Kenya’s varied resources, stable political system, and friendly economic climate have made it one of Africa’s most advanced economies. Furthermore, the most recent census conducted in Kenya revealed that 57.1% of the population is of working age, so you may take use of the new talent there to expand your company.
Nevertheless, employing people in Kenya has a unique set of difficulties. When developing a team in Kenya, you must be aware of the local customs, labor regulations, and taxes structure. Many firms seek assistance from professional employer organizations (PEOs) such as Marzuna to streamline the process.
A PEO is a service supplier that handles HR tasks for companies or institutions. When they want assistance with administrative duties like recruiting, onboarding, payroll management, offering competitive employee benefits packages, and guaranteeing complete compliance with local legislation, business owners and employers turn to PEO services.
It’s important to remember that the PEO and the employer work together in a partnership. The employer maintains control over employee intellectual property and daily communications while the PEO handles certain administrative chores.
Engaging with a PEO in Kenya offers significant advantages for businesses, including time and cost savings by outsourcing HR tasks. Compliance with complex Kenyan employment laws and tax regulations is ensured, reducing the risk of fines or business bans. Additionally, leveraging a global PEO like Marzuna provides a competitive edge by facilitating the hiring of top talent in the evolving landscape of remote work, enhancing company visibility and positioning ahead of competitors with limited local talent pools.
There are others who believe that an employer of record (EOR) and a PEO are synonymous. Actually, the two options differ from one another.
Consider a PEO as an external HR department that offers administrative support to your company. The personnel you recruit will work for your company and should be citizens of the nation in which it is registered. Daily staff management is under your purview, and PEO responsibilities include payroll, onboarding, payment processing, contract termination, compliance monitoring, and other HR duties.
Anyone recruited through an EOR is legally employed by the EOR. This implies that the EOR, not your company, is the party to the employment contracts that the staff sign. You will, of course, still have the last word on matters of employee pay and performance reviews.
You don’t need to perform any work because an EOR handles all of the HR duties. Additionally, you are able to hire workers from any nation where the EOR is registered.
Which is better, an EOR or a PEO?
Your worldwide HR duties might be managed by PEOs or EORs. Your final decision between these two solutions will be based on your tastes and needs.
If you want assistance with hiring and managing a worldwide staff while maintaining some degree of control over your HR processes, a PEO could be your best bet. However, an EOR would be ideal if you would prefer that a third party handle all payroll-related issues for your worldwide staff.
In the 2020–2021 academic year, there were around 547,000 Kenyan students enrolled in institutions, according to Statista. With increased government investment in the education sector, university enrollment in Kenya is anticipated to rise.
Kenya has a large graduate population, yet unemployment is still a significant problem. A Kenyan graduate may need up to seven years—depending on the degree of study—to secure official employment. For Kenyan grads, this is unfortunate news, but it also means that selecting candidates from a large pool might make the recruiting process time-consuming.
It makes perfect sense to use PEO services in Kenya if you want to develop a strong remote workforce. Along with managing other crucial responsibilities like workers’ compensation and onboarding, the PEO will assist you in selecting the finest candidates. Furthermore, all tasks will be carried out in compliance with Kenyan labor regulations.
Entrusting your HR operations to a seasoned employer organization in Kenya is a wise move. You might be wondering, though, as a conscientious company owner, what the PEO can and cannot do.
A PEO can: Recruit and train new hires for your business
Control your salary.
Recruiting a global remote workforce allows you to work with some of the best talent on the planet. It does, however, come with a number of difficulties, such as the need to comprehend the tax and employment regulations of the counties in which the employees live.
If you’re considering employing staff from Kenya or any other nation, partnering with a trustworthy PEO enables you to assemble a team without having to handle the difficulties of hiring and overseeing the payroll of a multinational workforce. Interested in learning how to get started? Schedule a free demo with the Marzuna team right now.
