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The COVID-19 pandemic has led to a massive shift in the way many organizations and institutions operate. With remote work becoming the norm for many, Higher Education Institutions (HEIs) have had to find new ways to adapt. One of the biggest challenges for HEIs has been employment compliance, especially for remote employees. This has led to many institutions looking for solutions that can help them manage their workforce more efficiently and effectively.

What are PEOs?

One solution that many organizations have considered is Professional Employer Organizations (PEOs). PEOs are third-party providers that offer co-employment solutions for a company’s employees. They handle all HR and employment-related functions, including payroll, benefits, and tax compliance. However, while PEOs are a popular solution for many businesses, they are not always a good fit for HEIs.

The reason for this is that PEOs are primarily designed to serve small and medium-sized businesses. They do not have the resources or expertise to handle the complex employment and HR needs of higher education institutions. Additionally, PEOs are typically focused on businesses in certain industries, such as manufacturing, retail, and construction. They do not have the expertise to handle the unique challenges and requirements of the higher education sector.

Are EORs better for Higher Education?

So, what’s the solution for HEIs looking to manage their remote workforce? The answer is Employer of Record (EOR) providers. EOR providers are similar to PEOs, but they are much better fits for higher education institutions. They offer a range of HR and employment-related services, including payroll, benefits, and tax compliance. Unlike PEOs, EORs do not operate on a co-employment model and can support employees across the country, or even across the globe.

One of the biggest benefits of using an EOR provider is that they help HEIs save time and money. By outsourcing HR and employment-related functions, institutions can focus on their core mission of educating students and conducting research. Additionally, EOR providers take on the employment compliance risks for their HEI clients, which is a major challenge for HEIs in the era of remote work. This can help institutions avoid costly legal penalties and fines, as well as damage to their reputation.

In conclusion, while PEOs may be a popular solution for many businesses, they are not always the best option for Higher Education Institutions. Instead, HEIs should look to Employer of Record (EOR) providers for help managing their remote workforce. EOR providers have the expertise and resources to handle the complex needs of HEIs, especially for remote employees, and can help institutions save time and money while avoiding compliance issues.

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