Personnel Outsourcing, also called PEO (Professional Employer Organization), allows you to formally hire employees in Peru without having to establish a company. The company acting as PEO will hire employees on your behalf as the “Employer of Record”. It will perform all HR-related tasks such as offer formal work contracts, affiliate the employees with social security, pay their salaries and benefits, terminate their employment etc. This allows you to directly manage your employees and develop your business in a foreign market such as Peru, without the burden of managing a local entity and the challenges of navigating local laws and regulations.
One of the biggest risks when expanding abroad is compliance issues due to a lack of know-how about the specific legal and tax obligations in each country. The PEO will eliminate this risk for you. It has a legal presence in the local market and will hire and pay your employees in compliance with local laws and norms, and thus effectively eliminate your exposure.
The PEO option is ideal for small and medium sized companies who want to become operational fast, focus their resources on their core activities, control their costs, limit their risk, and establish a strong bond with the people they decide to hire. A distinction between PEO and hiring an independent contractor is that top talent will typically expect a salary package that includes benefits, social security, bonuses etc. not offered to independent contractors. Besides acting as PEO, Ongresso can help you put together enticing packages that will get your top candidates’ attention, so you can form the team you need to achieve your goals.
- Stable, formal employment with enticing packages to attract the best talent and build long-term relationships with your employees
- Build your own team quickly and at little or no fixed cost
- Local support from the PEO saves you time by performing HR-related tasks while maintaining your compliance and helping you navigate the intricacies of market
- Limited visibility in the market due to lack of legal entity
- Limited operational options due to lack of legal entity
The descriptions above are summaries of the available options, but it is important to keep in mind that there are countless unique scenarios that could apply to any particular company. Your company structure, strategy, and needs will all affect your market entry plan. By pairing Ongresso services with any of the options above, you can also create hybrid strategies that tailor to your preferences. You can also add additional Ongresso services such as strategic consulting, HR recruiting etc.
As market specialists in Peru we have the expertise to assist you your expansion business efforts based on your unique needs. Deciding on the right market entry strategy is a complex process with many unknowns and inherent risks. Partnering with Ongresso simplifies this process by reducing complexity, saving you countless hours of researching local regulations and norms, and giving you peace of mind so you can focus on your core business. Contact us to determine which strategy is optimal for your business.