Set Up a PEO in a New International Location?

The process of co-employment allows businesses to rapidly enter new markets when the PEO has registered legal status as a business entity in that country.  For instance, if your organization wanted to expand from the United States to Singapore, it could take a year or longer before you were issued a business license. 

The problem is that many businesses who want to launch a new global expansion, do not want to wait for every permit that pertains to labor laws and a myriad of other certifications that are required.  In addition, a business would have to become fluent in regulatory compliance for that country.  For labor laws, sick leave, vacation policies, tax, and benefits processing, and more.

A PEO provider has already registered and successfully operated within the country. That means they do not have to go through all those regulatory steps.  A business can identify the country that they would like to expand to, find a PEO provider, and start doing business in that country  Test the success of a soft operational launch, before committing more time and resources to scale in a new country.

Our Business Solutions Support Small Businesses Who Want to Execute a Global Expansion Strategy

For more than twenty years, reesmarx has been a provider of a comprehensive recruitment and human resource services for businesses.  In every emerging and major business market, our team has local knowledge that provides our clients with a competitive edge.

Through our Partnership Network, reesmarx provides Professional Employer Organization (PEO) services for small and mid-level enterprises. Contact our team to discuss your global expansion strategy, and to learn more about the human resource management, payroll administration, and recruitment services we can provide in thirty countries.

Thank you for reading!
If you enjoyed the post, feel free to share it with your network:

Related Resources

Contact Us

Ready to watch your business grow?

We are always open to new inquiries regarding how we can help your business reach success through global recruitment, expansion, and growth-centered initiatives.

If you have any questions concerning what we do here at reesmarx or if you’re ready to make the next step and take your business to the next level, please contact us using the form.