In a world where remote working is at the core of HR and Talent Management strategies and technology keeps us more connected than ever, HR leaders are increasingly turning to outsourcing solutions to simplify global employment and venture into new markets.
So how does employment outsourcing work, and what are the benefits?
Leverage the power of Global PEOs
Working with a professional employer organisation (PEO) like Portas Global means your business has no borders or boundaries, with access to immediate local knowledge, specialised experience and existing HR infrastructure in-market. You can grow your global workforce faster, without needing to create a new company, set up bank accounts, or register for tax or social securities with the local authorities.
Put simply, we do all the heavy lifting post-recruitment, lease the employee back to the company and let you get on with building an effective working relationship with your dream team.
Outsourcing is quicker and more cost effective
HR Managers and business leaders choose to outsource for many reasons, but compliance, cost and timeframe are almost always top of the list. Portas Global Managing Director Carlos Ruiz says speed to market and cost efficiencies are key:
“When we’re already registered as an employer in the country where the client wants to hire, in our experience it’s 90% faster to get a local employee operational with Portas Global than doing it alone. As well as getting staff employed quickly, outsourcing also means bypassing the cost of engaging HR, payroll, legal and accounting resources in a foreign country, and that can be around 60% more cost effective for our clients.”
Compliance and completion
If you’re considering employing staff overseas the list of unknowns can seem endless: how do I pay them, what social insurances do I need, how do employment laws differ?
And that’s where the best HR outsourcing companies shine, drawing on specialist local knowledge to ensure all the right boxes are ticked – data collection is GDPR compliant, employment contracts are robust, the relevant statutory payments and deductions are in place and employees are covered by the appropriate employment insurances.
Portas Global’s Director of Operations, Chris Lincoln, says the old adage of ‘knowledge is power’ rings true.
“Working with a Global PEO partner who understands the local jurisdiction is absolutely crucial to the success of employing people overseas. For example, you might decide to engage an independent contractor who sends an invoice, and that works in some tax jurisdictions but it’s not always compliant and you run the risk of misclassifying a permanent employee. So that’s where we step in – we bridge that gap and employ that person on your behalf.”
Embrace flexibility and opportunity
“Global employment is for anyone with a spirit of adventure, anyone with a vision for opportunity. We call it an agile employment solution,” Carlos Ruiz says.
Employment outsourcing is not just about maximising efficiency and minimising risk, it’s also about the opportunity to move towards a more agile global workforce and utilise compliant local fixed term contracts for greater flexibility.
Businesses are also utilising PEOs to dip a toe in the water and test new markets without setting up shop themselves, and it also allows them to take advantage of the global talent pool to get the best person for the job, regardless of where they live and what time zone they are in.
With a global support and infrastructure network, Portas Global completes the employment lifecycle for companies ready to embrace the opportunities that global outsourcing can provide.
For more information, call or email the Global Solutions team for a discussion about how they can help.
Ph: +44 (0) 115 888 2268