Expanding your business with a New Zealand PEO / EOR
New Zealand’s strong economy is one of the world’s most globalized. Their small size and long distances from other areas of the world necessitate strong export and shipping sectors. As Australia is their closest geographic neighbor, they are New Zealand’s strongest trade partner. However, China, the European Union, the United States, and Japan are also substantial contributors. Overall, these 5 partners account for 66% of New Zealand’s two-way trade activity.
With New Zealand’s encouragement of foreign investment through its Overseas Investment Office, it’s a desirable location to enter a new market. As a matter of fact, foreign direct investments totaled NZ$404 billion in 2017. The lack of language barrier, the country’s reputation for human rights, and their pool of talented labor all lend to the desirability of testing the market. To expedite the launch of a new enterprise, a partnership with a New Zealand PEO (Professional Employer Organization) or Employer of Record to ensure success and smooth market entry. In doing so, issues with area laws, locating skilled talent, and more can be handled through a local entity – letting them handle everything on your behalf.
Read on as we explore the benefits and ratings of the best New Zealand PEOs and EORs for your company’s expansion.
Why partner with a PEO/EOR in New Zealand?
Although the language barrier is lessened, there are still a number of issues involved with new business setup. As a newcomer, the set-up of offices or businesses in New Zealand can go slowly, as interviews drag on, contracts are negotiated, and work permits are obtained. In these instances, a partnership with a local PEO/EOR is the way to better business launches. As the legal employer, they’re able to manage everything from contracts to human resources needs such as bonuses, payroll, and more.
Best New Zealand PEOs and Employer of Record
Horizons provide comprehensive support services – extending to staffing, recruitment, entity setup, and more. For business expansions in New Zealand, their coverage of the Oceanian market is always elevated by a local presence. Tailored solutions are their specialty, backed with a diverse worldwide portfolio that includes Fortune 500 companies.
For businesses that are testing the New Zealand market, Horizons offers a full suite of PEO/EOR solutions. As they partner in turnkey business openings, they can handle everything from finding office space to recruiting and managing staff.
GlobalizationPedia identified some of Horizons’ key advantages compared to its competitors:
- A 100% Horizons-owned entity in New Zealand.
- Competitive pricing for New Zealand EOR services, with a scaling pricing model.
- Local team on-site in New Zealand.
- HR experts for New Zealand, Australia, and the entire APAC region (all locally based).
Website : Horizons
SkyExecutive is a well-respected recruitment agency and Professional Employer Organization (PEO) with local operations in New Zealand. This means that Sky Executive has the ability to combine their recruitment services with their day-to-day PEO employment solutions to provide a unique set of PEO benefits for companies looking to expand overseas and provide a single point of contact for these businesses.
With a client roster in over 100 countries and a platform-based New Zealand PEO offering, Papaya is an efficient service for many industries. They have capabilities for workforce support in New Zealand, offering payroll, PEO, and contractor management services.
Papaya’s automated management capabilities are centralized with an online SaaS system. They offer localized insights and centralized management, accomplished via their web platform. For new companies that have found local specialists in New Zealand, Papaya offers a way to outsource HR support issues online.
Website : www.papayaglobal.com
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 New Zealand 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 New Zealand – as may take years to apply for – further jeopardizing compliance.
Example: There are serious record-keeping laws in New Zealand. Wages & time, leave, and holiday data must be kept for a minimum 7 years. Failure to comply can cost up to USD 100,000, or 3 times the wages made by the employee. Read your services agreement carefully before you engage a New Zealand EOR.
- 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 New Zealand 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 EOR providers based on their track record of compliance, experience in New Zealand, and support capabilities, rather than solely on their growth and pricing potential.
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