Questions to Ask When Selecting a Global PEO Provider

Updated on
July 4, 2023
Author
Brett Ungashick
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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Are there reserve / deposit costs that need to be withdrawn from our account at any given time?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?