Business owners experience no shortage of vision or passion, but when it comes to juggling responsibilities like managing human resources (HR) tasks, things can get overwhelming. That’s why so many companies rely on a Professional Employer Organization (PEO) to manage payroll, benefits administration, and compliance with employment laws. A PEO handles these crucial functions that can be time-consuming and distract you from your core objectives.
Professional employer organizations offer a wide range of services to meet your HR needs, from basic tasks like payroll processing and benefits administration to more advanced services like employee onboarding, employee of record, handbooks, and training. By leveraging their expertise and resources, you gain access to best practices, industry knowledge, and streamlined processes that can enhance your HR operations. This support empowers you to attract and retain top talent, foster a positive work environment, and cultivate a strong company culture.
Let’s explore how partnering with a PEO can streamline your business operations, provide comprehensive HR services, and empower you to achieve your business goals.
What is a Professional Employer Organization (PEO)?
A Professional Employer Organization (PEO) is a strategic partner assuming the role of a co-employer for your business and its workforce. This collaboration enables you to offload essential HR responsibilities, including payroll, benefits administration, law compliance, and training. By leveraging the expertise of a PEO, you gain the freedom to devote more time to enhancing your products or services and driving business growth.
Core Responsibilities of a PEO
The PEO has a wide range of responsibilities that aim to free up a company’s time and resources. These responsibilities include managing employee benefits, processing payroll, handling workers’ compensation, and ensuring compliance with labor laws and regulations.
PEOs serve as the “employee of record” for tax purposes, taking care of tax paperwork and obligations. This designation relieves businesses of tax-related burdens, allowing them to focus on growth and their core competencies.
Beyond these primary responsibilities, PEOs offer additional services such as human resources support. They act as an extension of the company’s HR department, providing guidance on employee relations, performance management, and talent acquisition.
RTS Takes Remote PEO Services to the Next Level with Nearshoring
Remote Team Services (RTS) expands the role of a professional employer organization. We recruit the best talent in Mexico for dozens of positions and roles, with final hiring approval by you. Once the employees have been selected, they become a core part of your team, reporting directly to you while operating from our offices in La Laguna, Mexico. We are the employer of record and handle the pay and benefits, you get highly qualified team members without the HR hassles. We call this “nearshoring” as opposed to “offshoring” because the people we hire are bilingual and work in your time zone – which is far more convenient than managing employees located halfway around the world. Thanks to this successful business model, RTS boasts an amazingly low turnover rate of just 2%. This, combined with the savings you gain by hiring nearshore instead of locally, results in savings of up to 60%.
PEO Advantages
PEO provides a multitude of benefits for businesses. Small- to medium-sized companies, in particular, are prime candidates for this service, which allows businesses to focus on core operations and strategic growth rather than administrative complexities.
PEO Cost Savings
Traditional US-based PEOs can reduce some costs by absorbing the employment tax and reducing some insurance costs.
With RTS’s nearshore PEO, all remote employees working at the RTS offices in Mexico will cost 60% less, and there will be no taxes or benefit costs. Additionally, the money paid to RTS will be a tax-deductible service, further reducing costs.
Access to HR Expertise
We have an HR team that acts as your local eyes and ears for your remote team in our offices in Mexico. You can work with them to handle any employee-related matters, including appropriate raises and bonuses for the Mexican market, employee performance, scheduling trips to see your team in Mexico, and, if need be, terminating an employee.
PEO Hiring in Mexico
By becoming the “Professional Employer of Record,” RTS takes on the legal and administrative responsibilities of employing individuals on behalf of your business, managing payroll and tax obligations, and ensuring compliance with local regulations.
As an international hiring strategy, partnering with a PEO in Mexico saves you from the complexities and expanse of setting up a foreign entity in Mexico. Using RTS as a PEO streamlines the hiring process, handling contracts, and benefits administration, allowing you to focus on integrating new employees and achieving your business goals.
Conclusion
By understanding the role and advantages of a nearshore Professional Employer Organization, businesses can make informed decisions about whether this type of partnership is right for them. The benefits of cost savings, improved efficiency, and access to HR expertise can help companies to operate more smoothly and effectively. Remote Team Solutions adds recruiting to this list of benefits, providing you with a talent pool of top tier candidates to contribute to your company’s success.
RTS Gives You All the Advantages of a Personal Employer Organization – and More
Testimonial - Heidi Rasmussen, Freshbenies Co-Founder and CEO
FAQs: Professional Employer Organization
What unique services does Remote Team Solutions offer US Companies as a PEO?
Remote Team Solutions sets itself apart as a traditional professional employer organization by specializing in the Mexican market, where staffing costs are 60% less. RTS also excels in providing tailored employee development programs, enhancing workforce skills and engagement.
How Does Remote Team Solutions Reduce Business Expenses?
With an impressive turnover rate of just 2%, significantly lower than the industry average, RTS provides US companies with a stable and experienced workforce. This stability saves on expenses involved in frequent rehiring. Combined with the cost efficiency of nearshore hiring practices, companies can save up to 60%, allowing them to focus on growth while benefiting from cost-effective, dedicated talent.
How does nearshoring differ from offshoring?
Nearshoring the RTS way involves recruiting talent and installing them in our offices in Mexico, where they work remotely for US businesses but receive pay and benefits from RTS. Offshoring refers to hiring employees from distant countries. The primary advantage of nearshoring over offshoring is closer geographic proximity, which results in better alignment of culture, working hours, and traveling distance.
What types of companies benefit most from partnering with a PEO like Remote Team Solutions?
Technology, manufacturing, and customer service are just a few of the industries that benefit from partnering with Remote Team Solutions. Small to mid-sized businesses, in particular, find value in RTS’s ability to provide comprehensive HR services, compliance management, and access to high-quality employee benefits, which is crucial for attracting and retaining talent in competitive markets.
What is Remote Team Solutions' pricing structure for PEO services?
Remote Team Solutions offers a simplified, all-inclusive pricing model tailored to each client’s unique staffing needs. This model covers all aspects of staffing, including payroll, HR, compliance, and employee benefits, without hidden costs or fluctuating fees. The monthly rate includes services such as premium office spaces, full-spectrum departmental support, and employee engagement programs.
