Types of PEO Insurance Offered for Companies Looking for Global Expansion

PEO insurance is a type of insurance administered by a Professional Employer Organization (PEO). This organization often provides employee health insurance, but could also offer other types of insurance that would benefit employees, such as unemployment insurance or life insurance.

A Professional Employer Organization (PEO) provides payroll and HR solutions for client companies, ensuring compliant payroll, tax withholding, and HR services for employees. Where the PEO operates internationally, it is known as a Global PEO or International PEO.

Some countries do not mandate employer-provided health insurance, but it is customary for employees to expect it nonetheless. In other cases, businesses elect to offer private health insurance as a voluntary benefit to make working with the company more attractive.

Other types of insurance that a PEO may choose to provide include: workers’ compensation, liability, and property insurance.

Workers Compensation

Workers compensation is a type of insurance that reimburses employees for lost wages in the event of an injury, rather than filing a negligence lawsuit against the employer.

Disability Insurance

Disability insurance provides income replacement for workers who become disabled and are unable to continue working. Benefits can be used to cover living expenses, medical treatments and other costs associated with the disability.

Life Insurance

Death is a difficult time for any family, and life insurance can help ease the burden by providing a lump sum payout. This can help cover costs like funeral expenses or outstanding debts.

Unemployment Insurance

Unemployment insurance is a benefits program that provides supplemental income to individuals who have lost their jobs. Unemployment insurance is usually jointly funded by employers and employees, and it provides more financial assistance than what is typically available through social security or social welfare programs.

The original motivation for employers outsourcing health insurance may have been simply due to the efficiency benefits: By having a third party provide the insurance, the client company could focus on its core business.

Making the switch to a Global PEO: Why You Should Consider ExroAsia

Switching from a local entity to a Global PEO can save your business much required time and money to focus on business strategy. A Global PEO provides an end-to-end solution for payroll, HR, recruitment, and employee onboarding. This removes the burden of establishing different entities in multiple locations and allows you to focus on your core business. Many companies form an entity when expanding for brand presence and various other business requirements, however it is not necessary to maintain an entity throughout the years. Here are few reasons why you should consider switching from an entity to a global PEO.

Save cost and time

Reduced operational costs are a key benefit of working with a Global PEO. Their costs for administering payroll and benefits are typically lower than those of a subsidiary, which can lead to significant savings. Additionally, there is no need to engage separate lawyers or tax advisors, as the PEO will handle all compliance-related matters. This can save time and money, and eliminate the risk of noncompliance.

Streamline global operations

You would benefit from working with a single entity and expansion partner such as ExroAsia, as this would provide you with a single point of contact across all international locations. This would be preferable to managing multiple entities/subsidiaries.

Focus on your business strategy

We can take care of time-consuming functions like payroll, HR, and legal compliance for you, so you can focus on your daily business operations. With simplified payment across all offshore outposts and just one monthly invoice, it’s easy to keep your finances in order. And our experts in offices located across the world can give you strategic advice on expanding your business.

Making the switch to a Global PEO can be a daunting task. However, with the help of a qualified Global PEO provider, the process can be simplified and less intimidating. When making the switch, there are a few things to keep in mind. First, be prepared to provide detailed information about your company. This will include financials, employee information, and company history. Once the Global PEO has this information, they can begin to create a proposal tailored specifically to your business. Second, be prepared for a change in how you operate your business. The Global PEO will take over many of the administrative tasks, such as payroll and benefits, so you will need to be prepared to hand over some control.

A PEO can help your business manage its employee benefits on a global scale, ensure compliance with local laws, and provide an international HR solution for your workforce. As your business expands and becomes more complex, a PEO can provide the resources and expertise you need to manage employee relations and risk in an increasingly global marketplace.

Cultural Competency is a must have for HR in 2022

As more companies continue to expand their reach and conduct business on an international scale, it is becoming increasingly important for them to have a strong global team in place. By collaborating with colleagues from around the world, businesses can take advantage of new opportunities, navigate challenging political and economic landscapes, and better serve their customers. In order to capitalize on all that a global team has to offer, however, companies must first create an environment in which everyone can thrive and feel comfortable working together. This requires a clear vision, effective communication, and trust among team members. With the right foundation in place, businesses can maximize their potential and build a successful future in the global marketplace.

