For a long time, a PEO was merely considered a go-to tool for companies looking to grow. 

Although this observation isn’t wrong, a professional employer organisation (PEO) can also be used in times of crisis, such as the relatively recent, COVID-19 pandemic. 

When the economy is turned on its head, hitting organisations and their workforce hard, the need for expert HR knowledge is crucial. This is where access to a PEO becomes quite enticing.

The most obvious reason why companies tend to seek PEO assistance for their growth and expansion projects is because it provides them with flexibility and peace of mind.

What most don’t consider though, is that crises, or any other unexpected turbulence, create equally as many complications due to companies having to manage unforeseen costs while protecting employees.

Partnering with a reputable Professional Employer Organisation (like us!) can provide valuable access to a team of HR experts with extensive experience in various industries. A PEO can offer guidance and assistance in navigating the complexities of doing business and managing employees, particularly during challenging times. While the specific services and expertise offered may vary among PEOs, they typically include areas such as payroll processing, benefits administration, compliance support, and risk management. It’s essential to thoroughly assess and understand the services offered by a particular PEO before entering into a partnership.

By conducting thorough research and asking relevant questions about their expertise and how they can assist your organisation, you can determine if their offerings align with your business needs and objectives. Unsure if a PEO is the right fit for your business? Discover 3 ways in which it can help.

But first, here’s a quick refresher on the basics…


What Is A PEO Or EOR?

Employment Outsourcing comes in various forms, though with the same premise. Services and providers may be referred to as:

Employer of Record (EOR)

– Portage

– Co-Employment

– Professional Employer Organisation (PEO)

– Global Employment Outsourcing (GEO)

Essentially, this refers to the service of outsourcing a part, most or all of your business’s employment, liability and administrative duties.


What Are The Benefits Of Using A PEO During Crisis?

Staffing Needs/ Headcount Freezes

A PEO (Professional Employer Organisation) service can significantly help in times of recruitment and headcount freezes. Through a round-about solution, as a PEO provider, we take on the vast majority of employment responsibilities and any hired staff will be recognised as an employee of Polyglot Group

Through this solution, the staff will not be part of your payroll and as such won’t be considered part of your headcount. Instead, their salaries will appear as a business expense that is paid through a single invoice by your company.

Additionally, in times of uncertainty, hiring and onboarding commitments aren’t usually the most appealing to (or even possible for) organisations. So, outsourcing that to a PEO provider can be the ideal solution to quickly have the right people in the right place, ensuring that your company comes out stronger from the crisis. 

Compliant onboarding can be arranged within the same day (if no visa is required) and offers flexibility where required by the organisation. 

Should terminations be inevitable, such as can be the case during an economic crisis, a PEO can take the burden off of your shoulders as they will be responsible for this process. 



A PEO can also be used to hire and sponsor foreign skilled talent on behalf of an organisation.

Immigration and visa applications can be daunting and complex processes, requiring thorough preparation and knowledge to present in a manner that maximises its chance of success.

When you add a global crisis to the mix, immigration processes become increasingly more complex, even though foreign talent can be key to your organisation’s success.

Applications, depending on their visa, can take a long time to process. With countless documents required, it can be overwhelming and time-consuming for organisations to prepare.

In this case, hiring and sponsoring an employee through a PEO simplifies the process for your organisation, since a PEO has the sponsorship licence, industry expertise, and contacts to do so. Saving your business time and stress.


Compliance Management

Whenever there is a crisis, we tend to see legislation, employment terms (such as the Modern Awards in Australia) and government measures change at an incredibly rapid rate. An example would be during the Covid-19 crisis, where we saw temporary changes like annual leave at half pay and pandemic leave being introduced.

These quick changes make it difficult for employers to keep up and can be very overwhelming. However, it’s extremely important for organisations to be up-to-date on these changes, for two reasons: to remain compliant and to make the most of available (and sometimes very beneficial) opportunities, which are crucial for business continuity.

A PEO has HR and Payroll specialists in-house whose core responsibilities include staying on top of changing laws so as to be able to answer the variety of questions regularly thrown at them. Equipped with such knowledge, they can also help design new tools and processes that meet both employers’ and employees’ needs. All in all, HR professionals are experts at handling periods of crisis as part of their role.

Something worth noting is that partnering with a professional employer organisation also helps mitigate the risks associated with compliance violation. Consequences of non-compliance can have significant financial implications. Therefore, it’s most certainly worth investing in a partner to take care of HR and Payroll compliance, leaving your organisation with more time and resources to focus on your core business.



What Are The Benefits Of Using An EOR?


In the “new normal”, companies need to focus on what they do best. This means delegating and outsourcing what they can. 

An EOR comes in handy as it takes away liability worries, administrative burdens and provides HR excellence at your doorstep (or on the other end of the phone line in this case). 

Curious to find out more? Our HR specialists can help you understand how an EOR can benefit your business. Get in touch today!


About the Author:

With over 15 years’ experience in advisory and leadership positions, William is an accomplished and pragmatic leader. Having helped countless international businesses grow and expand, William has an innate cross-cultural understanding. Passionate about his work, William loves mentoring and sharing with others.
Read more about William Gaguin.