Transcript
Charlie McGinn: Yes. Yeah. So PEO or professional employer organization is a large, massive industry here in the US, which is very beneficial for small emerging, even to large companies, because essentially it's co employment. So companies still have their dedicated F E I N entity but do not want to handle, you know, the the payroll, the HR. But more importantly, the economies of scale of benefits, because when you're a smaller company, you know, that that's a back break. So what the PEOs do come in is support all of that and then group all the work site employees under big benefit plans. So it allows small to medium-sized business businesses to benefit from the economies of a larger kind of enterprise-style benefit plan. So when we set out to kind of launch the next acronym, employer record, it was really based off of the basis of the PEO industry of that what existed when you know, Safeguard moved into the US market and started establishing partnerships with some of the big players in the PEO world of saying, wow, this is such a massive benefit to small to medium sized businesses, but there's no really solve for the international side. and so that's essentially what we set out to do is how do you mirror something as close to possible as what already is a massive market, massive benefit in the US, but kind of support it into international. And that's where employer of record really come from, which is EOR, employer of record. We coined it global employment outsourcing in Safeguard, but essentially what that is is just a different term for employer of record. So again, what we set out to do was to mirror the benefits of PEO, but apply it to international. The difference and the main difference there is the co-employment, which is PEO, doesn't exist internationally and in some countries is illegal.
Matthew Mottola: Mm interesting.
Charlie McGinn: So the underlying structure had to change, and that's why it's full employer of record versus co employment. So EOR allows people to legally engage people in countries where they don't have an entity versus them having to register an entity and outsource areas too. so again, the the the the service model that we set out to do was to look and feel very close to the PEO, but that underlying structure is slightly different, and that's kind of how it started emerging. EOR staffing existed before Safeguard, but being able to kind of bring it as a do a global consolidated approach, I view Safeguard was really the first to view it that way of one single vendor to help you expand anywhere versus having to reach out and deal with localized staffing sterm firms, understand their language, their legality, so on and so forth. And and that's where even today I'm still learning. I just got off a call about Italy and staff leasing laws in Italy and it was Okay, I gotta digest that for a second. And I'm a a veteran I would say in the industry. So there's so many different factors that come in and changes that are happening that again keep it on its toes and it's continuing to evolve today. So