The business world is becoming increasingly diverse, cultural diversity can offer a number of benefits for companies. For example, recent research published by Harvard Business Review found that diversity promotes creativity and improves financial performance. When different perspectives are brought together, companies can generate new ideas and products that can improve their bottom line. In addition, a culturally diverse work force can better reflect the multicultural customers that businesses are striving to reach. By embracing diversity, companies can create a more inclusive and productive environment for all employees.

Today, cultural competence is more important than ever. Organisations that hope to compete in a global market must have employees who are able to navigate diverse cultures. This means having a workforce that understands the intricate cultural differences that exist around the world and knows how to act accordingly. Developing cultural competence is not only good for business, but it is also essential for creating a more equitable and inclusive society.

A culturally competent employee base can add value to the customer experience by helping to ensure that customers receive accurate and timely information about the local culture and regulations. Having team members who are specialized in local laws and compliance can also improve customer service.

It could be an essential tool to promote inclusion and empowering employees. When employees feel seen, heard, understood, and valued, they are more likely to perform to the best of their ability. Creating a workplace culture that values diversity and inclusion is key to unlocking the potential of all employees.

Cultural competence is a vital attribute for social workers. It is important to be aware of your own cultural identity and biases, and to be aware of the impact that your cultural background has on your work with clients. It is also important to be familiar with the cultural backgrounds of your clients, and to understand the values and beliefs that are important to them. You should also be aware of the power dynamics that exist in cross-cultural relationships, and you should be prepared to address them.

Six Major Employee Engagement Trends for 2022

The past two years have undoubtedly not been an easy ride: a global pandemic has distorted our usual patterns of work, and the concept of ‘working from home’ has affected companies of all scales. Businesses in every corner of the globe are affected by these disruptions.

Employees suffer from constant anxiety as they find it quite stressful to find a balance between work and keeping up with their personal life responsibilities. As a result, employees seem to prioritize on different things, making employee engagement and workforce productivity, crucial aspects to pay attention to.

What has changed within the past 12 months? Let’s have a look at a few major employee engagement trends in 2022.

Employee health and wellness will remain no. 1

It is not surprising that employees are placing an increased emphasis on staying healthy. This is one of the employee engagement trends that has been steadily on the increase. Companies find that wellness programs to promote employees’ good health has a direct impact on employee engagement and productivity. Remote workers can suffer from isolation and communication problems. Therefore, your company should take necessary measures to create a healthy work environment and ease out stress triggers.

Many experts advise HR departments to promote a culture of wellness within the company, which will elevate employee physical and mental health and positively affect morale.

Remote work and hybrid work model

One of the major employee engagement trends in 2022 is the emphasis on flexible work arrangements. Despite the location of the employees, companies need to flexible, accommodating, and think out of the box to meet their needs.

Companies should continue to test employee engagement in multiple ways. Emphasis on effective communication has become important, making it essential that all workers receive the right information and the organization receives effective feedback from the employees continuously.

It is important to ensure that the employees have the right expectations about working from home and how many hours of work are expected from them. A good work contribution recognition and reward system is an integral part of this model.

Employees first, let’s prioritize our biggest asset

The time has come for your company to employ a “people-first” culture, one that shows appreciation for employees and acknowledges achievement company-wide.  Boost the “human” in human resources, and recognize the needs of your remote workers that may not have been apparent when working out of the office. Make sure that your employees feel connected even though they work from home. Acknowledge the extra effort they put into their work. 

Giving prominence to work flexibility

The influence of tech tools for employee engagement trends for 2022 is definitely undeniable. Employee engagement has been reshaped by the utilization of technological advancements, and some are now a part of the daily landscape of HR departments. Many employees working remotely need to overcome obstacles to maintain their daily output: whether it is distractions from the responsibilities of home life (children, spouses); or the lack of interaction with their professional peers.  Appreciate those who have overcome these difficulties as they have shown the commitment and determination that you want on your team by doing so.  Look for opportunities to advance them and lead others with the same positive attitude.

