What is an Employer of Record (EOR)?
An Employer of Record (EOR) service helps companies onboard, manage, and pay employees who work overseas. Organizations of any size can avail this service when they lack a legal entity. With the right provider, an organization can seamlessly hire five candidates from one country or hire five candidates from 5 different countries. They can grow their network and reach by recruiting additional international workers.
When to Use an Employer of Record service provider?
In a situation where the organization may need to act quickly or need a temporary solution to satisfy the demands of a project or a new business initiative in international waters, an EOR is used as more cost-effective approach. This is largely due to the fact that forming a local company can be time-consuming, expensive and unnecessary in long-tail regions.
Here are five other ways in which this service can prove to be useful.
- Assist international hiring in an accessible and compliant manner.
- Function as a stopgap for an entity.
- Help with a merger or acquisition.
- Assist in exploring new markets.
- Aid when shifting to remote work.
What are the benefits of choosing an Employer of Record (EOR)?
- Saves time – Hiring new employees and processing their payroll is a painstaking task for HR. EOR can manage your global employees for you, freeing up time for other strategic initiatives.
- Maintains accuracy – An EOR can help you with your payroll and benefits, employment attendance sheets, employee files and also keep you up to date on compliance reports. This will serve as a single source of truth for all employee data, ensuring data privacy, accuracy and accessibilty.
- Labor law compliance – It can be difficult to stay compliant with labor laws when you’re running a business on your own across countries. A Global Employer Of Record monitors social standards and tax tables globally, ensuring compliance with local laws.
- Risk Mitigation – Hiring an EOR allows business owners to delegate some of their obligations to a third party. The EOR service provider retains accountability as employees are on the providers’ records, official papers, draughts agreements, and tax documents.
- Cost-efficient – Opening an overseas office incurs a flurry of expenses, from the price of creating a subsidiary to the costs of recruiting legal and financial support.
What are the responsibilities of a conventional Employer of Record provider?
EOR organisations, in most circumstances, undertake the following key tasks:
- Process the payroll of the employee of record/EOR employee.
- Serve as a liaison between the government and the customer.
- Ensure that all local labour and payroll tax laws are followed.
- Fill out tax and insurance papers on behalf of the employer.
- Arrange for documents related to visa and work permits if an overseas employee must relocate.
- Provide consulting services to the organization on employee onboarding, severance compensation, and contract termination best practices in the region.
Which countries can Neeyamo assist you with?
- EOR in Netherlands
- EOR in Canada
- EOR in USA
- EOR in New Zealand
- EOR in Mexico
- EOR in China
- EOR in South Africa
- EOR in Australia
- EOR in Belgium
- EOR in France
- EOR in India
- EOR in the UK
This is just the beginning of the list. You can avail Neeyamo’s services in 160+ countries. Check out the complete list here.
YOU MAY ALSO LIKE I 13 Questions to ponder before picking your EOR Provider
The future of global Employer of Record services
When an organization evaluates the cost and effort required to employ a workforce in a foreign location, the advantages of EOR services become apparent.
As per the 2022 Globalization Trends survey, 9 out of 10 CFOs believe that allowing employees to move to the location of their choice and resume work, rather than filling in that position with local talent, is the preferred talent strategy for key stakeholders.
93% of CFOs who took the survey agree that it is worth considering using an EOR provider to aid their global talent management needs as it aids companies in overcoming hurdles in operating in a new country as EOR providers can take care of everything for you! They assist in achieving your global expansion goals while reducing legal risks.
Neeyamo is a market leader in providing EOR solutions and Global Payroll solutions. As a global leader in payroll, we take a local approach to employee engagement. Our strong compliance foundation and easy-to-use payment gateway make processing payroll a breeze, no matter where your employees are located.
If you want to hire anywhere in the world without any hassle and want to collaborate with an employer of record, don’t hesitate to contact us.