What is a global employer?
A global employer is an organization that operates and works with employees in many different countries across the world. Companies are increasingly tapping into the global talent pool and hiring workers internationally rather than solely seeking workers in the country they’re based in. Those companies can incorporate in every country where their international hires reside, or use global employer services instead.
What is a global employer organization?
Global employment organizations (GEOs), also called global employment companies, offer international employment services to other companies. Companies can use the GEO to hire workers based anywhere in the world without setting up entities in those places. That way, they can build a global workforce faster and more affordably. GEOs offer a range of HR and employment services, including onboarding, benefits management, payroll, and compliance.
Global professional employer organization (PEO) vs. global employment platform (GEP)
Under the umbrella of global employers, companies have several options. The first is working with a global professional employer organization. A global professional employer organization (PEO) is an organization that offers employment services and acts as the legal employer of a company’s international workers. Since the global PEO officially employs those global employees, the company doesn’t have to worry about compliance issues or other HR headaches associated with hiring workers in other countries.
The main alternative to working with a global PEO is using a global employment platform (GEP). A global employment platform is a cloud-based software solution that supports companies through international hiring and employment. Companies can quickly build and scale a global team using features built into these platforms. The experts at the GEP manage areas like employer tax obligations and compliance with labor laws so the hiring company can focus on building its workforce.
What are the benefits of using a global employer?
Better talent acquisition
Sometimes the best person for the job isn’t in the country where a company currently operates. By working with a global employer, companies can seamlessly expand their talent pools to include workers from many other countries.
Expanding globally offers companies many new opportunities, but it can also create many new compliance headaches. Global employers take on the responsibility of handling these compliance issues for the companies. With their expert local knowledge, global employers can help companies ensure that they’re complying with all relevant laws and regulations wherever they hire employees.
Onboarding is often challenging, and that’s especially true with international hires. Global employers make it easier to adapt the onboarding process according to local needs and onboard global talent faster.
Ongoing HR support
Even after the company hires and onboards its international workforce, the global employer will still be there to help with ongoing HR responsibilities, like payroll. For companies with HR teams struggling to keep up with the current workload, this additional HR support can be a huge relief.
Cost and time savings
Compared to setting up an entity, using a global employer to hire international workers is generally much more cost-effective. The time it takes to hire and onboard a new international worker is also considerably faster with a global employer.
Choosing a global employer makes it possible to expand your global team quickly and efficiently. These organizations break down barriers to global hiring so you can bring on international workers without the legal and administrative hassle.
How to choose the right global employer
To find the right global employment solution for your business, consider factors like:
- Location: Does the global employer operate in the countries you’re interested in? Some global employers operate in more countries than others, and you’ll need to find one that offers global employer services in the right places.
- Competitive pricing: Working with a global employer is often a worthwhile investment, but you don’t want to overpay for those services. Keep an eye out for transparent pricing that includes all the costs you’ll have to pay your global employer. Clear pricing quotes will help you compare options and choose the best one.
- Strong reviews: Your global employer will be a key partner for your company, so it’s vital to choose one with strong reviews. You don’t want to work with a global employer with whom other teams have had bad experiences, as you’ll likely run into the same problems.
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