Looking for PEO services in Finland but don’t fully understand their functions? In this article, we’re going to tell you about a professional employer organization, the pros and cons of hiring a PEO in Finland. Let’s dive into it.
What Is a PEO? (Professional Employer Organization)
Let’s say you’re a business owner in Finland. Over time you hire more people and so your role as an employer becomes a very big deal. You’re resolving employee-related issues like payroll, HR, employee benefits, workers compensation and safety, and hiring more professionals.
Would it be great if you could get help with all these things? This is where a PEO comes in handy, it specializes in everything related to employees. So, they’ve already been aware of how to do things right. And efficiently, Swapp Agency can help you take care of the HR aspect of your business like:
- hiring the best people;
- getting affordable workers compensation insurance;
- complying with HR laws;
- processing payroll;
- reporting payroll;
- paying taxes;
- and creating safe work environment.
All of this comes when you hire a PEO. Both the PEO and your company become co-employers and share liabilities and responsibilities. So, unless you are a fan of administrative work, contact Swapp Agency today.
The Pros of Hiring a PEO in Finland
Will Have a Partner Who Already Understands HR Laws and Policies
A PEO is an already set up established HR department that your company once you sign the contract and pay your fee.
That’s one thing you don’t have to get bogged down with. You don’t have to learn and understand a lot of the laws and guidelines associated with hiring an employee in Finland. And that can save you some time, and you can spend it running your business and doing the things that you should be doing as a business owner.
The PEO Does All Payroll Functions
The PEO will take care of all of your payroll needs. All you need to do is click a button, and your employees will receive their checks in whatever manner that employee selected. That depends on what benefits the PEO has with regard to how the employee would receive their paycheck.
You can offer your employees a ton of benefits besides health insurance, life insurance, accident insurance. You can get things like job counseling and others. But getting those benefits depends on the type of PEO you would select. The larger PEOs may have more benefits to offer.
The PEO Submits Payroll Taxes and Files the Quarterlies
The PEO takes care of your taxes. It submits all payroll-related tax returns and pays those taxes to the IRS for your company. It also files the tax returns so that’s one less thing you would have to do as a business owner.
Helps Reduce Your Liability
Having a PEO partner in your business can help you reduce employment liability.
The Cons of Hiring a PEO in Finland
Breaking Up Is Hard to Do
It may be hard to break up with the PEO organization if you had been using it for five or six years. Getting out of those contracts can be challenging. Some PEOs have a certain 60-day period that you will have to get out of that contract during those 60 days. If you missed it, you would be obliged to be in that contract again for another year.
May Not Get Copies of Any Employment Documents
Will you be able to get copies of your employee files? Will you be able to make copies of those documents? What about the employee handbook? Will you be able to take that employee handbook with you when you left the PEO?
Breaking up with some PEOs, you will not be able to get any of that information. You will need to create a new handbook and set up your own HR department with its own documents or use another PEO. So, the things you’re trying to get out of doing now you’re going to have to eventually do it if you ever break up with that kind of PEO organization.
Will Need to Get Various Types of Insurance
Your company will need to find an Insurance Agent who can provide the various insurances your company has with the current PEO.
Lack of Control
You don’t have a lot of control with the PEOs and in some contracts depending on how it’s written the PEO has the authority to hire and/or terminate an employee. Please be sure to read and understand the Agreement prior to signing.
Your Company Could Be Liable for Any Lapse in Security
There are also security issues with regard to all the employment files with the PEO. Especially if someone breaks into their system and gets all of the personal information, you don’t have control over that the PEO does. So, as part of co-employment with a PEO, your company could be liable for any damages due to lost and/or stolen employee information.
You also experience a lack of control with the employees and a lack of control with regard to essential processes. The PEO could change any or all of your in-house HR processes, depending on how your contract is written.
The fact that you don’t have an internal HR department that will put some direct time between you and any decisions that you might want to make. You can’t make snap decisions when you’ve got a PEO when it comes to things related to Human Resources. You must consult with that PEO prior to making any decisions.
This is not an all-inclusive list of the pros and cons against a PEO. Be sure to read and fully understand the functions of the PEO, what is required of your business.
Is it a good idea to hire PEO services in Finland? It’s up to your individual company and its unique situation. Use the information in this article as a guide to help you decide whether a PEO is right for your company.
If you have any more questions about PEOs, contact Swapp Agency.