10 reasons global businesses choose an Employer of Record

Ten benefits of partnering with Employer of Record

Partnering with an Employer of Record (EOR) can significantly enhance your business’s ability to manage global talent acquisition and compliance.

• Simplifies local/global hiring of talent

An EOR is the legal employer of your international hires, which means you can hire employees in multiple countries without the need to set up local entities. This helps you get rid of bureaucratic hurdles and be able to hire talent in days and even, in some cases, hours. EORs also take care of all compliance with local labor laws and avoid business hassles with international employment.

• Access to a larger talent pool

The use of an EOR allows you to access a global talent pool without geographical constraints. This is especially helpful for small businesses that want to scale globally but lack the budget to physically open offices there. By providing access to local expertise and helping your business navigate employment regulations effectively, EORs aid you in your efforts to recruit in diverse markets.

• Comprehensive benefits to attract top talent

Access to competitive benefits packages that conform to local standards can help attract top talent, and EORs offer these packages. These packages are often health insurance, retirement plans as well as other perks that may be out of your reach in foreign markets. Your business can provide attractive compensation without a high administrative burden by tapping into the EOR’s established benefits network.

• Quick talent acquisition

EORs streamline your hiring process, thereby enabling you to acquire talent quickly. They also handle all payroll, compliance, and employee benefits, so you can concentrate on your core business activities and quickly bring new hires into the team. In competitive environments, they can enable you to scale operations rapidly.

• Compliance with labor laws

EORs are experts in navigating the complexities of labor laws and regulations across many jurisdictions. They act as the legal employer to ensure that any employees within their category of workers are compliant with minimum wage, overtime, anti-discrimination policies, and workplace safety. This reduces legal risks for your business because the EORs constantly monitor the changes in legislation and adjust practices accordingly. That expertise helps prevent expensive fines and lawsuits.

• Easy workforce management

EORs simplify workforce management by handling payroll processing, tax withholding, compliance with local and international labor laws, and employee benefits administration. A centralization of HR tasks means that you are free from the administrative burden that you would have to endure to deal with day-to-day HR issues and can focus on strategic initiatives instead. EORs also help you communicate effectively with your employees to meet all contractual obligations and resolve any employment-related issues in a timely manner.

• Streamlined hiring process

EOR partnerships offer a great way to significantly expedite your hiring process. Recruitment to managing your employees— EORs manage all of it, with all of their employment contracts complying with local laws. Additionally, they get background checks done. With this streamlined approach, you can quickly gain access to top talent in new markets without the delays one would expect in the creation of a local entity.

• Eliminates employer risks

By hiring an EOR, you can, in essence, wipe out many of the employer-associated risks. This is done with the help of EORs bearing the liabilities arising from employee management, including compliance failures or employment disputes. In particular, this risk mitigation is important for those who are expanding into new markets outside of their usual sphere of operation and where local labor laws can create major problems. In addition, EORs help solve immigration problems and make sure all employee benefits comply with local regulations, all of which further reduce the potential for legal exposure.

• Simplified payroll management

The EOR simplifies payroll by compensating employees in their local currency, which lightens the administrative load and diminishes exchange rate risk. It is a time-bound payment and also in accordance with local tax rules. In addition to processing payroll (including tax deductions and statutory benefits contributions) to adhere to various countries’ employment laws, EORs also deal with the complexities of the payroll process. This lowers the risk of a penalty for non-compliance. Outsourcing payroll and HR functions to an EOR helps you reduce paperwork and administrative tasks to a great extent, enabling it to concentrate on strategic business functions.

• Expand to new markets

By partnering with an EOR, you are able to hire employees in new markets without creating a legal entity. It speeds up the go-to-market timeline and enables quick growth in the international markets. The EORs have in-depth knowledge of local labor laws and market conditions so that you can navigate the complexity of international employment laws with ease. EORs offer the flexibility to scale workforce needs up or down without the hiring process constraints as you grow. It’s particularly helpful if you have variable staffing needs.

Know more: Employer of Record Benefits – Advantages brought by an EOR

Global Squirrels EOR solution: hire and pay talent locally or globally

Global Squirrels is a staffing and payrolling platform that helps you hire and manage your workforce efficiently and effectively. Our platform offers Employer of Record (EOR) solutions, ensuring you do not need to worry about being compliant with local and international labor laws. Our platform allows you to hire top talent from the country of your choice who meets all your business requirements. It will also manage all administration functions, including payrolling, performance management, task & timesheet management, benefits management, and more!

Eager to know more about how we do it?

Our Purple plan allows you to onboard an already-sourced candidate or convert your freelancer to a full-time employee. Once the onboarding process begins, our platform starts managing all administrative functions, including performance management, payroll & benefits management, task & timesheet management, compliance with local & international labor and tax laws, and generating offer letters.

The Orange plan offers more by helping you find and onboard employees who meet all your business needs. Simply sign up and choose the Orange plan. You will then be asked to fill in details such as job title, job description, and type of employment. After filling that out, you will be asked about the educational background and skills you want the professional to have. Finally, you need to choose the country you want to hire from. After submitting, within 2 to 5 business days, you will receive pre-screened and background-checked profiles to interview, after which you can choose the ones you want to onboard based on the interview feedback. Once you complete this process, our platform will handle all HR functions mentioned above.

Are you ready to partner with our platform to ease administrative functions? Request a demo today!