Trade Relations between other parts of the world and New Zealand are expanding. Which means it’s the perfect time for global businesses to consider expanding into New Zealand by hunting down those lucrative deals in New Zealand, seeking out gaps in the service market, and identifying the opportunities that match your company’s strengths.
Perhaps you could be looking to set up another business entity in the New Zealand market for distributing and receiving imports. With countless options available to international businesses, there’s a lot to do before you get your business set up. Whether that means completing market research, establishing new business alliances, or signing your next contract, there are plenty of ways to enter the New Zealand business market.
Of course, you’ll need to consider hiring staff abroad to assist your operations outside of New Zealand. Reducing risks and costs of establishing a foreign country office can be quite complicated for the uninitiated. This is where an international PEO can assist you with all the legal and tax details for hiring staff in a foreign country.
What is a Professional Employer Organisation (PEO)?
A Professional Employer Organisation supports small-to-medium enterprises (SMEs) to outsource human resource requirements. These high-value services can help you pay wages, adhere to tax laws, and even provide staff with the correct employee benefits. This means more freedom for you and your business to focus on the things that matter – growth.
But how do you decide which PEO is right for you? The first step is finding a PEO most suitable for your company. Finding one is as easy as following these five steps.
Step 1: Locate The Right PEO For Your Company
The first stop on your PEO journey is identifying your company’s needs. What services can be outsourced? Do you require payroll and onboarding systems to be taken care of? Will you be locating employees abroad yourself, or do you want the PEO to do it for you? These are all questions you need to answer before selecting the right PEO for your business.
Research is a critical aspect of locating the right PEO for your company, as they will be taking on an integral position within your business. Investigating their experience in specifically in the New Zealand market will allow you to understand better what they can and can’t do for you. New Zealand encapsulates many different cultures and working environments which to any country will be different to your own.
Risk assessments are another critical aspect of choosing the right PEO. Alongside careful analysis of ask for references to ensure they match up with your company and your goals. Once selected, you start forming a service agreement.
Step 2: Creating a “Client Service Agreement” for expanding into New Zealand
The “Client Service Agreement” outlines the level of control that your firm will have over your employees, as well as stipulating the responsibilities of the PEO. The contract will state each commitment allocated to your business and the PEO. Since all PEOs use a co-employment model for hiring staff, the agreement will generally include the requirements for outsourced human resources, along with payroll for tax and compliance purposes.
The business must retain management over its employees, though each agreement will differ depending on its outsourced services. Once formalised, the PEO can start employing new staff abroad.
Step 3: Staff Recruitment
If you’ve already found the staff members you want to hire, great. If not, then alternatively, your chosen PEO can take over the recruitment process in your expansion country. Depending on your service agreement, the PEO can provide you candidates for your business. Using a PEO gives you the convenience of assessing each candidate from employees sourced from all over the world. his makes the entire process much faster than taking control of the onboarding process yourself.
Once approved, the hiring process will begin. The PEO will ensure all applicable in-country legislation is complied with when producing the co-employment contract. This contract states what human resources responsibilities are assigned to the PEO and the parent company’s business operations.
Step 4: PEO Provides HR Services to Employees Abroad
After both parties have signed on the dotted line, your firm can begin operations with New Zealand. While your business continues operating at home, your employees abroad will be paid by the PEO for their work, along with additional benefits offered by the PEO. One advantage of using a PEO is that they can provide you with localised support and advice to your overseas employees without considering time zone differences between New Zealand and other countries.
Besides, the PEO can pay all relevant taxes in New Zealand, ensuring your firm is compliant.
Step 5: Operate Your Firm in Conjunction With the PEO
With everything taken care of for your New Zealand employees, you can get on with the job in your home country with confidence.
PEOs come with a range of HR management systems, allowing them to take control of routine tasks, leaving you with more time to focus on business operations.
PEO services are more cost-effective and are more easily able to contend with employee regulations in New Zealand, saving you the hassle and effort of establishing a local entity in New Zealand to hire legally. A PEO service is integral to keeping your focus on your business’s core components, alongside a well-managed overseas employee group.
Are you considering expanding into New Zealand? Speak to our team at ANZPEO about how we can help you to mitigate risk and hire compliantly.
