How Employer of Record (EOR) Services Empower Global Remote Workforce Management

The post-pandemic shift to remote and hybrid work has redefined how businesses operate. According to Gallup, 53% of employees now prefer hybrid work, while 27% favor full-time remote roles. As more companies explore global talent pools, the challenge isn’t just hiring internationally—it’s doing so compliantly and efficiently. That’s where Employer of Record (EOR) services come in.

This article explores the rise of remote work, its operational and financial benefits, the hurdles businesses face in managing global teams, and how EORs like Global Squirrels simplify international hiring and compliance.

The Remote Work Revolution

The COVID-19 pandemic catalyzed one of the largest workplace transformations in history. Remote work went from being a niche perk to a mainstream standard. According to the U.S. Census Bureau’s American Community Survey, the number of Americans working remotely tripled between 2019 and 2021—from 5.7% to 17.9%.

With forecasts predicting over 90 million remote roles globally by 2030, businesses are adapting to leverage borderless hiring

Why Companies Are Hiring Remotely

Remote work has continued to grow in popularity, with many employees and businesses recognizing its benefits, such as increased flexibility, improved work-life balance, and reduced costs.

Increased flexibility

Remote work allows employees to create their schedules, leading to better work-life balance. This flexibility is especially beneficial for individuals with caregiving responsibilities or other commitments outside of work. A report by Buffer found that about 54% of remote workers cite flexible scheduling as their top benefit. This helps your business get more work done efficiently without the need for additional overtime costs, ultimately boosting performance and cost savings.

Improved work-life balance = more productivity

With commuting eliminated, employees can allocate more time to personal interests and family, contributing to overall happiness and job satisfaction. According to Buffer, 68% of remote workers described their remote work experience as very positive, and 23% described it as somewhat positive. This helps your employees be more productive for your business.

Saving costs

By hiring remote employees globally, your business can significantly reduce overhead costs, such as office space expenses, by eliminating rent, utilities, and maintenance. Additionally, remote hiring removes the need for costly relocation packages while expanding your talent pool beyond geographical boundaries. Streamlining the recruitment process, remote hiring cuts down on job posting, travel, and recruitment service costs, giving you access to a global pool of skilled professionals from regions with lower living costs. This not only shortens hiring timelines but also reduces overall recruitment and salary expenses.

Challenges related to remote employee management

Lack of dedication from your freelancers

Freelancers may not be as dedicated to your business as they have the flexibility to exit projects without notice, potentially leaving you with wasted time and resources invested in their training. Additionally, since freelancers often work for multiple clients at once, it becomes harder to track the hours they dedicate to your project and the tasks they complete, making it challenging to ensure consistent productivity and focus.

Tracking productivity

Monitoring work output can be challenging without direct oversight. Managers may struggle to gauge productivity levels and ensure accountability, leading to concerns about whether employees meet their objectives.

Complex country-specific leave management

Managing leave policies across multiple countries can be a complex and time-consuming task, with varying legal requirements in each region. Ensuring compliance with local leave laws while maintaining consistency across your organization can create significant challenges. Failing to meet these legal standards could lead to non-compliance risks while navigating customized policies to fit both company and regional needs can add further complications.

How does an EOR simplify global remote hiring?

An Employer of Record (EOR) significantly simplifies global remote hiring by managing the complexities associated with international employment.

Simplified compliance and legal framework

• Legal employer role: An EOR acts as the legal employer for remote workers, which means it assumes all employment-related responsibilities, including compliance with local labor laws and regulations. This alleviates the need for companies to establish legal entities in each country where they hire, thus simplifying the hiring process significantly.
• Local expertise: EORs possess in-depth knowledge of local employment laws, tax regulations, and compliance requirements. This expertise minimizes the risk of legal issues and penalties that could arise from non-compliance, allowing companies to focus on their core operations rather than navigating complex legal landscapes.

Streamlined payroll and benefits management

• Payroll processing: Managing payroll for employees in different countries can be complicated due to varying tax laws and currencies. EORs handle payroll calculations, ensuring timely payments and proper tax withholdings, thus reducing administrative burdens and errors.
• Benefits administration: EORs also manage employee benefits according to local standards, ensuring that remote workers receive appropriate compensation packages that comply with regional norms.

Efficient recruitment and onboarding

• Rapid hiring: EORs streamline recruitment processes by handling job postings, candidate screening, and interviews. They can quickly identify and hire suitable candidates for businesses looking to expand internationally.
• Onboarding support: Once candidates are hired, EORs facilitate a smooth onboarding process by managing necessary paperwork, contract generation, and compliance checks. This ensures that new hires are integrated into the company efficiently and effectively.

Cost efficiency

• Reduced overhead costs: By using an EOR, companies can avoid the costs associated with setting up local offices or hiring local HR teams. This includes savings on legal fees, office space, and administrative expenses related to managing a workforce directly.
• Flexibility in scaling operations: EORs allow businesses to scale their workforce up or down easily in response to market demands without the need for significant investments in local infrastructure.

Factors to be aware of before choosing an EOR

When selecting an Employer of Record (EOR), it’s crucial to be aware of several factors that could impact your decision.

1. Compliance and legal risks

• Understanding local laws: EORs must navigate complex local and international labor laws. A lack of knowledge in this area can expose your business to legal risks, including penalties or license revocation if compliance is not maintained.
• Monitoring changes: Regularly review local regulations to ensure your EOR adapts to any changes promptly, as failure to do so can lead to significant repercussions.

2. Pricing transparency

• Beware of hidden fees: Ensure that the pricing structure is clear and comprehensive. Hidden costs can undermine your budget and lead to unexpected expenses, which may derail your cost-saving goals.
• Evaluate total costs: Look beyond the base fees and consider the total cost of services, including setup, taxes, and any potential termination fees.

3. Quality of service

• Avoid providers that cut corners: If an EOR prioritizes speed over quality—such as rushing onboarding processes or relying too heavily on automation—this can compromise employee experience and compliance.
• Customer support: Assess the availability and responsiveness of customer service. Efficient support is critical for resolving issues that may arise during employment.

Choosing Global Squirrels as your EOR for managing a global remote workforce

The Global Squirrels staffing and payroll platform helps your business by handling all aspects of staffing and HR functions, such as managing employee productivity, payroll & benefits, and compliance with local and international labor laws.

Hiring remote talent globally

Global Squirrels provides access to a pre-vetted talent pool from countries like India, Mexico, Georgia, Nepal, Pakistan, Sri Lanka, Canada, the USA, and the Philippines. Our platform sources candidates based on your job requirements, allowing you to interview and finalize the right fit.

Streamlined onboarding and payroll

Global Squirrels handles all aspects of employment, including onboarding, payroll, taxes, benefits, and expenses. Our platform ensures full compliance with local labor and tax laws. You simply pay a monthly subscription fee and the salary of the professional, and our platform takes care of the payroll, benefits, compliance, etc.

Avoiding entity setup hassles

Using the Global Squirrels platform eliminates the need for you to set up a local entity in the employee’s country. Our platform acts as the legal employer for your business, managing all HR responsibilities such as payroll, benefits, compliance, offer letters, etc. This saves you a significant amount of time and cost of establishing an international office and HR department.

Compliance and risk mitigation

Global Squirrels prioritizes compliance with local laws and employment regulations. Our platform proactively addresses complexities around labor laws to mitigate risks like employee misclassification. This ensures your international remote hiring is fully compliant with employment laws.