Are you on the journey of international expansion? Having an Employer of Record (EOR) provider has been proven to be an effective way to manage distributed teams.
EOR service providers take care of a business’s remote employees and facilitate timekeeping, payroll, compliance, benefits, unemployment claims, and worker’s compensation. EOR’s will be the legal employer of the team on paper. Hence, the responsibility for all of the workers’ liabilities and duties.
Many successful global organizations outsource their HR and Admin duties to focus more on how to grow the core of their enterprise, unloading them of the burden of paperwork and other complex administrative tasks. Here are some of the ways a company can use an EOR service to work for their advantage.
Save Resources and Time
It will indeed save so much time and resources. However, hiring HR and payroll staff and building a local entity in a country requires a lot of effort and experience. EOR handles background checks, drug screenings, onboarding, work hours monitoring, benefits administration, and other HR duties.
EOR services can also be an alternate payroll option that removes the burden of thinking about payroll responsibilities making your company secure and compliant.
Minimize Compliance Risk
Labor laws and regulations vary in every country. As a result, legal difficulties arise when you plan to expand in the international market. However, you eliminate compliance risk and hefty penalties when you entrust your HR process with an EOR provider.
Focus on Revenue-Generating Activities
Hiring an EOR service provider helps you avoid the stress of taxes, payroll, benefits, and other administrative tasks. The time that you’ll save may be spent on revenue-generating activities for your business. It’s frequently easier said than done. Many companies are always on the lookout for ways on how to increase their bottom line. In the long run, having EOR services can do this to your organization.
Explore Foreign Markets with Ease
New markets offer limitless opportunities to your enterprise. However, businesses must adhere to the local tax laws and labor regulations of the country they choose to expand. Companies that leverage EOR services explore new business territories easily.
There are several services that EOR providers offer their clients. The most common are the following:
International Payroll Services
EOR providers offer payroll services to international organizations that have distributed teams. It should not be mistaken as a payroll application. However, most of these services are cloud-based. EOR handles payroll, benefits, taxes, and other matters relating to employee compensation.
Global Employer Services
Employers are looking into becoming a hybrid or even remote-first company, allowing their future staff and existing employees to work anywhere. If you are looking to access international talent in a compliant way, an EOR can help you do that. It ensures compliance and HR-related processes run smoothly.
Visa and Immigration Services
Overseas relocation is a common reason for an employee to resign from their job. If your employees are considering moving permanently to another country, an EOR provider can support you during the process. Furthermore, if you need to relocate your top employees for international expansion, an EOR provider can help you secure work visas and other requirements.
Employ is an EOR provider that covers multiple countries to expand your business. If you want to know more about our value-added services, don’t hesitate to reach us today.
Olivia Yu has decades of experience in the Human Resources industry. She’s the Regional Director for Asia Pacific of a famous international HR company. Olivia’s international experience inspires her to write articles about human resources and global staffing.