2020 saw a growing interest among businesses, in Professional Employer Organization or Employer of Record Services (PEO/ EOR). This service can play a crucial role in not just helping businesses sustain, but also grow and expand.
We will now try to understand, how businesses can simplify and pace up their process of business expansion while utilizing PEO services for their HR operations and what role we at Husys can play in the fulfillment of this ambition of yours, but before that, we’ll try and give you clearer a picture of what are PEO’s.
What is Professional Employer Organization OR Employer of Record Service?
A PEO is a professional employer organization, It is also known as EOR (Employer of record) in some countries, like the UK. It’s a third-party organization that hires and pays an employee on behalf of another company and takes responsibility for all formal employment tasks. PEO services include recruitment, payroll and benefits, on-boarding of new recruits, taxation, labor regulation compliance, and other statutory compliances.
Using a PEO service, allows companies to legally and efficiently engage with overseas workers either in a new country or state, without having to set up a local entity or risk violating local employment laws. Thus, making them a legal employer, and in charge of all of the liabilities of hiring, employing, and terminating workers.
PEO’s provide small businesses with the infrastructure and resources to navigate about employment-related complexities, employee relation assistance and help them adjust to the rapidly changing business environment such that these businesses can focus on growth and market penetration instead of being bogged down by due compliances.
As per data by NAPEO (National Association of Professional Employer Organizations), US, small businesses that use professional employee services, can grow 7-9% faster than those that use a more traditional approach, have reduced employee turnover by 10-14%, and are approximately 50% less likely to go out of business in trying times.
PEO’s don’t just help small local business ventures grow. They can also help remove the complications of setting up a new foreign subsidiary and help businesses cut down on excessive avoidable costs, by employing talented individuals on behalf of these businesses and handling all other essential related steps, ranging from drafting terms and conditions of employment contracts, to payroll, taxation and managing insurance schemes thus helping these foreign businesses with expedited market entry into lucrative Indian markets.
Increasing access to high-speed internet facilities, boosting sales of smartphones, growing working population, inflating income levels, rising trend of on-the-go food items and quick home delivery models that offer convenience, ready-to-eat and cheaper food delivery options are some of the major factors propelling the online food delivery market growth in the country.
While the key market players like Zomato & Swiggy have thus far been concentrating on the three largest urban markets of Bangalore, Delhi & Mumbai, their focus is now shifting on smaller cities as well to capitalize on their strong growth potential.
It is no surprise that the exponential growth trajectory and business potential of India’s food delivery industry has been attracting enough and more investor attention over the years, a phenomenon that has sustained even amid a global pandemic.
Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah and has already secured multiple rounds of funding over the years from globally renowned funding behemoths such as Sequoia Capital, Ant Financial, Temasek, Tiger Global, etc.
The secret sauce behind Zomato’s popularity and rapid growth has been its unending focus on innovation and agility and its ability to keep up with the increasingly dynamic food delivery landscape in a country full of foodies.
The company has continuously leveraged technology to improve both the UX and UI which, supported by a robust IT backbone, has made the mobile application as well as the website increasingly user friendly, feature-rich and convenient over the years.
