Ask an Expert: Mary Beth Crowley on HR Resources for Global Expansion

An expert conversation on Global EORs

For our first installment of Ask an Expert, we sat down with Mary Beth Crowley, Senior Consultant and International Director at PEO Spectrum, to learn more about the global market for PEOs.    

What exactly is a Global PEO or Global EOR?

Global EORs are the first cousin of the domestic PEO. Most people refer to Global EORs as Global PEOs purely for their similarities. Outside of the US, the domestic PEO relationship doesn't exist, so the Global EOR steps in. A Global EOR provides an HR solution to help companies quickly, efficiently and compliantly hire or bring workers overseas. EOR stands for Employer of Record, and unlike a PEO, the EOR takes on 100% risk for the company in the country of expansion.

How exactly does the EOR help a company save time, and reduce risk when expanding globally?

Global EORs allow companies to onboard employees globally without the need for entity establishment. Global EORs either have their own in-country entity or partner with a third party in-country provider (making them either direct or indirect). The onboarding process is relatively quick, shields companies from potential tax liability, and compliance issues (all countries and regions have their own rules, laws, holidays). Additionally, each EOR has their own HRIS system making tracking time, salaries, and performance reviews that much easier. Among the services they provide are:

• Entity establishment (if a company outgrows an EOR)
• Global payroll services
• International regulatory compliance
• Visa, immigration and work permits
• Independent contractor conversions
• Global employee benefits
• Adhering to local laws and advice on local customs and culture

Why would a company not use an EOR when expanding globally?

If a company is looking to hire a large number of workers in a single country, they can utilize an EOR until their entity is established. On the flip side, if you are only looking to test a new market or work on a short-term project, or you're hiring contractors, an EOR is useful as they have the flexibility to jump on or off an EOR with ease.

Who handles the day to day operations of the employees?

You. The company still manages and has oversight of employees. The workers still report to you and work exclusively for you. The EOR takes care of the back-office HR tasks like payroll, benefits, taxes and compliance, so you can focus on your company goals.

What exactly is PEO Spectrum’s role in helping a company establish itself overseas?

PEO Spectrum provides a free service to help companies find the EOR that works in the countries they need, provides the benefits they want and will work with them to provide the best international experience possible. We use our experience and industry leverage to get you the best price and provide any additional support you need throughout your EOR relationship.