Opening the door to other countries allows you to get access to new markets and a larger talent pool. But it would also be fraught with legal and administrative complications. Trying to figure out local labor laws, incorporating a business, and managing payroll in an international operation is no small task.
That’s why a growing number work with an Employer of Record (EOR). Employer of Record is a faster, simpler way to hire internationally without having to establish an office or legal entity in each country. In this article you will learn why an employer record is important for global expansion.
What a Employer of Record Does, in Reality
Why EORs Are Becoming More Popular Among Firms
Remember, recruiting in a foreign country is more than finding individuals with the right skills. You have to contend with varied laws, tax systems, and red tape, especially if you don’t have a concern in that country. You can use this arrangement to test the waters in a new market, run a short-term campaign, or scale up your team internationally. EORs know how the local systems work and can assist you, like:
- Skip setting up a legal business entity
- Never break the labor laws
- Onboard employees quickly
- Reduce paperwork and delays
- Avoid legal and financial risk
EORs is Suitable for All Sizes of Businesses
Don’t forget that startups choose EORs because they can grow without committing very much up front. EORs allow them to hire faster, rather than at the cost and delay of establishing an overseas office. Larger corporations employ EORs when they need to move fast—for instance, launching a product. Regardless of your size, an EOR allows you to focus on goals and growth while they handle the red tape.
Better for Employees Too
Your workers also gain from employing an EOR by having a good contract, regular pay, and the local uplift. And to workers, everything sounds and seems like a regular job, with the security and structure they expect. When workers feel safe, they are more likely to stay, to do well, and to say good things about your company. That is a big deal, especially when you are trying to retain talent long-term.
No Waiting to Get Started
While it can take months to open a new branch in another country, it is also expensive and results in a mountain of paperwork. With EORs, you can begin hiring right away and concentrate on results while others are still waiting for an approval or a permit. Aside from that, EORs are up to date with all of the ever-changing labor laws, so you don’t have to worry about falling behind or skipping any updates.
EORs are An Easy Way to Expand Globally
With an employer of record, it is handled for you, which means you don’t have to open a local business or even break any of the rules. You can put all your attention on hiring wonderful employees, making your team, and reaching your goals, and the EOR can handle payroll, contracts, and taxes. Keep in mind that if you want to grow without all the trouble, an employer of record is one of the tools you can use.
