Hire Talent Anywhere — Guide for Offshore Employers
An EOR is a descriptive term, not a legal term. It describes a business that provides administrative assistance to customers (companies) looking to benefit from the work of team members. An EOR does this by formally employing a team member while that team member provides services to the customer.
An agent or AOR is a legal term which describes an individual (or company) that is authorized to act on behalf of another. What does that mean? In the distributed working space, an AOR is often used to manage contractors. The AOR forwards invoices, accepts and makes payments on behalf of a contractor and the business to whom that contractor is providing services. This is a business arrangement, not an employment relationship.
When you’re a business owner, it’s your job to make sure that everything runs smoothly. Nevertheless many businesses have a hard time dealing with the responsibility of hiring and managing an employee. This is where the employer of record comes in!
Global expansion is an excellent strategy for any business looking to grow. Hiring international talent allows you access into new foreign markets, while also tapping into the skills of people around the world. This guide explains how employer of record can help businesses expand their reach around the world and benefits that EOR can bring by making clients more visible on a global scale by using multinational level hiring practices.
Employer of Record Meaning
An Employer of Record is a third-party organization that becomes the full legal employer of your workforce and takes on all responsibilities related to human resources, payroll processing & payment duties as well as onboarding new hires. This makes them responsible for managing day-to-day workforce operations while you maintain control over what happens within your company.
What Is a Global Employer of Record?
The Employer of Record (EOR) provides companies a way to legally engage with employees across international borders without having set up local entities in each market their workforce is located. The EOR does this by taking on the obligations and responsibilities associated with labor law compliance, which can be very complex for employers who have staff working internationally. EoRs ensure compliance with complex labor laws across many markets while also managing payroll regulations for your organization’s global workforce.
What Does an Employer of Record Do?
The global EoR offers a new way for employers to legally and efficiently engage with talent in any location without having set up local entities or risking violating local employment laws. The employer of record maintains control over day-to-day management tasks such as compensation, position duties, projects, performance evaluation systems etc., while still treating employees like one cohesive unit under their authority by providing them employee benefits.
Some of the services that a global EoR could provide:
Help with recruitment and onboarding process of personnel
Draft and maintain locally compliant employment contracts
Manage all payroll and tax procedures
Pay employees on time and manage salaries
Ensure legal compliance with terminations and offboarding
Provide ongoing support on local labor laws and regulations
Benefits of an Employer of Record
Hiring international employees can be challenging, but it’s not impossible if you know what to do. EoR partner offers many benefits including hiring top talent from anywhere and supporting them based on their local needs. A global EoR also helps you with:
Cost minimization compared to entity setup
Talent retention and comprehensive benefits packages
Maintenance of compliance with employment contracts and evolving labor laws
When to Use an Employer of Record
Global employers are embracing the benefits of international work with open arms. With a global EoR, businesses can thrive and grow no matter where they’re located in this vast network. By having an EoR, businesses can:
Explore New Markets
The EoR is a great way for those without the commitment of setting up an entity in another country to explore new global markets. You can hire quickly and generate revenue streams, which will let you reach customers that may not be accessible through your normal marketplaces!
Attract and Retain Top Talent
As the competition for top talent remains fierce, more and more companies are turning to remote options. Featuring a global EoR also helps you hire from anywhere without geographic limitations which broadens your search pool of potential employees that have just what it takes! Additionally if they want or need to be relocated at any time during their employment with you then setting up an entity will not pose too much hassle because everything can happen online.
Hire Employees During Entity Set Up
When expanding into a new international market, hiring local talent can be difficult and time-consuming. An EoR is an excellent solution for entities looking to hire while they finalize the requirements needed before establishing themselves in their target country.
Avoid Misclassification of Contractors
The alternative to hiring international employees or establishing an entity in another country is often using contractors. Many companies find this cheaper option useful for remote, freelance talent that they want on their team but can’t afford the high costs associated with cultivating local candidates. Global EoR can be a cost-effective way to hire contractors as employees, without the risks associated with hiring international talent. It also allows companies that grow large enough an efficient means for classifying them correctly so they are properly taxed and compliant with local laws in each country where their services will be used
How to Select an Employer of Record Partner
When selecting an EoR partner it is important to consider following aspects:
It is so important to find a company with clear and transparent pricing, especially if you are on tight budget. An employer of record who can provide your team with all the information they need before making decisions will make it easy for everyone involved in this process!
One of the most important things to look for when hiring an EOR partner is their accuracy in calculating employee burden costs. The payroll calculations must take into account other social contributions like health insurance and paid time off, which can vary from market-to-market based on local laws or agreements between employers’ associations that regulate certain aspects about working conditions at large companies.
Worldwide coverage means that your partner has the know-how to help you navigate any situation. Make sure they are experienced and knowledgeable in all of these markets so there’s no need for extra time or money spent on unimportant details like compliance with local labor regulations!
A responsive and supportive partner can help you to grow your business. A good EoR will be there for regular engagement, answering questions from staff members as well as new hires on behalf of the company while they are getting accustomed with their work environment in order to better serve those who depend upon them most- including clients!
Employer of Record vs PEO: What’s the Difference?
The EoR is an organization that handles all HR tasks for a company’s distributed workforce, such as onboarding and payroll compliance. A PEO provides co-employment services alongside smaller companies by handling some aspects of HR services.
Employer of Record vs Staffing Agency: What’s the Difference?
The difference between a staffing agency and an EoR is that the staffing firm recruits workers to meet temporary workforce needs and matches them with businesses for specific projects.
Georgia and the Caucasus region have a well-known reputation for producing high quality workers. If you’re looking to find stability in your career, this may be an excellent place to start!
Hiring professionals from Georgia is a smart decision for many reasons, including:
Stable business environment
Young, skilled & motivated labor force
European mindset & culture
Approximately 3hrs time difference
The Employer of Record service is a relatively new concept in this region, but there are several industry leaders such as GrowMore Recruitment designed for companies who want to hire professionals without spending time or resources on their hands dealing with payroll taxes and other related obligations.
Expanding into new markets can be a daunting task, but with the help of an experienced global partner like GrowMore Recruitment, you can quickly and easily find the top talent you need to succeed. Our team has unrivaled expertise in international expansion and recruitment, so you can focus on growing your business while we take care of everything else. Contact us today to learn more about our full suite of global workforce solutions or to get started expanding your business into new markets!