Businesses may require expansion beyond their home country’s borders, which makes it imperative to comply with numerous local employment laws and regulations.
This need can become daunting for small to mid-sized businesses without legal or HR support.
This is where an employer of record (EOR) comes in handy. An EOR can provide an attractive option for businesses to expand without sacrificing compliance, HR cost, and time. This article explores four ways your company can know if you need an EOR.
Accelerate Onboarding
One of the crucial benefits of working with an EOR is the rapid onboarding of employees. This type of onboarding process can save companies time and money. When you engage an EOR for onboarding purposes, they will handle all the necessary regulatory paperwork and employment agreements related to hiring, giving you a more efficient and faster hiring process.
The employer of record will possess a database of candidates for immediate hiring, which reduces the hiring process duration from weeks or months to mere hours or days in contrast to advertising, interview, and candidate search.
Companies operating in multiple regions can need help building a stable and reliable workforce. The hiring process could be more reliable and complete, resulting in high staff turnover. The EOR provides access to a vast talent network, including expert recruiters with extensive knowledge of the local job market.
Mitigate Compliance Risks
Expanding into new regions can be daunting to businesses unfamiliar with local labor laws and regulations. It is common for companies to overlook compliance deficiencies, mainly when working in multiple locations simultaneously, representing significant fines, non-compliance risks, or restrictions.
However, when your company partners with an EOR, they become the employer of record, mitigating those risks by handling regulatory obligations related to employment, including compliance with local labor laws and regulations.
Cut Costs On HR
Creating a corporate entity, recruiting local talent, and establishing legal operations and infrastructure is costly, lengthy, and could be complex, as it involves securing permits, licensing agreements, corporate structure, and location.
By partnering with an employer of record, your company can reduce the cost of establishing entities in foreign countries. In addition, the company can save on legal fees, HR costs, and operational expenses, including legal and operating expenses, associated with maintaining an international operation.
Simplify Global HR
A key issue when companies work in multiple areas is managing human resources with various benefits, payrolls, and tax regulations. By engaging an EOR, your company streamlines global HR through the EOR’s comprehensive HR management platform.
The employer of record handles all HR administration on your behalf, including payroll, bonuses, benefits, and tax compliance, making it easier for you to focus on the company’s core competencies and scaling activities.
4 Ways To Know Your Company Needs An Employer of Record – In Summary
Expanding your business into new and foreign regions can be complicated, but it does not have to be that way. By partnering with an EOR, your company can transition smoothly into new areas without sacrificing compliance, HR cost, or time.
An employer of record can give your company a competitive edge, giving you the confidence and scalability you need to thrive in the global market.
