By Nicole SahinSeptember 2017
Reading Time: 4 minutes
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…And how it mitigates your risk in any country.
The Global Professional Employer Organization (PEO) model is fairly new. And, let’s face facts, it’s come under a little scrutiny – in fact, our clients often exclaim that “it can’t be that easy!” But they are also pleasantly surprised when it is.
Some lawyers and tax advisors have questioned whether the business model is an appropriate model for global expansion, while others, including the best legal brand names in the world, continuously send us clients, and indeed, helped us lay the foundation of our business in 170 countries around the globe.
Having built this industry from the ground up and carefully evaluated the legal underpinnings in each country, I fully believe in the Global PEO model. I’ve also seen it work first hand all over the world, and watched as it helped our clients expand globally in ways they would not previously considered.
Since I founded Globalization Partners in 2012, we’ve helped countless companies go global through the Global PEO model. The benefits of the model are fantastic: it enables companies to expand in days instead of months, with little or no risk and without the significant advanced planning required with more traditional models of global expansion.
I know it can work for you and your business, no matter the industry, no matter the need. But, you don’t have to believe me. Read on for why I believe that the Global PEO model is the model that will help companies capture global markets faster and more easily in the 21st century.
A good Global PEO makes sure you’re protected
OK, assuming you’re now up to speed, you know that when you choose a Global PEO, you are essentially choosing to outsource your global legal and HR infrastructure to a third party. Because this is so important, you really, really need to trust that third party.
While your Global PEO does not shield you from all risk, the company should assure you that they’ll comply with the HR laws in each country where they hire people for you, because if they don’t, it is essentially YOUR risk. It’s also your responsibility to make sure that data compliance and other rules are followed. So, you need a company that can help you meet the needs of U.S. laws as well as meeting the needs of laws in 170 countries.
This is why a good global partner should contractually cover you, and it should make sure you know that it is their responsibility to follow all of the laws in country.
A little scary? Sure. But this is exactly what Globalization Partners does, and why we engage an exceptional legal team in the U.S. and in each country where we do business. We view our Global PEO platform as a legal overlay to the complexities of figuring out how to establish and manage HR issues in each country – so our clients don’t have to. In other words, we assume the risk while you manage your workforce.
My belief is that this model and approach to coverage is necessary because the model helps U.S. companies expand internationally quickly, easily and at relatively low cost—thoroughly mitigating a client’s headache and heartache—compared to setting up subsidiaries and figuring out laws all over the globe.
A Global PEO is a two-way street
When setting up this business, I assumed clients might only use the model for short periods of time. However, after having peeled back the onion in countries around the globe over the last 5-plus years of building this business, I am confident that this model of doing business is the new norm in the future for companies hiring a few employees in any given location.
That said, this business is incredibly complex from a legal standpoint. As such, some local companies that offer services similar to ours tend to cut corners when offering services in another country. I see a huge amount of risk in this, and wanted to ensure that our business is legally sound, everywhere we take our clients.
This is why we have built out our own infrastructure globally, and we thoroughly vet our partners; we need them to rise to the level of our very high standards. Globalization Partners is here for the long haul; we do not cut corners on our (or your) risk compliance.
We understand that you’re entrusting a massive amount of capital—payroll, personnel, tax, legal, and data compliance—to us. You can’t afford to get in business with a fly-by-night operation. Which is why we are proud to say 75 percent of the professionals on our payroll are working under our own legally recognized business entities in countries around the world. Where we work via third parties and sub-contract services, we carefully vet our partners. If we aren’t certain they run their business well, we don’t offer services via them or in that country.
We will also tell you if we think there is an issue, and we aren’t afraid to refuse business that is unwise for us or for our clients.
In other words: We know your aim is to be in business long term. So is ours.
Through the Global PEO model, everyone can win
I know that slow onboarding can lead to lost time and productivity. Inevitably, that means dollars are being spent with no guarantee of a return on that investment.
This is why Globalization Partners’ culture rests on a foundation of integrity, service, and compliance. To us, there is nothing more important than getting your professionals onboarded quickly—as we navigate the HR, legal, and tax-related hurdles so you don’t have to. The sooner you can get professionals in country, working legally, the sooner your company can see a return.
At its highest level, our business can be considered quite simple. We view our Global PEO platform as a legal overlay to the complexities of figuring out how to establish and manage companies—and their people— in each country. Yes, there are legal conundrums, financial hurdles, and compliance mandates, but leave that to us to figure out. As we like to say around here, “The obstacle is the path.” If you can find the right person in another country to work with, we want to ensure you can hire them.
So, yes, the Global PEO model may be somewhat new, but as companies increasingly look beyond their own backyards to conduct business, the model will become increasingly necessary—and we’ve been seeing the signs of success at every turn.
Ultimately, if we succeed in helping you get to where your business needs to go—everyone wins.