How, Exactly, an EOR Can Benefit Your Growing Business
Distance shouldn’t stop you from hiring the best talents. By engaging an employer of record (EOR), you can recruit from all over the world without owning entities in every country. Whether you’re a small, medium-scale, or established enterprise, an EOR goes a long way in easing your administrative and legal burden. Not to say you give up control of your business. The employer of record may handle operations such as compliance and payroll processing, but the day-to-day running is still your responsibility. This means you assign employee roles, organize staff meetings, set goals, and evaluate performance. Here are the benefits of an EOR.
Create More Time
Unfamiliar laws, cultures, and HR standards can confuse your hiring managers. When spending too much time managing foreign employees, you lose sight of the core business and sacrifice productivity and output. On the other hand, EORs know their way around international processes, accelerating market entry. Moreover, Employers of Record combine human expertise with automated systems for faster onboarding. These technologies also minimize the risk of any errors that could delay recruitment.
Lower Operation Costs
Setting up shop in a foreign country comes with numerous costs. Besides entity registration, you should meet the country’s capital requirements and pay for legal counsel and an in-house payroll processing team.
In contrast, the employer of record saves you these costs since their business is already registered—you can hire from the country once you pay the EOR fees. However, ensure both you and the EOR are on the same page before signing the contract. Otherwise, any surprise charges could affect your budget and hinder daily operations.
Global recruitment presents several risks. For starters, you could misclassify workers resulting in tax and insurance issues. One of the other benefits of an EOR is avoiding non-compliance risks. Thanks to the EOR’s experience with foreign laws, you don’t have to worry about fines or lawsuits. Even if you encounter legal problems, you’re not responsible since the employment provider acts on your behalf. Remember, employment laws change constantly, and you have an EOR to advise on your legal obligations.
How Do You Get the Full Benefits of an EOR?
Finding the right employment provider is crucial to enjoying the benefits of an EOR. At nextSource, we pre-qualify talent and perform employer responsibilities such as vetting, onboarding, and tax reporting. We even offboard employees after the assignment and maintain records for future engagement. Do you want an EOR partner who shares your dream? Let’s connect, we’re ready for you!