Today in volatile market, companies look for better recruitment solutions. The providers of Employer Organisation (PEO) service and the Employer of Record in Singapore enable them to do it quickly. These providers help you expand your distributed workforce. They streamline the recruitment process expertly and align it with the legal framework dictated by the Ministry of Manpower (MOM).
If you are in a hurry to expand your distributed team, the question is, “Whether you should choose a PEO service or an Employer of Record in Singapore?” To choose correctly, you will need to know more about these entities.
What is an Employer of Record in Singapore?
An Employer of Record in Singapore is a registered employer on the record. It is a company that helps you streamline employment engagements. They ensure that every employment contract is compliant with the Singaporean Employment Law.
EOR is responsible for hiring, payroll management, Central Provident Fund (CPF) contributions, insurance & benefits management, taxes and other HR-related tasks. They also take care of Singapore work passes for the employees.
Legal Employer:As a legal employer, an EOR Employer is fully responsible for the hired employees. It enables you to focus on the actual work of the team.
Company Registration:When you collaborate with an Employer of Record in Singapore, you can maintain and expand your team in Singapore without registering a new company.
Cost-Effective:Your EOR services provider passes on the benefits you offer to your employees to ensure your compliance. They maintain a team for other companies too. So, when it is time to pay insurance, they can leverage the ‘number’, and you benefit from cheap insurance rates.
An EOR manages candidates with varying skill sets that work full-time, part-time, seasonal, freelance, Etc.
Team Size:The team sizes an EOR manages to vary from small to big. The number can be anywhere between one to hundreds of employees.
What is a Professional Employer Organization (PEO) Service?
A professional employer organisation (PEO) service takes care of HR management for its clients. Under the contract, it acts as a joint employer with the client. Your PEO services provider acts as your HR department and lets your team focus on their core tasks.
For the duration of the contract, a PEO, like Nimmish, takes care of the employee engagement process, contract, and immigration. It administers payroll processing, deductions, liabilities, and tax filing as per the labour laws of Singapore.
Co-employment:Under the contract, you and your PEO services provider are legal employers. And you are responsible for the day-to-day administration of your team.
Benefits:With a reliable PEO to back you up, you can provide attractive employee benefits to your new team. They pool your employees with those from other companies and can leverage the ‘high employee number’ for better insurance rates.
Permanent Employees:Your PEO service provider has a pool of permanent employees. Along with your PEO, you co-employ them.
Team Size:You can trust your PEO if you need to onboard a distributed team of 5-10 or more employees. It enables you to focus on your real work without spending time on its administrative and legal aspects.
How to Choose Between an Employer of Record & PEO Service
Before hiring a provider of PEO service or an Employer of Record in Singapore, you need to understand your business and administrative/legal needs and choose accordingly. Remember that your EOR is the full legal employer of your distributed team. On the other hand, your PEO, along with you, is its co-employer.
If you need to hire full-time, permanent employees in Singapore, you may choose a Singapore PEO service provider. They will assist in your expansion into Singapore. You will need to take care of operations and overall management. Your Professional Employer Organisation (PEO) service will handle the rest.
If you want to hire a talented distributed team, hire an Employer of Record in Singapore. Your EOR will handle all its HR and employer-related activities and enable you to focus on the core responsibilities. Your Employer of Record in Singapore reduces time, hassle, and cost of your distributed team.
Call us on +65-6536 0036 or email us at [email protected] for our customised recruitment solutions.
Recruitment Agency Singapore - Nimmish is a well-known global manpower consultancy based in Singapore - Recruitment and Staffing Solutions.