Glossary · Hiring and outsourcing models

Professional employer organization (PEO)

A professional employer organization (PEO) co-employs your staff in your own country. You stay the employer for daily work, while the PEO shares legal employer duties and handles payroll, benefits administration, workers' compensation, and HR compliance. Small businesses use PEOs to offer larger-company benefits without building an HR team.

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What it means in practice

The key word is co-employment. Under a PEO, you need your own registered business in the country where the employee works, and the PEO joins you as a co-employer. That is why PEOs are mostly a domestic tool, for example a U.S. company using a PEO for its U.S. staff.

A PEO is often confused with an employer of record. The difference: an EOR is the sole legal employer and can employ people in countries where you have no entity, while a PEO shares the role with you where you already operate. Neither one recruits for you.

To bring on a full-time professional in the Philippines without your own entity there, look at a placement model instead: Rekruuto recruits and vets the person, and you manage the work.

  • Employer of record (EOR)

    An employer of record (EOR) is a company that legally employs a worker on another business's behalf.

  • Staff augmentation

    Staff augmentation is adding outside professionals to your existing team to fill a skills gap or add capacity.

  • Fully loaded cost

    Fully loaded cost is the total an employer pays for a worker, not just the salary.

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Hire a full-time professional from the Philippines

Every Rekruuto hire is a full-time professional based in the Philippines who works your hours. Most roles are $1,800 a month, software developers start at $2,500 a month, and an AI Implementation Specialist is $2,500 a month. Candidates pass top 2% vetting, hiring takes 14 days, and every hire starts with a 1-week trial with a replacement or refund.

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