Cheaper isn't always better: why money shouldn't be your #1 priority when choosing a PEO

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Less money spent on a PEO means more to invest in your operations, right?

Cutting corners on your PEO is not the smartest business move, especially when expanding to a foreign country, far away on the African continent. Upfront, this might save you money – but in the long, mid and even short term, you might just regret your choice. Here are the dangers you expose your company to when you make spending your top consideration when choosing a PEO in Africa – and what factors you should be looking at instead:

1. Price v/s Value provided by your African PEO

Often, when you pay less, you also receive less.

PEOs worldwide are engaged in a “race towards the bottom”, all eager to slash prices – often at the expense of services and value provided to you, the client. Well-established PEOs, on the other hand, tend to charge more, because of their years of experience and the wider range of services they provide. So, while you do spend more, you also get more value in return: both in terms of the range of solutions provided and the client care you receive.

PEOs like Africa HR Solutions, for example, offer you a single point of contact, which means no endless redirections and long wait times to get a simple answer. Client service like this is a precious time-saver for busy executives who want the freedom of focusing on their company’s operational growth.

Bare minimum services and client care can only get you so far before they are stretched to their limits – and need to be upgraded.

Remember: investing in your PEO also means buying yourself peace of mind and convenience.

2. Trust in your PEO

Trust can’t be bought…or can it?

Well-established PEOs like Africa HR Solutions offer a priceless resource to companies like yours: trust. When you are working with a PEO, you are trusting them with crucial employee functions, which often includes payroll.

How can you be sure that a lesser-established, lower-priced PEO will not pocket your employees’ intended salaries? How can you know for a fact, that part of the amount will not be diverted?

When working in a foreign country, you put yourself at a disadvantage when you do not choose vetted PEO providers. There are unscrupulous PEOs who attract foreign clients with lower prices, and who don’t deliver on the promised services.

Working with a well-established PEO at a slightly higher price point will certainly save you all that trouble and money. Compared to money loss and even theft, investing in a good PEO can be the more profitable option for your company.

3. Compliance

How willing are you to pay non-compliance fines?

Or to have your employer reputation ruined?

When choosing a lower-priced PEO, you may be agreeing to the risk of not being 100% compliant with local regulations. Local regulations are always changing, with old laws being replaced and updated, and new ones being introduced, each with their own timelines, and their own target audiences. This is something that PEOs need to always be ahead of to protect you, the client, from fines, costly and time-consuming trials, and from a soiled reputation.

But when your main consideration is cost, you may be sacrificing this vital aspect of doing business in a foreign country.

On the other hand, when you choose a PEO like Africa HR Solutions, which guarantees 100% compliance in all the African countries we serve, you essentially place a shield between your company and any non-compliance risks.

4. Employee Satisfaction with your PEO

Who is the first affected by a poor PEO provider: the company itself, or the employees?

Employees have a lot to lose when your company partners with a poorly performing PEO provider. Why? Because they are the first ones to feel the effects of an ill-administered payroll system, simple payroll miscalculations, or incorrect benefits administration. Considering that only 2 payroll mistakes will send up to 49% of employees on the search for a new job, and that hiring new employees is costlier than keeping existing employees, choosing the wrong PEO could actually cost you more than you think.

Even beyond such extremes, a poorly performing PEO could simply ramp up employee dissatisfaction – and bring down productivity all at once – which is sure to impact your company’s performance.

5. Technology

In 2024, while operating in one or multiple foreign countries, it is crucial for your company to have a modern HR system, complete with digital payroll interfaces. A lower-end PEO provider may lack access to the modern technology your company needs to keep up with the hectic rhythm of HR processes and calculations. Besides, mistakes will be more frequent when using dated technology and processing time will be much longer – not to mention: you will not have access to highly practical features such as an Employee Self Service platform.

6. Scalability with your PEO

Your organization’s HR requirements will change as it expands. Selecting a PEO with a capacity for growth guarantees that the collaboration can adjust to your evolving needs. Selecting a PEO only on the basis of price may prevent you from scaling your business effectively, which will result in higher expenses down the road.

What should be your top 3 considerations when choosing a PEO?

If not price, what factors should you actually consider when choosing a PEO? These 3 considerations are a great starting point for any business:

1. Trust

Check the PEO provider’s credentials: look into their portfolio of clients, their past projects, case studies, testimonials and other relevant information that proves the PEO provider’s claims.

2. Technology

Find out which type of technology a potential PEO provider uses – and how far it is scalable for your business in the long run.

3. Range of services

Does this PEO provider also offer cross-border payment services? How about medical insurance or immigration assistance? Find out which ancillary services a potential PEO provider offers to determine how compatible they may be in the long run.

Looking for a vetted, modern, and highly competent PEO provider in Africa?

Africa HR Solutions is the PEO you need! With over 10+ years of experience working with NGOs, Fortune 500 companies and startups in Africa, we offer modern solutions to all your HR needs. Find out more about how we can help you and why you can trust Africa HR Solutions: get in touch with us now!

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Achieve peace of mind for your business operations across Africa with Africa HR Solutions, your trusted compliance partner. Streamline your payroll process and ensure adherence to regulations effortlessly. Contact us today for a worry-free expansion journey
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GRANT GERAGHTY - Africa HR Team

GRANT GERAGHTY

HEAD OF CLIENT RELATIONSHIP

Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.

KEVINA TAKOORDYAL Africa HR Team

KEVINA TAKOORDYAL

HEAD OF OPERATIONS

Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.

VILOSHNA PACKIRY POULLE​

VILOSHNA PACKIRY POULLE

Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.

MARK DU PREEZ​

MARK DU PREEZ

Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team

ALEX DARUTY

Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.