Insights into global expansion & employee retention

Published: May 31, 2022

What Is a Global Employment Organization (GEO)?

By 2025, it’s estimated that over half of all Fortune 500 companies will have employees in emerging markets. If you want to join their ranks, you’ll quickly discover that hiring remote employees from other countries may involve many legal implications.
Common HR Compliance Mistake

So if you are lost on how to pay international employees, Luckily, there’s an easy solution: global employment organizations (GEOs). GEOs are third-party companies that serve as the global employer of record (EOR) on multinational companies’ behalf. GEOs also provide comprehensive HR administration and payroll support. 

As such, partnering with a GEO can help you expand your business globally and acquire top-notch talent. Below, we’ll explain how GEOs work and discuss their many benefits. 

Why Would a Business Use a GEO?

Businesses use GEOs when they want to expand their workforces globally and enter foreign markets without the headaches and hassles of:

By delegating these tasks to a GEO, you can stay focused on your core business operations. 

You can also enjoy the peace of mind of knowing that your overseas compliance and HR administration are being taken care of behind the scenes. 

How Do GEOs Work?

GEOs function as the EOR for their client companies. As the EOR, GEOs take on full legal responsibility for their client companies’ foreign workforce. 

In addition to offering EOR services, GEOs can provide invaluable human resource administrative support. Some of the tasks fulfilled by a GEO include:

  • Ensuring compliance with local entity labor laws
  • Managing payroll taxes and insurance
  • Filing payroll
  • Developing employee contracts
  • Arranging employee benefits
  • Recruiting and hiring new employees
  • Managing foreign employees’ work permits and visa requests
  • Transferring money between countries

While partnering with a GEO lets you outsource a lot of complex work, you still get to maintain management over your foreign employees. For example, you get to determine their job descriptions, daily work schedules, compensation and terms of employment.

The Benefits of Using a GEO

If you want to expand your business globally, partnering with a GEO offers a wide range of benefits, such as:

  • No local incorporation requirement – Registering your business in a foreign country can be a lengthy and complicated process. You can skip it altogether by partnering with a GEO. Since the GEO serves as the EOR for your foreign employees, it eliminates the need for you to register your business in every country you work in.

If you decide that you want to set up foreign subsidiaries in the future, your GEO can help you every step of the way. GEOs often facilitate the following tasks:

  • Opening local corporate bank accounts
  • Registering with the local tax authorities
  • Acquiring relevant certifications
  • Maintaining corporate records
  • Expedited entrance into foreign markets – By removing the need to incorporate abroad, you can infiltrate new markets swiftly at strategic times. Being the first in your industry to enter an emerging market can give you a competitive advantage. If you have to wait around for your foreign incorporation to complete, you could lose out on this opportunity.
  • Top-notch international recruitment – GEOs often have access to valuable international recruitment networks. By working with a GEO, you can acquire and onboard top talent from around the world. For example, you may be able to recruit people who are multilingual or possess specialized knowledge about your target market overseas.
  • Payroll compliance – Once your foreign employees are hired, your GEO can manage their automated payroll and benefits to ensure that everything is in compliance. In turn, you can relax, knowing that your employees’ income, withholdings and contributions are being carried out properly.
  • Streamlined HR administration – Many HR administration activities are subject to local laws. Since GEOs are familiar with these laws, they can manage work permits, benefits, insurance and tax calculations on your behalf. GEOs can also oversee termination proceedings, severance arrangements and employee renewals, mitigating your in-house HR department’s workload.
  • Scalability – By taking all of this work off your plate, GEOs help you to scale your business much faster than you could on your own.
  • Reduced liability – As the EOR, the GEO assumes all liability for any breaches of contract or local labor laws. In turn, you’ll remain unscathed if your GEO makes a legal misstep.
  • International expansion strategy – Since GEOs understand the employment landscape overseas, they can direct your expansion efforts so you only enter emerging markets that suit your business goals. 

Playroll: Grow Your Global Workforce Today

As you can see, GEOs have a lot to offer. If you want to enjoy the many benefits that come from partnering with a GEO, work alongside the experts at Playroll.

At Playroll, we provide global payroll solutions and employer of record services to make your expansion initiatives a breeze. Discover how our payroll management system can help your business conquer the world today.

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