Reaching international talent is not easy. However, globally expanding your business requires diversity in your staff. A more localized team can help slowly establish your business in unfamiliar countries.
It’s also true that expanding and hiring offshore staff cannot be easy. There are more responsibilities, like paperwork, legal procedures, and taxes, which may seem too much. Moreover, HR professionals in your base country may not be well-versed in international laws and regulations.
You undoubtedly need help in the process. Fortunately, partnering with an offshore Employer of Record (EoR) company may solve all these problems. But first, what is an EoR?
Understanding Employer of Record (EoR)
An EoR is a third-party employer that solves all the abovementioned struggles. You can consider them an extended arm of your human resources department as they handle related duties like hiring, paying, and managing employees. They also address tax obligations and other legal concerns.
EoRs can keep operations running smoothly according to the employees’ country’s labor standards. However, they do much more than just these benefits. Each EoR company varies in their offered services.
Here are some of the primary services that EoRs offer:
Employment contracts and staffing solutions
Benefits and Social Contributions Management
Flexible Office Solutions
Differentiating EoRs with BPOs
EoR is often confused with Business Process Outsourcing (BPO) companies. They both provide B2B support, but their processes differ in many ways. In general, EoR is more specialized than BPO. For example, most BPO companies handle skills training based on their standards instead of yours, while EoR does the opposite.
EoRs are always transparent about talents’ working conditions and well-being. On the hand, BPOs are not obliged to do so. These are only some of their differences. However, the bottom line is that EoRs focus more on partnering with you than providing talents or expertise as products.
Choosing the Best EoR Partner for You
Due to global expansion demands, many EoR agencies have been on the field in recent years. With so many options available, how do you choose the best EoR partner for your organization? Here are some things you can consider.
Reputation and Experience
EoRs must be familiar and experienced with their industry to provide quality service. They should also understand your company’s nature so that they can give you the best talents.
EoRs must manage data security and systems to protect client and employee information.
Typically, EoR companies charge by percentage or per hired employee, depending on budget and sustainability. However, negotiation is still encouraged.
EoRs need compatible software and systems to ensure smooth transitions and data exchanges.
The EoR must be open to communication and respond to employee concerns.
Instead of going through all the trouble of expanding your global workforce, you can always enlist the help of EoR services. You won’t just get all the benefits of hiring and maintaining talents with specialized skills. You can also save your HR team the headache that comes with it.
Read the infographic below to learn more about EoR and what it can do for your business.