HR Idea 27 : Professional Employer Organization (PEO) in India
This post we would like to discuss about PEO or also referred as Employer of Records. The future of employment is going to be very different from traditionally how employers employed in India. Today we have many of the employees are working in this model. However with more than 40 million employees work in SME sector alone, there is a huge scope for future in building efficiency.
Professional Employer Organisation (PEO) : is a firm provides employees for an employer/firm whereby assuming the responsibility of Hiring, Managing Employment, Benefits, Workers compensation, Training & Exit Management. It means the PEO hires client company employees and manages their employment as “Employer of Records”.
PEO Beginning of an opportunity
Choosing a professional firm who understand the legal and employee based practices well is the key. Start-ups can use this service effectively so that they can provide all the benefits from the day-one of the employee. Medium & Large firms can minimize the risk of employment related issues. Also SME’s can benefit by having a mechanism of transfer of employment after a stipulated period which ensures seriousness and proven expertise is brought into the company.