Debunking 6 Major EOR Myths
There are more similarities between school and corporate life than you might think.
Rumors were common currency in high school, with popular kids taking the fall most of the time. Because they were trendsetters, everyone wanted to be them or be with them.
The corporate world is similar. Considering the curiosity surrounding new trends emerging in the industry, the idea of equating it to the concept of popular kids isn’t that far-fetched.
And right now, the new kid on the wall of popularity is none other than Employer of Record(EOR).
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It’s been the talk of the town as it makes international hiring seamless by providing a hassle-free experience. However, there are also plenty of rumors surrounding EOR, making it hard to separate fact from fiction.
Here’s some of the popular gossip you might have heard in the office corridors while contemplating choosing EOR for your business:
Myth-1: High risk of compliance
Everybody liked rule breakers in high school because of how cool they seemed.
While breaking the rules might be a neat trick to pull in high school, the idea is frowned upon in the corporate world. After all, displaying a respectful attitude and being disciplined are some of the basics of running a successful business.
There have been cases where companies were levied hefty fines because they weren’t compliant with the laws. Under such circumstances, it is natural for any organization to be skeptical about trusting an external entity to take care of that affair.
Neeyamo’s EOR ensures compliance with local regulatory requirements while organizations have complete control over managing their extended workforce. Thus, there is complete transparency for organizations to assess and arrive at intelligent decisions.
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Myth-2: It’s a luxury that will only empty your pockets
Here’s what is costly: Living in a fast-paced world as we do now. Instead, investing in the right place at the right time can prove otherwise.
According to Advance2000, 57% of companies say that leveraging key digital technologies is critical to their operations.
EOR is a priority that companies worldwide intend to invest in as it gives them an edge over others in the industry. Cost is an inevitable part of running a business, and if a company aspires to expand globally, then EOR is one of the best options to consider.
Myth-3: Establishing an EOR is complicated
The job of EOR is to simplify a company’s operations. Picture this: Would it be easier to hire abroad and take care of all the employee needs by yourself or hire a responsible entity to do it for you?
A capable EOR solution accommodates an organization’s vision to help them achieve their goals easier. It helps attain the right international talent to help the company thrive.
Myth-4: EOR? PEO? All the same.
If only the EOR experts had a dollar every time, they heard that!
PEO (Professional Employer Organization) acts only as a co-employer while the firm continues to perform its responsibilities. It also requires an organization to have a local entity where they intend to expand.
In contrast, EOR acts as a legal employer by taking over most control and responsibilities. Here, EOR has an edge as it does not require the company to set up a legal entity to perform its operations abroad.
Myth-5: EOR is used for hiring only entry-level applicants
That is far from the truth.
Employer of Record is a discriminatory-free solution that hires per the client’s needs. It is not limited to being available for a specific type of role or responsibility; but rather open to a wide range of opportunities.
Myth-6: EOR instills a lack of control for organizations
Although an Employer of Record takes up the majority of liabilities, the organization only has the final say in all decisions. An EOR will assist and support all HR activities and, in the end, ensure that the company approves it.
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Did we cover all the gossip that you heard about EOR?
Or do you still need to decide if you should be extending the hand of friendship? Talk to EOR’s loved ones today; after all, who better can you approach than the people who spend most of their time with it?
Reach out to us today – we always look forward to hearing from you!