A Global Employment Organization (GEO) is a service that allows companies to hire talent globally without the need to establish a local entity in each new country. It acts as a legal Employer of Record (EOR), handling various employer responsibilities.
As an EOR, a GEO takes care of administration, global payroll, taxes, and ensures compliance with local labor laws, while the client company retains control over the core business activities and day-to-day management of the workers.
What Does a GEO do?
- Compliance with Local Laws: Ensures adherence to local employment laws, including labor laws and regulations.
- Tax and Insurance Management: Manages tax administration and insurance requirements.
- Payroll and Employment Contracts: Handles payroll obligations in the host country and creates employment contracts in line with local laws.
- Employee Benefits: Provides and manages employee benefits.
- Hiring and Onboarding: Assists in the hiring and onboarding process of new employees.
- International Money Transfer: Facilitates money transfers between the home state and foreign countries.
- Work Permits and Visas: Processes work permits and visa requests for international employees, if necessary.
Benefits of Using GEO Services
- Scalability: Allows companies to quickly scale and form a global workforce, adapting to industry shifts and business requirements.
- Compliance and Security: Ensures compliance with local labor laws, avoiding penalties and tax or payroll processing errors.
- Speed in Market Entry: Offers a faster and safer solution for international expansion compared to establishing a new legal entity.
- Cost-Effectiveness: More economical than setting up local branches, especially for small teams.
- Time Management and Productivity: Frees up time for companies to focus on core business activities.
- Access to Global Talent: Facilitates hiring from a wider talent pool for various business needs.
- Attractive Employee Benefits: Provides access to comprehensive benefits packages, aiding in talent attraction and retention.
Global Employment Organization (GEO) vs. Employer Of Record (EOR)
- Employment Responsibility: Unlike PEOs, GEOs assume full responsibility for employment, whereas PEOs share this responsibility with the client company.
- Liability and Insurance: GEOs fully cover employee insurance and liability, while PEOs share these responsibilities with the client.
- Employee Contracts: In GEO arrangements, employment contracts are between the GEO and the employee, mitigating the client's risk in contract disputes.
- Business Registration Requirements: Partnering with a GEO eliminates the need for business registration in each new country, a requirement when using a PEO.