Aug 4, 2020 8 min read

International PEO solutions to start global business without a local entity

An Employer of Record to take care of your international HRM

Employer of Record services (EOR) enable companies to grow their international presence without setting up local legal entities. An Employer of Record – also known as an international professional employment organization (PEO) – is a human resource outsourcing services provider that employs staff on behalf of their clients. Employer of Record or PEO services providers do not only provide a local legal entity for employment purposes, but they also act as your outsourced HR team. They can manage the full employment life-cycle, from hire to retire, on your behalf, while you retain full operational control over the day-to-day activities of your staff. Employer of Record services can be flexible in their scope and coverage, which is also a reason for the international Employer of Record services being referred to by different names including Global Employment Organization (GEO) Services – focusing on the global or international Employer of Record services; Professional Employer Organization (PEO) Services – delivering both domestic and international employment solutions involving permanent and contract staff; Administrative Services Only (ASO) Services – focusing on providing HR outsourcing services, while the client retains the formal employment relationship with employees; and Umbrella or Contingent Labor Services – delivering mostly contracted resources, rather than permanent staff.

International PEO solutions for quick and cost-effective global expansion

EOR solution is a cost-efficient and quicker approach for expanding your international coverage. It does not require companies to go through lengthy and expensive processes of incorporating local entities, putting in place time-consuming governance structures, stretching internal resources to develop local know-how, and implementing costly local HR, payroll, and accounting systems. PEO GEO services also provide a flexible and scalable platform for exploring new markets or adding human resources anywhere in the world in a matter of days, all this without making significant investments and financial commitments. PEO services perfectly match the new realities of doing business worldwide, which requires companies to stay agile and move with market demands, customer expectations, and availability of global talent. International companies no longer operate in a world that is bound by a single market, stable demand, or an unlimited supply of qualified staff. Successful companies must be able to quickly engage with clients and employees anywhere in the world and do this with speed. Precisely, the Mercans international PEO solutions help companies to accomplish this. It takes only a few days, from the moment clients engage Mercans until they can employ staff in the target markets, rent offices, invoice locally, and deliver services. Not only can all this be accomplished exceptionally quickly, but it is also a very cost-effective approach, costing a fraction of the fees involved in establishing a local legal entity.

The global PEO services of an EOR allow hassle-free international growth

International PEO companies, like Mercans, ensure your complete in-country compliance by leveraging their in-country experts. The Mercans PEO GEO solutions can also be tailored to meet your needs and objectives, regardless of the industry and size of your organization or the country where you need Mercans’ support. Unlike other international PEO providers, our service offering is fully-customizable – ranging from recruitment and immigration assistance to full in-country logistics and supply-chain support. Mercans provides the broadest range of professional human resources outsourcing services to clients, including recruitment, payroll processing, and tax & legal compliance in countries where others are reluctant to venture, including in the majority of countries in the Middle East, Africa, Asia, Latin America, Europe, and the Asia-Pacific (APAC).

Global employment outsourcing (GEO) allows successful international expansion

Administrative complexities and compliance burdens are the primary reasons for companies shying away from entering new markets. It is a preconceived notion that local corporate presence must always be established through a local legal entity directly controlled by the company. This is no longer the case. Local legal presence has become a “Pay-for-Performance” model, and clients can decide what type of a local presence and services they wish to establish and use. This makes global PEO services a cost-effective and straightforward process that enables clients to optimize their investments and focus on their core business. One of the most tangible benefits of using a global employment outsourcing services provider (GEO), like Mercans, is the freedom to engage employees and global talent anywhere in the world without any administrative headaches. This has become even more relevant in the post-COVID-19 world, where employees are either unwilling or unable to relocate to another country. GEO and Employer of Record services provide a perfect solution for overcoming this challenge. It takes only a few days to recruit and onboard a digital nomad in any country of the world, without ever leaving your office or having to worry about the compliance, HR, and payroll tax requirements in the new frontier.

