With Kenya PEO services, organisations now have the opportunity to hire employees in Kenya without establishing a legal entity.
All your new hires and teams can concentrate on your business objectives, while a PEO in Kenya manages all your human resources, employee benefits, payroll, and tax obligations.
Many organisations have realised that establishing a subsidiary or branch office is not always the best way to employ staff in Kenya because it is usually a hectic and expensive procedure.
Hence, when expanding your business into a country like Kenya, then, leveraging a Professional Employer Organisation (PEO) is quicker and more efficient as it can help your business rapidly recover revenue.
What Is a Professional Employer Organisation(PEO)?
A Professional Employer Organization (PEO) is a company that provides employers with outsourced human resources, payroll, benefits, and compliance services.
PEOs act as a co-employer, taking on some of the responsibilities related to the employer-employee relationship such as payroll processing, benefits administration, workers’ compensation coverage, and labor law compliance.
By outsourcing all or some of the significant parts of your HR services to a PEO, your business can save more time and money and focus on its core operations.
PEOs can also help businesses stay compliant with Kenya labour laws and regulations and provide benefits and opportunities for employees that they may not be able to afford on their own.
Through subsidiaries, PEOs sometimes offer international services that help them to legally hire employees on your behalf in accordance with Kenya labour laws.
What’s more, when you hire through a PEO, the compliance burden lies with the PEO. It means that your employees can start working for your company in a matter of days, saving you the time and hassle of managing the recruitment process.As you expand, it’s essential to research and select the right PEO partner that is able to meet your specific business needs and expectations.
What Are the Differences Between EOR and PEO Companies in Kenya?
It can get confusing to distinguish Kenya PEO and EoR services. This is because some organisations use both terms interchangeably, owing to their similarities.
In other cases, Employer of Record services are also called “International PEO services” or “Global PEO services”; the keywords being the “International/Global” addendum to shore up on some key differences.
In any case, if you ever get stuck understanding the differences between the two, here’s a table below showing their contrasts:
Kenya Professional Employer Organisation services and EoR services are helpful, but their use depends on your unique business contexts and requirements.
The good news? Workforce Africa can advise you on which is appropriate for your organisation because we offer both services. So, no worries here; you’re in good company … pun intended 😃.
You can learn more about the differences between PEO and EoR services here.
Ways PEOs Help with Employer’s Responsibilities at Work
A PEO can help businesses by taking on responsibilities such as:
Payroll Processing
PEOs handle business payroll processing, including calculating and distributing employee salaries and taxes.
Employee Benefits
PEOs can help businesses provide benefits such as health insurance, retirement plans, and paid time off. PEOs often have access to group rates and packages that some businesses may need help to afford/access.
Compliance
PEOs can help your business stay compliant with employment laws and regulations, including those related to taxes, minimum wage, and work hours. This can include handling paperwork, filing taxes, and ensuring compliance with laws such as the Fair Labor Standards Act (FLSA) and Medical Leave Act.
Human Resources Management
PEOs can help businesses manage their human resources, including recruiting, hiring, and training employees. PEOs can also help with performance evaluations, employee relations, and compliance with labour laws.
Risk Management
PEOs can help businesses manage risk by providing liability insurance and worker’s compensation coverage. Read more on how Kenyan PEOs can help with employer’s responsibilities here.
What Are the Benefits of Using a Kenya PEO?
A Kenya Professional Employer Organization (PEO) expert can be of great value to your organisation when hiring expatriates and local nationals in Kenya and guarantee your business 100% compliance.
Some of the various benefits of using a PEO in Kenya include the following:
Mitigating risks
Kenya PEOs can mitigate some of the potential risks that may occur when companies employ workers. For example, taxes can be filed incorrectly, which could lead to penalties.
A PEO in Kenya also assumes these management responsibilities as a co-employer, and the business with the PEO share the risks and employment.
Ensuring Kenya employment law compliance
When setting up a business in Kenya, it’s important to understand the local employment laws. A Kenya PEO can help businesses or organisations expanding to Kenya manage compliance effectively.
They offer expert legal advice on local employment laws and help shield your company from compliance penalties or fines.
Providing wide variety of employee benefits
A Kenya PEO ensures that your employees get the proper compensation and access to mandatory healthcare, insurance, pension benefits, and more. Additionally, your organisation gets the opportunity to add more customised benefits to motivate their employee.
Learn more about why your business needs a Kenya Professional Employer Organization (PEO).
Recruiting in Kenya with a PEO
Kenya is an emerging market rich in natural reserves and resources that businesses across the world can easily tap into.
The country has made significant progress in developing its economy and safeguarding its talent. To protect workers from employer deception, the government enacted employment laws.
There are many processes involved in hiring employees in Kenya. From taking time to understand all obligations under the law, checking with your local immigration office, to social security contributions and more.
Meticulously studying and understanding these Kenya employment laws and processes can be time-consuming and complex. However, PEO companies in Kenya like Workforce Africa can help you navigate and manage the complexities with expertise.
You can take advantage of hiring qualified talent based in Kenya, using the services of a Kenya PEO service provider. A recent report revealed that Kenyans are among the top nationalities to hire as remote workers around the world.
Top Things to Consider When Choosing a PEO in Kenya
1. Level of Experience and Expertise
Before choosing a PEO as your partner, it is essential to identify the experience level and expertise of the PEO Company as a whole. It will help you select a PEO with the right skills and expertise to help you achieve your goals.
2. Expertise in Compliance
To address your compliance, ensure that the Kenya PEO can meet your compliance obligations, whether that’s in relation to reporting, payroll or taxes.
3. Commitment to Customer Service
Investigate your partner’s customer service details and means of communication to ensure they can promptly and adequately address questions.
Best PEO Company in Kenya
Considering entering the Kenyan market for international trade is a great decision. With the largest economy in Africa and an increasingly educated population, Kenya is an emerging market with potential.
At Workforce Africa, we help businesses from all industries to expand into Kenya and across Africa. Your business can achieve and surpass its business needs by leveraging our professional employer organisation (PEO) services for Kenya.
You can also launch your operations in Kenya with or without a Kenyan entity and hire your local employees using our PEO Services in Kenya. Your ongoing HR tasks, Kenyan expenses, payroll, legal compliance, and other responsibilities can be handled while you focus on the core of your business.
Ready to outsource your HR and legal compliance tasks, identify, hire, and onboard qualified Kenyan personnel as you expand operations. Schedule a consultation today.
