What Is International PEO? Guide for Global Employers
Dubai is undoubtedly one of the largest business centers in the Middle East. Probably, you are looking to access the Dubai market. For this, is important to have a professional recruitment solution (PEO) in English, which means Professional Employer Organization. If your intention is to expand your business into this market, considering a Professional Employer Organization in Dubai can be a defining decision.
In this article, we are going to explain how to determine if a company needs to work with a PEO.
- What is a (PEO) Professional Employer Organization?
- How does a Professional Employer Organization work?
- What are the advantages of having PEO services?
- When to hire an international PEO?
- How can we help you hire an international PEO?
1. What is a (PEO) Professional Employer Organization?
The term Professional Employer Organization (PEO) refers to a local company that hires employees on behalf of their company. It allows companies to create a global work team and hire talent abroad without the need to establish a structure in the foreign country. A PEO is a flexible way for companies to access a new market in record time.
These companies specialize in advising and working with the employers of other companies and provide, due to their knowledge, benefits, and administrative solutions that the managers of the hiring company alone cannot achieve. That said, a Professional Employer Organization in Dubai can directly take on managerial or administrative tasks delegated to it by the parent company.
Consequently, you must own a branch in the UAE. This means that it is best to hire a company that handles all labor and business concepts in this country; be it lawyers, accountants, or human resources specialists, among others. Once this company has done this work, your company will obtain a tax identification and a bank account. So that your company can operate in compliance with current legislation in the UAE.
2. How does a Professional Employer Organization work?
The Professional Employer Organization in Dubai recruits your future talents exclusively on your behalf. It also offers services on administrative procedures and human resources necessary to hire the best employees. This allows the company to concentrate on its main business activity.
These companies must have in-depth knowledge of labor and human resource regulations. This ensures that both the employer and their employees comply with UAE Law.
Professional employer organizations hire remote employees and contractors directly and perform administrative work on human resources; such as payroll, benefits, and essential taxes. And on the other hand, the main company manages these employees on a daily basis.
Under this arrangement, the PEO acts as the legal employer, for tax and insurance purposes, all while handling various administrative and compliance responsibilities. Likewise, the workers will be under the orders of the contracting company.
Having global PEO services in your favor, you will get it to act as the legal employer of your workers. All legal situations in the UAE are handled through the global PEO. This is because the employees are legally the responsibility of the Professional Employer Organization in Dubai but work under the orders of the company hiring the PEO.
Therefore, this is one of the main advantages of applying this strategy. Your company will have a number of talented employees reporting to you. But the job responsibility rests with the Professional Employer Organization in Dubai. Thus, you will not have to worry about dealing with the authorities of this country.
3. What are the advantages of having PEO services?
Having the services of a Professional Employer Organization in Dubai or Professional Employer Organization in the UAE has the following advantages, among others:
3.1 Fast and flexible market entry
Whether the business is simply looking to test the market or is ready for the next step in its expansion, PEO service global offers an easy way to enter and operate in the Dubai market, without making a long-term commitment.
The most important reason why a PEO is an extremely attractive strategy for your business is that it allows you to legally activate your company in a new country more quickly. Carrying out an international expansion alone can take months or years. With the hiring of the services of a PEO this process will be ready in a matter of weeks.
3.2 Full employment
Your contractors, full-time employees, and other professionals are legally recruited by the Professional Employer Organization in Dubai, exclusively on behalf of the hiring company. The hiring company sets the targets and the PEO hires them under their local on-site structure.
3.3 Knowledge of human resources
A Professional Employer Organization in Dubai or a Professional Employer Organization United Arab Emirates has extensive knowledge of the business and human resources landscape. And they are constantly updated with the latest changes in UAE labor law, giving you the security of not being penalized for breaking the law.
Global PEO services guarantee your operations without having to deal with any job risk or liability. In addition, the management of your employee payroll and workforce will comply with all UAE regulations. Working together with this type of company reduces the risk of sanctions for non-compliance with country regulations.
Having a business in the UAE means that you must comply with the laws of this country. One of the most important regulations is the one on the hiring of national workers. And this is where the PEO will help you since obviously, you do not know that qualified people from this country can work in your company.
3.4 Continuous support
Likewise, a Professional Employer Organization in Dubai will act as a true partner and ally and will take care of all the necessary processes so that the expansion of an international company is as fast and successful as possible.
