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So we don’t do location-based pay at our company, but we do factor in PEO costs in order to ensure folks are full time employees for legal reasons. So, if you’r
by vhiremath4 6y ago
So we don’t do location-based pay at our company, but we do factor in PEO costs in order to ensure folks are full time employees for legal reasons. So, if you’re a senior software engineer in Nigeria (for example), your salary would be exactly what we’d pay a senior software engineer in SF, NY, etc. but we’d lower the pay by ~40% (for example) if that’s how much the PEO firm charged us to operate within that country.
I hate that we have to do this, and I’m really looking for PEOs that charge less but they all seem to take a significant amount of capital so we’re starting to consider spinning up entities in order to scale more efficiently and take on lower operational costs. However, then we get back to having to hire within that country’s entity to get that benefit (Ireland for example).
Anyone know of cheaper PEOs or better ways? I want my team getting paid as much as possible because, at the end of the day, it’s the same cost to our business anyway.