It is no surprise that the top companies and organisations now use employer of record services to recognise global talent and hiring as an opportunity and business advantage. This enables them to gain insights into greater diversity in ideas and new markets.
Also, global talent and hiring help solve problems and challenges around finding top skills and retaining them among the increasing number of employees who wish to relocate or work for foreign companies remotely. However, it isn’t without risks and complexities. These risks and complexities have created barriers to entry for companies that want to hire across borders. So, how do companies eliminate these risks and complexities from their cross-border hiring process? The best and most straightforward way is using EOR services. Let’s discover when you should use these services and why.
When to Use an Employer of Record
Some common situations in which organisations, businesses and companies like yours have turned to employer of record services to boost their global expansion efforts are:
A Risk-Free Way to Explore New Markets
Employer of record services allow you to evaluate an international market’s readiness by hiring employees for you in your target global markets. By entrusting the legal and administrative responsibilities to an employer of record, you can focus on expanding your business without the complexities associated with compliance and human resources management in foreign jurisdictions.
They allow you to start operations with your new employees without committing the time and money needed to establish an entity.
An Entity Stopgap
Your company has identified a new global market and decided to establish an entity as the best option. But the main challenge is that you want to start operations quickly. In most cases, the entity setup procedure is complex and long.
With the help of employer of record services, you can have employees up and running in the new market within a few weeks as your company completes the task of entity establishment in parallel.
A Guard Against Independent Contractor Noncompliance
You can work with international independent contractors as part of your expansion. The work they are performing might be too similar to what the local laws prescribe for workers. This approach could be putting you at risk of tax and employment violations.
An employer of record can help you hire contractors on your behalf. The EOR service provider will achieve that in accordance with local laws to eliminate noncompliance penalties.
Why You Should Use Employer of Record Services
A global employer of record service provider offers businesses numerous benefits. Many business owners don’t have the extensive knowledge or resources to compliantly hire in global markets.
An employer of record enables you to hire top talent from across the globe and provide much-needed support based on their local requirements. Also, an EOR helps:
Onboard talent quickly
Retain talent and provide comprehensive benefit packages
Receive ongoing HR support
Save resources compared to entity setup
Maintain compliance with evolving labour laws and employment contracts
When you’re tapping into a new global market, every expansion process comes with its unique mix of complexities and risks that need an experienced team. That is why you need to work closely with an experienced EOR service provider.