AI and Machine Learning will pave the way for growth

Machine learning and AI will represent more chances for employee engagement in 2022. These advances will permit HR departments to make more analytics-driven decisions.

ML can help drive employee performance to figure out employees’ career paths and set them up for career progression, guiding opportunities that others in similar positions may have taken to get promoted in the company. ML can also evaluate performance data of the candidate unbiasedly, often challenging for a supervisor.

Employee engagement trends towards evaluation of employee experience

Employee surveys are essential tools during the pandemic. Companies should get honest and regular feedback from employees to conclude about engagement and to figure out if workers are thriving.

Your company can promote employee engagement by paying attention to how the employees are feeling and making a personal connection with each of your employees. Make sure your employees feel that you care for them. Be creative, know your audience and communicate directly. You will undoubtedly witness the results by an increase in productivity and performance.

Your Guide to Global Hiring: Choosing the Best Option for Your Business

Hiring employees can be a difficult process, especially when you’re looking for talent in a different country. There are many things to consider, such as the cost of relocation, taxes, and more. Considering international recruitment managers, global hiring companies, and PEOs/EORs and understanding which is the best option for your business? It depends on your needs and goals. But we believe that having more options is a good thing – it ensures that you can find a solution or service that fits your company perfectly. Let’s explore your options below!

A Professional Employer Organization (PEO) is an organization that manages the employment and human resources functions of its clients. An Employee of Record (EOR) can help your business manage payroll, benefits, HR administration, workers’ compensation insurance and more. This means less time spent on administrative tasks so you can focus on growing your business instead.

International recruitment managers are a great option for companies that want to find talent abroad without paying relocation costs upfront. PEO and EOR companies offer solutions such as payroll services and employee benefits packages at no additional cost; however, handing it over to a purely based agency which handle only PEO or EOR may not have the same level of expertise as global hiring firms when it comes to international law (especially if they’re based in another country).

But a professional organisation do have some advantages over standard global hiring companies. For example, PEO or EOR or BPO services they offer can be more flexible with their fee structures and are often able to accommodate smaller businesses that may not have the budget for a global hire. They also offer a wide range of services such as payroll processing, HR support, and employee benefits which can be helpful for businesses who don’t have the time or resources to manage these things on their own. So if you’re looking for an affordable option with a lot of flexibility, PEOs/EORs might be right for you! If you’re in the search of a more comprehensive solution that covers all aspects of global hiring, a global hiring company which offers a range of add-on services might be the best option for your business. A company such as ExroAsia offer a wide range of services such as finding and vetting candidates, relocation assistance, and more. They typically have experts in international law on staff, which can be helpful if you’re not familiar with the process of hiring employees in another country.

What you Need to Know About ‘1099 Employee’

Due to the COVID-19 global pandemic, businesses all around the globe begin seeking a more flexible and friendlier working environment, each passing day. With the increase of freelance work, there has also been a rising confusion regarding the benefits and tax implications of employing ‘1099 employees’ (a popular name for independent contractors)

In favor of the process, many companies are tending to select Contractor Management Outsourcing to begin engaging 1099 employees/independent contractors much easily.

Before employing a 1099 employee/independent contractor, it is essential to recognize the laws and rules governing their employment. This makes sure that that you aren’t taken by surprise by unexpected tax implications or misclassification penalties along the way.

What is a 1099 employee?

A ‘1099 employee’ is technically an independent contractor (sometimes called a freelance), who is usually employed for a fixed time period, or on an ‘ad hoc’ basis. Individuals hired to create social media posts, write website content, edit photos and film, or design a logo, are a few common examples. 1099 employees are usually referred to as the ‘contingent workforce‘.

Unlike traditional employees (often known as ‘W-2 employees’, in reference to the IRS form used with these individuals), a 1099 employee/independent contractor is not eligible for a benefits package or a salary. Moreover, they are not subject to workers compensation and certain labor laws. A 1099 employee/independent contractor are usually entrepreneurs, and often works for multiple clients simultaneously.

