When you are searching for employees overseas and are not fully prepared for the expenses and time for setting up your subsidiary overseas, there is always a bold solution for you as an Employer of Record.
What is an Employer of Record?
An employer of record services is a company responsible not only for payroll and tax calculation but also for specific documentation. Actually, EOR is a part of business process outsourcing services which eases several business complexities.
EOR is the local, legit worker who deals with all management, administrative and compliance tasks remotely very well. EOR manages payroll, sponsors working visas, taxes, etc.
Reasons to Hire an Employer of Record Services
There are many reasons to hire EOR, some of them are here:
- The overseas country may have complicated and specific labor laws that are unknown by your human resource office. Here EOR can assist you very well.
- If you are new to the foreign market and not fully prepared to open a new branch office only for employment reasons, then you should make a plan to hire a reliable Employer of Record services.
- You are hiring employees remotely in foreign countries, though still, you need a source to run a local payroll system for them perfectly.
- Actually, one of the best tactics for your company’s worldwide expansion is that you outsource your firm’s employment and management operation to a third party.
- Assigning human resource operations to a third party gives business owners the chance of their business development. Adding to this, for example, IT companies commonly work on their digital products and services development to earn more revenue and they need not so much paperwork including back-office support reducing and saving their cost.
How to Choose an Employer of Record Services (EOR)
Here is a brief check-list to choose the best EOR for your business:
1. Are They Working in Your Required Countries?
It is very important to note that not every Employer of Record (EOR) is active in all the countries in which you are going to expand your business. So, it is vital to research their activity in the specific region and country.
2. Do They Ensure Your Commercial Data Security and Confidentiality
In the employer of record services provider company’s contract, it should be mentioned that they protect your commercial data and care about your business confidentiality. It is a sensitive case because secret data will be in their hold which needs a high level of security.
3. How The Employer of Record Will Deliver Its Service?
The Employer of Record (EOR) services delivery system will affect your business. You have to decide about the system of EOR services delivery. Will they deliver their services personally or provide you required services and work only online.
4 Who Will Deal With You About Work Delivery?
Another vital question is which person will be available to communicate and contact you to face and solve any type of related problems that arise during their working process. That dealing person will be a liaison between your company and the EOR services providing organization.
5. Is Their Package Clear and Demand Explicit?
It is very important to clarify the EOR firm’s total fee. If there are any additional and extra charges they should be clear-cut and implicit. This is more crucial to avoid potential misunderstandings.
After this consider their invoicing and payment schedule briefly to know if they will impose complex conditions on you to meet which are not in your favor.