Read up on employer of record provider pros and cons and see if the service is the right fit for your company
When it comes to hiring across borders this can result in unexpected costs with considerable internal resources being used as your HR department may have never dealt with such international employment considerations before. So, have you adequately considered the entire task of setting up employment in another country? You need to come up with an efficient solution that not only meets your business requirements but also complies with the laws and regulations of the jurisdiction in question.
This is where engaging an Employer of Record, or sometimes known as Professional Employer Organization, provider may assist. An Employer of Record (EOR) solution can work very well for companies that want to hire local staff in new operating countries, build or outsource a team internationally or even send expats on certain international project assignments.
This can be accomplished with just a couple of steps – but like with every business, there are pros and cons you need to know of so that you can make a wise decision.
Pros
Time and Efficiency
When it comes to language and cultural barriers internationally, it can sometimes take a long time to complete certain registrations, documentation and drafting employment contracts. An Employer of Record employer can help you with these issues and will be ready to take on any new hire smoothly, efficiently, and without any delay.
A Great Opportunity
An appropriate EOR solution offers a true reliable international employer, not only a payroll provider, and facilitates international reach with local expertise and experience. Your employees will gain access to resources that can help them with their administrative needs, regardless of where situated in the world.
Affordable
A reputable global professional EOR will help you manage the expenditure of hiring employees overseas, especially if you are entering different countries, states, or even building up a remote team locally. They can help your company when it comes to corporate compliance when operating across jurisdictions.
Cons
Added Expenditure
When it comes to some Employer of Record firms they charge a fee based on the overall labor cost which may not be capped. While some EOR firms are affordable and reputable, others may have questionable business practices with fees and service levels varying greatly. It is imperative that a company does due diligence to ensure the EOR provider is reputable before engaging in a contract.
Data Handling
At times, it can be challenging for administrative professionals to provide personal and corporate data, information, and payroll tasks to a third party in a foreign country. It imperative that the EOR you work with not only has the experience and expertise to act as the employer but also the firm is professional with a commitment to ensuring data provided is treated sensitively and in accordance with global data privacy regulations.
The Takeaway
As you consider the many advantages that an Employer of Record firm may provide to your organization you need to ensure the EOR firm you select is competent, reputable, professional and compliant. If you appoint an employer of record firm that has the expertise, integrity and professionalism to assist you to operate across multiple jurisdictions this will assist you greatly to expand your global workforce, expand your global client base, and to service contracts across borders.
Now that you’ve seen these Employer of Record pros and cons, you may be looking for the right agency to hire for your company. We at Eos have been supporting multinational clients for over two decades, and we just might be the best fit. You may read our guide here, check out our services, or contact us directly.
