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In today’s globalized world, hiring internationally offers a wide range of benefits and is easier than ever. Employer of record solutions represent one strong option, with the provider hiring overseas professionals on your behalf, so that you can onboard global talent without setting up a foreign entity.
That provider, also known as an employer of record (EOR), handles the payroll for all professionals hired for you, as well as other administrative and compliance matters, while assuming most legal liability related to being an employer. An EOR will also be able to assist with sourcing and recruiting outstanding candidates for the roles you need, if you don’t already have people lined up.
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Employer of record solutions have become increasingly popular in recent years, in part thanks to the major uptake of remote and hybrid working arrangements seen since the COVID-19 pandemic affected much of the globe in 2020, with EOR services particularly well-suited to hiring remote international professionals.
While there has been some pushback against remote work sincepandemic-related restrictions on travel and assembly began to be lifted, the reality is that remote work is here to stay, and only likely to grow faster as technologies develop to better facilitate it.
Indicative of this is the fact that the market for employer of record solutions is also expected to continue seeing significant growth — from an estimated global value of US $4.45 billion in 2022 to a projected value of US $6.6 billion in 2028. That represents a compound annual growth rate of 6.8%.
Contact us if you are interested in rapid and compliant global hiring.
5 key benefits of EOR
Employer of record solutions offer a wide range of benefits, with some of the most significant being:
1) Cost-savings
While employer of record services come at a cost, that fee will usually be dwarfed by the savings made on payroll when hiring professionals in many parts of the world. Growing talent pools have made the case for emerging markets as recruitment destinations increasingly compelling over recent years, with many companies doing so through an EOR.
2) Rapid recruitment
An employer of record will have an established recruitment network and a track record of finding outstanding talent for a wide range of industries. That means you can expect them to be able to quickly identify top candidates for the roles you need to fill, who can then quickly be onboarded because you don’t need to set up a local entity.
3) Market agility
Employer of record solutions are ideal for a company that only needs people in place for a limited-period project, or would otherwise like to get to know a new market better before investing in it deeper.
When you work with an EOR, you are able to withdraw from a market without having to consider the likes of company liquidation.
4) Guaranteed compliance
As part of the services agreement you sign, an EOR will guarantee compliance will all local laws and regulations, as well as assuming most liability in the case of a compliance issue arising. That means you can operate safe in the knowledge that you are not going to be surprised by any unexpected legal issues or financial penalties.
5) Improved diversity
An often overlooked benefit of global hiring is the positive effect is has on diversity within the organization, which naturally occurs when hiring people of different nationalities. Added to that is the fact that remote work has been shown to be especially popular among minorities, who in many cases report a more positive professional experience working from home.
Regulations an EOR will guarantee compliance with
A provider of employer of record solutions will guarantee compliance with all local employment regulations and corporate laws, including the likes of:
Employment contracts: Contract types will vary from one country to another, and an EOR will be best placed to advice you on which type is most suitable for the roles you are recruiting.
Working hours: Many countries implement strict laws on maximum working hours and overtime, which an EOR will be able to advise you on.
Minimum salary: In the event you use employer of record solutions to staff up an operation with minimum wage positions, the EOR will guarantee that minimum wage is offered.
Vacations and public holidays: An EOR will guarantee that all professionals are given the vacation time they are entitled to, and keep up to date records of what has been used.
Maternity and paternity leave: An employer of record will make sure that statutory maternity and paternity leave are granted, in the event the company doesn’t already have a superseding policy that is compliant with local laws.
Taxes and contributions: An employer of record will handle the payroll of all professionals hired on your behalf, meaning they will calculate and deduct both employee and employer contributions, including the likes of VAT, pension, health, and any other statutory contributions.
Employer of record solutions: choosing a provider
Choosing the right provider of employer of record solutions will come down to a number of factors, among which your future plans are particularly important. Because you should ideally work with an EOR that is not just capable of supporting your current needs, but also your future plans.
If, for example, you are looking to work with an EOR to hire in a new market, but intending to expanding into further markets in the short- to medium-term future, you should ideally choose a provider that has an international presence and will be able to assist you elsewhere.
That will also be useful in the event you are undecided or open to different options in terms of where you seek out new talent. Because, if the profile and costs are bigger priorities than the location of the person being hired, an EOR with an international presence will also be able to guide you on where best to recruit.
Beyond the practicalities of working with a provider that can help you in the future, its also important to work with an EOR that has consistently satisfied their clients, which can usually be found out by reading reviews on line. Note that ideally you should find reviews across a number of platforms, to guarantee that you are not misguided by inaccurate reviews posts on one particular website.
Serviap Global provides employer of record solutions
At Serviap Global, we offer employer of record solutions, with our coverage extending to over 100 countries worldwide.
As well as EOR services, we also offer contractor hiring and provide international recruitment services to companies seeking outstanding direct hires.
Contact us to discuss how we can assist you.
