With more and more countries easing their policies for international companies, now could be the best time to expand your business globally. However, one of the key aspects of business expansion is understanding each country’s local laws and regulations, especially if you want to hire local talent.
Therefore, most companies turn to EOR service providers to build a successful global team without the hassle of setting up entities overseas.
According to a 2019 survey by CFO, 58% of respondents said their company engages with an EOR to manage their global business strategy or plans to do so in the next three years. Besides, 94% of them agree that a reliable EOR provider can do a much better job of overcoming potential barriers to in-country operations than a typical company can do on its own.
What is EOR?
EOR (Employer of Record) is a firm legally established to manage HR and payroll services for global companies. They are the legal employer of your employees in different countries. However, you get complete control over employees’ day-to-day activities.
EORs deal with employee hiring and onboarding and their remuneration (salary, benefits, taxation, performance appraisals, and more). They also help with visa and sponsorship applications.
Why Opt for Global EOR Services?
Researching, understanding, and complying with the laws of each country can present a considerable challenge. It can also slow down your plans to expand into different countries. And even a minor mistake could invite penalties and hurt your brand reputation.
When you work with an EOR, you don’t need to set up a legal entity in every country you have employees. You can also onboard the best local talent within a few days while staying compliant with local employment laws.
Besides, an EOR service provider is well-versed in local laws and regulations in the countries they operate in. As a result, they not only help you seamlessly navigate through the process but can also help you understand cultural differences.
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Tips to Get the Most Out of Global EOR Services
When you don’t have to worry about human resources and payroll, you can focus more on expanding your business and strengthening your presence. First, however, you must follow the best practices to get the most out of your partnership with an EOR.
Define the Contractual Terms Beforehand
Since global EOR services aim to remove human resources and payroll challenges, you’d want to clarify the terms beforehand. Therefore, you must define your needs from an EOR and communicate the same.
For instance, these questions can give you a better idea of the areas to focus on.
- Are you trying to test the waters in a new market? If yes, you’d not want to sign a long-term contract.
- How do you measure employee performance? Does that align with the EOR provider’s process?
- What kind of support do you need from them?
Having things sorted from day one can save time and money when expanding your business.
Ensure They Combine Intelligent Automation With Human Expertise
Earlier, EOR providers used to rely heavily on manual processes, making onboarding talent slow and tedious. However, today leading EOR providers like Husys use intelligent automation to help you hire and onboard highly skilled candidates within 8-10 business hours.
Also, the best EORs use all-in-one platforms to centralize employee data, automate critical processes (like payroll), and act as a one-stop shop for all your global hiring needs. In addition, they integrate with your existing HR software, providing on-demand access to critical information and advanced reporting capabilities.
At the same time, you’d need human experts who can guide you through the complexities of local laws and regulations. They can also answer complex questions regarding visas and other non-standard situations like IP legislation.
Prioritize Employee Experience
When expanding internationally, you’d want to build a stable team who can help strengthen your presence in new markets. However, retaining employees would be challenging if the employee experience is not par. Therefore, you need an EOR provider who prioritizes employee experience.
As a rule of thumb, they must have a dedicated support team to answer your questions around the clock. They should also be available to solve employee issues. Additionally, they should have a streamlined process to manage employees’ entire lifecycle, from onboarding to offboarding.
Managing Global Payroll And Taxes For Distributed Workforce
Examine Agility and Flexibility
International hiring is not a straightforward or one-off process. Instead, it is an evolving and sometimes unpredictable process. Therefore, you need a global EOR services provider who can keep up with the rapidly changing business environment.
When looking for an EOR provider, focus on the following:
- Their ability to handle complex situations (ask about their biggest challenges in global hiring and how they solved them)
- The time they take to onboard talent with efficiency.
- The flexibility they offer to suit your business needs.
Analyze the Security and Privacy
International expansion often involves handling confidential information regarding your employees and your organization. Thus, analyzing how your EOR partner deals with sensitive information is imperative.
It can prove detrimental to your organization if they don’t have a proper system to ensure security and confidentiality. Ask the EOR about the security measures they implement and if they have an active threat monitoring system to identify risks beforehand.
Final Thoughts
The best global EOR services provider gives you peace of mind so you can focus on growing your business. Therefore, it is essential to do extensive research, read customer testimonials, and analyze their offerings to understand if they can adapt to your changing requirements. Once you shortlist your EOR vendor, create a contract that helps you keep things sorted from day one!
