How a PEO partnership can help you achieve successful global expansion

SMEs entering a new market overseas often face a series of HR challenges. Partnering with a PEO can help alleviate some of these issues by offloading time-consuming legal, HR, and tax matters.

This article is brought to you by TG Group.

Many businesses are finding ways to achieve global business growth. For this purpose, companies should collaborate with an external HR partner, such as a Professional Employer Organisation (PEO).

Small and medium-sized enterprises (SMEs) often lack the resources to effectively address legal compliance and HR matters when entering a new market. Therefore, partnering with a PEO (also known as an Employer of Record/EOR) is essential for successful overseas expansion.

Why partner with a PEO?

SMEs entering a new market overseas often face a series of HR challenges. To help alleviate these issues, partnering with a professional firm can help offload time-consuming legal, HR, and tax matters.

The PEO will manage employee payroll, statutory benefits, expenses, and all other aspects of their employment while ensuring compliance with local labour and tax laws. This arrangement allows your organisation to benefit from a global workforce without administrative burdens.

The following are the detailed benefits of leveraging a PEO's capabilities and experience in specific countries:

Building a remote international workforce

Partnering with an EOR is a great way to access a wide talent pool and gain a foothold in a new market without investing a large sum of capital.

The EOR will act as the legal employer of your remote employees, allowing you to manage them on a day-to-day basis while providing them with the same resources and tools, regardless of their location. This is a great option for companies who wish to increase their team’s diversity and expand their presence in a new market.

Reducing costs by reorganising workforce processes

Hiring remote international employees through a PEO can help reduce costs by streamlining workforce processes associated with employee onboarding, benefits, payroll, and compliance.

By leveraging the collective buying power of multiple employers, PEOs can often negotiate more favourable rates and terms with employee benefits providers (insurance firms, etc.) than individual employers can.

Moreover, PEOs can help businesses be more cost-efficient by providing access to employee training and development programmes, which can help reduce turnover and boost productivity. Additionally, PEOs offer risk management services, helping companies identify and address potential liabilities before they become costly.

Staying agile and vigilant in an unfamiliar market

A secondary set of risks will accompany every expansion into a foreign business environment. Unfamiliarity with the local regulations, especially when you do not have local HR resources or expertise, could be troubling and hinder your expansion progress.

With a PEO’s help to manage mundane HR tasks, companies can test new markets before scaling towards an all-out expansion and establishing a local legal entity. It is a simple way to start a team in a new market in the shortest possible time, thus allowing you to focus on core profit-generating activities and reach new heights.

Work with TG Group

TG Group’s expansive global network, featuring strong in-country teams and affiliates in more than 50 markets, makes us an ideal PEO partner. We have a proven track record in solving diverse workforce issues ranging from global recruitment to payroll outsourcing. 

Our CEO, Paul Ng (pictured here), has 30 years of experience in the professional recruitment services industry. He established APBA, a regional HR services firm, in 2012. The firm was later restructured into TG Group.

We have a team of professional HR consultants possessing comprehensive knowledge of requirements across all industries, roles, and levels. Furthermore, the group has established the China Desk, Japan Desk and ASEAN Desk to coordinate our PEO services from enquiry to delivery.

Under Paul’s leadership, TG Group has helped organisations maximise their strengths and reach their full potential through innovative workforce solutions. In 2016, he was inducted into Recruitment International’s Hall of Fame in recognition of his significant contributions to the HR industry in Asia.

TG Group has a successful history of solving diverse HR workforce issues. As a top PEO and Global EOR service provider, we offer a broad suite of solutions that covers everything you need to start your operations overseas.

Our in-country teams and affiliates are well-versed in local labour law regulations across 50+ markets, enabling them to help you mitigate compliance risks for your international business growth.

Contact us at infosales@tg-hr.com to explore how we can be the trusted HR partner for your global expansion plans to succeed. Find out more about our PEO services here: http://www.tg-hr.com.my.

All images / Provided by TG Group