What is a P.E.O?
A professional employer organization (PEO) provides a range of HR-related services such as recruiting, employee compensation and benefits administration, payroll, employee training, performance management, and safety and management to clients at its own risk.
In other words, a PEO lets the client focus on the core business by providing employees recruited, managed, and remunerated under its name and the client pays an agreed fee to the PEO for all employees and therefore the client does not need to have an HR department nor invest in HR Management function other than day to day supervision.
Sometimes this arrangement is referred to as employee leasing, co-employment, or joint employment. Even though the PEO is the employer of record for tax purposes, both the client company and the PEO have certain employer responsibilities. The PEO’s job is to recruit, deploy, pay employees and handle all the administration of payroll and benefits. The client Company’s job is to manage the employees with a focus on their productivity and performance.
The main objective in utilizing PEO service is to allow a Company to focus on its core business for which it has the expertise and technology while leaving a specialized service provider whose core business is Human Resource Management to manage the people side of the business. The PEO is given a full mandate for the people side of the business including HR policy and Strategy but with clearly defined deliverables on organization culture and productivity.
The PEO provider is normally paid in one cheque as a percentage of the total wage bill to cover recruitment training and other HR costs plus salary and administration services. In all PEO services, the PEO service provider pays the employee from client funds.
As a professional employer (PEO) Service Agency/Company in East Africa (Kenya, Uganda, Tanzania, Rwanda, South Sudan, Burundi, and the Democratic Republic of Congo), we are able to customize a labor-management solution for any sector/industry. We are one of the most respected Professional Employer Service Agencies/companies in East Africa
Why PEO Services?
P.E.O service is most ideal for the following client categories or situations;
- Multinational companies with a limited scope of operation in East Africa.
A multinational company may not be able to have a legal presence in every new country it expands to hence the use of a local PEO service provider to hire and contract its employees in an overseas market.
With our knowledge of the local employment laws and cultures matched with our expertise in HR best practices and business strategy, we provide multinational companies with the best quality Human Resources Management systems and structures to support the country’s business strategy in any of the East African countries.
A company engaged in several projects with a given life span will need the flexibility to hire and let go of employees as per project life cycles
We are able to customize a PEO package for specific projects based on the project duration, project activities, project life cycle, and project skills needs that allow the project manager to focus on the core project activities.
Our Project PEO Package is most ideal for short to medium-term projects where skills needs vary over the project cycle and highly flexible employee engagement arrangements are required.