Although the terminology can be a bit misleading, it is important to categorize a 1099 employee/independent contractor correctly in order to avoid penalties and fines associated with misclassification (more on this below). Therefore, we discuss here some of the key questions to ask when dealing with 1099 employees/independent contractors.

1099 Employee vs. W-2 Employees

In deciding whether an individual is a 1099 employee/independent contractor or a W-2 employee, the organization should ask three questions:

1.     Is the individual’s job controlled by the business?

2.     Is the individual’s salary and reimbursement of his/her expenses and supplies controlled by the business?

3.     Is there a written employment contract, especially one referring to explicit benefits, like vacation days, associated with the work?

We consider each of these questions in greater detail below:

Behavioral Control

The first question focuses on controlling the behavior of the individual and how the project is completed. A W-2 employee is often required to work during fixed hours, at a given place or is trained in a particular way by the employer. However, An independent contractor, often works according to their own schedule and is already proficient in their field without the need of prfound training.

Financial Control

The second question focuses on financial control. A W-2 employee is usually paid on a particular schedule (such as bi-weekly), and in accordance with policies set by the employer. Most W-2 employees are reimbursed for additional expenses that are essential for their work such as gas mileage, internet and office supplies. On the other hand, an independent contractor is often in charge of their own payment schedule in agreement with their client, and sets their own rates. They are responsible for their own business expenses, which are usually tax-deductible.

Nature of the Relationship

The third question addresses the general nature of the employment relationship via evidence such as written contracts and benefit agreements. A written contract doesn’t necessarily mean that someone is a W-2 employee. However, a contract with a salary and expounded benefits proves that an employee is more than a mere contractor working on a temporary basis. A 1099 employee could still have a contract with the company, but it will usually dictate that the individual is not eligible to any of the benefits of an employee.

What are the 1099 employee rules?

The most important rule to follow is that any business need be perfectly certain that an individual is an independent contractor before treating them as such for tax purposes. If the independent contractor confronts their status as an independent contractor and the IRS agrees, a company might have to deal with enormous fines and penalties from being unable to pay the appropriate taxes and benefits. This makes it extraordinarily important to classify a 1099 employee accurately.

What paperwork is needed for a 1099 employee?

When tax season comes around, a business which has employed independent contractors needs to submit specific paperwork. In past years, employers filled out a 1099–MISC form that covered various sources of miscellaneous income. However, the rise of the gig-economy and freelance work has motivated the IRS to create a new form solely for independent contractors, the 1099-NEC.

Employers must get personal identifying information from their independent contractor initially, including their address and tax identification number. Utilizing this information, the employer must fill out the 1099-NEC form for any independent contractor that has been paid $600 or more throughout the year. This form is then reported to the IRS and a copy is sent to the independent contractor to use during their own tax preparation.

PEO Predictions for 2022

The pandemic has undoubtedly been an eye-opener for all of us, proving to mankind once again that uncertainty is the only certainty. It is evident that the business world went through drastic changes to adapt to the ‘new normal’ we are currently living in, which included a renewed appreciation for professional employer organizations (PEOs). This year, all organizations came into realization that, possessing the appropriate resources to support new and/or complex compliance, payroll and benefit regulations is highly important.

The outcome of the above has made the service and support to the clients by their PEO’s more focused and strategic for the better part of 2021. Proceeding to 2022, PEO’s will continue to change and mold their strategies accordingly to provide the best value. Here are few predictions.

The relationship between PEOs and clients will prosper

The ‘work-from-home’ concept that had to be followed helplessly by many businesses due to the pandemic caused many entrepreneurs and business leaders to seek aid from their PEOs. As we continue to seek aid from the PEOs expertise on how to prepare our future plans and goals stepping into 2022, this relationship will continue to prosper.

