Have you wondered what it is to be in the long tail? What must it be like missing out on the tittle-tattle, office banter, or Fun Fridays? Well, remote working isn't a thing of the future; it's a thing now. After the pandemic hit us, there has been one question: How will the new normal be? Three years later, the answer to that question is our current reality.
Is getting dressed for work stressful? Should I wear sweatpants or pajamas? Many will relate to this because people chose to pair up their tux with shorts and pajamas, which became the new normal and thus bloomed the era of remote employees.
The stigma of working from home no longer exists, and people are starting to adapt to the new normal. It took the pandemic for many employers to realize that this is beneficial. The entire country is your oyster, and employers now get to choose from a plethora of options while hiring globally.
A considerable portion of a business's success is attributed to hiring suitable candidates at the correct time. Working from home has become the standard, but finding qualified people and completing virtual onboarding may take a lot of work. In-person, the recruiting process may be stressful enough, but it can be considerably more so in a remote situation.
Many believe remote workers are digital nomads who travel with their laptops and work on the beach, which is false. Right now, the world has come to a juncture where the remote and office workforce holds a pivotal role in the smooth functioning of an organization.
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How can EOR help in remote hiring?
For most multinational corporations, the workforce is spread across the globe, with employees proliferating from Vegas to Victoria. With this scenario, many companies worry about managing the global workforce with such a varied presence. Employer of Record (EOR) comes into play when having a legal entity in each country can become daunting. Ever-changing federal, state, and local regulations have kept the HR task force on its toes for years.
On the other hand, the pandemic has added a new layer of complication to the remote workforce. The state borders that previously separated us have vanished, with 42 percent of the US labor force working remotely. Because remote work will be around, firms will have more opportunities to recruit diverse talent from around the country.
As soon as you cross state boundaries, the legal employment obligations might change dramatically. Those restrictions apply to any remote employees who live in those states, and you, as a result, are subject to them. Will you be able to keep your composure?
The following are some of the legal repercussions of employing across state lines:
- Payroll: Each state has its own set of income tax regulations.
- Pay and Hour Standards: FSLA requirements encompass working remotely and overtime, minimum wage, exemptions, and other wage and hour rules vary by state.
- Worker's Compensation: A never-ending bag of worms, worker's compensation becomes increasingly complicated as the state and the status of the workers change. Workers working from home may be entitled to worker's compensation for occupational illnesses or injuries.
All the above stated can be quickly taken care of if companies outsource their EOR work to external third parties specialized in the same. Companies concerned about compliance as they continue to hire more remote employees across state boundaries may use the EOR to stay legal while allowing HR teams to focus on finding the appropriate individuals and keeping remote teams involved in the organization's success. EOR helps take the central portion of the load off the employers and focuses more on employee experience and engagement.
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