Legal, admin, payroll, benefits, insurance, and HR - these are diverse
teams that come with their own set of rules, regulations, and complexities. The
complexity is compounded significantly when you are a business operating in
multiple geographies, including India.
A PEO (Professional
Employer Organisation) can help startups overcome this hurdle.
What is a
PEO/EOR service?
A professional employer organization in India (EOR) is a service provider that takes over the administration and management of the core HR activities of the client. A PEO enables the startup to focus on its core competencies.
Since most startups don't have a dedicated HR or payroll team, they may find it difficult to handle their day-to-day processes. A PEO can help them in that regard.
In simple words, by hiring a PEO, you can offload your HR and payroll headaches and instead focus on what you do best - take your company to the next level of growth.
Why
should you consider a PEO for your organization?
Your business needs your attention on multiple fronts. These various departments need your attention (all at the same time). You may want to set up in-house teams to take care of HR, payroll, and legal. But will this step start delivering value from day one?
The answer is no!
You need to put a lot of effort and time into building such teams from the grounds up. Be it talent sourcing or onboarding, or managing their payroll and benefits, it is impossible to focus on so many areas, especially when your attention should be on strengthening business fundamentals and serving clients better value.
With a PEO, there's no need for businesses to set up separate entities for payroll, recruitment, and benefits management. A PEO takes care of these functions. This way, they save you money and cut down on the hassle factor. You can also choose to outsource one or more of these functions separately.
Benefits of a PEO/EOR for startups
[1] Better potential to attract top-tier talent
The EOR services help arrange office infrastructure and devise benefits like insurance with payroll. This aspect makes your organization attractive to the top talent in its industry. As a result, you can meet your talent sourcing goals faster and acquire better quality candidates who would have otherwise approached your competitors.
[2] Accelerates business growth
A startup, in many ways, is like a baby. It needs constant and deeper attention from the founders. In such a scenario, you cannot dedicate time and focus to ancillary functions like HR, payroll, legal, and admin.
However, the fact is that these parts, too, need to operate seamlessly to help your startup grow.
If you hire an EOR/PEO expert, you can fast-track the company's growth with the EOR contract. This is because you free up time to scale the business rather than running after HR, payroll, and legal compliance.
[3] Improves focus on business and growth
The India employer of record allows you to focus more on business development and strategic growth. As a startup, you are highly focused on product development, building brand awareness, generating leads, and scaling the business.
This is why it is important for you to partner with a team of experts in EOR contract. They can take care of administrative costs, payroll management, recruitment costs, etc. As a result, your startup does not have any distractions.
[4] They have local market knowledge
The local market knowledge of an EOR/PEO can help your startup create an instant understanding of its market and meet your competitors. You need a specialized workforce for specific tasks, one that is better suited to those tasks than you are.
This is where an expert in EOR services will come in handy with their competencies in HR, payroll, and legal needs. Right from negotiating lease rates with the landlord to arranging for office infrastructure, they will do it all.
[5] They help ensure compliance always
In many countries, there are strict laws and regulations on employment and payroll issues. If you want your startup to stay in the game, you need to follow all the rules and regulations. If not, you're out of business.
An India employer of record knows how to handle these requirements and make sure that your startup is always compliant with all the laws in place. You need a company that can do this for you, especially given that startups do not have the resources to get this done internally within their organizations.
To conclude
These were some ways in which EOR/PEO offers incredible value add to your company. You can free up your time from the distractions of legal compliance, HR, and payroll. This is because you now have experts from professional employer organizations in India looking into this for you.