You have arrived at the right place if you want to know about the PEO pros and cons. PEO or professional employer organization has become essential rather than a luxury for big, medium, and small companies. Because of its many pros enable the management to focus more on improving their business rather than complying with many regulatory complexities. Also, as per NAPEO or the National Association of professional employer organization 2019 study, there is an ROI of 27.2% for every employee using PEO. Hence, despite a few cons of using PEO, it is growing fast in India because of many of its pros.
Hence, check out the need for the best PEO service in India and its pros and cons.
What is the need for PEO service in India?
India is undoubtedly the world’s knowledge capital and has huge human resources with various skills to do many jobs. It is becoming an economic superpower and is also the biggest market for an international company. But it has many old labor laws that are complex for having proper compliance. And even the amended laws over the years have many complications that make it challenging to comply with them. Especially international companies and startups coming to India need the help of the best PEO service in India. Hence, you need to know the PEO pros and cons to use them accordingly to leverage its massive human resources talent pool.
Pros of PEO service in India
- According to NAPEO, there is a 14 percent lower employee turnover and higher employees satisfaction by using PEO.
- They provide easy access to cost-effective but high-quality health insurance that is normally unavailable for mid to small company employees.
- Their experience help to minimize commissions of insurance plans and maximize their efficiency for employees to benefit more from retaining them for a long period
- An in-depth understanding of the job market makes job recruitment easier, and professionals hire the best talent right for the job.
- Help to comply with the changing compliance of the many regulations that can be challenging and overwhelming for companies to do it themselves or even pay penalties.
- Ensures payment of taxes on time to avoid any fines and also keeps track of the changing rules as per the commodities and other factors
- Enables on-time payment to employees to not make them suffer because of delay due to any reasons
- It is better than HR outsourcing as it costs more to use employees from them rather than selecting the best with PEO help to utilize the talent at affordable costs.
- Reduce risk and increase the safety of employees by conducting many training programs and safety audits periodically to reduce claims
Cons of PEO service India
One of the major cons of PEO service India is the worry for many companies in handing over the precious assets of employees to a third party. But compared to the above pros, among others, it isn’t very important.
The above PEO pros and cons will help you hire the best PEO service in India for fast and safe growth.