A (PEO) professional employer organization is a good way to scale teams for start-ups because PEOs help get access to enterprise-grade HR services for your organization. Helping you save time & money.

As a start-up, working with a PEO helps delegate employee management functions. Functions like payroll, compliance & HR would be added without losing control over the workforce.

In today’s job market, post the 2021 pandemic we have found that a great employee benefits package is one of the best ways to keep and attract employees.

A start-up, while charged with immense energy, creative & brand-new ideas, highly motivated and excited at times can still fall short of its goals given the challenges of a highly competitive business environment.

At Insourceindia we have found that one of the primary struggle that start-ups face is attracting top talent.

On the one hand, start-ups would encounter difficulty hiring people in India with the skills required to add value to their company and, on the other hand, it can be difficult to find employees that share the founder’s passion, vision, and goals.

So, you must be wondering How a PEO can help start-ups and how can start-ups benefit from it? 

1. Staying Compliant always.

With the ever-changing labour laws in India and new regulation updates time to time, Labour laws & HR can get complicated in India. And with such complexities, mistakes are bound to happen. A PEO can help by providing the guidance for establishing the HR standards and processes to prevent costly compliance violations and manage the compliance of adhering to labour laws time to time. PEOs are perfect for either a short period or a longer duration and will enable young companies to manage the local business law in the hiring & staffing process while focusing on the other key elements of the organization.


2. Growing the Business.

Start-ups which are funded, or boot strapped tend to scale and grow & need to move fast. The last thing they need is to lag and spend most of the time putting out fires, chasing paperwork, and addressing internal issues rather than attending to the needs of their customers. A PEO can help by offloading the burden of HR-related administrative tasks, like payroll, and identify ways to streamline HR processes. Working with a PEO will help your business significantly grow, increase annual ROI & help reduce costs.


3. Access to Resources

Start-ups come with limited resources. They also are very frugal in the spending in the initial levels. During this time a lot of Inefficiencies are exposed, and costly mistakes tend to happen when your attention is taken away on what you do best due to various complexities. Partnering with a PEO improves the overall productivity and allows a start-up to get the help it needs on time.


4. Improve Success Ratio

From lower HR costs, compliance protection to getting a higher ROI, PEOs can help start-ups take advantage of this momentum and increase the success ratio at every growth stage.


5. Reduce your Payroll Burden

InsourceIndia PEO can handle the benefits, payroll calculations, filings, disbursements, and associated employee acquisitions or terminations of an organization. The entire gamut of Payroll and Payroll processing would be managed in a professional way.


6. Offer Better Benefits & Compensation

A PEO can offer many critical benefits aside from providing HR services. PEOs possess the resources to offer health, Medical & Life insurance plans to any new employees. With a well-developed infrastructure, PEOs can provide benefits a smaller firm could not offer on its own; this makes the start-up more attractive to top talent while simultaneously lowering their attrition / turnover rates.


7. Reduced Risk & Liability​

A PEO is also equipped to assume liability by sharing the risk of employment-related legal issues. If the start-up happens to run into any legal trouble regarding hiring, staffing, or employment, legal liabilities that might otherwise obliterate a new company are shared / absorbed by the PEO partner.


8. To gain time & focus on core business

One of the biggest benefit a PEO can deliver is to significantly reduce costs and reduce non-productive administrative time. A PEO can considerably get the employer out of the employer business, allowing workers to focus on building their business offering & Products.


9. Reduce HR Costs
It is important for start-ups to have a formal HR framework and policy. Failing to implement any sort of formal HR program or policy is a huge risk and it can literally put start-ups out of business. While start-ups are scaling, they sometimes don’t implement HR policies. Thankfully, PEOs can significantly reduce HR administrative costs and do come with a custom HR policy. This way the PEO takes over the HR activities and further helps reduce Costs.


10. Ability to Stay longer in Business

Start-ups can have immense success or significantly fail for many reasons. Lack of sales could be one reason. HR issues too can put organizations out of business. A PEO can help start-ups reduce costs while simultaneously covering their HR bases. The result is an improved ability to stay in business. Upscaling and downsizing too is easier when it comes to PEO’s. Organisations can sustain and pivot based on their situation and needs.

These are some of the points as to how Start-ups Can Benefit From a PEO.

InsourceIndia is a pioneer in handling HR & Payroll operations with a combination of the latest technology & personal touch. We specialize in PEO/EOR in India, HR & Recruitment consulting services, and successfully serving clients globally. InsourceIndia PEO/EOR service in India is committed to assist the employer from any country to successfully set up their business in India. InsourceIndia takes care of services for HR, payroll, insurance, benefits, and risk management. InsourceIndia goes one additional step further than what generally PEO agencies offer, we provide extended services like leave management, recruiting, office infrastructure Service & HR management.