Our competitive advantage
- Talentheads
- Dec 19, 2022
- 2 min read
As you may have noticed, there are tons of Professional Employer Organizations (PEOs) available today providing Employer of Record services. Most of them are working globally to an extent, which means they provide services in a large portfolio of countries. Global reach is great, but it also comes with some downsides.
The fact is that most of the large companies on the market are providing services that are subcontracted from a local service provider. To cover a large portfolio of countries this is usually necessary. It is not convenient to establish a legal entity in all of the serviced countries for the PEOs, exactly for the same reasons it´s not convenient for their clients.
Subcontracting is a reality in the Employer of Record business for most large service providers, and it means two things: increased lead times and increased costs. If you would like to ask something about the local regulations or tailor a labor agreement, in most service providers´ cases getting an answer or a result can take long simply for the reason that they have to agree with their local subcontractor about that additional service. They also have to manage the communication between the parties. Following the same logic, the cost is also higher. Not only the PEO but the subcontractor needs to make their margin from the client. This is why the prices on the market for EOR services are inflated. For most large providers they range from 300 to 600 euros per month per employee.
Our way of working at Talentheads is different, as we are solely focused on the Belarusian market and present on site. We do not outsource or subcontract any of the contractual or payroll-related processes when providing our Employer of Record service. This means that our fee is significantly lower than the market average, while our quality is higher and reaction times faster. We do not compete on global reach, but if your talent need is in Belarus, look no further.
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