After lock-downs and travel bans the world is in a hurry to open up again. Yet extreme shortages of talent globally are preventing businesses from reaching their full potential. That’s why you need to know more about everything an Employer of Record could do for your business.. and your staff numbers.
An Employer of Record? Put simply, an Employer of Record (EoR) is a firm that’s legally established (i.e. ’of record’) to hire staff on your behalf.
The EoR handles everything from recruitment, employee remuneration, classification and compliance, taxation, employment benefits, visa applications, insurance, training and onboarding, performance appraisals and other administrative tasks that would equate to a logistical headache for companies operating or hiring staff offshore.
Why is now the best time to engage an Employer of Record?
An EoR service, often set up in partnership with specialist global workforce management companies like CXC, represents a streamlined, fast-track way to throw open the window to a range of new opportunities for your business, including fast, streamlined access to the global talent pool.
In fact, with an Employer of Record arrangement you can hire virtually anyone, from anywhere, immediately! From remote workers to digital nomads to foreigners just passing through.
An employer of record hires then handles onboarding a company’s selected candidates in other jurisdictions, taking care of payroll, compliance and employee benefit packages in accordance with local laws and regulations.
An Employer of Record reduces risk and makes your business future-ready
In effect, the Employer of Record significantly mitigates the risk of non-compliance and inadvertent illegal employment activity which can trigger big penalties and loss of reputation.
On a deeper level, it allows your business to step into the future.
Already in 2022, 16% of companies in the world are 100% remote. In addition around 62% of employees aged 22 to 65 globally say they work remotely at least occasionally.
Modern companies no longer care about their workers’ physical location, so long as they can deliver on agreed objectives. Remote working really is the way of the future, providing much-needed flexibility in scaling your dream global team.
Moreover, in the post-COVID world to come, remote working will be the new norm. As a result an EoR structure will be valuable asset and a go-ahead business tool that allows you to hire anywhere in the world without the hassle of coming to grips with complex laws, taxes, benefits, currency exchange, or payroll issues etc.
An Employer of Record enables you to build a successful global team
In addition to talent recruitment, an EoR enables you to build a successful global team without the hassle of setting up business overseas; in effect global employment is consolidated into one simple solution – saving you time, money and risk.
An EoR is perfect if:
- You don’t have a local entity set up already
- Your company is just testing out a new foreign market
- Compliance and cost are major factors for your HR strategy
- You want to have global access to recruit top talent
- Managing risk is a priority
Choosing an Employer of Record
Choosing an EoR partner is an important undertaking, so it’s better to be safe than sorry. As your international hiring partner, your EoR should provide full follow-through by acting as a seamless extension of your team, providing new staff with a corporate onboarding experience that gives them comfort about your business and certainty about the next stage in their career.
A professional EoR not only helps you hire internationally but also take full responsibility for ensuring compliance with local laws and best practices, because they understand that they are your outsourced legal, tax, and HR infrastructure.
CXC offers a specialised EoR service to help streamline your recruitment and international expansion plans. We can also help support your new market entry needs by providing business premises to house local, foreign/expat and remote workers. For more information about CXC’s range of global payroll services do not hesitate to contact us!