3.5 Talent recruitment
One of the services offered by a PEO in Dubai is the recruitment service. By leaving this in the hands of a PEO, they will be in charge of providing you with the best job talent available. Which will make your company more competitive in this market.
The hiring of new workers is one of the most difficult activities that must be covered at the time of the international expansion of a company. A PEO will help you find the best employees according to the profile of your new branch since PEOs know and apply the best recruitment and selection techniques for international personnel.
3.6 Costs reduction
Having the services of a PEO allows you to reduce the costs of the general administration of a company. Consequently, it can provide more labor benefits to its workers. For their part, these services also offer companies the power to significantly reduce costs by delegating tasks. Since you will not have to have an active human resources department. And will provide you with PEO HR services.
By hiring one of these companies, you will receive all the benefits you expect without the need to hire experts who will charge you expensive fees. This company has a team of experts in each area that your business needs to cover so that the entire international expansion process of your company would be correct.
The cost of hiring this company should be included in the business budget if your desire is to expand internationally. This is a strategy that will deliver economically attractive solutions as it will reduce time, money, and work in important areas of your company.
3.7 The entrepreneur can focus on the core activities of the company
Like any activity that is delegated to another company, one of the main objectives of applying this type of strategy is to leave activities that are not productive for the business in the hands of another company.
4. When to hire an international PEO?
To hire a Professional Employer Organization in Dubai, or a Professional Employer Organization in the UAE it is important that you first know what this commercial relationship entails, in order to determine the scope that the contracting company will have in favor of the contracting company.
Expanding a company internationally is not an easy task. A new country, with different laws, is a challenge that is not easy to overcome alone. This is the goal of PEOs. Help overcome the challenge of settling in a new country. These companies have in-depth knowledge of everything necessary for a company to successfully expand in the UAE. Nothing better than a national company that helps and advises you to successfully access the UAE market.
4.1 Why Hire a Professional Employer Organization in Dubai?
That it is an arduous task to manage everything related to the international expansion of a company. For this reason, these companies seek to unload this responsibility on companies that specialize in the matter; so, that it facilitates the difficult task of commercial expansion to a new country. Therefore, these are some of the main reasons why this strategy is used:
- Being a new country. It is obvious that the employer does not know about the legislation of the destination country.
- The company is looking for offices or physical spaces in the country where it wants to settle.
- The company will require talented workers. This work by decision of the parties in this commercial relationship may agree that the PEO provides specialized workers to work under the orders of the main company.
Each company has its own needs and particularities in relation to international expansion. Therefore, this will determine the level of scope in the performance of the PEO.
4.2 Important considerations in deciding whether to hire a Professional Employer Organization in Dubai
Here are some of the main considerations for any entrepreneur looking to expand their business to Dubai:
- The PEO that you want to hire must have real estate infrastructure and must be established in the market in which your company wants to enter.
- If so agreed by the parties in this commercial relationship, the PEO must use its real estate infrastructure, offices, and commercial premises, among others, to be the legal employer in the agreed location.
- The PEO will hire the personnel required by the main company and in turn, will be its legal employer. In other words, these types of companies offer employer and recruitment services. This is important since a local company is the one that best knows who will be the best talent for an expanding company.
This is a strategy that is undoubtedly very attractive for those companies that wish to enter this new market. And one factor that is perhaps the most attractive is that you should not have a complex real estate, legal, or other structure, since the PEO will do this work for the main company.
5. How can we help you hire an international PEO?
If you want to expand your business, you must have as an ally a company like EOR Middle East, which will work for hand in hand with your company so that it can establish itself in the Dubai market. In the same way, if you want to conquer the Abu Dhabi market, we also offer the service of a Professional Employer Organization in Abu Dhabi.
We understand the complexities that international expansion entails, starting any business in Dubai. This can be an uncomfortable challenge if you are not well-advised regarding the legal and business landscape.
Choosing a suitable partner with in-depth knowledge of these factors like EOR Middle East can make your entry into the Dubai market fast, smooth, and in full compliance with UAE Law. Entrust this important work to EOR Middle East and use our PEO services in Dubai.
If you want to expand your business and want to hire the best PEO services, contact us through: [email protected]. In case you have doubts about our services you can also call us at +971 43 316 688; we have the necessary personnel to clarify all the doubts or requests that you may have.
On the other hand, if you want to find an addecuate job position in the Middle East, send us your CV or resume to thetalentpoint.com. Also, if you want more information about The Talent Point’s services, you can email us at [email protected]. Our recruiters are constantly looking for the best talent and you can be one of them.