PEOs will be more into tech, software will change

The pandemic made it mandatory for numerous industries to cut down on their workforce. However, now with more and more people returning to their pre-pandemic schedules such as travelling and dining-out, the need to increase the workforce quickly and substantially has become a necessity for some industries although a few were able to either recover fully or partially from it. This has indeed led the employers of the small and mid-markets (who suffered the most due to the pandemic) to look out for more durable and reliable applicant tracking software in large quantities. PEOs will have to depend on tech more often in order to meet the clients’ needs which may come with a change in loyalty such as switching HCM providers more frequently than before. PEOs that are unable to currently offer applicant tracking, as an example, will require evaluation of HCM technology companies that deliver a more all-inclusive platform.

Compliance and HR functions will remain key

A certainty in 2022 is that compliance will remain a key selling point for businesses reaching out to PEOs. Since PEOs are required to stay in compliance with federal, state, and local governments, their clients can concentrate on strategies of a larger scale and count on their trusted business partner to deal with some of the more monotonous, legal operations. Moreover, Underwood spotlighted that HR is yet a selling/retention point for PEOs. For example, since unemployment administration and rates affect everyone, PEOs can aid to enclose their clients from major increments, since the PEO has a bigger base to spread out claims.

While we are still unaware on how the pandemic will take shape in 2022, PEOs are in a position to help their clients adjust and resist disruption – not just in the forthcoming year, but also in the years to follow.

Employee Engagement Trends for 2022

The pandemic has changed lives, shifted mind-sets especially in the corporate environment where an employee is concerned. It has disrupted the workflows, work culture and the corporate lifestyle completely where many companies adapted to remote working no matter where they were located. Employee mental health and work-life balance were given priority as many suffered from anxiety and balancing families while working from home was not easy. Corporate infrastructure, rules and regulations have altered accordingly, however what could not be altered was how HR managed employee engagement.

Employee engagement has a clear impact and a correlation to productivity, where employees who are engaged are happier and such companies have shown lower turnover rates over the years. Taking past year’s experiences into play, here are a few major employee engagement trends that we can look out for in 2022.

1.      Flexibility at work

According to many research reports, remote work is here to stay and many companies have allowed employees to work remotely by choice or part-time. Some companies were looking at remote work full time for employees as when managed correctly, it is more convenient especially for companies who are considering global expansion. Employee priorities have changed in terms of flexibility and work-life balance, many engagement styles have changed to suit remote working where frequent video conference calls to check up on teams and employees, online engagement, and games will take priority. Employee recognition will play a major role next year as many companies are looking at valuing and rewarding employees who actually give their best despite many obstacles that may arise while working remotely.

2.      Utilizing technology

Cloud technology has taken over by storm even before the pandemic, many products and platforms have evolved during the pandemic period supporting corporates in multiple ways. Human Resources Systems and platforms for Learning Management, Employee Experience, and engagement have increased. Manual work in HR has been greatly eliminated where much needed support from technology has taken over the mundane tasks of HR, which frees up time and space for HR to connect with individual employees and maintain the human touch as much as possible. Machine learning and AI have supported HR systems to take a leap ahead where it gives companies the ability to predict and direct employees towards their career progression.

3.      Employee health and wellbeing

Employee health and wellness has always been prominent however the emphasis on this has increased and will increase during the coming years. Employee health and wellness is also interconnected to employee engagement, during the pandemic many companies introduced mental health facilities and introduced sports activities online. Companies will get more creative within the next year to link these with employee engagement where many activities and stress-releasing engagements will happen.

ExroAsia is an International HR Services Company based in Sri Lanka with a strong presence in the Asia Region. ExroAsia specialise in providing Umbrella Employment/Employer of Record (EOR) services including recruitment, payroll, and other core HR activities.

Best 6 Markets in Asia for International Expansion in 2022

Asia is home to world-class technology centers, advanced infrastructure and densely populated emerging economies. During the last three decades, Asia has boomed in technological advancements, GDP growth and labor competency outshining western countries which makes Asia one of the best destinations to expand during the post pandemic.

According to the World Economy Forum, Asia GDP growth is dominant in the world, the prediction is that by 2030 Asia will contribute to 60% of the global growth. With its sustained economic growth and stability, many business experts expect global organisations to expand into Asia in the near future.

Here are some of the countries in Asia for global expansion in 2022.


