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How to Communicate the PEO/EoR Model to Bolster Recruitment and Talent Development

Talent is the most important resource a business has. When companies enter a new market and engage a professional employer organization (PEO) to serve as their employer of record (EoR), talent development is of course a driving motivation. But sometimes companies find it difficult to explain the co-employment relationship to prospective hires, missing a critical touchpoint to communicate the unique benefits it provides to both team members and companies.

To avoid this frequent pitfall, companies can take the following steps to complement their PEO/EoR framework with a clear communication strategy that wins over top recruits and maximizes talent development in the long-term.

Brand Your PEO/EoR Framework Upfront

First and foremost, it’s important that prospective hires and new team members are never confused about your PEO/EoR framework, including the processes, benefits and implications that come along with it. From the very beginning of the recruitment process, all prospective hires must be made aware of the co-employment relationship they’ll be entering. If they are not made aware of this arrangement until after being made an offer from an unfamiliar company (the PEO/EoR), this will likely trigger confusion and could negatively impact their decision to come on board.

Establish Your Role and That of the PEO/EoR

One of the first distinctions that should be made to recruits is the roles that both the ultimate employer and the PEO/EoR will play in their employment experience. The recruit will then know who they go to depending on the issue at hand, making them feel better supported and secure.

For example, in most co-employment relationships, the PEO/EoR representative is the team member’s go-to person for inquiries relating to payroll, tax, withholdings, supplemental benefits, and labor laws. The ultimate employer is the team member’s go-to for processes in their day-to-day responsibilities, promotions, bonuses, expense approvals, leave and overtime.

Articulate Advantages in Ways that Directly Resonate with Recruits

It’s one thing for an ultimate employer to understand the numerous benefits and efficiencies an effective PEO/EoR framework unlocks. It’s another for prospective and new recruits to fully realize how it will improve their employment experience. To achieve this, companies must be sure to communicate in ways that directly resonate with recruits.

As a global PEO/EoR, we often explain to our clients that we speak the language of our local team members. This is a two-prong approach, meaning we not only conduct our processes in the local language, but we also communicate in ways that emphasize how the PEO/EoR framework directly impacts their lives. Other than explaining how the PEO/EoR handles payroll, tax and withholding payments on behalf of the ultimate employer, recruits should be made aware of the numerous advantages and opportunities in terms of supplementary benefits (if offered), professional growth, protection, and support.

Prioritize the Support, Rights and Protections of Team Members

Not all recruits will be familiar with the PEO/EoR model and conquering misperceptions can be a challenge. Being as specific as possible about how team members are supported and legally protected is essential. Recruits should be informed of the language that the PEO/EoR will be handling processes in, as well how they will be provided with any necessary equipment (such as laptops, programs, office supplies, business cards, etc.). They should also be told about how they can access local support on the ground from the PEO/EoR if they have inquiries.

Furthermore, the communication about the PEO/EoR framework must continuously stress the indisputable rights and protections that team members have. This discussion should detail the pertinent protections they have against unlawful discrimination, bullying and harassment as well as their right to have reasonable working hours and statutory paid leave.

Recruits must also be made aware of their protection from unfair dismissal. By accentuating the PEO/EoR as their legal employer, recruits should be assured that nobody can end the contractual relationship except the PEO/EoR. By fully specifying the recourse process, prospective hires will feel more comfortable knowing that they too are supported and protected by the PEO/EoR framework in case an issue arises. This also means that the ultimate employer will have a knowledgeable partner that will be able to effectively navigate the challenge of separation of employment and will have the trust of the employee during the process, leading to a quicker, cleaner, and often more cost-effective outcome.  It’s important to note that most countries do not have an at-will employment legal framework and terminations if not handled properly can become contentious and costly.

Outline All Operational Processes as It Pertains to Team Members

When communicating the PEO/EoR framework, the operational processes that pertain to the co-employment should be fully disclosed. This includes revealing when payday is and how team members can access their pay slip. Any processes for reimbursement should also be clearly defined, including how expense accounts are established and when payments are made.

Align Communication with the PEO/EoR and Seek Expertise as Needed

A trusted PEO/EoR partner, like GoGlobal, has a wealth of experience and expertise in serving employee that enhances recruitment, retention, and growth. Aligning your communication strategy with the PEO/EoR partner will not only avoid any confusion on the part of recruits and team members, but it will also help develop messaging touchpoints that reverberate throughout the employee experience – from recruitment to promotion.

The key to a company’s success in any market begins with hiring the right talent. Whether engaged as a short or long-term solution, the PEO/EoR model lays a framework for sustainable talent development – making it easier to hire the right people to get the job done. By developing a clear communication strategy for the PEO/EoR framework, companies can compete for top talent in whatever market they choose to enter – and position themselves as an employer of choice.

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