A business is like a prized possession, so it’s quite understandable when business owners are reluctant to outsource vital tasks like HR and payroll. However, hiring a Canadian PEO can drastically change the way you utilize resources and increasing company efficiency as a result.
A PEO, or Professional Employer Organization, is equivalent to an Employer of Record, or EOR, and can complete payroll tasks, administrative tasks, and HR work on behalf of your company.
A Canadian PEO is versatile and can benefit your company in different ways, depending on the situation. American companies expanding into the Canadian market can use a PEO to understand Canadian laws and policies regarding payroll and legal business practices. Other foreign companies can use a PEO for the same reasons, while also altering business practices to fit the Canadian market and culture.
Even Canadian businesses can benefit from outsourcing to a PEO by alleviating themselves from the burden of navigating the Canadian payroll system.
Of course, not every successful company uses a PEO, so how do you know yours should? Fortunately, there are a few key determinants that can help you identify whether a PEO partnership can be used to your benefit.
Are You Entering the Canadian Market?
Expanding into a new market is not easy. Like any country, Canada has very specific laws and regulations regarding payroll, employee rights, and workplace maintenance. Yes, you can learn how to avoid common payroll mistakes, manage Canadian employees, and adapt to Canadian law, but a PEO could accomplish these tasks without the additional time needed to learn the system.
Are You Onboarding Staff Remotely?
Onboarding is a very important part of the hiring process and can set a precedence for the workplace culture. It is possible to successfully onboard employees remotely, but it’s definitely easier to hand off the process to a PEO. It takes the task off your company’s hands and provides that in-person touch to your onboarding process.
Are You Already Outsourcing?
If you are already outsourcing for payroll, why not outsource to a PEO instead? Your payroll can continue to be outsourced while giving you the additional benefits of outsourcing additional duties, such as admin work and HR duties.
How Is the Current Workload Distribution Looking?
This is perhaps the most common reason a company outsources any service: There is not enough staff to handle the workload. When you outsource, you are guaranteed to be working with well-versed professionals who will give your Canadian payroll and HR duties the attention and detail they deserve. Most importantly, you will be reducing your staff’s stress levels.
Could Current Procedures Be Improved?
Sure, your company may be succeeding without outsourcing so far. But that doesn’t mean things can’t be improved. What may appear to be the occasional payroll error may turn out to be a systematically recurring issue. A good Canadian PEO can help you assess past operations and improve their efficiency and effectiveness.
Considering Upgrading Your Tech?
PEOs often own the latest in payroll and HR software. If you think your own software could use an upgrade, hiring a PEO may be a better option. You would have access to superior technology with the added bonus of utilizing all a PEO has to offer.
It’s important to be aware of your options and understand how a PEO works. Whether hiring a Canadian PEO is right or wrong for your company, you’re already a step ahead of the competition simply by being informed.