Embarking on the Journey

Kenya has one of the most developed economies in Africa thanks to its abundance of natural resources, stable governmental structure, and welcoming business environment. Additionally, 57.1% of Kenyans are of working age, according to the country’s most recent census, so you may employ the new talent there to grow your business.

However, hiring personnel in Kenya presents a special set of challenges. You need to be aware of the local labor laws, tax laws, and conventions when building a team in Kenya. To expedite the process, a lot of businesses turn to professional employer organizations (PEOs) like EOR Services for support.

Demystifying Professional Employer Organizations (PEOs)

A PEO is a service provider that helps businesses or organizations with their HR needs. Business owners and employers resort to PEO services when they need help with administrative tasks including hiring, onboarding, payroll management, providing competitive employee benefits packages, and ensuring full compliance with local laws.

It’s critical to keep in mind that the employer and PEO collaborate as a team. While the PEO takes care of some administrative tasks, the employer still has authority over daily communications and intellectual property belonging to its employees.

Unlocking Advantages: The PEO Impact on Businesses in Kenya

Businesses can benefit greatly from working with a PEO in Kenya, including time and money savings through the outsourcing of HR duties. Ensuring adherence to intricate tax and employment laws in Kenya lowers the possibility of fines or business prohibitions. Additionally, using a global PEO such as EOR Services gives you a competitive edge by making it easier to hire top personnel in the rapidly changing remote work environment, increasing your company’s exposure, and putting you ahead of rivals with smaller local talent pools.

EOR vs. PEO: Navigating Distinctions in Kenya

Some individuals mistakenly perceive an Employer of Record (EOR) and a Professional Employer Organization (PEO) as interchangeable terms, but in reality, these two options differ from each other.

Think of a PEO as an external HR department providing administrative support to your company. The individuals you hire work directly for your company and should be citizens of the nation in which it is registered. Daily staff management falls under your purview, with PEO responsibilities encompassing payroll, onboarding, payment processing, contract termination, compliance monitoring, and other HR duties.

On the other hand, anyone hired through an EOR is legally employed by the EOR. This means that the EOR, not your company, is the party to the employment contracts signed by the staff. Nonetheless, you retain the final decision-making authority on matters such as employee pay and performance reviews.

With an EOR handling all HR duties, you are relieved of those responsibilities, and you can hire workers from any nation where the EOR is registered.

The choice between an EOR and a PEO depends on your preferences and needs for managing worldwide HR duties. If you seek assistance with hiring and managing a global staff while retaining some control over HR processes, a PEO might be the ideal choice. Conversely, if you prefer a third party to handle all payroll-related matters for your global staff, an EOR could be the more suitable option.

Efficient Staffing: Simplifying the Hiring Process in Kenya with a PEO

In the academic year 2020–2021, approximately 547,000 students were enrolled in Kenyan institutions, as reported by Statista. With an increase in government investment in the education sector, it is expected that university enrollment in Kenya will experience growth.

Despite having a substantial graduate population, Kenya faces a significant challenge of unemployment among its graduates. Securing official employment may take up to seven years for Kenyan graduates, depending on the degree of study. While this poses unfortunate news for Kenyan grads, the silver lining is that the recruitment process might be time-consuming due to the abundance of candidates.

Opting for Professional Employer Organization (PEO) services in Kenya becomes a logical choice if you aim to build a robust remote workforce. Beyond handling critical responsibilities like workers’ compensation and onboarding, a PEO can assist in selecting the most qualified candidates. Moreover, all tasks will be executed in adherence to Kenyan labor regulations.

PEO Dynamics in Kenya: Understanding Possibilities and Limitations

Delegating your HR operations to an experienced employer organization in Kenya is a prudent decision. As a conscientious company owner, you may be curious about what the PEO is capable of and what falls outside its scope.

A PEO can: 

1. Recruit and train new hires for your business.
2. Manage your salary structure.
3. Ensure compliance with Kenyan labor regulations.

A PEO is unable to:

1. Supervise the day-to-day tasks of your workers.
2. Enter into employment contracts with employees as the sole legitimate employer.
3. Assume complete control of your company.

Strategic Collaboration: Partnering with a PEO for Success in Kenya

Working with some of the world’s greatest talent is possible when you hire a remote workforce from across the world. It does, however, present a number of challenges, including the have to understand the employment and tax laws of the counties where the employees reside.

If you are thinking about hiring workers from Kenya or any other country, working with a reliable PEO allows you to put together a team without having to deal with the challenges of hiring and managing a global workforce’s payroll. Are you curious about how to begin? Now is the time to arrange a free demo with the EOR Services team.