Doing business with a France PEO / Employer of Record
For any company hoping to test the market in France, there are some fantastic benefits. Location, a highly diversified economy, and a solid position in the world economic rankings (Ranking at 10th by GDP) set it apart. Strong growth in sectors such as the chemical industry, a robust transportation network, and a large number of harbors are all factors that entice new businesses, especially those focused on exports.
Utilizing the labor force in France can come with some unique challenges, as Collective Bargaining Agreements and the culture combine. The standard 35-hour workweek, extended maternity and paternity leaves, and generous severance packages are all quite different from countries like the United States. The French national health insurance, private pension fund contributions, and compulsory employer contributions to Social Security (URSSAF), unemployment, and life/disability coverage are also parts of the costs of doing business in the country.
Rather than increase delays and mistakes in recruiting, hiring, onboarding, and managing French employees and their human resources requirements, a Professional Employer Organization (PEO) is often used for new businesses. It can be relatively easy to identify the part of France to set up your new branch – Sophia Antipolis, for example, for technology start-ups. However, the sheer complexity of hiring and executing employment contracts in a foreign language, all while assuring compliance with payroll and benefits, can be overwhelming. When a France PEO, or Employer of Record is used, they become the entity that hires and employs your staff – handling the complicated human resources aspects, while you continue to manage your team and company directly.
Why rely on a France PEO?
In addition to smoothing the way to faster business launches, France PEOs can expedite hiring and recruitment as they work on your behalf. The best PEOs and EORs have local talent experts and the ability to navigate local regulations and laws. They assure compliance, administer payroll, and continue to serve as your company’s HR department as long as you need them. It’s the most efficient way to outsource one of the more complicated aspects of doing business in France. We’ve listed some of the top French PEO/EOR groups below.
Best French PEOs & Employer of Record
Horizons is known as one of the most respected PEO organizations in France. Businesses of virtually all sizes, from small businesses to startups to Fortune 500 companies, all trust Horizons with their PEO services and place high value on the company’s ability to hire talented professionals in France within days, as opposed to the usual months.
Horizons offers a full suite of business services; from contract drafting in French and English, to sourcing, hiring, and onboarding, and additionally to setting up social security and handling local disputes.
GlobalizationPedia identified some of Horizons’ key advantages compared to its competitors:
- A 100% Horizons-owned entity in France.
- French speakers in every department at Horizons.
- Horizons can hire in any region of France.
- French Co-founder and legal head.
- France’s complex hiring environment is made simple by Horizons.
The Global PEO network is based in Hong Kong and offers its services in more than 160 countries worldwide, including France. Successful partnerships with Fortune 500 companies and a wide range of industries have helped their company grow rapidly.
Global PEO offers a range of services, including international recruiting, and utilizes local experts to deliver tailored results for employee searches, site consultation, onboarding, and more. Their emphasis on assisting clients with multiple locations worldwide and local experts is often a winning proposition for expansions into new markets.
Why are Deel, Remote, or other companies missing?
Deel, Remote, and other market-leading EORs are fine companies – but they may not be the best choice for hiring in France due to several factors:
- Such companies often prioritize hyper-growth, driven by investor demands for rapid expansion, over ensuring compliance with local regulations and protecting the interests of their customers. This can lead to potential legal and financial risks for companies utilizing their EOR services.
Example: A company focused on hyper-growth might encourage employers to hire de-facto employees as contractors, opening the client up to employee misclassification risk unnecessarily.
- In the past, we’ve seen that such ‘young & tech-driven’ providers may not meet the necessary license requirements for providing EOR services in France – as may take years to apply for – further jeopardizing compliance.
Example: France’s regulatory environment is intense, and requires legal & HR experts who have years of practical experience on the market. When looking to hire in France, you will undoubtedly have many questions – be sure that the answers you receive are clear before proceeding.
- Relying on a virtual-only support team can make it challenging to address any issues or concerns that may arise, potentially causing delays or disruptions in operations.
Example: If there are no local support staff in-country, your France employees may be left without answers to their important questions. If you go with a company that outsources their support staff to another time zone or to non-HR specialists, you risk losing candidates, or worse, employees.
As such, it is recommended to carefully evaluate France EOR providers based on their track record of compliance, experience in France, and support capabilities, rather than solely on their growth and pricing potential.
Request a Proposal
If your company is interested in expanding your business operations into France, GlobalizationPedia can connect you with a PEO that best fits your needs at a cost-effective price. Fill out the form today and we’ll use our extensive database of strategic partnerships to provide you with a full rundown with the best potential France PEO matches for your company.