Risk mitigation is one of the numerous benefits of hiring an international PEO

A professional employment organization ensures that its clients comply with local legal requirements fully and that all potential risks are eliminated. There is no need to appoint directors, auditors, and tax advisors in new locations for ensuring that the company complies with local legal requirements. A multi-country employment outsourcing service provider with no intermediaries or third-party operators, Mercans is an industry-recognized full-service global organization focusing exclusively on your human capital management and assuming the risks associated with maintaining a workforce. As a dedicated PEO, we are your single point of contact. The value of our PEO GEO model lies not only in cost-effectiveness but also in risk mitigation, data security, and quality control. As an experienced multi-country Employer of Record, Mercans manages all the complexities related to your global expansion with an emphasis on local compliance. For example, our local compliance teams include in-country tax and labor law specialists who have years of experience in working with the local labor and tax offices.

Ensure that global employment outsourcing comes with added value

Many international PEO solution providers in the market claim that they can facilitate hiring local employees; however, they will fall short in being able to deliver their services on time, in compliance with local laws and securely. Mercans’ GEO, PEO, and Employer of Record services address all these shortcomings and deliver even more. Our PEO services offering provides you access to the most sophisticated recruitment, onboarding, HR and payroll software and tools in the GEO and PEO industry. Mesaar™, Mercans’ proprietary Applicant Tracking Software (ATS), can be included in the Mercans global employer-of-record services. The SaaS suite enables you to identify, screen, assess, and onboard your international employees by leveraging cutting-edge recruitment tools, including AI-based screening, online video interviews, and thousands of batteries of language, job skills, and psychometric assessments. Our award-winning Global Payroll Suite, HR Blizz™, provides you and your employees with an exceptional user-experience for managing employee data, requests, leaves, expenses, timesheets, and much more, all through a single cloud-based Global Payroll & HRM Saas Suite. Our compliance and immigration specialists ensure that your expatriate employees and their families complete their immigration processes smoothly and do not have to worry about their home and host country taxes while they are on an assignment.

International payroll management and global PEO solutions

As an international Employer of Record provider, Mercans’ international PEO services include managing all aspects of your global payroll function. We set up and run the payroll calculations for your employees, make the appropriate deductions for social security contributions, and coordinating final payments at dismissals. Mercans PEO services also include leave management, benefits administration, expense management, timekeeping, insurances, and all other international payroll related activities. Your employees and managers will have access to a user-friendly online Employee Self Service portal, which enables them to process and approve all payroll-related requests online from anywhere in the world.

Going beyond GEO with a global mobility specialist like Mercans

Mercans’ local presence ensures that we have relationships with local government entities. Our clients can recruit top international talent, and the Mercans teams guarantee their seamless onboarding process. We create tailor-made employment contracts that comply with local labor laws and are approved by the authorities. Ultimately, we can also provide legal services locally. These services may involve IP protection, advice on investments, or legal advice when making banking and finance decisions. We can recommend the best insurance programs, including the best level of coverage, costs, and deductibles. If required, we set up and administer a private retirement, savings, or stock option plans for your employees, all in compliance with the local laws.

International PEO supported by native solutions and the latest technology

Our global payroll SaaS suite, HR Blizz™, makes it easier to manage payroll, track employee time, track deductions, simplify the workers’ compensation payments, and access payroll information. Additionally, we have other tools to help keep track of employment, documentation, and benefits. As a tech-savvy employer of record, Mercans allows clients to improve their internal performance, increase profitability, and create better work environments abroad while facilitating faster international expansion and improving retention rates. We can offer better benefits to employees, including better healthcare and pensions. Our clients can operate in new markets in just days thanks to our immigration services, and visa formalities are simplified. Our contract provisions are tested to ensure that labor contracts meet the country-specific labor laws and employment best practices. Finally, having in-country teams ensures a very accurate knowledge of local laws and employment requirements. So, if you plan to do business abroad, hire international workers, and expand globally, contact us now.

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