What is PEO in India, and why should you use one?

India is a Growing Economic Super Power including a knowledge capital for the world. India has many complex Labour Laws which are age old and also lot of them are updated with few more complexities. Having to understand all the complexities and adherence will be a nightmare for a Company from anywhere in the world. Its also a complex issue for many companies within India as well. Professional Employer Organisation (PEO) or Employer of Records (EoR) is a way to leverage India Talent.

A Professional Employer Organization (PEO) is one of the best starting point for many successful Startup, Small & Growing businesses. Essentially, the PEO service provider in India handle all your HR needs, including Employee On-boarding, Payroll & Administration, Tax Deductions & Filing, Employee Health Insurance and statutory benefits and compliance like any other Large organisations. Unlike in other western markets,few of companies offer many more support Services on request to ensure you don't have to worry about anything required. In India they can even help you in other business supports including Recruiting, Employee Assets, Office Space, Visa for Travel etc., A True one stop shop of PEO.

All you're left to do is supervise and promote (or fire) your employees as needed. Rest everything is taken care by your PEO Provider. Here are some of the positives you may get help from

• PEOs manage thousands of employees and can therefore get the power of purchase in bringing the best price for insurance and benefit plans. This saves significantly to the you as Business. This allows you to offer higher-quality plans to attract and retain skilled employees. Of-course, not to loosing to large entities.
• PEO is a better solution than outsourcing, where usually the cost of employee is quoted more than 5 times by the outsourcing companies. Means you can hire better resources, pay them more and retain long-term. Average employee on rolls with the company may go beyond 3-4 years when the company decides to setup their entity in India.
• Experienced professionals in HR, Benefits, Payroll, Taxation and other aspects of employee administration are on the job. Want to know everything about Statotory compliance in India and long-term benefits for employees? The India PEO can answer and execute. No need for you to figure it out yourself.
• The PEO will provide HR guidelines for your employees, and the policies and procedures will be maintained in compliance with ever-changing Indian Labour laws and regulations.
• You may get a specialist HR Person from PEO to help you manage HR Management if required while the employees are PEO Rolls.
• A PEO will help with employment-related regulatory compliance, a huge advantage that can be worth more to your business than the money saved on benefits & administration costs.
• The Indian PEO can provide effective management and access online with a self-service portal or an HRMS tool. Which can address Employee Records, Pay sheets, Leave tracking, Tax deductions, Time accounts (where required) and a complete track of the employees without having to invest separately.
• If you ever wanted to take any action on employees for any disciplinary issues, the PEO would advise you the best process and they are expert in understanding the Indian context and also the statutory framework.
• The PEO may also help you calculate your overall cost of operations to establish such service in India. Which definitely would be lot less compared to hire in your own country.

Normally the savings on group health and benefit plans alone will more or less outweigh the cost of hiring a PEO to manage these jobs. A great peace of Mind that PEO offers to the Small enterprise who needs to stay focused on Growing Business.

A startup in India : means a fresh startup by an Indian Entrepreneur or Any company from across the globe wants to setup an operation. That means they need to focus on establishing their business and grow the strength to service their clients and not bothered by the Complex Indian statutory compliance and building long-term liabilities by not following from day-one.

Take example of one of our client, when they wanted to tap on the resources of India, they had no idea of the skills or compliance. We helped them to understand the landscape of people and the compliance's. It makes the life easy for the company to take the key decisions what matters most to their success only. Rest is taken care by us in India where we are experts.

The most important bit of advice when it comes to hiring a PEO in India:

• Look at the Experience & Organisational Credentials of previous experience & Ability.
• Do your own due diligence.
• Look for a PEO provider who's compliance standards are 100% - both for people compliance and as a company. Its important as a company they must be 100% compliant.
• A PEO who are transparent and Ethical company.
• Look for a PEO who is available to your timezone at-least half the work time. This helps to resolve any issues seamlessly.
• Make sure that you reconcile the accounts from time to time.

In the next Post, we shall discuss more on each of the statutory compliance, applicability, benefits for employees...

About Husys : Husys Consulting Limited is India's First HR listed Entity on National Stock Exchange, EMERGE platform. Husys has an impeccable track record of 17+ years in helping 1700 companies in 15 different domains. Husys Provides the highest level of statutory compliance in managing people in India. Helps you to "own your source" by being an "employer of records" than just "Outsource". Husys also helps in incubation including identifying the location for employees to work anywhere in the country. Helps also to build your entity in India and help manage your People support.