Professional Employer Organization: Pros and Cons in 2021

By Anastasia Stefanuk | Thursday, 11 Nov 2021

One of the biggest challenges for any company is recruiting and retaining talent. Regardless of the industry, finding the right people is often a challenge. However, the IT field faces unique hurdles that make attracting the best talent even more important. It's hard not just to find an IT specialist, but someone who is a perfect fit.


Because of these challenges, many IT companies are hiring professional employer organizations to streamline the hiring process and make it more efficient. These specialized, qualified recruiters can streamline the process and reduce hiring time.


PEO is a one-time or ongoing service to support customers' operations. It includes a full range of services in employee search and selection, outsourcing of administrative processes, business support, and contractor management. Among which are: 

  1. Professional organizations employers conduct comprehensive audits of business processes, develop and implement unique solutions.

  2. They usually perform tasks of non-core administrative functions for accounting, marketing, sales, purchasing, and human resources departments. But they are not limited to these jobs:

  3. Personnel recruitment: these companies usually have access to qualified professionals who are ideal for your business

  4. Raising the qualifications of employees: some companies are engaged in training and coaching employees.

  5. Organizing the work of the reception area: guest reception, office reception, telephone answering service.

  6. Document and tax service management: printing and scanning, archiving and storage, organization, and maintenance of document flow.

  7. Audit and consulting: audit of non-core support services for business, recommendations on the effective construction of internal business processes according to unified standards.


The Advantages of PEO

There are both professional employer organization pros and cons. Let’s take a look at the main benefits of professional job organizations:

  • Reduction of internal expenses on salaries and employee training.

  • Optimization of the material base - no need to purchase highly specialized equipment, systems.

  • Reduction of tax and accounting burden, official reporting.

  • Increased productivity due to the narrowly focused activities of employees.


For outsourcing personnel to give its benefits, you need to know its peculiarities. First, leased employees should be assigned secondary tasks of the shop.


Apple leased factories in China, which became involved in the assembly of the branded company's products. What can be included in outsourcing? Whatever the company's management sees fit: from accounting to housekeeping.


Job Search in Hong Kong

Hong Kong Special Administrative Region, or Hong Kong for short, is a special administrative region of the People's Republic of China, one of the leading financial centers in Asia and the world. Due to the fact that Hong Kong plays the role of a major trading center and a gateway to China (and Asia in general), the majority of companies that are registered in Hong Kong are created for the purpose of trading operations.


Tax exemption is possible if the business is not conducted within Hong Kong, there are no sellers or buyers’ resident in Hong Kong, if there is no real estate ownership in Hong Kong, there are no employees’ resident in Hong Kong, the owner does not stay in Hong Kong more than 60 days a year, does not sign contracts in Hong Kong, but the obligation to file reports remains. Hong Kong has no treaties on the prevention of dual taxation with any country in the world, with the exception of U.S. shipping.


Annually, businesses are required to provide an annual report, failure to submit it on time is subject to a penalty. For all Hong Kong businesses, bookkeeping documents must be maintained at the company's listed office, or at another place as determined by the CEO. It is required that all companies assign an accountant, who has to be a fellow of the Hong Kong Association of Accountants and holds the appropriate certificate. There is no demand in Hong Kong to submit financial statements to the Registrar of Companies. Taxation is on a territorial basis. That is, income received outside of Hong Kong is not taxed. Tax exemption in Hong Kong is not automatic. It is necessary to submit a report to the Department of Inland Revenue for not carrying out activities. And in some cases, the Department can request the relevant documents proving that the company had no income from sources within Hong Kong, and was not managed from the territory of Hong Kong. The tax on profits generated in Hong Kong is 16.5%. Because of this policy, almost every company in Hong Kong uses PEO services.


According to Statista, in 2019, total outsourcing market spending in Hong Kong was equivalent to 325 million dollars.


Technologically, Hong Kong is not as developed as China. There are large foreign companies like Facebook, Apple, Amazon, Microsoft, and Google, but they are mainly engaged in marketing, not development. But fintech and the financial sector, in general, are quite well developed. There are no restrictions on foreign capital here, and a lot of money flows through Hong Kong, so various financial companies open here that need developers. Any self-respecting bank tries to open a representative office in Hong Kong. The interesting thing is that cryptocurrency is not banned, so there are many companies and startups associated with it.


It is to the Hong Kong market that companies almost never open. There are only 7 million people here, and mostly local firms work for either the rest of China or Europe and the United States. This is why there are so many offices of international companies in Hong Kong, where foreigners are eagerly hired. Professional employers' organizations are widespread in Hong Kong. With their help, people find the best human resources and outsource many company functions, such as recruiting developers, working with taxes and documentation, and developing certain types of services.


Why Do You Need Chat Developers?

Nowadays, a visit to most sites starts with a small pop-up window at the bottom corner of the screen asking if you need help. The chat window can provide two kinds of support: either a company employee can help you, or a chatbot - a computer program that is designed to answer users' questions. Live chat outsourcing will help you create a quality product that will bring certain benefits to your business.


Advantages of Using Live Chat:

  1. Effective Problem-Solving.

Online chat is designed for human-to-human communication, so the customer expects a human on the other side of the chat.

The human side of chat is suitable for supporting more complex inquiries that require out-of-the-box thinking. A live employee is more likely to solve a customer's problem the first time without a hitch, making the interaction enjoyable.

  1. It’s Easy to Switch to Other Communication Channels.

Live chat gives you the ability to quickly and easily move the conversation to other communication channels, such as voice or video, to solve a problem. This fits perfectly with the concept of continuous customer interaction.

  1. They Increase Conversions.

Live chat employees are your personal shopping assistant. They will answer any question and help with product selection. Therefore, implementing live chat increases conversions by 20-30%.


Jobs here are usually sought on LinkedIn, which is the main tool. There are local portals like jobsDB and Angellist, where you can look for startups. And there are also many recruiters and recruiting agencies in Hong Kong, and it's convenient to look for jobs directly through them - find IT, recruiters, on LinkedIn and write directly.


IT outsourcing allows the company-customer to save costs and significantly reduce labor intensity and costs of operation of IT systems, concentrating all resources on the core business processes without distracting on the auxiliary.


Anastasia Stefanuk

Content Manager of Mobilunity (Email:

Professional Employer Organization recruiting retaining Human Resources HR Recruitment Retention Employee Retention

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