Questions to Ask When Selecting a Global PEO Provider

As you look to hire talent internationally, a global PEO can make the hiring process painless. But finding the right provider isn't easy. Here's the questions you should ask to find the right fit

Brett Ungashick
OutSail HRIS Advisor
July 4, 2023
user comparing HRIS systems

The global PEO, or global employer of record, space has exploded in popularity in the last five years.

Due to new communication tools and a tight labor market, companies are willing to hire talent wherever they can find it. However, selecting the right partner for your global hiring is not an easy task.

The market is crowded and it's a new purchase for many. Here's what you should want to learn in your evaluations:

Reach

First and foremost, you want to understand if this potential provider can offer EOR services in the countries that you operate in. You also want to understand if the EOR service they are providing in that country is provided by the company themselves or through one of their partners.

Questions:

Can you serve as the EOR in all of the countries that operate in today?

Is the entity in each of those countries fully owned by your firm, or do you partner with 3rd party entities in some regions? If partners are utilized, please specify in which countries that is the case.

Do you provide dedicated account support in all of the regions / time zones that we operate in?

Costs

Next you want to better understand their pricing model and how the services will be charged. Global PEO services are a huge time and cost saver for businesses but there are some premium priced providers in the market.

Questions:

What is your standard pricing model (% of salary, flat fee, etc.)?

Are there additional set-up, platform or maintenance fees that aren’t included in that total?

Are there reserve / deposit costs that need to be withdrawn from our account at any given time?

Technology

A key offering from any global PEO provider is the proprietary technology that they offer their clients. This technology is often utilized by companies to track employee, make payments and onboard employees. Global employees will use it to see their pay, submit time & expenses and enroll in benefits.

Questions:

Does your company provide an HRIS / payroll platform to streamline our employee management?

Which modules are included in that platform (onboarding, payroll, time, HR/compliance, performance, recruiting, etc.)?

How does your company integrate with leading US-based HRIS systems?

Support & Tax Services

Another key component of your selection will be understanding the legal, compliance and customer support services that your potential vendor will provide. You need to know that your future partner will keep you compliant and above board in every region, so make sure you get a clear picture of who is responsible for what activities and if the vendor is delivering those services themselves or through partners.

Questions:

What is your implementation and customer support model for clients?

Do you provide global advisory services to help with local laws, taxes and compliance?

Can your technology support both contractors and full-time employees?

Will you help our team establish entities in regions where our operations are more stable?

Do you have offices around the globe to support our non-US workforce?

Other Questions

How long have you been in the global PEO space?

Is there a company size or industry that you specialize in?

Do you let clients stick with some of their current in-country providers, or are clients expected to migrateall international payroll operations to your platform?

Is your system SOC II or ISO certified? Is your company GDPR compliant? Please provide documentation

What are the main reasons that a customer would choose your company over the competition?

What are some reasons that a client might not be a good fit for your organization?

FAQs
1. What is a Global PEO?

A Global PEO, or Global Professional Employer Organization, is a company that provides international employment solutions by serving as the employer of record (EOR) for businesses hiring employees abroad. They handle payroll, compliance, and other HR functions, allowing companies to expand their workforce globally without the need for establishing legal entities in each country.

2. Why should I consider using a Global PEO?

Utilizing a Global PEO can streamline the process of hiring international employees by handling legal, tax, and compliance requirements. It allows businesses to quickly and efficiently onboard employees in different countries while minimizing risks and administrative burdens associated with global expansion.

3. How do I know if a Global PEO can serve my company's needs?

Before selecting a Global PEO, it's essential to assess your company's specific needs and requirements for international expansion. Consider factors such as the countries where you plan to hire employees, the size of your workforce, your budget, and the level of support and services you require from a PEO provider.

4. What countries does the Global PEO operate in?

It's crucial to determine whether the Global PEO can provide employer of record services in the countries where you plan to hire employees. Ask about their global reach and whether they have entities or partnerships in place to support international hiring in your target regions.

5. How does pricing work for Global PEO services?

Pricing models for Global PEO services can vary, including percentage-based fees, flat fees, or a combination of both. Inquire about the provider's pricing structure and any additional fees for setup, platform usage, or ongoing maintenance. Ensure transparency regarding costs to avoid unexpected expenses.

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Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.

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