Best PEO Service Providers in India in 2022

Roshni Tamta Roshni Tamta
Jan 14, 2022 6 min read
Best PEO Service Providers in India in 2022

PEO Service has been around for a while, but many people aren't sure what it stands for, what its benefits are, or how it works. However, in recent years, several different PEO Service Providers have expanded their reach, contacting and delivering useful services to a large number of firms in India.

However, before we can take advantage of PEO Service Providers, we must first grasp what PEO is and how its business model works. We will explain PEO, how it works, and some of the best PEO Service providers in India in this article.

What is a Professional Employer Organization (PEO)?
How does The PEO Model Work?
What does Professional Employer Organization (PEO) do for Business?
Advantages of PEO
Disadvantages of PEO
Best PEO Service Providers in India

  1. New Horizons Global Partners
  2. Sky Executive
  3. GlobalPEO
  4. Husys

Conclusion
FAQs

What is a Professional Employer Organization (PEO)?

It can be thought of as a type of employment lease in which firms hire individuals for brief projects to help them with specific assignments. "PEOs enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers' compensation," as per the National Association of Professional Employer Organizations (NAPEO).

PEOs were initially introduced in the United States of America in response to a dearth of qualified employees for small businesses, which was causing them to lose ground to larger corporations. To address this problem, they would hire workers through a process called co-employment. As a result, local businesses thrived and profited greatly, and the PEO concept drew a large number of people and became quite popular.

What is Professional Employer Organization?

How does The PEO Model Work?

The PEO model is based on the concept of co-employment and places a weight on job performance. A PEO develops a co-employment relationship with its customers to transfer corporate obligations such as workers' compensation, wages, tax forms, perks, PTO management, and other administration costs. This essentially implies that the company (the client) will hire people (employees) from a PEO company (the employer) to help with specific tasks.

To execute fundamental duties, the three sections collaborate and use the PEO's assets. Technology, systems, and linkages are examples of assets. The three sections are interdependent and influenced by one another. By working with PEO providers, companies may focus on expanding other areas of the organization while the PEO handles all of the administrative and staffing requirements.

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What does Professional Employer Organization (PEO) do for Business?

Knowing that the PEO is handling all of the employee management and administrative needs, one can focus on their goals and build their firm with ease. Following are some major functions of a PEO-

1. Paychecks and tax preparation- Salary processing is handled by PEOs, who can also pay local, state, and federal hiring taxes in some situations. Many even combine salary and timesheets, reducing data input duplication and mistakes.

2. Regulations- PEOs often have regulatory professionals on staff that can assist you in avoiding huge fines. Tax rate law and reporting requirements, insurance schemes, workers' insurance, recruiting and HR regulation may all be areas of competence for them.

3. Risks and security- Safety audits and skills training are occasionally provided by PEOs. Investigations by the Occupational Safety and Health Administration (OSHA) may also require their assistance.

4. Assistance with human resources- In many circumstances, a PEO has Human resource professionals on staff who can assist with HR issues. If a business has such an in-house Human resource representative, the PEO will collaborate with them on a tactical and operational level.

5. Management of talent- Recruitment and targeted employment, staff training and participation, and reward systems are all services provided by some PEOs.

Advantages of PEO

Following are some of the major advantages of using a PEO.

  • Saves money- When a business is using PEO services, it is saving money and other assets as it doesn’t have to hire a different team for hiring employees, taking care of their needs, and maintaining the work. The PEO does this for the business, hence saving money, time, and effort.
  • Saves time- By taking care of all the employees work, all the administrative work, and documentation, PEO saves time for the company, and that time can be used for different needs, thus helping in expanding the business.
  • Better employment process- PEOs manage most of the human resource management work, allowing companies to concentrate on brand and personnel management to enhance the quality of work life.
  • Improved employee perks- Benefits packages, such as health, are frequently negotiated by PEOs.
  • Efficient procedures- Organizations should expect more efficient administration and HR procedures when they use PEOs.

Disadvantages of PEO

Following are some disadvantages of PEO services.

  • Loss of command- Command over certain procedures in one business can be compromised due to an outer company’s influence on the staff and the working culture.
  • Loss of inner HR management- Businesses' HR departments suffer a loss of importance when they hire PEOs. This could cause issues after the PEO is no longer associated.
  • Loss of privacy of paperwork- There is a loss of privacy when it comes to employee papers. Employers who use PEOs are usually required to provide the majority of company worker documentation. This could raise security vulnerabilities.

Best PEO Service Providers in India

Without sufficient help from local specialists, doing operations in India might be difficult. Businesses thinking about expanding into India might consider working with a Professional Employer Organization (PEO) to make recruiting, supervising, and dismissing employees in India easier. Following are some major PEO service providers in India.

New Horizons Global Partners

New Horizons - Best PEO Service Providers in India
New Horizons - Best PEO Service Providers in India

New Horizons is a world-renowned PEO that can also fulfil the demand in India as a PEO. New Horizons can help a business enter the Indian market quickly, hire employees or groups on its account, and handle all bureaucratic and regulatory difficulties.

Sky Executive

Sky Executive - Best PEO Service Providers in India
Sky Executive - Best PEO Service Providers in India

Sky Executive has ample experience assisting overseas businesses with their expansion into India. Sky Executive, based in Pune, India, assists businesses in establishing operations in the country. It enables businesses to transfer divisions, products, or activities to a qualified and experienced workforce in India and reap the benefits of huge cost savings. Sky Executive provides its services such as office setup, hiring new employees, payment and corporate taxation.

GlobalPEO

Global PEO - Best PEO Service Providers in India
Global PEO - Best PEO Service Providers in India

Global PEO is a dependable PEO offering service in India. It is a significant organization with a worldwide impact. Developing a Local freelancer into a worker, establishing legal ways of exporting jobs, and offering intermediate recruiting options while establishing a company in India are all typical circumstances that Global PEO tackles.

Husys

HUSYS - Best PEO Service Providers in India
HUSYS - Best PEO Service Providers in India

Husys claims to offer the greatest experience and authentic HR services to employees in accordance with Indian labour laws. Husys' highly qualified experts will look after the personnel, as well as any documentation and risks.

Conclusion

PEOs can be of significant assistance and benefit to a company's growth, particularly if the company is small and needs to acquire competent personnel while saving time and money in order to expand. It is up to the client and their type of business, as well as their plans for expansion. There are numerous options and PEOs available to assist them in reaching their objectives.

FAQs

Why is PEO important?

New enterprises can use PEOs to increase sales and efficiency, emphasize on its main objective, and expand.

Who employs the services of a professional employer organization (PEO)?

Several organizations use PEO services. Some of them are:

  • Accountancy companies
  • High-tech corporations
  • Local businesses

What does a PEO charge?

PEO rates vary, but they are normally calculated depending on the amount of workers you have and the services you need. PEO costs are estimated to be around 2-12 % of earnings, according to industry analysts.

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