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PEO stands for Professional Employment Organization which is a third-party company contracted to handle payroll & employee-related operation. PEO is a great option for SME and even large enterprises to manage their employment services when entering a new region or country or even if extending the current business.

Constituents of a PEO

Client: Company or business who is not registered locally and want to run business in China.

Employee: An individual or professional that can be hired for a job in China at a foreign company or with the client.

PEO Company: This is the licensed local entity in a country which is authorized to hire employees and manage their payroll for a foreign company or client. The PEO acts as the sole employment service provider for the client and helps in related administrative tasks.

Points to Consider while Choosing a PEO

The first and foremost thing to consider while staffing is to decide on the best possible HR option for your company. If the answer is outsourcing the same to a licensed expert organization, then the below points will help you to choose the correct one.

  1. Meeting the Desired Requirement

Every company has a different mindset and requirement in terms of HR operations but the most important thing is which PEO delivers the desired result.

PEO can add value to your HR operation along with improving the same. Few add-ons that help with that are:

Liaising with local authorities – A good PEO has good liaising with local authorities which smoothens the process of attaining license and maintaining compliance.

Software and Resource – A good PEO must have up-to-date software, right tools and resources to make the payroll process smooth and error-free. Working with a PEO certainly saves on spending money in procuring software and its AMC, staff training and other related expenses.

Business Upscaling – A PEO is of great help when a company plans to expand its business as it provides the right support and balance to the owner without worrying about the growing labour force.

OPOC (One Point Of Contact) – Owner doesn’t have to deal with various authorities related to Employment Law as PEO takes care of it all with dedicated client managers. PEOs like Galaxy Group also helps in payroll services, lodgement services along with Employment services.

  1. Company and PEO’s work culture

It is very important to see that the work culture of a company and PEO matches. Response and Turnaround time by a PEO should match with that of the client. Mode of communication, use of similar and right technology by the PEO are other things to look for. A well-established PEO with proper licensing is to be kept in mind during selection.

  1. The Cost Factor

Each company has its requirement in terms of employment services and hence cost structures varies. It is very important to decide on your company’s HR requirement and then finalizing the best PEO which falls under budget. As a client, it is important to see that the cost structure and unbundled quote is put fairly in front by the PEO.

How can Galaxy Group be the perfect partner?

Galaxy Group has over 20 years of experience across Greater China. Galaxy Group partners with the leading payroll and employment platforms which allows the flexibility to find the best solution for each client across all verticals and can set up specific solutions for all business sizes ranging from small to medium businesses and right up to large enterprises.