China has opened its economy to international trade and is now known for its dynamic banking and technology-driven private sector. International investors are allowed to set up a 100% foreign-owned company in China where foreign investment is welcome within the country for most industries. China’s new social credit system, including income tax benefits with highly available labor, make China one of the most attractive markets to expand.


Singapore is widely recognized as a global economic hub that provides international companies with strong trading and investment opportunities. Having one of the lowest corporate rate taxes in the world, Singapore’s friendly business policies have attracted many traders and investors. Singapore had been recognized as one of the best places to do business by the annual survey of the World Bank for many years. With attractive immigration guidelines, high quality education system in place and multilingual workforce, Singapore ranks on top as one of the best places to expand.


Being identified as one of South East Asia’s leading economies, Malaysia is an export oriented manufacturing hub with the second highest GDP per capita in Asia. Equipped with a highly talented, multilingual workforce ranks on top in education than western countries, many sectors such as Health services, manufacturing, high-technology, and biotechnology are heavily supported by the government. Malaysia’s openness to trade along with its infrastructure has made it one of the most desired places to expand in Asia.


With its strategic location, Thailand has become home to one of the most fastest growing economies in Asia. The economically driven market oriented nature of business welcomes foreign investment, tech development and employment. Thailand is known for cost effective labor and its economic growth and benefits offered for foreign business entities make them a good reason to consider expansion.

Hong Kong

One of the premiere business locations, Hong Kong takes pride in being one of the leading financial centres in the world. Apart from being able to set up a business with 100% ownership, they can be a share-holder or a sole owner of a Hong Kong based company. With its free trade and investment policies, simplified taxation and strategic location, Hong Kong is a truly global city and financial center for businesses.

Sri Lanka

Sri Lanka’s strategic location provides endless prospects to venture into free trade and partnership agreements with some of Asia’s trade giants. Another advantage for a company locating to Sri Lanka is the preferential trade access gained by two large regional alliances under the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA). Sri Lanka is full of educated and competent workforce which is an added advantage.

10 Questions to ask When Choosing a Global PEO.

Choosing a global PEO will make your expansion journey smooth and hassle free. A global PEO would take care of your employee payroll, labor and HR requirements while employees work for your company. Without an entity, having a global presence not being able to worry about employee and statutory related issues is a big win, but to have all these benefits it is important to select the right PEO for your organisation. A global PEO will not be just another vendor, they will ensure that your employees are paid on time, while having the same comforts and benefits as the employees who work for your company headquarters. Managing all these is crucial and that’s why you need the right partner on-board. Here’s a few questions you need to find answers for before signing up with a PEO

Who are your founders?

It is important to know and understand who the founders are and the purpose of starting the PEO. You need clarity in your answer as you are relying on them to manage your biggest asset, your employees.

Who are the investors and what role do they play in the organisation?

The global PEO needs to be sustainable in the long run, to have steady funds, in terms of capital and cash reserves. You need to be able to rely on them to know that they have the ability to pay your employees by end of the month.

What is the infrastructure of your organisation?

Understanding the infrastructure is important specially to see if they are equipped with an in-house team within location, what their technology platform is and data security, legal standards.

How many partners are deployed across the globe, what is their role?

If Payroll is being outsourced to a partner it is necessary to understand their expertise and the level of responsibility handled by the PEO towards your company.

How do you follow data security requirements?

The global PEO needs to be compliant with laws and governing data in each region they operate in and has to comply with the corporate standards.

Do you use a software to maintain our employee data?

It is important to understand how and where they store employee data and if it aligns with the corporate standards.

Any rewards, recognitions or listings by a third party recently?

Understanding if the PEO is known and recognised recently for their work, where they stand in the market among other players.

Do you have a local reach?

Understand if the PEO has a local office in the country or if they have a regional office or if they operate via partners etc.

What is your process to hire and on-board candidates?

Understand if the PEO is following a standardised process in hiring and on-boarding employees, if the company culture will be communicated effectively to an employee.

Any controls or measures used to pay teams on time?

Ideally a global PEO needs to have a 99% or higher payroll accuracy rate, and needs to pay employees irrespective if the company pays them on time or not.